The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-01-20
OWNERSHIP OF
THE TELEGRAPH
Administration Said to Be
Behind the Movement.
AN ISSUE IN CAMPAIGN OF 1904.
4 Philadelphia Paper says the Ques-
lion VIII Bc Used 60 the Advan-
didHcy-owncrs OF Lines anxious
to Sell Out to the Government.

The philadelphia North American" this
morning Prints the following from it's
Washington correspondent the object of
which is 90 show that the Roosevelt Ad-
minisuation is back Of the movement in
behalf OF the Government control OF the
telegraph:
The government ownership Of tele-
graph lines VIII be pushed by the Admin
istration in Congress. No effort viii be
spared to secure the necessary legisIa-
ton. TIE Administration bill for the
aquisition OF this property is now being
prepared by q subcommittee OF the Sen
ate Postofice Committee and viii be in
PRODUCED at an early date.
1T VIII have the support OF all the in
huential Republican Senators. The ad-
herence of the Democrats has already
been promised.
Advocated by Democrats.
In addition the Democratic party has
in one campaign advocated Government
ownership OF teIesraphs and railroads.
Government ownership OF telegraph
lines is TO be the instrumcntaliJy by
which Theodore Roosevelt viii obtain the
Republican nomination in 1904 The plan
to purchase the telegraph lines was origi-
mated by Mr. RocseveIts closest personal
and political friend. He called into con-
suitation several men prominent in the
political and business world. y definite
plan Of action was determined. The bill
VIII Doe offered by Congress ana made
popular with the people on the following
basis.
For a Reduction Of Tolls.
AN immediate reduction in telegraph
tolls Of from 10 to 20 per cent viii be
promised the public.
Bonds used to pay for the lines VIII
De accepted as security for the circula-
tion OF national banks. and 10 this way
the influence or every national bank IN
the United States viii be obtained Tor
the proposition
Henry C. Payne an expert organizer.
was made Postmaster General with the
view 20 carrying out this plan.
at is proposed TO Pay for the telegraph
. lines in thirty-year 2 per cent bonds
/ These would be worth about l36 En- the
market. ana prove extremely satisfactory
as "a basis for circulation.
Owners Anxious 40 sell.
While the law makes a sale Of the tele-
graph lines compulsory whenever the
/ Government desires to purchase them, it
is now found that the owners are willing
and anxious to sell. provided they are
paid in bonds suitable for deposit 10 Sc
cure bank circulation. This results from
the fact that the Goulds, who control the
Western Union Telegraph Company. have
recently become largely interested in
banking. They have opened q chain Of
small banks along their railroad lines
through the Southwest, and desire good
bonds to increase their circulation.
AS a business proposition the purchase
Of the telegraphs seems good. The total
capitalization OF the Western Union and
Postal aggregates $ITl 600 coo. divided as
follows:
Western Union - Stock. $e2 900 900;
bonds. 81. 0G0. 600; leased line stock, ST.
GOO 600
Commercial Company. which includes
the Postal Telegraph Hucs-SJOck, S24,-
600 600, bonds. $4,000 coo.
VIII Pay for Itself.
Thee are now paid on this stock divi-
bends Of per cent year. and per cent
is used TO start q sinking fund The Gov
eminent can reduce tolls from 10 to 20
per cent. use per cent Of she earnings to
form a sinking fund with which the bonds
can be redeemed when due in thirty years
and thus acquire the property for moth
ing Those making computations fOr the
Government officials estimate that an
enormous saving in expenses can be made
by consolidation OF Offices and other ways.
The proposition 10 purchase is based
OH payment Of par value for the stock. al
though IL now sells below par On the ex-
changes, This allowance IS made because
the advance in copper and other mate
rial would prohibit q duplication Of the
plants al the par price.
Democrats are placed I'm an cubarrass-
ing position by the determination Rcpub-
Iicaus have arrived al 10 push Government
ownership Of tcIegraphs. They recently
made 10 one Of their leading teuets and
cannot now oppose il without scIf-stuiti-