The Topeka state journal., 1914-01-31
IT IS ONLY way.
CONTINUED from Page One.)
parts of the telephone service as may
be acquired by the government.
Report Is Unanimous.


Report Is Unanimous.
The recommendations are signed by
Daniel C. Roper, first assistant post
master general; Merritt o. Chance,
chief clerk pOstOffice department and
John c. Koons. superintendent division
the committee. They were accom-
panied by statistical information col
lected after one of the most exhaus-
tive Investigations undertaken by the
states the United States is '.alOne Of
the leading nations which has left to
private Enterprises the ownership and
operation of telegraph and telephone
facilities" and practically all of the
economists who have treated the sub
ject are agreed that telegraph and tel
ephone facilities should be controlled
by the government. It is declared
farther that Theodore N.Vail. president
of the American Telephone and Tele-
graph company, by his statement that
the telephone business must be under
common control and sufficiently strong
to constitute practically one system.
inter-cOmmunicating fnter-dependent,
universal. has himself pointed out
that the most efficient telephone SER
vice can be attained only under a con-
dition Of monopoly" The report con-
tinues:
Duty Of the Government.
''The private monopoly has no in
centive to extend it's facilities to un-
profitable territory but the government
must serve all the people. The univer-
sal service is accomplished by the
equalization Of rates. In fixing rates,
the policy of this government is to
super-impose 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 make
a profit and. in providing for this. tends
to increase its rates to the highest
price that will not. by SO greatly re-
stricting the volume Of business, i'm
pair the aggregate profit.
1T 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 enterprises to
build up lst properties that must
eventually be taken over by the govern
ment in resuming it's constitutional
monopoly at a cost out of all proportion
to the value of the parts of such pro-
perties that may be utilized to ad-
vantage in the postal system.
Only Two Companies.
concerned, the entire telegraph serv-
ice is owned and operated by two tel
egraph companies. Telegraph facil-
tiles 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 increase
in the volume of business transacted.
Neither has the volume Of business in
this country. in proportion to the pop
uiation. been as great as in countries
where these facilities are owned and
operated governmentally.
1T is needless to enter into the
manifold advantages and benefits that
would accrue to the people from a
universal telephone service. As it
has done with the mails it Is the duty
of the government to make this facil-
ity available to all of its citizens with
out discrimination.
data the capitalization of the long dis
tance and toll lines represents approx
mately $20O,O00,00O and the capitali-
zation of the entire commercial net
work approximately 100000, 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.