The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-06
WIRES GIVEN BACK
TO PRIVATE OWNERS
Continued from First Page.

Union pursued the same policy the Gov
eminent would have been unable to get
service in and out of Washington"
II have gone into this" said Mr..
Rooms, because desire to suggest to
the committee that Congress require all
companies doing an interstate business
to accept all kinds Of business and COM
pei them to carry their proportion of I'M
profitable business"
The witness said that the increased
rates granted the telephone companies
and the abnormal increase In their busi-
ness would give them financial stability
after their return IL the present rates
are allowed to stand. He said It would
be unfortunate to turn them back with
out protective legislation.
ITO turn them back and compel them
to charge the pre-war rates would make
II impossible for most of them to do
business" he said. Some protective
legislation 10 necessary. and It appears
the increased rates should remain in
effect for one year unless changed by
q regulatory body having the necessary
Jurisdiction. June 80 seems the best
date to return the properties"
Mr.. Koone said there should be some
national body such as the Interstate
Commerce Commission to control wages
and rates and that an increase in wages
should be followed by an increase in
rates.
Charles f. Elmqulst. president of the
National Association Of Street Railways,
said the moment the wire companies are
turned back the rates imposed by the
Postmaster General must end ana those
of pre-war days go into effect
THE rates were imposed under the
war power and in my judgment can re-
main in force only 30 long as the Gov
eminent exercises the war power by re-
tanning CONTROL" he said.
Mr.. Elmquist said that IL Congress
wished to extend the increased rates
after returning the properties It can
only do SO under the commerce clause
of the Constitution. He said he did not
believe 1t necessary for Congress to
extend the rates and expressed the opin-
ion that the State commissions would
act promptly on the rate question.
THE principal objection to Congress
extending the rates." said Mr.. Elmquist.
lis that It probably would mean a long
period of enforcement Of rates imposed
by the Postmaster-General which are
hiBhcI thhl tiiObo tHAl WOulu DC III dItcu
by local regulatory bodies. Litigation
would ensue to continue the high rates
In effect, and the cases would be carried
from one court to another and 1t might
be years before the question was finally
passed on by the Supreme Court. Mean
time the companies would enjoy the high
rates.
III Congress does conclude to extend
these rates the bill should definitely
state that at the end OF that period the
Burleson rates should expire except in
so far as they are modified by State regu-
latory commissions. 1t would be un-
fortunate II any litigation grew out of
that situation
Mr.. Elmquist said that IL the rates
are extended the extension should apply
to both toll and exchange rates and not,
as Is proposed In the bill reported by
the Senate Interstate Commerce Com
mittee. to toll rates only. He said the
American Telegraph and Telephone Com
pany does most OF the toll business and
that Congress should not discriminate in
its favor