New-York tribune., 1919-03-24
neecan. Company Secretary,
Charges Postmaster Cen
eral With Attempt to
Give Lines to Competitors
Will Take Fight to Court
wholesale Ousting Called
lob to Raise Rates for
Rell and Western Union

---------
Postmaster General Burleson was
.ssrred yesterday by William Deegan
~;,h attempting to break up the Mackay
,.,s0raph and cable systems by his re-
uoyal of Clarence II. Mackay and his
..soeiates from their management and
.,sration. Further efforts by the Post
MASTER General to disrupt the lines will
~ fought to the last ditch through the
.ourts. according to Mr.. Deegan, who is
.scretsry Of the Mnckay companies and
mo was dismissed with his chief.
Mr. Mackay, who is president of the
wire corporations, will reach this city
;rom Baltimore, where he received the
notice of his removal, this morning. He
will 20 at once to his office, at 253
groadway. where A. F. Adams. presi-
dent Of the Home Telephone Company,
Of Kansas City, has succeeded him in
control.
II vas pointed out last night by Mr..
psegan that, although Mr.. Mackay had
been removed from the active manage
ment OF the wires, he had not severed
his, relations to the corporation, Of
which he remains the head.
Still Control Company Funds
President Mackay, and the other
officials dcposed by Burleson, will still
have control OF the finances of the
companies 1t is with this money
power that they will combat the au-
thority imposed in Burleson by the
Presidential order TO take over the
telegraph and telephone lines. The
Mackay oflicial= lave suit now pend
ing contestlng the authority Of the
Federal government to take over their
property.
Postmaster General Burlesons ac-
ton in removing Mr.. Mackay was an
attempt to break up the Mackay lines"
said Mr.. Deegan, VINO is speaking for
his chief. at is . Job to increase rates
for the financial benefit of the Bell
Telephone and -he Western Union
crowd.
"A big increase in telegraph rates
was announced by Mr.. Burleson in Jan
uary. He made a proposition to us to
increase the telegraph rates, but we
sarned him down. That was shortly
alter Edward Reynolds, vice president
and general manager, was removed.
big Benefit to Bell LiEes"
All his attempts to increase rates
was Tor the benefit of the other fell
low. The Bell Telephone Company is
gong to profit enormously by the new
ss'es. An expert testified that in New
england alone the Bell Company prof
IT'S sl,OO0,000 a year bv the new ar
sansements. How vast the profit for
\ VIII be throughout the country can
ge ludged when you know that the Bell
leiephone Company does 95 per cent
u .ne Tong distance business.
" ar. alackay Is still president of the
naeSay company and the Postal Tele-
sfaph Corporation and has the fnan-
va uls end Of their business in hand
, "nas the next step will be I do not
s' snew' but 1t undoubtedly will be a
nsns IN the court to prevent the dis
ssoannon OF the business by Mr.. puy-
'ssGn; aJn, mat IS all that is left to do.
do ,',, mnal tIe postmaster General would
Ts,s T,"oulu be TO consolidate the Postal
nsn;ss ns;ss@pn ana the Western Union com
sS~nleS' sS.' he has stated time and again
sna s .yloinpetslon should be eliminated.
s,'u sero,.,, snls IS the way he is going about
Adams in Control To-day
What changes, if any. will tals rlsco
ao..x me new management steps into
, ss,,as lhls morning could not be
por go ~ Yesterday. Neither Mr.. Adams
d.i al.e Cnafles P. Bruch, a vice -nre s,dant
Dc reached e'''e'iFe' couid
a. .So o. the instances cited for which
rrr,,e NM olIclals were said to have been ra-
u o,J.r we're alleged disobedience of
usrs ~s Tor increased rates and IN
aseo e'. wages to employees. a now
~sse schedule for the thousands ns
ynl's ~'Ls workers Of the corporations in-
~ oy'seo and an upward boost of the coat
ending messages over their wires
snl.s sl.ao1eaiy Will be among the first re-
,s go ol the shake-up.
~ ss.icIsm was aroused yesterday NV
y;s. s~e tact that the Mackay lines were
Ssnvdn. over practically entirely into The
visao i.as o. competitors G. Nj. York. "a
snS snuSs-plr.esident Of the Western ttnion
Tsia.tInion TLi tInion N. Bethel, of the Bel
VIZ wbsphqne u Company. we're among those
se,,;ss sa'ieu AZ the Postal Office to serve
h sgshs ~ 81 the removal order on those