The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-04-04
Will Maintain Old Rates if TeIe-
graph Lines are Restored
to Owners.
HE CHARGES BAD FAITH
Says BurlesOn Has Agreed to
Pay Western Union Too Much
and Raises Tolls to Get the
Money.

New York, April 3-Clarence III.
Mackay, president OF the Postal
Telegraph and Gable company. be-
ing asked regarding the increase in
the telegraph rates which went into
effect Tuesday by order of Postmas-
ter-General BurleSon would return
its lines Ito the Postal Telegraph and
Gable company at once that. that
company would restore the old tele-
graph rates at once. Mr.. Mackay's
interview was as follows
THE total telegraph business OF
the country is approximately SSO,-
100000. This 20 per cent increase
ordered by Mr.. Burleson means an
increase of S16.OOO.OOO to the tele-
graph users. That it is absolutely
unnecessary to increase telegraph
rates is shown by the fact that the
representatives of the postmaster
general now found we have been able
to hold up our earnings and profits
to expectations and those earnings
and profits for the year commencing
July 81, 1918, (the date when the
government claims to have taken
controD will be more than twice the
compensation which Mr. Burleson
has given our company during the
six months ending January 81, We
have earned more than the compen-
sation awarded to us by Postmaster
General Burleson for a whole year.
If we had been allowed to keep our
property and operate il we would
not have thought OF raising the rates
and there would not have been the
rates. The fact is that Mr. Burle-
son has agreed to pay the Western
Union more than he should have
agreed to and in order to realize
that amount he has TO raise the
rates. A second reason is that the
Western Union Telegraph company
is not administered carefully and
economically. Even now when the
government is supposed 10 be in con-
troll of both companies the Western
Union has a horde of solicitors run
ming around trying to get business
away from the Postal. These solici-
tors do not create any telegraph
business and are as useless as would
be solicitors for a street railway.
The receipts and expenditures of the
Postal system as administered bv
our own staff even since the govern
ment assumed to take control Au-
gust l, 1918, show there has been
no such material changes as to re-
nnire or even Justify an increase in
rates. The receipts and expendi-
lures of the Western Union, how
ever. as we gather from their re-
ports tell different story and that
is why say believe the trouble is
due first 10 the fact that Mr.. Burle-
son agreed and. second. 70 the fact
that the Western Union is not adj
carefully and econom-
ically.
What Mr.. Burleson intends to do
with the profits which he is taking
away from us we do not know. We
do know that II we had been left
alone there would have been no in
crease in rates and no loss of profits
to us. AS II IS now, the Western
Union is ahead OF the game, but the
public loses s1S 900 600 a year and
we lose about s2,OOO.OOO. under Mr..
award to us. Our profits
from August l, 1918. to August IA.
1919. will apparently be AT least So
$50, 900 without any OF the increased
rates and yet Mr.. Burleson proposes
10 allow us only $1,6SO,OO of this
amount. In other words. Mr.. Burle-
son gives us s1,68O.OO0 and keeps
81 100000 of our profits and also
Keeps all OF these increased rates
which our property may earn This
g what l call raw DEAL
IF Mr.. Burleson will return orr
ines to us at once we will carry on
he telegraph business at the Il
'ates at once. This certainly Is "a
air proposition and should appeal 10
he American public who are payirg
he increased telegraph rates"