New-York tribune., 1919-03-23
Mackay Ousted
AS Postal Head
By Bur1eson
Continued from page I

tract and operation of the companys
properties
Last Janua{y Mr.. Burleson re
moved Edward Reynolds, president
and general manager of the Postal, on
the ground that he was obstructing
operation under the government
An announcement by the Postoffice
Department says that the order re-
moving Messrs. Mackay, Cook and
Deegan "was made necessary by the
fact that since the Postoffice Depart
ment refused to grant the company
the compensation asked for by them,
these officials have refused or failed
to follow out the instructions of the
department in the management of the
properties, and failed to put into OPP
Grafton promptly the wage schedule
and the eight-hour day, and in various
ways endeavored- to embarrass and
discredlt the government operation Of
discredit the governments operation of
the wires.
"The reason for the refusal of the
department to grant the compensation
asked for was that the sworn state
ment submitted to the Interstate Com
merce Commission in behalf of the
at $117,264, while the sworn statements
they made to the wire control board
as basis for compensation placed the
net income for the same year at $4,-
485, ,593.34."
The announcement adds that the
value of the plant and equipment of
+. the Postal Telegraph Cable Companies,
sworn to in the companys return to
the Interstate Commerce Commission,
for 1916 was $6,647,472 but the officials
Of the company '""declned to make any
statement of valuation to the wire CON
troll board. although. repeatedly re-
fquested to-'do So =.
IR- days order cites the legislation
and the proclamation of the President
under which the government assumed
control of the wire systems and the
order of the Postmaster General di-
recting that all Of the Offices, operators
and employees of the telegraph and
telephone companies to continue in the
performance of their existing duties
and announcing it to be the purpose
OF the department. to coordinate and
unity these services so that they
TEN, having regard for the interest of
the public and owners of the proper
ties.
1T, then continues:
Whereas. The president of the said
Mackay companies, Clarence II.
Mackay, its general counsel, w. w.
Cook, and its secretary, William ].
Deegan, have failed to carry out the
orders and instructions Of the Post
master General, and have conducted
themselves, before the public and with
Incorporating force Of the said system
IN such manner as to materially and
RI c q RI 10 Mt Il
OF the government in the operation of
this and other telegraph and telephone
systems under government control;
Now, therefore, it is ordered: That
Clarence H. Mackay, president; w. w.
COOK, general counsel; William j. Dee
gan, secretary, and the board Of trus-
tees or directors and the owners are
relieved of any and all duties apper-
tanning or incident to the supervision,
possession, control and operation of
the said telegraph and telephone sys-
TEN, the upervision possession con
troll and operation Of which was so
assumed by the President in his said
proclamation of July 22 1918, and |
hereby substitute A. +. Adams for said
Clarence II. Mackay and said owners
and said board of trustees or directors
in the management of said system, and
direct said A. f. Adams to take pos
session for me Of all records. books
and papers, made and used in the oper-
alton of said system since midnight of
July 81, 1913, and also the net balance
or balances Of the funds derived from
the operation thereof ince midnight Of
July 81, 1918. ..
"All officers and employees of the said
telegraph and telephone systems, .ex-
cept as and in the capacity in which
hereinbefore relieved thcrcfrom, will
continue in the performance Of their
present duties, reporting to their re
spectiyc superior officers, and on the
same terms Of employment as hereto
fore, the purpose being with respect to
this system and with respect to all
other telegraphs and telephones sys-
tens undcr government control to so