The sun., 1919-05-23
'BURLESON ADVISES
WIRE LEGISLATION
Necessary Before Companies
Are Returned to Owners,
He Tells Moon.
HE URGES HIGHER RATES
Would Permit Companies to
Coordinate Operation and
Pool Traffic.
Special DespatcA TO THs Sos.


WASHINGTON. May 22.-Legislation to
relieve the wire companies Of losses to
insure them against future financial
olniculties Is necessary before the wire
nhes are turned back to private control
In the opinion Of Postmaster iBurleson.
In letter TO Representative Moon
lTenn), ranking minority member of the
Post Office and Post Roads Committed
and former chairman of that committe.
he says "the extra ordinary increased
cost of operation and maintenance which
has been fastened on them (the wire
companies) as a result of the war will
continue for some time after control
passes from the Government"
Seven Recomm md lions.
To meet the situation the Wire Con-
troll Board. headed by the Postmaster
General. recommends:
l. To coordinate the various systems
as to operation. This could be done
without creating monopoly.
z. That this be accomplished by au-
thorizing any telegraph or telephone
company subject to approval by the
Interstate Commerce Commission to buy
or consolidate with any other wire COM
pany or pool its traffic and facilities
WIN dHOtner company.
3. That control over all wire rates
where companies do an interstate bust
ness be taken away from State or local
commissions and lodged with the I. c. C.
4. Such rates to be fixed as to yield
not only reasonable return but suf-
ficient funds for betterments, deprecia-
ton and experimentation.
3. That a general wage board be Gre
ated with representatives Of the public.
the employers. the employees and the
Government as members to adjust all
wages.
g.. That wages be reviewed by the In
terstate Commerce Commission and the
commission Immediately empowered to
increase rates to cover any increased
wages granted.
In his letter to Judge Moon the Post
master-General says in part:
These wire properties cannot In fair
ness to the ownrs or general public be
returned under the burden of these in
creased costs of operation without as
,Aprance of revenue sufficient to meet
sucnf increased cost, for otherwise de-
terioration of the properties and the
service inevitably will result and the
public as well as the owners and in
vestors in the securities of these COM
panies will be disastrously affected.
Former Rates inadequate.
"Manifestly the former rates are in
adequate to produce the necessary rev.
enue to meet existing requirements to
maintain and operate these properties
New materials must be purchased a,
market prices and skilled labor employed
at prevailing wages. Because of these
extraordinary changes in the operating
conditions Of these properties a serious
responsibility rests on the Government
to adopt every means possible consistent
with sound policy to protect the public
and enable the owners to operate their
properties free from the dangers of re-
ceiverships or the serious impairment OF
their values or the deterioration of this
important service. in my opinion some
legislation to meet this situation is Inn
perative.
THE public interests demand the most
efficient wire service possible. In
order that this end may be attained
adequate revenue must be provided. The
plant and equipment must be OF the
best construction and of the very lat
est development of the art and must
be properly maintained. and depreciation
and obsolescence with reasonable re-
serves for surplus and contingencies
must be provided for and also a reason
able return on the value OF the property
used to furnish the service.
THE board is also convinced that
in order to provide satisfactory wire
service the most efficient personnel must
be secured. In order to secure and re-
tain the service of such employees there
must be assured proper working condi-
lions, advancement of wages on the
basis of demonstrated efficiency or ca
and these conditions can only
be brought about by the adoption of a
sound policy in the treatment OF such
employees"