The sun., 1919-03-31
PREDICTS HIGHER
TELEPHONE RATES
"Postal Telegraph" Mackay
Organ, Asserts Burleson
Plans Further Boost.
WARNING TO THE PUBLIC
Scheme Is Declared to Be Most
fragrant of All War
Scandals.

Prediction that Pcstnna ster General
Burleson will increase all local tsiephore
rates In order TO increase the revenues
OF the Bell Telephone Company s5o,-
100000 for the year, Is made IN an
article IN Postal Telegraph. the Macksy
conpany's organ. for April. The
article charges that Clarence II. Mac
kay and the other officers Of the Postal
wero removed by the Postmaster
General a week ago because they refused
10 acquiesce In the increase Of telegraph
rates announced by the Post Ofrico De-
partncat on Saturday.
II further declares that the Post
r1aster-Gens-al know all along that he
would increasc rates and not lower them
as he announced when no took over the
wire companies, that his alleged de-
crease OF telephone long distance rates
In January was in fact an increase. and
that the whole programme OF increases
Is an effort on the part OF the Bell
Company through the Post Office Dc
partment to put over" charges which
1t could not OF itsel. establish as
justified before the various Public Ser
vice Commissions to tho control Of which
the company was subjected.
TIE article says tho effort OF Mr..
Burleson to continue the control OF the
wires for two years IL merely to cover
this attempted raise and to establish II
for the Bell Company, which will reap
thereby a golden harvest"
Warning TO the Public.
"Cn,ess tho lines are turned back
telephone rates are going to be increased
by Burleson until he makes up that
$4,000, 900, and the sooner the public
gets busy TO forostaH this move the bet
ter" the article concludes. The whole
wire control arrangement has developed
Into n gigantic Job. whereby the AIneri-
can Telephone a Telegraph Company
has been and will be enabled TO exploit
the public through the medium of the
Post Office Department or all the war
cause the money Is taken direct from
tho pockets OF tho people"
Summing UP, the report Gays:
The following. then. Is what trio Bell
company has gotten out OF tho people OF
the United States through Its contract
with Mr.. Burleson:
IAN annual compensation OF $6b,iSs,.
Sal, which Is more than the Bell COM
pany could have eSrned had II kept III
lines
sixteen million doIlars' rake or
from the subsidiary companies, repre-
| sent.ng ~ per cent OF the gross re
| ceipts Of the latter. This payment hai
been denounced by tho Public Serv!c'
| Commissions.
| "All interest, expenses. depreciation
and taxes to be paid by the Government
Telephone rates will be increase,
| $50. 0eo. 200. an to come out Of tho pock
| cts Of the telephone users OF this coun
Try. IL
company will have rates esta blished b.
order OF Mr.. Burleson which IL nevei
could have put across Itself and wh!cr
Will yield golden harvest 10 Its eI
checquer. Truly. Mr.. Burieson has con,
much FOR the Bell company.
"3r-. Vail. In hts annual report OF IN,
! Bell Telephone Company, also discuss e'
| the theory that the day for competition
IN the telephone and telegraph eervic
| has pc seej. TIE same thought was ut
tered by Mr. B2rleson before the Hou.
Committee or Postoffiee and Post Road
on January 80 1919. when he said:
Competition should be eliminated
The period for competition Is passed
Here you have two minds with but {
single thought and two hearts that bea
as one. Senator Sherman put Il aptly II
| his speech before the United States Sen
ate on March 4. 1919, when he said
| IT seems as II the two (Burieson AM
vaN) connect their advice and conduc,
that one is accomplishing what tn
other desires
BeIi Company's Annual Report.
The PostcI Telegraph oases 4.
charges on the iust Issued annual re
port o. the Bell Telephone Company