Bisbee daily review., 1919-01-22
WIRE CONTROL PLAN SCORED BY WITNESSES
IRv Review Leasea wirel


 WASHINGTON, Jan. 21,-Edward Reynolds of New York, who recently was relieved of his duties as vice president and general manager of the Postal Telegraph Gable company by Postmaster General BurlesOn told the house pOstoffice committee today that the only excuse for the government retaining control over the telephone and telegraph companies was ito in increase telephone rates and to fin ance crippled telephone companies"
 Mir. Reynolds is Chief Witness
 Mir. Reynolds appeared to oppose the administration measure contem- plating extension of the period of con trol and possible government pur- chase of the wires. ProSeSts against the legislation also were filed with the committee for several state public service commissions and by F. W. Put nam, member of the Minnesota com mission.
 BurIeson Used Arbitrary Power
 MT. Reynolds said that ito utilize the government control for increasing telephone rates as is now being done by the postmaster general is assuming authority that congress did not confer upon the postmaster general ,and de clared that efforts now are being made to increase telegraph charges.
 Burieson Wanted Increased Rates
 "Mr. Burleson's operating committee consisting of a Western Union man, two Bell telephone men and one inde- pendent telephone man." the witness declared, has within the last few days fn "a agree to increased telegraph rates and the Postal company has refused. If the government will turn back at once the Postal telegraph lines We will con- tinue to carry on the telegraph busi- ness at present rates"
 w. U. Wants Huge MonopoIys
 The witness accAsed the postmaster general, Theodore N Vail and New comb Carleton, president of the West ern Union company, "of seeking to consolidate all telegraphic and tele- phone and cable lines into one huge monopoly" and said there is no good reason why all the lines should not be turned back at once and the loss now sustained by the government in their operation stopped.
 NO AQNdnld9C ln OOnSOliQdIiOn
 'The idea that a great consolidation and the wiping out of competition and the grant of subsidies for new cables will confer great benefits upon the American public, is put forward to de- ceive. Such a combination would i'm pose a hardship upon the public with out giving it single advantage" Discharged by Burleson for Opposition
 MT. Reynolds said that Postmaster General BurlesOn had discharged him as a postal official because he sought to prevent MT. Burleson's plan for con solidation of wire companies. He also declared his company refused to ac- cept the compensation award of ST. 6SO,OOO made by the postmaster gen eral because the company earned $4,- 296,O0O in the calendar year 1917.
 Fictitious Figures Used by Burleson
 Chairman Moon of the committee asked if the Postal company had not filed sworn statement with the Inter- state Commerce commission that its property was valued at $6,447, ,000, but MT. Reynolds answered that this was not the actual value of the property, but the equity stock value represent ed by the 39 companies composing the Postal. In reply to further question ing by MT. Moon, it was stated that MT. Burleson fixed the company's property value at $2S,0OO.0O0 for com pensation purposes.
 T don't know where they got that figure" said MT. Reynolds regarding the company's property, flor the post master general has not inspected our property yet"