The Madisonian. (Richmond, Ky.) 1913-1914, 1914-02-03
U. S. CONTROL OF
TELEGRAPH URGED
Postmaster General in Report TO
Senate Favors Government
Ownership of Wire Lines.
WOULD LICENSE ALL GRANTS
Business Must Be Under One Head,
Statement Says, Quoting Vail of
Phone Company-Points to
Foreign Record.

Washington, Jan. S.-Postmaster
General Burleson submitted to the sen
ate the recommendations of the de-
partmental committee appointed by
him to investigate the practicability OF
government ownership of telephone
and telegraph lines.
1. That congress declare govern
ment monopoly over all telegraph, tel
ephone and radio communication and
such other means for the transmission
of intelligence as may hereafter de-
| velop.
9. That congress acquire by pur-
chase at appraised value the CONNER
| cial telephone network, except the
| farmer lines.
8. That congress authorize the post
master general to issue, in his discre-
ton and under such regulations as he
may prescribe, revocable licenses for
the operation, by private individuals.
associations, companies and corpora
tons, of the telegraph service and
such parts of the telephone service as
may not be acquired by the govern
ment.
Report 10 Unanimous.
The recommendations are signed by
Daniel c. Roper, first assistant post
master general; Merritt c. Chance.
chief clerk, postof1ce department, and
John c. Rooms, superintendent, divi-
sion of salaries and allowances, COM
posing the committee. They were &C
companied by statistical information
collected after one of the most ex-
haustive investigations undertaken by
| the postof1ce department.
The report states that the United
States is alone of the leading nations
which has left to private enterprise
the ownership and operation of the
telegraph and telephone facilities"
and that practically all of the econo-
mists who have treated the subject are
agreed that telegraph and telephone
facilities should be controlled by the
government.
1t declared further that Theodore n.
Vail, president of the American Tele-
phone and Telegraph company. by mis-
statement that the telephone business
must be under common control and
sufficiently strong to constitute prac-
|
ing, interdependent, universal" has
himself pointed out that the most eff
ficient telephone service can be at
tanned only under a condition OF mon
opoly.
Trust Does Not Build Up.
The report continues: 1.-THE private
monopoly has no incentive to extend
it's facilities to improbable territory;
but the government must serve all
the people. This universal service is
accomplished by the equalization OF
rates. In fixing rates, the policy of
this government Is to superimpose no
charge for taxation. but only to see
to it that the service as a whole is
self-supporting. The private monop-
oily, on the other hand, must make a
profit, and, in providing for this, tends
to increase It's rates to the highest
price that will not, by so greatly re-
stricting the volume of business. inn
pair the aggregate profit.
1T is obvious that the longer the
acquisition by the government of the
} facilities is deferred the greater will
be the cost. Moreover, it is economic
waste to permit private enterprise to
build up vast properties that must
eventually be taken over by the gov
eminent in resuming it's constitutional
monopoly at a cost out of all proper
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
fbo optiro tplpora nh carIyi0ea
is owned and operated by two tele-
graph companies. Telegraph facili-
ties have not been extended to the
small towns and villages along with
the government postal facilities, nor
has the cost of the service been re-
duced in the inverse proportion that
would seem warranted by the increas-
ing volume of business transacted.
Neither has the volume of business in
this country. in proportion to the pop
ulation, been as great as in countries
where this facility is owned and OPP
Grated governmentally.
( Advantage to People.
at is needless to enter into the
manifold 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 the long-dis-
, .tance and toll lines represents approx
mately 500, 100000 and the capitaliza-
ton of the entire commercial network
|. approximately $9Oo,o0o,O00. The cost
!, to the government would be less than
, the appraised value, since it would be
, undesirable for the government tc
; purchase the real estate holdings Of
, the companies. Exchanges could bs
leased until accommodations could b.
! provided in the postoffices and sta
, TONS"
! The report was sent to the senate
in response to resolution introduced