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Show I INDEPENDENTS I ARE SATISFIED I WtTHJUTLOOK IS Concession Made by the Bell IS Company More Than 1 They Dared Hope II COMPROMISE FINDS II FAVOR ON ALL SIDES ; Opponents of Government I j Ownership Elated; Other i Corporations Expected l to Follow Example. H WASHINGTON, Dec. 20. Attorney Hj General McRoynolds told friends today H that scoros of the independent telephone HI companies in tho United States were H ! gratified with tho agreement that tho H so-called trust has made with the do- H B partment of justice, which will give H E them the use of thousands of miles of H trunk lines operated by tho Boll com- H I panies. H ; I The department, he said, hardly could H j I have expected any court to order the H I If -e company to allow independents to Hj 1 II make use of Bell equipment, and thoro Hit! practically was no chanco that the in- I if) dependents could raise sufficient funds, H j if they had the desire, to build com- peting long-distance lines. To bring about competition in interstate inter-state business, it was pointed .out, would have required an outlay of many millions of dollars, and probably would have meant loss or a severe falling off in tho receipts of the BoLl and independents inde-pendents that tried to got long-distance business. Legion of Companies. According to figures laid before the attorney general by N. C. Kingabury, the vice president of tho American Telephone & TelegTaph company, who conducted tho negotiations which led to tho agreement of last night, thore are more than 20,000 independent tele-phono tele-phono companies in tho country. The opening of tho Bell lincs to all these companies, under tho simple and inexpensive inex-pensive plan, it is declared, will mean that ovcry one of these companies has the right to make use of the Bell linos in every part of tho union. Thcro was talk toda' at tho department depart-ment of justico of action by the Boll company to allow subscribers of independent inde-pendent companies in citicB to talk to Bell subscribers through Boll exchanges and Bell lines, but Mr. Melteynolds said that this wns a stop that seemed to be far in tne future. General Satisfaction. So far as he knew, the independent companies were well satisfied with the American Telephone & Telegraph com-posal, com-posal, and its agreement to make no lurther extensions and to give up its holdings in such instances as the department de-partment or the interstate commerce commission suggested such action. Announcement An-nouncement ot the agreement caused an unusual buzss of speculation here today, n In some quarters it was regarded aa Ban indication of tho fight that some of tho conservative members of President urn Wilson's cabinet will make against j government ownorship of public utili- on ties. It is known that Mr. McReynolds Bis strongly opposod to government own-ership. own-ership. The attorney general is said to feci that government ownership is likely to come in tho United States unless there can bo a restoration of frco competition in public service, but lie bcliovea tho agreement with tho American Tolephono & Telegraph company com-pany ia a long stop toward a return to competition in tho telephone and tolc-grapn tolc-grapn field, In his opinion the Sherman Sher-man law is a sufficiently strong weapon to forco any monopoly to come to terms, and Is convinced that' a' clear demonstration demon-stration of tho power will do much to allay the growing sentimont for government gov-ernment ownership, Biwleson Has Data. Postmaster Genoral Burleson, it became be-came known today, now has before him nil data collected and put in concrete form respecting tho proposed government govern-ment acquisition of telegraph and tolephono lines, but it is understood that -it is not his present purpose to submit the lindinga of his exports to congress unless thoy ure desired. It congress wishes to take up the question, tho postmaster general is prc- Sarcd at an hour's notico to submit ata on tho subject. In tho summary of Mr. Burleson 's annual report, supplied to the nowspa-pers, nowspa-pers, under the caption "Postal Telegraphs Tele-graphs and Telephones' appeared this paragraph: 'In Juno last a commission was appointed ap-pointed to make an investigation of this subject to determine the preliminary prelimin-ary stop's necessary for tho government to take toward tho acquisition of tho j telegraph lines in the country in accordance ac-cordance with section 5267 ot tho revised re-vised statutes- This commission is now engagod in preparing its preliminary report, re-port, and if tho findings justify such action, ac-tion, proper recommendations will be made by tho department at a later date." As the report finally was issued in permanent torm, this paragraph was eliminated and tho following substituted: substi-tuted: "Since June last tho department, has been conducting a careful investigation investiga-tion to determine tho desirability and practicability of oxteuding tho government govern-ment ownorship and control of means of communication, with a viow to tho acquisition by the government of tho' tolegraph ana telephono facilities to bo operatod as an adjunct to tho postal son'ico. Tho postmaster general is now engaged in reviewing the data collected collect-ed and later, if dosirod, will submit Bame to the appropriate committee of congrcs for its consideration." Tho chango of tho paragraph was made at tho last moment before tbot report re-port was issued, the data moantimo having been submitted to the postmaster post-master general in form of a roport. This report will bo held by Mr. Burleson, it is understood, without furthor expression ex-pression upon his part. 1 Others Apt to Follow. i There have been many compromises between tho department of justico and combinations brought to court as offenders of-fenders under the Sherman act, and it was an opinion quito gonorally shared today that other big corporations are apt to follow In the footsteps of the American Telephone nnd Telegraph company. Among those who already have sought to sottlo their involved affairs out of court 1b the New York, New Haven nnd Tlartford Railroad company, and that case presents difficulties diffi-culties far greater than presonted by tho Boll Telephone company. The department's attitude toward the American Telephone and Telegraph company Is not to bo taken, it is as-' serted, as an indication that it does not intend in the future to make use of euitB in court, nor that it does not expect to call into play tho criminal features of that statute m cases of conspiracy con-spiracy in restraint of trado whore tho real offenders can be reached. There has been no final determination, it is Sointed out, not to prosecute New aven directors oven after a settlement of tho re-organization of that rpad ia agreed to. No Change in Policy. BOSTON. Dec 20. President Vail of the American Telephone & Telegraph company said tonight that the separation of that company and tho Western Union Telegraph company would not affect the pension plan recently announced for the benefit of the 175,000 employees of these companies and of the Western Electric company. President Vail also said: "The telephoning of telegrams to the telegraph companies and the delivery of telegrams by telephono companies will continue. This existed before the American Ameri-can Telephone & Telegraph company took any Interest In the Western Union. The Postal Telegraph company has "always "al-ways had the same facilities afforded It that the Western Union had." Decision Favored Company. SAN FRANCISCO. Dec 20. Twenty-four Twenty-four hours after word came from Washington Wash-ington of the voluntary agreement of the American Telephone & Telegraph company com-pany to make connections with Independent Indepen-dent compnnles. the California supreme court handed down a decision stating that an order of the state railroad commission com-mission compelling the Pacific Telephone & Telegraph company to make such connections con-nections was a violation of tho constitution consti-tution of the United States, Inasmuch as It was confiscatory. The railroad commission had directed I hat thn Pncllle coninanv mako Inncr.rll?!. tance connections with two Independent concerns oporatlns in Butte, and Tehama Te-hama county. The company took an appeal, and after a. long delay has the academic- satisfaction satisfac-tion of being the winner, although the action taken by the parent concern practically prac-tically nullifies tho chief effect of the court's decision. |
