The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-05

CABLE LINES PLACED
UNDER us. COMBINE
Burleson Issues Order and APP
points George g. Ward as
Director.
MACKAY PROTESTS ACT
Officials Of Commercial Com
pany Deny Need Of Almaga-
nation and Refer to Suit.
MACKAY PROTESTS ACT

powers which he considers to have
been vested in him by Congress for
che control OF telegraph and cable
lines during the war Postmaster-Gen.
eral Burleson directed yesterday the
amalgamation OF the marine cable
system OF the western Union Tele-
graph Company and the Commercial
Cable Company. naming as director
Of both George G. Ward. vice-presi-
Dent and general manager Of The Com
mercial company. 'a.
Mr. Burleson's order was issued
only a few hours after the CONNER
cial company had filed suit, in the
United States District Court here ask
ing that the Government be enjoined
from taking over its system, the COM
pany through Charles e. Hughes. its
counsel, claiming that "the seizure of
the marine cable system OF the COM
pany by the Government was and is
illegal, void and ultra vires."
Mr.. Ward in q statement last night
says 1t will be impossible for him to
accept the cable dictatorship.
1t was understood also in Washing
ton yesterday that Mr.. Burleson had
In contemplation a uniflcation as well
Of telegraph lines and that ne might
direct the consolidation Of the lines
of the Western Union and Postal Tel
egraph companies to-day or in a few
days. The telegraph lines. 1t Is I'M
derstood, will be placed under the
charge Of the managing officer OF the
Western Union.
Burleson Notihes Mackay.
Mr.. Burleson's decision in regard to
the cable lines was announced by him
in the following message to Clarence
II. Mackay president Of the CONNER
cial company:
THE interests Of the public service
during the present emergency reces-
State the unification in operation to
the fullest extent possible of the cable
systems leading from this country to
Europe so that the full capacity OF all
the cables may be made available to
the public and the press. 1t is mani
rest that this can only be accom-
plished through the operation of the
two systems under one management.
have made q survey Of the situation
and am satisfied that the object sought
can best be accomplished by placing
the cables with the operating head
OF the Commercial Cable Company.
Il therefore direct so far as I am
authorized by the joint resolution of
Congress. under which the cable sys-
TENS are now controlled by the Gov
eminent OF the United States, that
Mr.. George g. Ward. vice. president
OF the Comme' tial Cable Company and
who I understand has direct charge
of your cable system, assume the man
agement and operation Of both the
commercial cable system and the cable
system operated by the Western
Union Telegraph Company.
Il trust that will have the hearty
cooperation Of the officials Of both
cable systems In carrying out these
directions.
Il am sending copy Of this letter
to Mr.. Ward, also to Mr.. Newcomb
Carlton. president of the Western
Union Telegraph Company"
Mackay ana Ward Proteht.
The feeling Of Mr.. Msckay and Mr.
Ward as to thS necessity and ad.
visibility Of the Postmaster Generals
order was made clear in a letter sen,
TO Mr.. Burleson last night by Mr.
Mackay. and in a statement issued
by Mr.. Ward as soon as he had heard
from Mr.. Burleson. Mr.. Mackay
wrote:
an answer TO your letter to me Oh
to-day, which has been given to the
newspapers, beg to say that the mos,
expert cable advice that I have beer
able to get convinces me that better
work can be done by a continuance OF
the present separate management o,
the two cable companies than by ar
attempt to amalgamate two plants
which have been operated separately
and successfully for so many years.
"As you doubtless are aware. this
Commercial Cable Company to-day
has filed bin In equity in the United
States Court In this city to prevent
Just such an amalgamation, and I ar
assured that the best interests Of thu
public will be advanced instead OF TO
tarded II no such amalgamation takes
place"
Mr.. Wards statement was 20 the
effect that he could not accept the
dictatorship offered him. He said:
Nothing can be gained by attempt
ing to operate these two companies
as one. The cables Of both companie.
are already taxed to their utmost ant
single management Of the two coulS
not possibly put any more business
over them than at present, and
think 1t very desirable to keep UP the
present competition.
Moreover. the Commercial Cable
Company, of which am general man
ager, filed a bill In equity to-day II
the United States Court here in New
York to enjoin the Postmaster-G Gen
eral from doing this very thing which
he wishes me now to become a party
to and OF course cannot do that. Thu
proper and best way Is to leave thu
two companies as they are and lie