New-York tribune., 1919-04-08
Postal Officli al
SAYS Rates Should
Have Been Reduced
Government Already Earn.
ing Several Millions More
Than 1t Is Paying Back to
Company, Deegan Insists

Increases in telegraph rates could
not have become effective except under
government operation of the companies,
William j. Deegan, secretary of the
Postal Telegraph and Cable Company.
said yesterday. "Thc Postal did not need
or want the increase he said. "If
under private operation the Western
Union company had attempted to in
crease rates, il would have had to meet
The competition of tho Postal at the
old rates.
"Thc Western Union was operated
ureconomicallv. Unnecessary Offices
we're kept open and unnecessary cx-
pcbscs incurred. It was anything 80
beat the Postal. Yet the reports Of the
Western Union company show that the
lines made more under private opera
ton than under government control,
Practically the same system secma 20
have been followed under government
operation.
Here is another nut for Postmaster
General Burlcson to crack. He says we
are entitled to only sl,GSo.oo0 year for
the use Of our lines although we
earned $4,269,o00.
Should Have Reduced Rates
"Now assume that is true. Then Mr..
Burcson should have reduced telegraph
rates over one-half and should collect
only from The public what we are en-
TITLED TO earn and what he proposes to
pay US, namely, 81 $4,000.
Instead of that. he increased the
rates 20 per cent. That 20 per cent on
s4,269,000 is $S53,S0o, which, added to
the S4,269.000 makes S5,122.So0. In
other words, Mr.. Burlescn says we are
entitled TO earn only s1,GS0.OOo. vet he
proceeds to raise rates so that our svs-
tenn must earn S5.122, 500. How does
he reconcile all this?
What is he going to do with the
difference between $1.6SO000 and So
22,S00? Does he intend to turn it
over to the Western Union Telegraph
Company
The annual report Of the Western
Union company for 1913 shows that on
December 81, 1918, the government vvas
indebted to the Western Union coro9
pany, exclusive of the working cash ard
materials, which it took over on August.
|. 1918, IN the sum of S10,45S,635.
Quarterly dividends on Western Union
and American Telephone and Telegraph
Company stock become due April Is.
Statements Of the earnings of the
Western Union lines for November and
December. 1918, were not included in
the report, and have not yet been filed
with the Interstate Commerce Com
mission The report merely assigns to
pensation fixed under government
award
Regarding the taking Of strike vote
by the Commercial Telegraphcrs. an
nouncement Of which was made at
Washington Saturday, Mr.. Deegan said
the Postal had had no trouble with its
employees and there was no prospect of
any.
1--WE followed absolutely the sug-
gestlon of President Wilson," he said,
mot to discharge men who joined the
union. The Western Union declined
to follow that request. The best in
dication of our attitude was the mes
senger boys strike. Western Union
messengers in New York struck to OBJ
lin what the Postal boys were already
getting"
In connection with resolutions
adopted by the Commercial teleg-
raphers in Washington. which denied
that wage increases made the increase
of rates obligatory. Mr.. Deegan said it
was estimated that the increase in
rates would bring $16,00O,000 additional
revenue annually. No definite state
ment, he said had been issued by the
Postmaster General to show the exact
amount involved in wage increases.