The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-31
U. S.,WIRE CONTROL
ENDS AT MIDNIGHT
Orders for Return to Private
Ownership Issued by
Burleson.
HE DEFENDS HIS REGIME
Rate War Between Telegraph
Companies May Start
Soon, Is Belief.

WASHINGTON, July 30.--Government
control Of telegraph and telephone prop
critics will end at midnight tomorrow
night Orders for their return to private
owners were issued to-day by Post
master General Burleson as required un-
and signed by President Wilson ten
days ago.
Mr.. Burleson, in a statement accom-
panying his order. said sound public
opinion ultimately would determine how
this trust has been met" and that he
was content to abide by the result. Be-
sides this reply TO criticisms of his
management of the wire companies. the
Postmaster General also took a parting
shot at the Postal Telegraph Company,
most Of the officers OF which were re-
moved several months ago because Of
what he termed interference with Gov
eminent management.
The Postmaster-G General did not mem
ton the company by name. but said that
with one notable exception. the reason
for which Ia thoroughly understood by
those who have kept informed" every
wire company had given him loyal CO.
operation.
Under the resolution of Congress d.
recting the return of the companies
Government fixed intrastate telephone
rates are TO remain in force for period
of four months, unless sooner changed
by State commissions. but no provision
was made as to telegraph rates. Clar-
ence II. Mackay. president of the Postal
Company. in urging Congress to provide
for speedy return of the properties. said
his company could reduce rates 20 per
~ n urOAt
This statement was recalled to-day in
connection with the return OF the prop
critics and a rate war between the tele-
graph companies was viewed In some
quarters as possibility. Telegraph
rates were increased approximately 20
per cent. last March to meet Increased
salaries of operators and other en-
ployees and rising costs Of materials.
Referring to the advance in telegraph
and telephone charges Mr.. Burleson In
his statement said the percentage OF
these increases was markedly less than
the average of increases of rates made
during this same period for other public
utility services" and added that but
for court injunctions in eighteen States,
instigated by State utility commissions,
the wire systems would have been re-
turned TO their owners without any OBJ
legation on the Federal Treasury because
of compensation contracts"
The amount of this obligation cannot
be determined until accounts for the
present month are adjusted and an
agreement has been reached as to COM
pensation for companies which 80 far
have not been willing to accept the Gov
eminent figures.
Control of the wire companies was
taken over by the Postmaster General
as n war measure on June 22, 1918. un-
der a resolution of Congress and a proc
lamation by the President. A wire con-
troll board and an operating board were
established and various consultations
were made with a view to affecting
economy in operating.
Administration of the affairs Of the
companies by the Observation-Disclosures
led to sharp criticism in recent months
and this found expression in Congress
when the resolution for their return to
private management was considered.
In his statement the Postmaster-Gen-
eral said his labors were brought to
an end with consciousness on his part
of having at all times administered the
wire systems with Justice and fairness
to the employees and the owners of these
properties and IN such way as to render
the best service possible to the general
public under abnormal conditions