The sun., 1919-03-31

n says that while the compensation 10
be paid to the Postal company was de-
termined by the value OF the companys
investment. anything but that process
was followed In the case Of the larger
concern. Tho annual report OF the Bell
company Is quoted az showing that the
hrst fve months of operation under
Government control Melted loss OF
nearly s+,ooo.ooo. But the estimate
presented by the Bell company TO the
Government before it's compensation was
errived a. showed a prospective profit TO
the Government OF s12.477,Soo. The
article continues:
This estimate for 1919. showing a
profit OF s12,f77.soo, was conditional on
tie Government Increasing the telephone
rates by s30.775,0oo. Tho Bell COM
Lany's annual report In discussing thcse
estimates states as follows:
THE extraordinary rapidty of the
increase in wages and in cost of ma
terinl, as noted elsewhere, could not be
met by the economies IN operation. To
provide revenue against them q cam
paisn OF reimbursement OF rates had been
started during 1917. which was vel!
under way when the properties ware
taken over. The necessity of continuing
this campaign and ito effect upon our
estimates were fully set forth and In
cluded In our estimates for tho iaet five
months OF 1918 and for the year 1919, Of
which the experts IN economies made
studies and analyses and submitted them
to the Postmaster General
IN other words, the campaign for IN
creased telephone rates irauEurated by
the Bell company before its lines were
taken over by Mr.. Burieson was 10 be
continued by the latter in behalf OF
tho Bell Telephone Company, the power
OF the Postmaster General being relied
on TO do what the Bell company had
difficulty In doing.
Says Action Bellies Talk.
lie knew that the Bell Telshone Com.
par.'s increasing Of rates was resented
by the Public Service Commissions and
the public because those increased rates
| were not Justified. He was talking re.
| duced rates, but he knew while he WA
talking that he was going to increase
the rates. In December. 1918. he an
| nouhced q new schedule OF long distance
, telephone rates az a reduction. but whicl
turned out to be very substantial In
crease. and he knew that they were al
| increase when he announced them as 9
| reduction.
These increased rates were all in tn,
| toll or long distance telephone rates, snt
according to the Bell company's owl
report that company does s5 per cent. o
all the toll or long distance telephone
business Of the United States. Wha
| part OF the Sa0.ooo,o 900 rate increase q
| which Mr.. Burleson Is committed wa
Involved in this increased rate announce
ment OF December last cannot be a4scer
tained. but In any event II those In
creased rates do not make Up the $50.
too,0oU he Is committed 70 an increas
In the telephone rates during the yea
1919 which will increase the teiephon
revenues By such 10000, 600, and there
Gore there viii be m ore increases 10 come
md they are coming, because Theodor
~. Vail says in his report, jus. pub
lished, that telephone rates should b
Increased during 1919 by IL per cent
and what Vail says goes with Ryrlssor
TN January. 1919. three OF tie fou
members OF the wire committee, natnel.
lBurlsson. Lamar ard Koons, appeare
before the House Committee on the Pos