New-York tribune., 1919-07-31
Burleson Issues Order and
Tells Critics He Will
Rest His Defence With
Sound Public Opinion
Takes Fling at Postal
Telegraph Rate War May
Open; Intrastate Phone
Charges Hold 4 Months

WASHINGTON, July 80 Govern
ment control of telegraph and tcle-
phone properties will end at midnight
ts morrow night. Orders for their re-
turn to private owners were issued to-
day by Postmaster General Burleson
as required under a resolution adopted
ny Cong ress and signed by President
Wilson ten days ago
Mr. Burleson, in a statement accom-
panying his order said sound public
opinion ultimately would determine
"how this trust has been met" and
that he was content to abide by the re-
suit. Besides this reply to criticisms
ot his management of the wire COM
panes, the Postmaster General also
took parting shot at the Postal Tele-
graph Company, most of the officers
OF which were removed several months
ago because of what he termed inter
ference with government management.
The Postmaster General did not men
tion the company by name, but said
that with cne notable exception the
reason for which is thoroughly under
stood iy those who have kept in
formed every wire company had given
him loyal cooperation.
Under the resolution of Congress
directing the return Of the companies
government-fxed intrastate telephone
rates are to remain in force for a
neriod of four months unless sooner
changed by state commissions, but no
provision was made as to telegraph
rates. Clarence H. Mackay, president
of the Postal company, in urging Con-
gress to provide for sneedy return of
the properties. said his company could
reduce rates 20 per cent and still earn
a profit.
This statement was recalled to-day
in connection with the return of the
properties and a rate war between the
telegraph companies was viewed in
some quarters as a possibility Telc-
graph rates were increased approxi-
mately 90 per cent last March to meet
increased salaries of operators and
other employees and rising costs of ma
terials.
Defends Increases
Referring to the advance in tele-
graph and telephone charges, Mr.. Bur-
Lesson in his statement said the per-
centage Of these increases was mark
edly less than the average of increases
sf rates made during this same period
Cor other public utility services" and
added that "but for court injunctions
AZ CiShtScu otdVco, AHStiSdtcu ny Stdtc
utility commissions, the wire systems
would have been returned to their
owners without any obligation on the
Federal Treasury because of compen-
sation contracts"
The amount of this obligation can
not be determined until accounts for
the present month are adjusted and
an agreement has been reached as to
compensation for companies which so
far have not been willing to accept the
government figures.
Control of the wire companies was
taken over by the Postmaster General
as war measure on July %, 1918,
under a resolution of Congress and
a proclamation by tAe President A
wire control board and an operating
board were established, and various
consultations were made with a view
to effecting economy in operating
Criticism Sharp
Administration Of the affairs of the
companies by the Postmaster General
led to sharp criticism in recent months
and this found expression in Congress
when the resolution for their return
to private management was dered
In his statement to-day the Post
master General said his labors were
brought to an end with conscious
ness on his part of having at all times
administered the wire systems with
justice and fairness to the employees
and the owners of these properties
and in such way as to render the best
service possible to the general public
under abnormal conditions"