Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-31
URGE CONTROL OF
WIRES BY GOVT
(oontinued from First Page9


States is "alone of the leading ma
tons which has left to private en-
terprise the ownership and operation
of the telegraph and telephone facii-
ties" and that practically all of the
economists who have treated the SUBJ
Ject are agreed that telegraph and
telephone facilities should be con-
trolled by the government. 1t de-
cared further that Theodore N
Vail, president of the American Tele-
phone and Telegraph Company. by
his statement that the telephone
business must be under common
control and sufficiently strong to
constitute practically one system
inter communicating, inter-depend-
ent, UNIVERSAL has himself pointed
out that the most efficient telephone
service can be attained only under
a condition of monopoly.
The report continues:
THE private monopoly has no in
centive to extend its facilities to I'M
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
is to superimpose no charge for tax
alton, but only to see to 1t that the
service as whole is self supporting.
The private monopoly, on the other
hand. must make a profit, and in
providing for this tends to increase
its rates to the highest point that
will not, by so greatly restricting
the volume of business, impair the
aggregate profit.
Declare Delay Costly.
LIT is obvious that the longer the
acquisition by the government of
these 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 government in resuming its
constitutional monopoly at cost out
OF all proportion to the value of the
parts of such properties that may be
utilized to advantage in the postal
system.
$50 far as the public generally is
concerned, the entire telegraph SER
vice is owned and operated by two
telegraph companies. Telegraph ia
cilities 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.
C4etiOt iieiS Vic fOiuI16 business
in this country, in proportion to the
population, been as great as in coun-
tries where this facility is owned and
operated governmentally
Real Estate Not Involved.
1T is needless to enter into the
manifold advantages and benefits that
would accrue to the people from
universal telephone service. AS il
has done with the mails it is the
duty of the government to make this
facility available to all of it's citizens
without discrimination.
According to the best available
data the capitalization of the long
Instance and toll lines represents ap-
proximately 5000 900, 900 and the capi-
4 alization of the entire commercial
network approximately 5000, 900 900.
The cost to the government would be
less than the appraised value, since it
would be undesirable for the govern
nent TO purchase the real estate hold
lngs Of the companies. Exchanges
could be leased until accommodations
could be provided in the postofiices
and stations"
The report was sent to the Senate
IN response to resolution introduced
by Senator Norris.