Arizona republican., 1902-01-26

1t seems clear. from Washington dis
patches that it is the intention of the
administration o
NATION TO strongly support a
PURCHASE bill providing for the
TELEGRAPHS? purchase of the tele-
graph lines of the
country. A bill for the purpose is in
preparation and will be introduced in
the senate shortly. AS the president
said in his message, The tremendous
and highly complex industrial develop
ment which went on with ever accel-
Grated rapidity during the latter half
of the nineteenth century. brings us
face to face at the beginning of the
twentieth with very serious social
problems and it appears to be his be-
lief that a step will be taken toward
the solution of some of these problems
by the government taking over the
telegraph lines.
1t is proposed to issue 30-year 2-per
cent bonds in exchange for the stock
and bonds of the Western Union Tele-
graph company. and the Postal Tele-
graph company. An immediate reduc-
ton in telegraph tolls from 10 to 20 per
cent will be promised the public. and
it is estimated that Notwithstanding
this reduction 3 per cent of the earn
ings will create a sinking fund which
will take care of the bonds, the sys-
tenn thus paying for itself in the end.
1t is "authoritatively stated" a Wash
ington that the Postal stockholders and
the Gould interests in the Western I'm
ion have been consulted and are willing
to sell, and will not oppose the meas
ure. The existing law makes the sale
of the telegraph systems compulsory
whenever the government desires to
purchase them.
The total capitalization of the Pos
tai and Western Union telegraphs ag-
gregates s171.OOO.OOO. divided as follows:
Western Union-Stock. s92. 900. 600;
bonds, 500, 600, 900; leased line stock,
81, 900, 600.
Commercial Company which includes
the Postal Telegraph lines-Stock, s24.-
100000 bonds, s22, 900, 900.
Dividends on this stock now average
5 per cent a year, and per cent is used
as a sinking fund. Those making COM
putations for the government estimate
that an enormous saving in expenses
can be made by consolidation of offices,
and in other ways. The proposition to
purchase is said to be based on a ma
terially higher price than the stock is
now selling for. since the higher price
of copper and other material would
make it impossible to duplicate the
nlanta IN no basis of the
ket price of the securities.
1t is explained that the Goulds, par
ticularly, are quite willing to sell, as
they have recently gone into the bank
ing business on a large scale in New
York as we'll as throughout the terri
tory covered by the Gould railroads,
and their banks require government
bonds in large quantities to increase
circulation.
The bill will, of course, bring out
great deal of discussion, but it is
thought that the chances for it's passage
are good. Many republican senators
are quoted as favoring the purchase of
the telegraph lines if they can be ac-
quired on a fair basis of value. 1t
will be amusing, however, to note the
squirming of democrats in the senate
and house when the bill comes up, for
while they feel bound to oppose every
republican measure. they are pledged
by their party platform to favor gov
eminent ownership of the telegraphs.
1t would be an embarrassing predic-
ament for Uncle Sam should he acquire
the telegraph systems of the country
just in time to see Marconi or Tesla
perfect wireless telegraphy. Marconi
promises that his system will be in per-
feet operation across the Atlantic ocean
within six months, and Tesla. who is
working on the same problem with diff
ferent apparatus and upon different
principles. is tipped by some scientists
to beat Marconi to the goal. If wire
less communication across the oceans
is to be firmly established within few
months it would be rash to predict that
the land will not also be covered,
sooner or later.
IL