Evening star., 1919-03-22
MACKAY REMOVED
As WIRE CO. HEAD
Mr.. BurIeson Charges Refusal
to Obey Requests, and In
cIudes Directors.
A. F. ADAMS SUBSTITUTED

Clarence II. Mackay, president of
the Postal Telegraph and Cable Com
pany. was removed today by Postmas-
te- General Burleson.
The Postmaster General issued an
order also relieving W. W. Cook, gen.
eral counsel; William J. Deegan, sec
retary, and the board of trustees or
directors, and the owners of the
Mackay companies operating the
Postal systems, from all duties ap-
pertaining to the control and opera
tion of service under government con-
troll
\. r. Adams. president of the Kan
Sas City Home Telephone Company
and a member of the general tele-
graph and telephone operating board,
was appointed by the Postmaster Cen
eraI to supersede the postal officers in
the management Of the systems. Mr..
Adams presented the order today to
Mr. Deegan and Immediately took over
control.
Refused to Obey Orders.
An announcement by the Post O.lice
Department says that the order re-
moving Messrs. Mackay. Cook and
Deegan from the operation of the
Postal company land lines under gov
ernment control was made neces-
sary by the fact that since the Post
Office Department refused to grant
the company the compensation asked
iaI IA
fused or failed to follow out the in
structions of the department in the
management Of the properties; and
failed to put into operation promptly
the wage schedule and the eight hour
day: and in various ways endeavored
to embarrass and discredit the gcv-
eminent operation of the wires.
The reason for the refusal of the
denartment to grant the compensation
asnsd for was that the sworn state
ment submitted to the Interstate
Commerce Commission in behalf Of
the company placed the net income
for 1917 at $117,264. while the sworn
statements they made to the wire con-
troll board as basis for compensation
placed the net income for the same
year at $4.485,593.34."
The announcement adds that the
value of the plant and equipment Of
the Postal Telegraph-Cable Company.
sworn to in the company's return to
the Interstate Commerce Commission
for 1916, was $6,s47,472. but the off,
make any statement Of valuation to
the wire control board. although re-
peatedly requested to do so.'
Refers to Proclamation.
Todays order cites the legislation
and the proclamation of the Presi-
dent. under which the government
assumed control of the wire systems.
and the order of the Postmaster Cen
eral directing all of the officers. oper-
atofs and employees of the telegraph
and telephone companies to continue
III the performance Of their existing
duties and announcing it to be the
purpose of the department to co-ordi-
nate and unity these services SO that
they might be operated as a national
system having regard for the inter.
s..s Of the public and the owners Of
the properties. 1t then continues:
~ hereas the president of the said
laa:kxy companies. Clarence H.
Mackay: its general counsel, w. w.
Cook. and its secretary. william J.
Dsegan, have failed to carry out the
orders and instructions of the Post
master General and have conducted
themselves before the public and with
the operating force of the said system
in such manner as to materially and
disadvantageously affect the interests
of the government in the operation Of
this and other telegraph and teie-
phone systems under government con-
troll
Contents of Order.
Now. therefore. it is ordered: That
Clarence H. Mackay, president: w.
Deegan. secretary. and the board Of
trustees or directors and the owners.
arc relieved Of any ana all duties
Appertaining or incident to the super
vision. possession. control and opera
tion Of the said telegraph and tele-
phone system. the supervision, posses
sion, control and operation of which
was so assumed by the President in
his said proclamation Of July %, 1918.
and / hereby substitute A. F. Adams
owners and said board OF trustees or
directors iii the management OF said
system and direct said A. r. Adams
TO take possession for me Of all
used in the operation OF said system
since midnight OF July 81, 1918. and
also the net balance or balances of
the funds derived from the operation
thereof since midnight OF July 81.
1918.
.An officers and employees of the
Ia i'll telegraph and telephone systems
except as and in the capacity in which
hereinbefore relieved therefrom, will
cortiuue in the performance of their
prt sent duties. reporting to their re-
sDective superior officers and on the
same terms of employment as hereto
fore. the purpose being with respect
to this system and with respect to
all other telegraph and telephone sys-
tens under government control to so
operate said system as to maintain its
integrity and value as a going con-
Germ. the efficiency Of the organization
ana adequate service to the public
Deegan Calls Order "outrageous. "
NEW YORK. March 22-Postmaster
General Burlesons act in removing
Clarence II. Mackay and other Postal
Telegraph and Cable Company OFF,
eials from duties relating to the
operation OF the system was char
scterized as most outrageous" by
William j. Deegan. removed as secre-
tary. in a brief statement issued here.
When shown a Washington dispatch
Telling of Mr.. Burleson's announce
ment. Mr.. Deegan said he had just
been Informed officially of the situa-
lion. ut is most outrageous act
he said. Il will issue a statement
Ia or this Afternoon
Mr. Deegan explained that the Post
rt. .ster Generals orders did not afYec,
tire connection of Mr.. Mackay, W. W
, Cook and himself with the Postal
+ system except as relating to opera
tion under government control.