The Washington herald., 1919-06-06
HEAD OF WIRE UNIONS
DENOUNCES BURLESON
FOR RETURNING LINES
CONTINUED FROM PAGE ONE

EON NJ ONNLNO LuNEO
CONTINUED FROM PAGE ONE
ernment and the companies. and the
order of October 2, 1918. prohibiting
discrimination because of union af-
will continue unless Con-
gress in its wisdom may decide to
change them or the emergency tax
is terminated by the proclamation of
peace.
BY the action now taken. how
ever. the wire companies resume &C.
tual control Of operations of their re.
spective properties and are free TO
formulate and put into effect their
own policies. unrestricted by govern
ment control. which is to continue in
any case a few weeks, and thus will
be able to prepare themselves for a
complete resumption of the manage
ment of their properties.
1T will be necessary for each COM
pany to so keep its accounts during
the continuance Of government control
that its books may be closed on the
day government control ends, in order
that a full and accurate statemen,
may be promptly made when il Is
called on for same"
1t was further explained at the
Postoffice Department that the order
means simply that private owners pf
the wires are again placed in charge
Of the conduct of their business. with
certain limitations. The Wire Con-
troll Board relinquishes its authority
over the operation OF the companies
and will dissolve.
The portion OF the Postmaster Gen.
the return says:
panies, including individuals and part
nerships. whose properties were taken
over by the President under authority
of the joint resolution of the Con-
gress. approved July 16. 1915, will
hereafter operate and manage their
properties during the remainder OF
the period of Federal control. free
from direct Federal operation" upon
certain specified conditions.
Protects Higher Rates.
BY retaining possession OF the
actual properties, the government
holds the power to revoke yester-
days order.
Under the original authority grant
ed in the resolution of Congress,
the Postmaster General can. at any
time before Congress provides for
the complete return. again assume
control of the management and re-
establish the operating board.
The principal result of the reten-
ton by the government OF control OF
the properties, however. is the con-
tinuation of the advanced rates put
into effect since the wires were
taken over by the government.
These rates. 1t was stated. remain
operative on the lines of all compa-
nies with which the government has
compensation contracts. Other wire
companies are free to take whatever
action they may see fit consistent
with the law.
Saved From Bankruptcy.
The government has compensation
contracts with 80 per cent of the tele-
phone companies, including the Bell
system, it was learned at the Post
Office Department, and with IS per
cent of the telegraph companies. in
Guiding the Western Union and the
Postal.
Should the government have re-
linquished all control and possession
of the wires. the lower rates prevail
ing prior to the time they were taken
over would have again become effect
i've. Some of the companies have
claimed that such action would drive
them into bankruptcy at once.
By retaining control of the wire
properties the government also con-
tinues in force its guarantees OF
financial return. This is made plain
in the following paragraph Of the or
der:
Contracts or awards fixing just
compensation for the use OF any tele-
graph or telephone line or system
shall remain in effect until the termin-
alton of said period Of control"
The companies having compensa-
tion contracts with the government
are directed to continue to collect
service connection and other charges
specified under government operation.
as well as toll. exchange and other
rates specially approved by the Post
master General.
The section of the order dealinS
with labor provides that the COM
panies shall also continue TO observe
the provisions of Order 2osI, intended
to prevent discrimination against en-
ployes because they do or do NOT
belong to any particular labor or
ganization."
The paragraph ordering the dis
solution of the Wire Control Board
follows:
"orders 247s and 25s4 are hereby
revoked and the Operating Board
created thereby is hereby relieved OF
its operating duties and ordered to
complete or refer to the proper per.
sons all matters now pending before
IL. and Is directed to prepare and
submit a full report OF all its pro-
ceedings In connection with a COM
prehensive statement of all expense
of said board incurred during It's
existence. and thAreupon to dissolve
not later than Juns IL. 1919"