Morning journal and courier., 1888-03-06
RETrER LEFrIN PRIVATE HANR
The telegraph Should Not be Control
led By the Government.


WASHINGTON, March 5.-The Spooner bill
to regulate Interstate telegraphy reported
by Senator Reagan to day from the commit
tee on postofices and post roads is intended
by the committee as substitute for the va
rious measures referred to the committee
having in view the establishment of postal
telegraph system. The Spooner bill, as has
been stated heretofore, practically applies to
the provisions of the Interstate commerce
law to telegraph companies. The report
which accompanies the bill says: The tele-
graph system of this country has been con-
centrated in the hands of few persons and
has become a monopoly with power to levy
such exactions on Geographic communica-
lions as those who control the system
may choose to establish Complaints
come from many parts of the coun-
try that these rates are extortionate;
that they are levied so as to yield large diyi-
dends not only on the stocks paid for in
money, but on what is called "the watered
stock" in the telegraph companies, which is
understood to be quite considerable in
| Amount These companies, with their mil
| lions Of capital and with their monopoly Of
the business of telegraphy, independent
of any legal control for the protection of the
| ton of things which no just government
should tolerate K x The wise
| and conservative legal regulation of the
great corporations and menopolies Of the
country by the governments, State and fed
eral, is essential to the welfare of the people,
and the policy of protecting the people
against their power and exactions Is recog
| nized and enforced by all governments in
which law prevails over arbitrary power n
the committee, while recognizing the neces-
sity for reasonable and limited control of the
telegraph companies, doubt the policy of the
government assuming the ownership and
management of them. a. Because they
| think it may be dangerous to increase the
patronage and power of the government, as
these would be increased by the ownership
and operating of the telegraphs; and (2) be-
cause of the belief that it would require a
large number of employees and great deal
more of money under government ownership
to carry on the system of telegraphy than to
carry it on under the supervision of private
interests, and would thus make the costs of
its use greater to the people than would be
necessary under just regulations
as we propose The report
continues: "The plan propose
does not enable US to meet all the necessi-
ties of the case as we do not pretend to ex-
tend the power of regulation to dispatches
wholly within State, and supplementary
legislation will be needed by the States.
Government ownership would overcome this
difficulty, but for the reasons above stated
we do not recommend that plan. It is ar
gued that it would be IS safe and convenient
to carry on postal telegraph system as to
carry on our present postal system.
While there is plausibility in this view it
must be remembered that while the govern
ment appoints and regulates the duties of
the postmasters and others en-
ployed in the postal service, the
vehicles and means of transportation valued
at hundreds of millions of dollars are not
owned by the government and that the entire
transportation of the mails is done by indi-
viduals and corporations under contract
with the government" The report in con-
clusion expresses it as the sense of the COM
mittee that whatever can be done as well by
private enterprise, and with as much safety
and security, should not be undertaken by
the government at present.