Show POSTAL rOST LOWERS V ll TELEGRAPH RA RATES TS Return to Private Ownership of Wire Lines May Bring Rate War z NEW YORK Aug 1 When When control of the telegraph systems of the country country country coun coun- try was formally relinquished by the tho government at midnight a reduction of 20 per cent In rates was made iiri- iiri mediately on the lines of the Postal company but the Western Union will retain the schedule put into effect after Postmaster General Burleson took control April 1 Clarence H H. Mackay Maclay president of the Postal announced In a statement late yesterday that the rate reduction would be made in accordance with I its promise to the public He I i fled the announcement however by saying that it expenses continued to mount charges might have to go up Newcomb Carlton president of the estern Western Union who also has been in hi charge of the cable rable systems controlled by the government since last December December Decem Decem- ber declared on the other hand Wo We cannot see our way wa clear to do better than we are doing at this time Neither would discuss discuss' the possibility possibility of ot a long continued rate war In his announcement Mr Mackay l y explained that the 20 per cent reduction reduction reduction tion represented the increase which Postmaster General Burleson put into effect including leased wire rates and that the rates would be restored to what they were before the government government government govern govern- govern govern- ment took over the lines In doing this he said we wish to state that if taxes and expenses continue to Increase It will be necessary necessary necessary sary for the company to ask the indulgence of the public in again ad- ad Dancing telegraph rates for the whole or part of this 20 per cent Present rates on night letters Jetters he said would not be disturbed but probably would be reduced a little later The head of 01 the Postal company company com corn pany said the return of the wires to their owners marked the end of a powerful effort by the postmaster V general genral and Bell Western Telephone-Western Union companies to eliminate the I competition of the Postal Telegraph Cable company In ma a statement on the stand of the Western Union Mr Carlton Canton said The Western Union wires reach separate communities The only other telegraph system r reaches aches 1700 communities or less than 8 per percent percent percent cent of the total number served bythe by bythe bythe the Western Vestern Union The offices In over small communities exclusively exclusively ex ex- ex- ex elusively served by our wires are to the company yet such offices are essential to the country at large and must be maintained Needs of Western Vestern Union for higher wages he said were recognIzed and they represented 66 65 per cent of the total cost of providing the service He lIe declared the Western Vestern Union would strive to pay its em em- wages commensurate with the high cost of living and would asHa alkI aska ask asH defensible I a very moderate and wholly Income in return for serving the tha whole public |