During the past war there was a formal agreement, approved by the President, between the War, Navy and Justice Departments establishing a prosedure for the postponement of trials instituted by the Department of Justice under the antitrust laws. At the present time, however, such a formal procedure for the handling ・ of this problem does not appear necessary. In the event you receive requests for postponement of trials of antitrust cases, I believe they should be referred directly to this Department. We shall then, on the basis of the facts made available by the defendants and the information in our possession, take the matter up with you so that a determination may be reached. It is, of course, understood that before any matter is deferred it must be predominantly clear that the progress of the mobilisation effort is being impeded. In each such case the presssution will be recommenced as soon as it appears that it will no longer interfere with the mobilisation effort. I would appreciate your advising me whether this prosedure is agreeable to you. Sincerely/youre, WARO ME Bath Attorney General APPENDIX III-A. T. & T. J 1952 Dear Mr. Attorney General : I request your consideration of a situation covered by your letter of October 19, 1930. The Ball Telephone Laboratories, Incorporated, and Western Electric Company, Incorporated, are engaged in research and development and in the production of prototypes for the three Military Departments in the field of new weapons and sundliary equipment for them. The latter Geng is also under contruct to the Atonda Energy Gommission to direct the tians of the Sandia Laboratory at Albuquerque and in se deẳng to was scientific research and development skills available in paresanal of Bell Telephone Laboratories. 419 013 As you know, wo somsider that progress in these fields is of vital interest to the United States. Such progress may well be the desiding faster in the sussens of our national defense effort and is the most hepaful aveman leading toward reducing the heavy burden and cost of mintaining an adequate defque The work of these two Companies is of a size and mature which makes it a significant part of our total mobilization effort. The effectiveness of verk depends on the quality and sautimions availability of sherged with its direction. To supplemout the efforts of i employed directly by these two Comparise, many tap-grade my leaned to them from other affiliated ompanies in the Ball Syst Bandia operation the Ball Telophomo Laboratories has más its peientiate available to the Western Hectric Company, in sesordenge wit Government expressed desires. There is now pending under your direction an antitrust suit against the American Telephone and Telegraph Company and Westera Mectric Company, Ineerparated. The allegations in this astica include conspirasy inval ving the entire Bell System, of which the Ball Talephone Labaratories is a part. I understand that recently stops have been taken by your Department Leaking tevned the trial of this suit. Those imalno the service of interrogatories and an order for the élecovery of vertala dosunouts. The President of the Bell Laboratories has informed me that compliance with these damnds and the further activities necessary for a proper defense of this mult are divarting and vill increasingly divert key personal from the work I have outlined above an extent that will seriously retard the progress we so urgently desire. those siroumstances, it is dear to me that the mobilisation affert eded by proaning this suit, and that aseordingly the interests of States require that, without prejudies to the merits of the parations therefor be peotponed while the (1900t50) similar action was taken to avoid disruption in our war effort. We are prepared to furnish information in support of this request viiek has been submitted by the Comenias involved in this suit, and which insluing certain elassified data on military projects being condusted by the Companies. Sincerely years, The honorhi The Attorney General We sɛres with the foregoing and join in the request for postponament. APPENDIX IV—A. T. & T. Pall Telephone Laboratories, Ins, and Vertern Destris Dengary, I note that the Secretaries of each of the armed surviens jaka ui thì you in a request for ́such suspension. I e surefully considered your letter and a ttorney General in charge of the antitrust Nvision and the etternge ure assigned to this cape, The request is based upon the sand by the Government the services of certain officials of the Dall Telephone Labor vided that they can be released from the performance of private Page 2 terminate acts by the defendants it believes are in violation of the antitrust laws, and detrimental to the people of the country, It could be expected that any such abandonment would be followed, before long, by similar requests on behalf of other defendants in other cases where their officials, or officials of subsidiaries, are engaged in service for the Defense Department or other federal agencies. I cannot assume that the reviest by 4. T. & T. and Western Electrie is not made in good faith, and, of course, I an anxious to remove any obstacles in the way of the use by the Govern ent of the services of company officials wherever they are needed. It does seem to me, however, that this is a matter which could very well be handled satisfactorily by the attorneys on both sides of the litigation. In fact, it is normal for lawyers encased in protracted litigation to deal with problems affecting the ability of the defendants to go forward as to particular matters. There are accommodations which can and will be worked out as the need arises. I would suggest that such an avere be employed by the attorneys for the defendants. Sincerely yours, Philip . Perlman Acting Attorney General |