Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1914-02-05
SAYS GOVERNMENT
SHOULD PURCHASE
WIRE FACILITIES

N~dSiiinBlOn. rep. Z.-PoStmaSter
General Burleson today submitted to
the Senate the recommendations of the
departmental committee appointed by
him to investigate the practicability of
government ownership of telephone and
telegraph lines. The report declared
that the only way to afford to the
people the complete and modern postal
1T the duty of the government to pro-
vide is by carrying out these sug-
gestions.
"One-That congress declare a
government monopoly over all tel
ephone n telegraph and radio
communication and such other
means for the transmission of in
t~elligence as may hereafter de-
velop.
"Two--That congress acquire by
purchase at appraised value the
commercial telephone net work ex-
cept the farmer lines.
"Three-That congress authorize
the postmaster general to issue, in
his discretion mi under such reg
ulationS as he may prescribe, re-
Vocable licenses for the operation.
by private individuals, associations,
companies and corporations, of the
telegraph service and such parts of
the telephone service as may not
be acquired by the government"
The recommendations are signed by
Daniel G.. Roper, first assistant post
master general. Merritt O.. Chance,
chief clerk, p~ostoffice department., and
John Rooms, superintendent division OF
salaries and allowances composing the
committee. They We're accompanied by
statistical information collected after
one of the most exhaustive investiga-
lions undertaken by the postoffice de-
partment.
TN1n n.,N eto{ &to+ 49, TT-;i~I
States alone of the leading nations has
left to private enterprise the owner
ship and operation of the telegraph
and telephone facilities and that prac-
tically all of the economists who have
treated the subject are agreed that
telegraph and telephone facilities
should be controlled by the govern
ment. 1t declared further that Theo-
dore N. Vail, president of the American
Telephone & Telegraph by
his statement that the telephone bust
ness must be under common control
and Sufficiently strong to constitute
practically one system intercommuni-
eating, interdependent, UNIVERSAL has
himself pointed out that the most eff
flcient telephone service can be at
tanned only under q condition Of mo-
nopoly.
The report continues:
"The private monopoly has no in
CeIlliNc W thlclu us ldClllIlGS TO IN.
profitable territory, but the govern
ment must serve all the people. This
universal service is accomplished by
the equalization of rates. In fixing
rates, the policy of this government iH
to superimpOSe no charge for taxation,
but only to see to it that the service
as a whole is self-supporting. The
private monopoly on the other hand
must maxi a profit and, in providing
for this. tends to increase it's rates to
the highest price that will not by so
greatly restricting the volume of busi-
ness, impair the aggregate profit.
Easier to Buy Now.
TT is obvious that the longer the
acquisition by the government Of
these facilities is deferred, the greater
will be the cost. Moreover, it is eco
nomic waste to permit private enter
prise to build up vast properties that
must be finally taken over by the gov
eminent in resunling it's constitutional
monopoly at a cost out of all ropor
ton to the value OF the parts of such
properties that may be utilized to ad-
vantage in the postal system.
$50 far as the public generally is
concerned. the entire telegraph service
is owned and operated by two tele-
graph companies. Telegraph facilities
have not been extended to the small
towns and villages along with the gov
eminent DOSldl ldLililieS lOl HdS lIiS
cost of the service been reduced in the
inverse proportion thai would seem
warranted by the increasing volume of
business transacted. Neither has the
volume of business in this country, in
proportion to the population, beer as
great as in countries where this facility
is owned and operated g~overnmentally.
Duty Of Government.
1T is needless to enter into the nan
fold advantages and benefits that
would accrue to the people from a uni
versal telephone service. AS it has
done with the mails. it is the duty of
the government to make this facility
available to all Of its citizens without
discrimination.
According to the best available data
the capitalization of long distance and
toll lines represent 5000, 900, 900 and the
capitalization of the entire CONNER
cial network approximately 5000, 600, 900.
The cost to the government would be
less than the appraised value, since it
would be undesirable for the govern
ment to purchase the real estate hold
ings of the companies. Exchanges
could be leased until accommodations
could be provided in the postoffices and
stations"
The report was sent to the Senate in
response to a resolution introduced by
Senator Norris.