Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-22
bURLES0N MOST
ROUNDLy SCORED
BY POSTAL HEAD
Edward Reynolds Says No
Warrant Exists for Post
master Generals Effort to
Increase Phone Rates.
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Washington. Jan. 81 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
telephone and telegraph companies
was Ito increase telephone rates and
TO finance crippled telephone com
panies."
Mr., Reynolds appeared to oppose
the administration measure contem-
plating extension of the period Of
control and possible government pur-
chase of the wires Protests against
the legislation also were filed with
the committee for several state pub
lie service commissions and nv +. w
Putnam, member of the Minnesota
commission. l... ......
Mr.. Reynolds said that 'to utilize
the government control for increas-
ing telephone rates as is now being
done by the postmaster general is as
Stunning authority that congress did
eral and declared that efforts now
are being made to increase telegraph
charges.
Specially Interested Committee.
Mr.. Burleson's operating COM
mittee consisting of Western Union
man, two Rell telephone men and
one independent man" the witness
declared. has within the last few
days tried to get the Postal company
to agree TO increased telegraph rates
and the Postal has refused, If the
government will turn back at once
the Postal telegraph lines we VII
continue to carry on the telegraph
business at present rates"
The witness accused the postnaS-
ter general. Theodore N. Vail and
Newcomb Carleton, president of the
Western Union company. of seeking
to consolidate all telegraph, tele-
phone and possibly cable linns into
one huge monopoly" and said there
is no good reason why all the lines
should not be turned hack at once
and the loss now sustained by the
government in their operation stop
ped.
THE idea that a great consolida-
ton and the wipinS out of cOmpeti-
lipIl anu liie eTilIl OF SuDSlUleS LOT
new cables confer great benefits upon
the American public, is put forward
to deceive Such combination
would impose a hardship upon the
public without giving ii Jingle adj
I vantage,
Value of COMPANY Property
Mr., Ravnolds said that Postmaster
General Rurleson had discharged
him as a Postal official because he
sought to prevent Mr. Burles h's
plan for consolidation of wire com
panies. He also declared his com
pany refused to accept the compen-
sation award of $1,6S0,000 made by
the postmaster general, because the
company earned s4,269, 600 in the
calendar year 1917.
Chairman Moon of the committee
oeked If the Postal company had not
filed a sworn statement with the In
terstate Commerce commission that
its property was valued at $6,447,000.
but Mr.. Reynolds answered that this
was not the actual value of the
property. but the equity stock value
reported by the thirty-nine COM
panies composing the Postal. In re-
play to further questioning by Mr..
Moon it was stated that Mr.. Burleson
fixed the company's property value
at s2S,000,000 for compensation
purposes.
81 don't know where they got that
figure said Mr. Reynolds, regard
ing the company's property, 'for the
postmaster general has not inspected
our property vet"