The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-18

diate retrenchment in all branches Of the
Government.
There IL no such deficiency In your
operation OF the Postal Telegraph lines,
inAsmuch as no compensation has yet
been agreed upon ms to that company.
again. the sooner composition in the
telegraph business Is restored the
greater, I believe, will be the satisfa ctton
Of the public. As you are aware. the
joint resolution OF Congress OF July is,
1918 authorizing tho taking Of control
OF the telegraphs and telephones was
purely war measure for national ST.
curity and defence and this Is empha-
sised by the fact that Congress provided
that Federal control shall not extend
beyond the date OF the proclamation by
the President OF the exchange Of ratlh-
cations OF the treaty OF peace as against
the railroad Federal control bill, which
continued the period Of Federal control
for a period OF twenty-one months after
the war.
Meant as q War Measure.
'Tf Congress had intended the tele.
graph and telephone Federal control act
TO be other than a purely war measure,
Congress would have made It's continu-
ance last for the same period as the
railroad control. The fact that the tele-
graph-telephone control was purely a
war measure was also most emphstically
emphasized in the debates in both
houses Of Congress when the resolution
was passed.
Certainly the war no longer justl-
fies the Governments retaining these
telegraph lines for war purposes. In
fact. since August l. 1918. when the
Government first took control OF the tele-
graph lines for war purposes, there
has not been single act in such opera
ton, so far as l can ascertain. that has
been different from what such operation
would have been II the telegraph COM
panles had been allowed to continue
their own control and the Government
had not taken over the lines for war
purposes. This merely emphasizes the
propriety and wisdom Of the lines being
turned back at once.
The compensation to the Postal Tele-
graph Cable system is now in course Of
discussion with your committee, but II
you think we'll OF the suggestion to
return the lines to both telegraph com
paples the Postal Telesraph-Cable Com
pany Is willing to waive any claim for
compensation and accept what the lines
ave actually earned since the beginning
of Federal control. All this would save
the Government from the loss which 1t
is now sustaining from month to mehth.
ION the other hand, II the Govern
| ment is TO continue to keen control OF
our lines We certainly are entitled TO the
| same profits that we made during the
| year prior to July. 1918, which you will
notice includes the nrst six months Of
1918. in which six months. as stated
| above. the Western Union earnings
showed a considerable decline, but which
| was apparently not considered in ar
\ irving at their compensation.
You will observe, therefore. that the
basis on which We are willing to &C
| cept compensation Is more favorable to
the Government than you have granted
to the Western Union. Apparently war
compensation is based upon war profits
and We are entitled to the same treat
ment az the Western Union in this re-
spect. ! am, yours respectfully,
"CLAREHcE H, MAcKAT. President"
| Fear Sweeping Changes.
In some quarters the extension OF the
| Government control to include the ca
'bies operating between the United
States and foreign countries is viewed
with apprehension. The prediction wal
even made yesterday that the new steI
| on the part OF the Government would
sweeping changes in the management
of the wire companies, which have here
tofore been allowed to remain intact
Should such changes come the rank and
file of employees engaged in the actua
operation of the wires will be unaf
fected. 1t was predicted. but the execu
tive officers probably will be shelvet
4 until such time as the Government care
to return the companies to the orlgina
owners.
3tGFor the most part the officials of th'
cable companies seemed loath to dis
7 cuss this new phase in wire situation
Some OF them took the attitude that i
was the logical sequence TO the Govern
ment's seizure Of the domestic wires
Others, however, expressed surprise tina
this extreme measure should have beef
taken at such late day Among tn
latter was w. Emlin Roosevelt. an of
fetal connected with the Central an,
South American Telegraph Company:
Il don't exactly understand" sat
Mr.. Roosevelt. why Postmastcr-Genera
Burleson wishes to take the cables owe
now. l can see no object in the move.