The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-01-23
BURLESON HOLDS
WIRE REVENUES
Explanation to Be Demanded
by Congressional Com
mittee.
INTERESTING COLL 0QUY
Develops During Probe and
Throws Some Light on Gov
ernment Ownership.

ernment Ownership.
Washington, Jan. 23.-Q. N. 81
Why the enormous revenues derived
from government operation of the
telegraphs and telephones have beer
retained by the postoffice department
instead OF being turned into the
United States treasury, Postmaster
General Burleson will have to ex-
plain to congress. Representative
Steenerson, ranking member of the
house postoffice committee. declared
today.
At an executive session OF the COM
mittee, report of which was also
made public today, Steenerson devel-
oped from William III. Lamar, solic-
itor for the postofiice department
that these revenues, running into
hundreds of millions of dollars, "ab-
solutely belong to the United States
but are in the postmaster generals
custody for the purpose of operating
the telegraph and telephone compa-
MES"
Didn't Know Total Amount.
In the following colloquy between
Steenerson and Lamar, as printed in
the report, 1t also developed that La
mar was unable to state the exact
amount OF the revenues the postmas-
ter-general was ''holding." as Lamar
expressed It, in the name of the
United States. although not specifi-
cally authorized to do so, Steener-
son said. by congress.
Steenerson asked: "Do You know
approximately how much the reve-
nues OF the telegraph. and telephone
companies that you have taken pos
session of amount to?"
Lamar: 'No; we are having that
matter worked up now"
a Steenersois 'They exceed the to-
.xexennes Aof the pohtoffice-depart-
ment from other sonrces, do they
not?"
Lamar: "T have had no occasion To
follow that, but they are quite large"
Steenerson: you have seen the
commercial and financial reports of
these companies, have you not?"
Lamar: There are a great many
of them"
Estimate Of Revenue.
Steenerson: 81 think the American
Telephone and Telegraph company
alone reports a revenue of over $780,
100000 for 1917, does 1t not?"
Lamar: 81 think So"
Steenerson: "And that Is only one
OF the companies you have taken?"
Lamar: "Yes, and that is the larg-
est by all odds"
Steenerson: "Is It more than half?"
Lamar: "Yes; the Bell Telephone
company represents s1,200,000000 in
invested capital, and all the other
telephone companies would not
amount to more than 100000, 900 in
addition"
steenerson: "s4oO,ooo.oOo in reve-
nue?"
Lsmr-No. s4oO.ooO.oOO in invest
ment
Steenerson-What about the annual
revenues?
Lamar--I have no figures on that.
Steenerson-You do not know how
much the expenditures are, either?
LAMAR could not give you those
figures definitely. no sir.
Steenerson-I simply want II in round
figures.
Lamar-I cannot give Il in round fg-
of revision and organization. and II Is
impossible to get down to the definite
results you are asking for.
Steenerson-Do you not know enough
about the general affairs OF the tele-
graph and telephone companies-you
contracts and must have command of
some general information--to say that
the revenues of these companies of
which you have taken possession and
control, amount to more than the total
revenues of the postoffice department
from other sources?
LAMAR presume they do.
Exceed Postohice Expenditures.
Steenerson-And the expenditures
VIII amount TO more or as much as the
total expenditures of the postofice de-
partment
Lamar-Oh, yes; taking into consid-
GRAFTON the extension OF the properties
they Will amount to a great deal more.
Steenerson-And this money will be
taken In and will be paid out under the
you are now exercising with
out any action Of congress. or any ap-
Lamar-We do not need any appro-
priations the properties are being
operated on their own revenues.
Steenerson-NOu are aware that the
provides that no money
shall be taken out Of the treasury of
the United States unless 1t is pursuant
TO the action OF congress?
Lamar-These operating revenues
never get into the treasury OF the
United States.
Steenerson-And this money does not
get into the treasury of the COM
panies?
Operating Fund.
Lamar-No; IL goes to the credit of f!
he postma ster- general as the operat- I
ing head of the wire service under 4
authority Of the joint resolution passed I
~ congress authorizing the president \
% operate the telegraph and telephone 4
in such manner as may be /
leedful OF desira BILE" This is very
broad language. We are operating the /
properties under the resolution entirely. /.
Steenerson-The matter is then of /
considerable Importance TO the people |
u the United States when IL is left in 4
he hands of one man. who is appointed I
md not elected by the people. and he 4
evies the taxes. so TO speak. or the I
'harges for all this service, amounting 4
o four or five hundred million dollars .
year. and paws it out without con-
ulting congress.
Lamar-It is a very important ques-
ion.
Steenerson-Next TO railroad control.
is the largest financial authority /
here Is in the world. is it not. vested /
n one man?
Lamar may not have general in
ormation about all Of the affairs Of the 7
World. but It is a pretty big proposition.
Steensrson-I'nda the law the money
objected for telephone charges stfu he
'ngs 10 the telephone companies. does
not2
Lamar-No: it belongs to the govern