The sun., 1919-08-01
WIRES HANDED
BACK; POSTAL
REDUCES RATE
Cuts Charge a Fifth, Drop
ping Increase Burle-
son Imposed.
MAY BE TEMPORARY
Carlton Says Western Un-
ion Is Unable to Do Like
wise at Present.
RIVAL CHIEFS BITTER
New York Is Promised Better
Telephone Service by
Local Company.
RIVAL CHIEFS BITTER

The telegraph and telephone wires
Of the United States passed from gov
ernmental control back to their private
owners at 12 o'clock last night.
The New York Telephone Company.
the Western Union and the Postal
Telegraph Company issued statements
last night dealing with tho resumption
ofprivate control. Clarence H Mackay.
president of the Postal system. an
nounced that his company had made a
90 per cent. cut in telegraph rates all
over the United States, thus restoring
the rates to what they were before
Postmaster General Burleson took
over the wires. At the same time,
rcwever he indicated that this reduc-
ton would be only temporary. stating
trat II taxes and expenses continue to
Increase 1t will be necessary to restore
tht rates established by the Govern
ment
The statement by Newcomb Carlton.
president Of the Western Union, said
that In view Of present conditions that
was unable to do better than II is do
ing at present.
Mr.. Mackay's Statement.
Mr.. Mackay said:
IN accordance with its promise to the
public, the Postal Telegraph-Cable Com
pany at midnight tonight will reduce
telegraph rates throughout the United
States 20 per cent. by cutting or th(>20
per cent. increase which Postmaster-Gen-
eral Burleson put into effec. April I, In
Guiding leased wires rates. and restoring
rates to what they were before Mr..
Burleson seized the lines. In doing this
We wish to state that II taxes and ex-
penses continue to increase It will be
necessary for the company to ask the in
dulgence Of the public In again advanc-
ing telegraph rates for the whole or a
part of this 20 per cent.
in order to continue to give fast
service, the present rates on interstate
night lettergrams win not be disturbed
for the present We expect to reduce
those rates a little later.
The return of the wires tonight to
their owners marks the end Of an epoch
and of this company's fight against a
powerful effort by the Postmaster Gen.
eral and our opponents, the Bell Tele-
phoneWestern Union Companies. to
eliminate the ccinpetition of the Postal
Telegraph-Cable Company. II was a
fight waged against heavy odds, but we
had the wholehearted support of the pub
lie and the press. and for this I am
deeply grateful"
Mr.. CarIton's Statement
The statement by Mr.. Carlton said
The Western Union wires reach a.
S25 communities. The only other tele-
graph system reaches 100 communities.
or less than s per cent of the total
number served by the Western Union.
The offices in over 10000 small commun-
tiles exclusively served by our wires are
essential to the country at large and
must be maintained. II the, Western
Union restricted its business to those
communities only between which service
Is profitable, then some 10000 places
now part of the national system would
have no telegraph service whatever.
We feel that the public Is primarily
interested in the adequacy of telegraph
service. Having in mind the greatly in
creased cost OF everything that enters
into that service, II is hoped that the
telegraph using public will consider the
adequacy and quality of service and the
Hberality Of treatment of employees OF
company that undertakes to reduce
rates at this time.
In the light of these facts We cannot
see our way clear to do any better than
We are doing at this time. We shall
strive to pay our employees a fair wage
having IN mind the advanced cost OF
living, and to ask a moderate and wholly
defensible income and strive to servo the
whole public efficiently and satisfactor-
ny"
Mr.. Cartons statements referring to
The Postal were answered in a later
statement Issued by Edward Reynolds
Nce-president and general manager OF
The Postal. Mr.. Edwards declared that
large percentage Of the offices which
The Western Union operates in places
not reached by the Postal are railroad
onlces, maintained by the railroad.
which gets only a certain amount of free
telegraph service from the railroad. He
declared that the cities and towns
reached by both the Postal ana the
western Union originate so per cent. OF
he telegraph business. and that Mr.
earlton's implied assertion that the Pos
ul does not give real competitive serv'
ice is merely camouhage.
Ihe New York Telephone Company II
US statement reviewed the situation dur
ing the war. and declared that while ths
Sstem was properly handled by III,
government the property handed bacl
vas not the same property taken oveI