The sun., 1919-05-31
QUICK WIRE ACTION
URGED BY CARLTON
Consolidation Of Service
Should Be Guided by
I. O. c., He Says.
3 CORNERED ROW PROBED
Plan to Unity for Public
Without Merging Com
panies Shown.
3 CoRNERED ROW PRoBED
speeiai psspatcA % TT. sps.

Special Despdfch % TIE Sos.
WARRINGTON. May so. - Newcomb
Carlton, president Of the Western Union
Telegraph Company, was asked by the
Senate Committee on Interstate Com
merce to-day to tell II about the three
cornered controversy involving the
Postmaster General and the Postal and
Western Union Telegraph companies.
1t had BEEN charged yesterday during
the hearing that the Post office De-
partment was trying to force a CONSOLE
dalton OF the two telegraph companies
in order to bring about a unified wire
service, including also telephones and
cables Mr.. Carlton, addressing himself
to the Kellogg bill, which calls for inn
mediate return to their owners Of all
the wire properties, told the committee
that IL It proposes to reorganize by
legislation the organizations Of the wire
services or their relations with the pub
lie II ought to be done at once.
While the properties are in the hands
of the Government this move will be far
easier. he said. than after they have been
returned to their former arrangements.
As for his own company, 1t asked no
special legislation. but II given back its
properties would resume business and
take care of its interests and of the
public as well. he said.
"hdtcNcf CobSohudtioh VI NiSo
were decided upon, Mr.. Carlton sug-
gested, should be under the Interstate
Commerce Commission. That body
would have authority to determine the
relations between different companies
and the compensations to be given for
services or facilities furnished by one to
the other. and also between the telegraph
and cable companies Under such an
arrangement unification of service for
the public's benefit could be secured
without actual unifcation Of the cor
porate properties
Clarence H Mackay. president OF tho
Postal Telegraph Company. recently de-
clared IL the properties were forthwith
returned to their owners he could effect
a 30 per cent. reduction Of his company's
rates and save the public about $1,000
600 monthly in its telegraph bills. Re-
plying to this Mr.. Burleson made the
statement that the Postal company
transacted 1000 Of telegraph busi-
ness in 1918.
II. therefore, It were to save the coun-
try $4,000, 900 a year in tolls. Mr.. Burls-
son declared, the company would have
to save most of it through the process
OF forcing down the rates Of the Western
Union by competition. This, Mr.. Burle-
son said. would be unfair, because the
Postal furnishes telegraph service at
only about $500 points, while ten times
that many points are furnished such SER
vice by all companies. The Postars
rivals furnish service at the great pro-
portion of places where 1t Is least pro-
fitablc and on this account a reduction
of rates which the Postal could stand
would be highly unfair to the Western
Union and to the public's interest In
maintaining nation wide service.
The committee wanted to know from
Mr.. Carlton about the controversy In
volvlng the Postmaster Geperal and the
two telegraph companiea Mr.. Carlton
ventured that the Post ONCE Depart
ment had been badly impressed by the
fact that. as Is charged, the Postal COM
pany presented one set OF figures on Its
revenue returns to the Post once De-
partment and another to the Interstate
Commerce Commission.