New-York tribune., 1919-08-01
c. H. Mackay Announces Re.
turn to Old Charges, but
Warns That Increase Nav
Be Necessary in Future
W. u. Makes No Changes
Telephone Company Issues
Statement Telling Why
Its Service Is So Poor

At midnight government control of
telegraph and telephone property
: ceased. At the same instant a 20 per
cent reduction in the rates of the Pos
tai Telegraph Company became cffec-
tive. The Western Union will not
lower its rates, it was announced by
President Newcomb Carlton.
Government control ended under an
order for the return to private owner
ship of the telephone and telegraph
lines that was issued by Postmaster
General Burleson, as required by
resolution of Congress signed ten days
ago by President Wilson,.
The reduction in the rates of the
Postal was accomplished by cutting oil
.ac 20 per cent increase which Post
master General Burleson put into ef-
5ect April 1. The cut was announced in
& statement issued last night by Clar-
once H. Mackay, president of the Postal
telegraph Cable Company. The state
,Nent follows:
lin accordance with it's promise to
TIE public The Postal Telegraph Gable
Company at midnight tonight will re-
cAce telegraph rates throughout the
lNlted States 20 per cent by cutting
cff the 20 per cent increase which
Postmaster General Burleson pu into
effect April 1 (including leased wire
lates), and restoring rates to what
:hev were before Mr.. Bureson seized
the lines.
May Need an Increase
In doing this we wish TO state that
II taxes and expenses continue TO in
crease it will be necessary for the
company to ask the indulgence of the
public in again advancing telegraph
rates for the whole or a part Of this
90 per cent. In order to continue to
give fast service the present rates on
interstate night lettergrams will not
he disturbed for the present. We ex-
pect to reduce those rates little
later.
The return of the wires tonight to
their owners makes the end of an epoch
and of this companys fight against a
powerful effort by the Postmaster Gen.
cIal and our opponents, the Bell Telc-
phone-W Western Union companies, to
Telegraph Gable Company. 1t was a
light waged against heavy odds, but we
had the whole hearted support of the
public and he press and for this I am
deeply grateful"
The statement by Mr.. Mackay was
shown to Mr. Carlton, who laughed
when he read that part of it which
pointed out that it might be necessary
for the Postal again to advance rates
IF taxes and expenses continue to in
crease" Then he issued a statement
IN which he said that. in the light of
the greatly increased cost of everything
entering into the telegraph service,
we cannot see our way clear to do
better than we are at this time"
Two Systems Compared
Mr.. Cartons statement follows:
"The Western Union wires reach
22,525 separate communities. The only
other telegraph system reaches 100
communities, OR less than per cent
OF the total number served by the
Western Union. The Offices in over
10000 small communities exclusively
served by our wires are Improbable to
the company, yet such Offices arc es-
sential to tho country at large and
must be maintained.
"If the Western Union restricted its
business to those communities ONLY
between which service is profitable,
which is the policy of the other tele-
Graph system, then some 20 600 places
now u part of the national system
would have no telegraph service what
ever.
THE American people have always
qulres the maintenance of large
number Of postoffices not in them
selves remunerative in order that the
postoifice may serve the nation as a
whole.
Needs of Employees
The needs of Western Union en-
ployes for higher wages are recognized.
not alone to meet living costs but
that the high standard of the tele-
graph efficiency may be maintained and
improved through a proper esprit de
corps. In this business the wages of
labor represent &C per cent of the total
cost of providing the service.
I'VE feel that the public IS primarily
interested in the adequacy of tele-
graph service. Having IN mind the
g-eatl, increased cost of everything
that enters into that service. it is
hoped the telegraph-u using public will
properly consider the adequacy and
quality of service and the lberalty of
treati ent of employees by company
which undertakes to reduce rates at
this time.
I'm the light of these facts. we cam
not see our way clear to do better than
we are doing at thfs Sine We shall
strive to pay our employees fair wage
having in mind the advanced cost of
living; to ask q very moderate and
wholly defensible income; and strive
to serve the whole public, to whom we
are bound, efficiently and satisfac-
torily."
How Telephone Company Feels
The Bell telephone systems feelings
on the subject of the return of its prop
erty from government control were
partly revealed in an announcement
signed by the New York Telephone
Company, which said:
""hile the property has been prop
eriy maintained, it is not the same
property which the government took
over on August l, 1918. 1t is not as
adequate for its job or as we'll manned
as 1T was; that it is not is in no way
the fault of Federal CONTROL which was
eminently fair. 1t is due to causes for
which neither the government nor the
companies are to blame"
The statement then continues:
"A year ago to-day we were at war.
Labor and materials needed for both
telephone operation and construction
were turned to military uses. Some
materials were so vital to the carrying
on of the war that even the work Of