The Birmingham age-herald., 1919-02-02
MACKAY URGES THAT LINES BE RETURNED ID PRIVATE OWNERS.
Postal Telegraph President Writes to All Members of Congress Asking Fair
 Treatment

New York, February 1.-(special) Clarence H. Mackay, president of the Postal Telegraph company, gave out tonight copy of a letter he has ad- dressed to all the members of Con gress in which he urges that there has been no reason advanced for the gov ernment retaining control of the tele- graph and telephone lines and urging Congress to vote their return to the companies.
 To all members of Congress: I real ize and respect the responsibilities of the members of Congress of the United States, cable company and the commer- cialy cable company, I would earnestly request that you consider carefully the proposed joint resolution which has been reported to the House of Repre- sentatives by the committee on the postoffice and postroads extending to December 31, 1919, the control of the Postmaster General over the telegraphs and telephones.
 From the statements made, written or orally, by Theodore N. Vail of the American Telephone and Telegraph company, Ne%comb Carlton of the
 
 Postmaster General Burleson at the hearing on the so o-called Moon resolu- tion, they have apparently determined in their minds that the Postmaster General shall keep control as long as possible of the telegraph and telephone lines, especially the latter, in order to give these companies guaranteed gov ernment compensation and to finance them, and most important of all, to in- crease telephone rates, which increase has been ordered throughout the coun- try.
 I therefore respectively submit the following:
 1. Not the slightest reason is given by MT. Burleson's continuing control of the telegraph lines to December S1, 1919! they do not need any financing. Their service is steadily growing worse under his management There is no wafs necessity for such continued control. Nothing has been done by the Postmaster General since he took con- trol August l, last. except to give 8 high compensation to the Western Union Telegraph company, and disturb the morale of the staff of the Postal Telegraph company, and attempt to raise telegraph rates.
 The lie wish telegraphic competi- tion restored The public does not agree with MT. Burleson in his remarks
 
 uary 21, that competition should be eliminated. The period for competition is past" The Western Union wishes to advance telegraph rates under the shield of MT. Burleson's control, but the Postal refuses. Meantime, the gov ernment is losing money daily on it's guaranteed compensation to the West ern Union and that should be stopped summarily.
 The extension of time from the proclamation of peace to December 31, under these circumstances, would be unconstitutional. There Is no excuse for the telegraph lines not being re- turned at once to the two companies.
 2 The above reasons, and still more powerful reasons, pertain to the cables. International complications have arisen. The record of the House committee on the postoffice of January 21 shows that the British government has issued an order containing the following: Il |. His majesty's government do not agree to either company allowing con trol of it's stations, staff, or working in the United Kingdom, by the other company or by any person acting di- rectly or indirectly on behalf of the United States government"
 The cables should be turned bask at once, especially as nothing has been done in regard to them by the Post | master General except to remove off cers of the Commercial Cable company. |
 3. Mr. Burleson's argument as to the telephones is not convincing. He is raising telephone rates throughout tho country to an enormous extent against 1 a storm of protest and injunction suits. He does not explain that there is any war necessity involved. The purposes are clear, namely, to raise tel ephone rates, finance crippled tele- phone companies. How this can be jus tified under the war power we fail to see. Meantime, telephone service is deteriorating rapidly, and the losses to the government on guaranteed compen- sation, especially to the Bell company, will be enormous. The companies of which I am president are fully capa- ble of conducting their business and financing their present needs and fu ture extensions without any increase in rates (and we believe an increase in rates Is unjustifable at this time). We shall put these rates into effect un- der protest and shall allow them to continue only during the time of gov ernment control. In my judgment the lines should be turned back to their owners immediately as it is not pleas ing or conducive to good management to have our business controlled as it is with the orders of the Postmaster Gen. eral given through our competitors in business. We think it eminently unfair that committee made up of Union H. Bethella of the American Telephone and Telegraph company, G. H. Yorks of the Western Union Telegraph company and A. Y. Adams of the Kansas City Home Telephone company, three of them officials of competitor companies, should be authorized to exercise a dom finance in our affairs. O submit these views and facts to you, the representa- tives in Congress of the American pec- pie, depending upon your sense of fair ness and good judgment.
 I would earnestly request that the resolution reported by the House com mittee of postoffice and postroads be amepded so that the telegraph and ca ble lines are turned back to the com panies at once. Respectfully,
 CLARENCE H. MACKAY, President
 Secret of the Czech
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