New-York tribune., 1919-02-28
Order just Issued Cited as
Tending to Break Down
All Present Competition
Signed by W. u. Official
Must Submit Proposed Con-
struction in Competitive
Districts for Approval

Bethel, chairman of the operatine
board of the Telegraph and Telephone
Administration, which was character
ized as "the boldest attempt that has
yet been made to crush all telephone.
telegraph competition" William 7
Deegan, secretary Of the Mackay Com
panios, strongly intimated that the
order was in the interests Of rival
wire companies, Of one of which Mr.
Bethel is an officer. The Bethel
order follows.
Pending preparation by the op-
erating companies, and approval by
the Postmaster General, Of a gem
eral programme for construction
work to be done during 1919, the
Operating Board directs that the
companies proceed in the usual and
ordinary course Of the business, with
their routine construction and main
tenance work, and with such spe-
cific essential construction projects
as the companies approve and are
prepared to finance, provided that in
competitive situations all projected
construction other than that of
routine character shall be submit
ted through the regular channels
for the approval of the Postmaster
General"
Objects to "Competitive"
Mr.. Deegan's objection to The order
is concentrated on that part of it di-
recting that in "competitive situa-
lions" all construction projects ex-
cept those of "routine character"
must be submitted to the Postmaster
General. He gave out a letter written
to Mr.. Bethel by C. p. Bruch, vice
president of the Postal Telegraph
Cable Company, inquiring whether ap-
plcatlons to string wires in competi-
tive territory must pass through
your board, of which three out of four
Of It's members are Western Union or
American Telephone officials"
Mr.. Deegan gave out also Mr.. Beth
ellis reply. 1t was, simply that your
company is expected to obey the in
structions contained in my letter of
February 20, which. as indicated, were
General"
"This is the most barefaced and
nigh handed attempt that has yet been
made to stop the Postal Telegraph
Gable Company competing with the
Western Union, and Bell Telephone
companies" said Mr. Deegan.
Here you have Bell Telephone Of
fetal, representing company with
winch we are competing for long dis
tance telephone service, ordering us to
make no extensions of, our lines in
competition with the Western Union or
the Bell Telephone Company unless
we first refer such extensions to his
toard, on which three of the four
members are Bell Telephone and West
ern Union officials. And this the Bell
company IS allowed to do under author
Ity from. Postmaster General Burle-
son,
Fears Chances Are Small
"ln the South and Southwest and on
the racine coast we are giving an ex-
tenslve long distance telephone serv-
ice IN competition with the Bell Tele-
phone Company, and our rates are con-
siderably lower.
"This order of Mr.. Bethel, by au-
thority of the Postmaster General,
means that if we wish to extend that
long telephone service in com
petition with the Bell Telephone Com
pany we must apply to this Bell Tee-
phone " estern Union Burleson operat-
ing board. And what chance do you
suppose we would have with that
board sitting in judgment on exten-
sions which we propose to make in
competition with the Bell Telephone
especially when we charge lower rates ?
This is not only putting our busi-
ness in the hands of our competitors
with vengeance. but is the boldest at.
tempt that has yet been made to crush
all telephone telegraph competition in
this country, and we think it will ap.
peal to every business man who com
petes for business as an outrage.
:This Bell Telephone W Western Union
B0rleson combination is trying hard
to put the Postal Telegraph Gable Com
pany and all other competitors out of
business. The lines should be returned
to the companies Immediately before
the whole government administration
Of the telegraphs and telephones de-
velops into a national scandal"
The expressed and implied accusa-
tions Of Mr.. Deegan brought no specific
reply from Mr.. Bethel. He said that
he would not be drawn into contro-