Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-06-01
LEGISLATION
is WIRE AGENTS PLEA
American, Telephone and Telegraph
Company's Vice-Prcsidcnt Con-
tfnues Testimony.
SAYS COMPANIES FACE CRISIS
Government Operation at Loss Be-
cause Of Delay In Putting Higher
Rates Into EffeCt-Postal Asks for
Its Property With No Rate Raise.
fBy Associated Press.

isss WASHINGTON, May 31.-Governmen
control OF the telephone and tclc-
sraph properties resulted in larger de-
mands for wage increases than would
= have been made il telephone and telo-
graph companies had continued under
private operation. N. c. king sbury.
wee president OF tho American Tele-
phone and Telegraph Company, told
tine House Interstate Commerce Com
tmittee today at its hearings on legis-
:lation for return Of the wires.
Under this public operation has the
government received anything that it
soperatioH?" Mr.. Ningsbury was asked.
E II know of nothing" was the reply.
Z Faces Crisis, Says l<inEsbury.
Declaring telephone companies arc
facing a crisis" Mr.. kingsbury urged
that Congress in returning the COM
Spanies pass legislation continuing the
Eovernment-fNed rates. both interstate
and iutrastate, until proper authorities
Just. " thout this legislation, he
said. the companies would suffe: heavy
losses
Committeeman expressed doubt that
Congress could Ak rates 10 be enforced
after the proclamation Of peace. but
Mr.. Eingsbury said ne believed II could
sbs done under Congress war powers
war still would exist
Dir. h ngsbury presented copy OF
a proposed bill which would guarantee
.tion for the period under Federal con-
strol, and also the continuation OF pres.
sent rates: Tho governments deficit
tenn is approximately $4,000. oO0 Mr..
,Kingsbury said. due 20 the fact :hat
athe government could not get the rates
Increased in time 10 meet higher OPP
Grating costs.
Poxtnl Asks Nh Raiae
Edward Reynolds, Eeenral manager
OF the Postal telegraph Cable Com
-psny. asked for immediate return Of
medal iesisia,ion and opposed iests.
1ation keeping present rates IN effect.
He said the PUBLIC is paying extra
cha shsrs os OF from; sso,eGo TO $4,000
letters passing between Clarence II.
sMaekaE, p7sstden,, o. ,ae Pos;a! Com.
his statement that the Pos;s! had not
refused information concerning ,he
GemaAnEs affairs as eAa!ssd % ;ae
Post-Of,ice Department.
M. Reynolds sa:a the Postal could
return 70 the ?rewa7 rates ana NEE:
the admitted increased COS; Q: opera
tenn. Wages. ae SAID, would 40: he
reduced.
President Neucomb Testiaes.
Presiden. Newconb, Of TIE Western
Union Telegraph Company testified
that the transatlantic ca Die lines were
taken over by the government last
November after re had recommended
70 Postmasttrn- General Burleson tina;
this be done for commercial reasons.
This action on his part was based
upon the belief, he said. tina, American
business interests would be served
q more advantageousiy through govern
q ment operation.
Las; October" NJ Carlton said, az
told the Postuaster-C; ,ha. n
my Judgment he was assuming a great
political responsibility in taxing over
the wires, because the service was
bound 10 decrease in er1cieacy and he
would be held responsible for things
ne was no: 10 blame for. During my
conference with him. suggested ma.
* ne wanted 20 10 anything which
would result IL good for the country
he shou!t ask the Prsside7; 10 take
over The cables and expand the ser
vice SO that AT; crican merchants and
the American warchan: marine might
have direct com rnun!c cation 10 foreign
points OF Amer can cables, in order,
Tor one thing, 70 avoid the censorship
and for another, :he unt.1eadly atti-
tNde o. foreign powers.
oon; know whether nv -s-,-,
, Inendations Influenced ;he postmaste-
In any way, but a. ali events he seemed
TO Ike the idea and iate- conferred
with the President and the cables we-a
taken over"