New-York tribune., 1919-01-08
Federal Wires
Mean Big Loss,
Says Mackay
Head of Postal Company In
sists There Is Real Compe-
tition in Telegraph Field
S Service for the Few
Great Majority Do Not Use
1t, He Declares; Replies
to Vail, of Western Union

A combination of all the telephone
ownership would 'saddle the public
with heavy losses every year." in the
opinion of Clarence II. Mackay, presl-
dent of the Postal Telegraph Gable
Company
Mr.. Mackav issued a statement yes
terday in which he opposed the views
of Theodore N. Vail. head of the Ameri-
can Telephone and Telegraph Com
pany. Mr.. Vail on Monday made pub
lie a letter be had sent to Representa-
tive John A. Moon, chairman of the
House Committee on Postoffices, de-
claring that "competition in the true
sense of the word has not existed IN
the telegraph business for years.
"This is a fetish of Mr.. Vails," said
Mr.. Mackay.
"He cannot get it into his head that
the American people want competition
in the telegraph at least. He combined
the Western Union and Bell Telephone
in 1909, and the government five years
later tore them apart.
eve can find no evidence anywhere
in the United States that the business
man, manufacturer banker, broker
merchant or any one else wants the
Postal Company to combine with the
Western Union, even though it be done
by falling into the nav of the Bell
Telephone.
Says Vail Is Not Fair
"Mr. Vail is not fair in his state
ment of the facts. He says competi-
tion in tho telegraph business has not
been existant in the true sense OF the
word for years. What in the world
does he call competition? If you ask
the American public whether there has
been competition they will tell you that
there decidedly has been. and still is.
Mr. Vail says that the only competi-
tion has been in the profitable business,
at onc-fifth of the telegraph Offices,
serving one-half Of the population. He
omits to state that the competition
given by the Postal serves all cities
in the Unted States where telegraphing
is done.
"The farmer and the laboring man
rarely use the telegraph; neither does
the clerical class. Telegraphing is
Gone by the manufacturer, banker,
merchant and broker, and in fact four
fifths of the telegraph business is done
in the cities where the Postal Com
pany gives competition. Mr.. Vail
He says that the Postal Company does
not compete for improbable business
Why should it do so? If the Postal
Company competed for improbable
business both telegraph companies
would lose money on that business.
Not Looking for Losses
"There is a great deal Of telegraph
business where the Western Union
now makes profit, but if we took
away part of that business both com
panies would operate at a loss as to
that particular business. 1t is not out
of regard for the Western Union we
do not do so, but because we are rot
hunting for losses. Mr.. Vail omts
to point out the real reason for our
not hunting Improbable business.
81 do not believe Wallis ideas will
prevail. 1t would be saddling the pub
lie with heavy losses every year in the
operation of the telegraph lines, all
for the benefit of the small proportion
which actually uses the telegraph lines
to any material extent. The fact is
that Mr.. Vail is not a telegraph man,
but a telephone man.
"The best answer to Mr.. Vail is the
Postal Company's slogan for thirty
years: Did you ever stop to compare
the present efficient telegraph service
with what it was before the Postal
Company entered the field p"