The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-04-12
INCREASE RATES
OR GO BANKRUPT
Postmaster General Burlesf
Tells Why kilograms VIII
Cost One Fifth
More.
FINANCIAL Col Sc
With Everything Else BooS Tele.
graph Business Has Been Op-
Grating on Pre-War
Prices.

UNITED Press Leased Wire Service. ]
WASHINGTON April 12-"Recent
twenty per cent increase OF telegraph
rates was neceseitated by the same
reason that forced other industries to
increase the price of products and
service as much as 100 per cent, to
obviate financial collapse" Postmaster
General Burleson announced today.
While the price of products and
service Of various industrial, mercar-
tile and miscellaneous corporations Of
the United States has increased 100
per cent, telegraph service has been
rendered to the country at pre-war
prices throughout period when in
dustrfal and business profits were un-
precedented," Burleson declared.
''The increase of twenty per cent
in telegraph rates should be considered
in comparison with the 100 per cent
increase in other prices and it Is less
than that found necessary to add to
railroad freight rates and is no great
er than have been made generally in
other public utility rates in order to
cbviate financial collapse"
In making a rate sufficient to main
tain the telegraph service Of the coun-
try, Burleson declared, there should
te no discrimination between the two
companies. During the SIX months
from August. 1918 to January. 1919,
the Postal Telegraph Cable company
carried only about seventeen per cent
Of the business OF the country and
about eight and one-half per cent Of
the government business, Burleson
said, while the Western Union carried
eighty-three per cent of the business
and ninety-one per cent of the gov
ernment business. Handling Of gov
ernment business claimed by both
companies to be at loss of fifty per
cent Of the operating cost. is charge
against the gross revenues. which
Burleson declares, is escaped by a
company avoiding this public service.
Therefore he pointed out, "if the tele-
graph rates we're made sufficient to
meet only the cost Of operation cover
Ing but only seventeen per cent Of all
the service Of the country, so arrans-
ei to tap only the most profitable
business, much of the telegraph serv-
ice for all tue rest OF the country
would be destroyed by the lack Of a
supporting income"
.DuIltSOl otilti tlV w CotCih ohioih
business between 1918 and 1919 in
creased thirty-six per cent while the
Postal business increased only nine
per cent yet the earnings OF the Postal
for the month of January were 1922
2a7 This year the Western Union,
due to increase Of number of en-
pIoyes and wage rate combine, will
operate at an expense Of s13000.00
in excess of the increase Of It's gross
revenues, he said. 1t has increased
the number Of employees flfty-nine per
cent while gross revenues increased
but fifty-four per cent. It carried
fourteen times as much government
business In January, 1919, as in the
same month in 1916 The Postal, he
said, avoided carrying this unprofit-
able government business as far as
possible, actually issuing instructions
IN some cases ''to avoid this govern
Inent business whenever it can be
done, a plausible excuse being sug-
gested as shortage Of operators. etc"