The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-23
POSTAL WILL FIGHT
TELEGRAPH MERGER
Clarence H. Mackay Says 1t Is
Direct Violation Of Sherman
Antitrust Law.
CALLS PAYMENT UNJUST
Asserts Profits Of His Com
pany Are Used to Meet West
ern Union Losses.

Clarence II. Mackay. president Of the
Postal Telegraph Company, gave notice
in an interview last night that his COM
pany would fight legally the Postmaster
General OF the United States on both
the items OF compensation allowed for
the Government operation Of the lines
and the attempt of Mr.. Burleson to con-
solidate the Postal and Western Union
companies.
Mr.. Mackay said the union of these
companies was a violation OF the Sher-
man antitrust law that would meet
with prosecution II attempted by the
companies themselves and that the Post
master General had no authority to vio-
late the law by the destruction Of COM
petition any more than an individual
had
Senator Watson was right" said the
Postals head. "in his statement in the
Senate yesterday that the SELLING OF the
cables Is contrary to the letter as well
as the spirit OF the law. We shall con-
test that seizure in court
Court Ruling IL cited.
THE Supreme Court of the United
states said. in l47 L. s., 16o, after re-
viewing various decisions:
I'VE have no doubt the principle OF
these decisions applies to case wherein
II Is contended that the act OF the head
Of department under any view that
could be taken of the facts that were
laid before him was ultra wires and be-
yond the scope OF his authority. II he
has no power at all TO do the act COM
plained of he IL as much subject to ar
injunction as he would be to a man
damus II he refused to do an act which
the law plainly required him to do
II see thai Mr.. Burleson announces
that he proposes to merge or consolidate
the Western Union and Postal. Has he
no fear OF the Sherman antitrust act
Of Congress of July 2. 1890? That act
ia still very much alive. If the TIVE
| companies themselves started out to con.
scldRte or merge they would promptly
be met By an injunction by the Attorney
General OF the United States and would
! face jail,
Merger Is Not Authorized.
THE joint resolution OF Congress au
| thorized the taking over OF the telegraph
| lines for national security and defence,
but did not authorize or intimate in tn
| slightest degree that any merger or con
! solidation was contemplated. expected
or would be tolerated. or that the Post
master General could override the act
I OF IOnHrttS. we SUdll tOIllcsl t9llb u
| the courts II attempted.
I'VE shall file In a few days in tn
| Court Of Claims our demand for prope
| compensation for the use of our LIANT
lines The compensation given by tn
| Postmaster General to the Western
Union will result in loss to the Gov
eminent OF about $4,000 900 annually
I The compensation given by him to u
will result in n profit to the Govern
ment OF about s2.5se.00o annually Gu
profits are to be used TO pay Western
Union losses. In August our profits wer
$4,000, of which Mr.. Burleson allow
us to keep $4,000, and then turns IN
remaining $4,000 over 10 the Wester
Union. Our profits In September wer
$40, 900. OF which Mr.. Burleson allow
us to keep $4,000. and turns the re
naming $4,000 over to the wester
Union.
This is like taking my pockethoo
out OF my pocket and extracting half o
the contents and handing II back wit
the remaining contents. Is this du
process OF law as guaranteed by tn
Constitution OF the United States7 TIL
proposition would be ludicrous were
not 20 outrageous. l think that some
thing will collapse. and it won't be tn
Postal Telegraph Company"