Arizona republican., 1919-01-22
bURLESON PLAN
 PUTFORNARD ID
 DECEIVE PEOPLE
Discharged Vice President of W. U. T. Attacks Post master General - Says Scheme Is One to Finance Crippled Companies Monopoly Is Seen By Reynolds

WASHINGTON, Jan. 21.-EdWard Reynolds of New York, who recently was relieved of his duties as vice president and general manager Of the Postal Telegraph and Cable company by Postmaster General Burleson, told the house postoffice committee today that the only excuse for the govern ment retaining control over telephone and telegraph companies was ito ln- crease telephone rates and to finance crippled telephone companies"
 Mr Reynolds appeared to oppose the administration measure contem- plating extension of the period of con- trol and possible government purchase of the wires. Protests against the legislation also were filed with the committee for several state public service commissions and by F. W. Put nam. a member of the Minnesota com mission.
 Assumes Power Not Given
 MT. Reynolds said that ito utilize the government control for increasing telephone rates, as is now being done by the postmaster general, is assum- ing authority that congress did not confer upon the postmaster general '' and declared that efforts are now be- ing made to increase telegraph charges.
 MT. Burleson's operating commit tee, consisting of a Western Union man, two Bell telephone men and one independent telephone man." the wit ness declared has within the last few days tried to get the Postal company to agree to increased telegraph rates, and the Postal company has refused. If the government will turn back at once the Postal telegraph lines, we will continue to carry on the telegraph business at present rates
 The witness accused the postmas ter general, Theodore x. Vail and Newcomb Carlton, president of the l Western Union company, of seeking ito consolidate all telegraph, telephone ' and possibly cable lines into one huge monopoly" and said there is no good reason why all the lines should not be turned back at once and the loss now sustained by the government in their operation stopped.
 Put Forward to Deceive
 The idea that a great consolidation and the wiping out of competition and the grant of subsidies for new i cables will confer great benefits upon l the A1neIlCdn puDllC IS put lOGWdIu l to deceive. Such a combination would | impose a hardship upon the public without giving it single advantage MT. Reynolds said that Postmaster 1 General Burleson had discharged him as a Postal official because he sought to prevent MT. Burleson's plan for con- ! solidation of wire companies. He alsC declared his company refused to accept l the compensation award of $1,6S0,0 00t made by the postmaster general be- 1 cause the company earned $4,269,000 1T the calendar year 1917.
 Chairman Moon of the committee asked if the Postal company had no filed a sworn statement with the inter state commerce commission that it: property was valued at $6,447 ,000, bu MT. Reynolds answered that this wa. not the actual value of the property but the equity stock value reported b! the thirty mine companies cOmposin. the Postal. In reply to further ques tioning by MT. Moon, it was stated tha Mr. Burleson fixed the company property value at s2S,0O0,O00 for com pensation purposes.
 T don't know where they got tha figure said MT. Reynolds, regarding the company's property. for the post master general has not inspected ou property yet"