The Washington herald., 1914-02-01
Wire MONOPOLY
BY j. 5. urged
Senate Gets Report Of Com
mission from Postmaster
General.
WOULD AID THE PUBLIC
Purchase of Telephones Network Is
Favored and Superimposition of
Telegraph Service Suggested

ASiSBioPi N~iNi~S SSoo>S~~
The groundwork for renewed agitation
3n favor of governuRnt ownership OF the
telephone and telegraph lines Of the
country was laid yesterday when the
Postmaster General sent to the Senate
a report and recommendations that had
been prepared for him by a special COM
mission. The documents were sent te
the Senate i'm response to a resolution In
troduced by Senator Norris. They con-
tain ali OF the facts and figures on which
the Postmaster General based the state
ments in his recent report IN favor OF
government ownership OF these utilities.
The report sent TO the Senate yesterday
was compiled by Daniel c. Roper, First
Assistant Postmaster General: NJ. L.
Chance, chief clerk of the department,
and J. c. Koons. superintendent of the
division of salaries and allowances.
The recommendations of the committee
were as follows:
sThe only way to afford to the people
the complete and modern postal facili-
ties that the constitution makes il the
duty of the government to provide is to
put into effect the following recommen-
dations:
Monopoly Is Favored.
IndI SOHSItSS utIldIe q
monopoly over all telegraph. telephone,
and radio communication. and such other
means for the transmission OF intelli-
Eence as may develop hereafter
That Congress acquire by purchase
at appraised value the commercial tele-
phone network. except the farmer lines.
THAT Congress authorize the Postmas-
ter General to issue. in his discretion and
under such regulations as he may pre-
scribe revocable licenses for the opera
lion by private individuals associations
companies. and corporations OF the teie-
graph service and such parts OF the tele-
phone service as may not oe acquireo
by the government.
Tho commission finds that the tele-
-raph plant of the United States con-
sists of 247.O00 miles of pole line, car
rying about 100000 miles OF wire.
The Capitalization of the land wires
aggregated is estimated at slSo"oooo. ih-
rIudinG the ocean wires and submarine
rabies. the capitalization probably would
amount to 22o.00o,coo.
Complaint is made that telegraph Ia
rilities have not been extended to small
towns and villages along with the postal
facilities nor has the cost OF service been
reduced in the inverse proportion that
would seem to be warranted by the in
rrease volume of business transacted.
The commission says that statistics
show that although the United States
putranks all other countries in postal
transactions per capita, in respect to tele-
rraph it is outrsnked by eight other
countries.
Have Lost Busincss.
TELEGRAPH companies" says the re-
mort. always have lost for the most part
the short distance business owing to the
of the toll telephone serv-
ice and they probably will lose much
pf the long distance business when the
toll rates become adjusted on cost
basis
II IS held that the acquisition of the
telegraph service of the country would
necessitate taking over the duplicate
plants of the two big telegraph COM
panies, with their duplicate expenses of
maintenance. whereas one could be made
to serve the same territory. The COM
mission contends also that the entire
plants of these two companies would be
inadequate for the purpose of the gov
srnment. because their facilities have
been extended only to profitable terri
tory.
1t is estimated it would cost the gov
ernment at least E5,0oo0oo to superim-
pose the telephone feature on the present
to the estimated value of the telegraphic
lard lines, the total cost would be SZ25.-
10000 The commission estimates that
this is s25eoo.000 in excess OF the estl-
mated value of the interurban and long
distance telephone network. While the
expense of equipping the latter system
for telegraphy would be almost negligible.
I'm view of the foregoing, saws the
report, 1T is the opinion of your COM
hof UnIild he unWiaR from 4
commercial standpoint for the govern
ment to acquire the telegraph systems OF
The country"
Merger Is Suggested.
The commission contends that il the
telephone and postal services of the
country were merged and operated under
control. it would be feasible
TO transfer a large number of the tele-
phone Offices to postoffice buildings, and
thus greatly reduce the aggregate ex-
pense for quarters.
There is no doubt says the report.
sthat the institutional efficiency of the
telephone and telegraph services in this
country would be increased by govern
ment ownership.
The superimposing of the telegraph
feature on the telephone service, says
the Burleson commission, might be grad
According to the estimate of the COM
mittee. the total capitaltzat of the
and toll lines represents ap-
proximately s2Oo. 1000 900. and the total cap
Italization of the entire commercial tele-
phone network approximately 800. ZOO.
The commission holds that il would not
be necessary to carry through the entire
of acquiring the telephone
tines at one time, as there are about
1000 companies, or distinct legal proprie-
torships. The payment might be dis
tributed through a period of several
years.
While the recommendations of the COM
apparently contemplate only the
purchase by the government Of the tele-
phone lines, the plan seems to be to have
lines equipped also for telegraphic service
Ind to enter into competition with the
Existing telegraph services of the coun-
ry