The sun., 1919-05-29
DENIES MACKAY CAN
SAVE $12,OOO,OOO
Burleson Says Postal Cut
Would Be Only 100000
on Lines Return.
RUIN FOR WESTERN UNION
Explains Latter Carries Bulk
of Low Rate Government
Business.
Specia, DespateA to TIE sux.

WASHINGTON, May 2s.--Postmaster- |
General Burleson Joined issue with Clar-
ence II. Macleay, president of the Postal |
Telegraph and Gable Company. again
to-day over the fiscal AFFAIRS of the
Postal wire systems.
Mr.. Burleson sent letter to Repre-
sentative Sims (Tenn.l, a member OF
the Interstate Commerce Committee OF
the House. In which he attacked Mr..
Mackay's statement that a saving OF
S12, 100000 would result to the public
IL the Postal lines were turned back,
through a reduction in rates by the COM
pany of 20 per cent.
The Postmaster-General says that no
such saving would result from a cut by
tic Postal. After citing comparative
business and figures on equipment of
the Postal and Western Union he asserts
that the saving on the Postals share OF
tho business would be only 100000
and says the other $9.OoO,o00 was
thrown in on the presumption that the
other company would have to make a
| similar cut because of the competition.
Mr.. Burleson then expresses the view
that the Western Union could not stand
| such cut without bringing about a
ruinous situation. This, he explains. Is
due to the fact that the Western Union
has been forced to carry most OF the
low rate Government business
The Postmaster's letter again re-
Views in detail alleged discrepancies in
| sworn statements furnished by Postal Of
fcials to the Interstate Commerce Com
mission and to the Post Office Depart-
ment.
He declares that when the compensa-
! ton fixed for the Postal was cut down
| as a result of this, that Officials of the
Postal company began and have contin-
ued TO this time a movement inside of
| the organizat ton Of the company and In
the public press. to hinder and embar-
rass the Governments operation OF this
and other telegraph and telephone prop
| critics In every possible way and which
has been characterised by false and
| scandalous statements with respect to
the Postmaster-General too numerous
| to mention"
The Wire Control Boards reconmen-
! dations for consolidation OF the wire
| lires and for the fixing of rates and
wages are renewed in the letter. and a
i reminder is given that the Postmaster
. General stands for Government opera
ton of wire communication as a natu-
raj monopoly. despite the record Of the
| trial Of this system.
WASHINGTON, May Reconsideration
OF the legislation providing for the re-
turn OF the telegraph and telephone
I, systems to private ownership will BE-
/ taken up tomorrow by the Interstate
Commerce Committee.
Chairman Cummins said to-day hear
ings would be held at which representa-
| tives of the union employees, the tele-
graph and telephone companies, and
the Government would be witnesses and
that the committee planned to expedite
the legislation.
ALBANY, May 2S.-The upstate Pub
lie Service Commission OF New York
to-day sent kilograms to chairmen of
| Congressional committees interested urg-
ing that intra-State telephone and tele-
graph business should remain under the
Jurisdiction of State commissions.
This commission" the telegram read.
rs convinced that so far as concerns
the State of New York the telegraph
and telephone companies have not suf-
fered In their revenues by the action
Of the commission and there Is no ground
for fear that bankruptcy or even finan-
cial annoyance will follow return OF
wires without remedial legislation safe
guarding rates"