The Detroit times., 1914-01-31
Postmaster-General Comes Out
Flat Footed for Government
Ownership of Telephones
and Telegraphs
LOGICAL DEVELOPMENT
OF POSTAL SERVICE
Constitution Makes Purchase
Plan Duty, Declares
BurlesOn

WASHINGTON, ID. c., Jan. Sl.--
emphatic recommendation that tnt
government establish a monopoly o'
the telephone and telegraph business
was contained in a report made tt
the senate today by Postmaster-Gen
eral Burleson. II was in answer tt
the Norris resolution, requesting Ia
formation which the postoffice depar'
ment had collected on the suojecs
and its conclusions were as follows:
The only way TO AFFORD 10 the peo
pie the complete and modern posta
facilities that the constitution mah,s
it the duty of the government 20 pso
vide. is TO put into effect the follo"
ing recommendations:
THAT congress declare govern
ment monopoly over all telegraph, tel
ephones and radio communication ant
such other means for the transmits
sion OF intelligence as may hereafter
develop.
That congress acquire by pur
chase at appraised value, the com
mercial telephone network. except thf
farmers lines.
That congress instruct the post
master-general to issSe ia his discse-
ton and under such regulations as he
NAV prescribe, reyertible licenses ioi
the operation, by private individuals,
associations, companies and operation
OF the telegraph service and sncL
parts Of the telephone service as may
not be acquired by the government.
The report summarizes the investi
cations of a departmental committee
appointed several months ago 10 look
into the matter. 1t is u complete In.
dorsement OF the government owner.
ship plan. advanced by Rep. David }.
Lewis. OF Maryland.
The founders OF the nation" the
report asserted were keenly alive 10
the importance OF keeping exclusive
ly under government control. all
means OF communication.
The telegraph and telephone sys.
TENS have long been recognized as
necessary adjuncts 70 complete pos
+ tai service, AS with all other privately
controlled public utilities, these Ia.
cilities have been extended in our
country only in proportion as the SER
/
stantial dividends.
1T is obvious that the longer the
acquisition by rhe government OF
these facilities is defeated. the great
er viii be the cost II is economic was
10 permit private enterprise 10 build
up vast properties that must eventu.
ally be taken over by the government
i'm rCsuming rs constitutional NOR
opoy.
There is radical difference be-
tween the policies OF public and
private monopoly. In extension OF
service. the determining factor with
the government is the needs OF the
people; with the private monopoly the
consideration is profit. In fixing rates,
the government must only see tnat
the service as whole Is self-sup-
porting The private monopoly must
make a profit and tends to INCREASE
ils rates 10 the highest point"
That the nell companies are work
ing asidiously toward q nationwide
monopoly" was declared.
Refusal OF the trust 10 make physl
cal connections with independents"
Burleson said. has deferred the de-
velopment of independent systems
anu otllpuSll 1itllifN NtOSr STAT lc1'
This is approved in the report from
the standpoint OF engineering.
Merger OF the $4,000 postal offices
with their 290 600 with the $4,000 tele-
phone Offices and their 100000 could
be economcally accomplished. the re-
port stated Automatic telephone In
stuments would also curtail expense.
Acquisition OF long distance lines
first was urged TO be followed by 10
cal exchanges Desirability OF acquir.
ing farmers private lines Is serious
~ questioned"
That the entire commercial not
work, Is worth S900.0O0.000 but would
cost the government less because ex-
chanec buildings and other property
need not be acquired. was rec!ted.
Purchase OF the lines In bulk and
payment on the installment plan was
recommended A bond issue was pro.
posed
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