The sun., 1919-03-31

once and Post Roads In support OF the
eo-called Moon resolution, providing for
an indefinite extension of Government
control. (This resolution was later re-
jected by the committee) The burden
Of the testimony OF the wire COMMITTEES
was that the Independent telephone com
paniss needed further Government sup
port, and that II would work harm 10
them to release the Government control
inside of two years Whom they testified
10 that effect they knew that what they
really wanted was an extension In the
interest OF the American Telephone and
Telegraph Company. in order that they
would have sufficient time TO put across
this $4,000. 900 increase in telephone
rates before they turned the lines back"
hitter over Com Mission.
Tho report is particularly bitter over
the allowance by the Post once Depart
rnent to the Bell company Of the ~ per
cent. commission which Il has collected
from It's subsidiary companies as A
charge for engineering and other services
ana for the use OF instruments, a charge
which has been denounced by a number
Of Public Service Commissions which
have Investigated It. as excessive and a
~cherne for the diyrre'on Of profits 10 the
pHrent company. Inc article quotes n
decision OF the New York Public Service
Commission on this charge as follows:
ut 10 certainly. on this estimate.
proper TO assert that any payment above
.b cents by the New York company TO
the American Bell Telephone Company,
both OF which are owned by the Aineri-
can Telephone and Telegraph Company,
IL a mere means OF divertinR profits from
the local to the parent company 1.-THE
New York commission figured out that
the New York Telephone Company was
paying the American Telephone Com
pany, under this rental charge. s2.t9 per
instrument, while proper charge would
be IS cents.l'
The article continues:
'TnN spite OF the above deciaions by
Public Service Commissions, after in
vestigaticr, that this charge OF ~ per
cent. levied by the American Telephone
and Telegraph Company on It's sub
sld,ary companies Is rexorbltart, Post
naster-General Burleson continued that
pay nlent TO the American Telephone and
Telegraph Company. Assuming that the
figures OF the New York Public Service
Commission are correct Mr.. Buriesor
overpaid the American Telephone and
Telegraph Company S11,200,ooo PER an.
ium on this ono item alone.
! This $40, 100000 rate Increase which
Mr.. Burlsson committed himself 20 CT.
,lairs in large measure why he is hold
ng on to the telephone and telegra pt
ines despite the public clamor for then
| eturn to the companies. 'Burleson won
ct go until he puts across this $50. 900.
90 rate increase for the Bell. and Thee
doe n. Vail. In bis annual report for tn,
Bell company Just issued, Is urging a /.
per cent increase In telephone rates dur
| c.
Wall Is urging II, and Burleson ha
,ut some Of 1t over by his increase In tn
org distance telephone rates in Januar.
(WHICH he aRnounced as a reduct.on)
and Tho balance OF the 3Ss. o0o, 600 In
rease, we are reliably informed. is to b.
made by an increase in the rates 70
ocal exchange telephones. Just as sool
hs the Supreme Court passes on his RICH
increase intrastato telephone rates
which Is being contested by the Publ
Service Commissions throughout tn
ountry."