New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-01
Postmaster General Recon-
mends Purchase OF
Telephone Lines.
FAVORS CONTROL OF
TELEGRAPH SYSTEMS
Tells Congress Communication
Should Be Made Available
TO All Citizens.
From The tribune Bureau !

Washington, Jan. 31.-A government
MONOPOLY over all telegraph. telephone
and radio communication is urged in re-
port sent by the Postmaster General TO
the Senate to-day In response to the res
oluuon offered by Senator Norris
Mr. Burleson recommended that the
government acquire by purchase at ap-
praised value the network OF commercial
telephone lines. except the so-called farm
ers' lines, and that Congress authorize
the Postmaster General 10 issue revocabie
licenses 10 private individuals or corpo'-
ations for the operation OF telegraph lines
and such telephone lines as might not be
Incurred by the government.
The department committee which draft
kd the report estimates that the capitali-
ration OF the long distance and toll tele-
Aphone lines represent approximately 800
SoNcco. and that the capitalization Of the
entire commercial network IS approx
onately SeoOOoO.Oc0 The cost 10 the gov
,srnment. it is estimated. would be much
hess. because many of the real estate
holdings would not be necessary to the
kovernment. which could utilize federal
buildings for exchange and office pur-
poses.
United States Stands Alone.
The report states that the United States
Is alone OF the leading nations which has
neft 10 private enterprise the ownership
and operation Of the telegraph and tele-
shone facilities" and that practically oil
rof the economists who have treated the
subject are agreed that telegraph and tel
ephone facilities should be controlled by
Fhe government.
1t declares that Theodore y. Vail. presi-
cent Of the American Telephone and Tele-
ssraph COMPANY by mis- statement that
the telephone business must be under
common control" and sufficiently strong
20 constitute practically one system, in
accommodating. interdependent, uni
Versal." has himself pointed out that the
most efficient telephone service can be at
tained only under a condition Of monop-
ply
The private monopoly" the report con-
,finues. has no incentive TO extend us
facilities TO Improbable territory, but
the government must serve all the people.
This universal service is accomplished oy
me equalization of rates. In fixing rates
the policy of this government is 10 super
impose no charge for taxation. but only
10 sec TO IL that the service as a whole
Is self-suppoTting. The private monopoly,
on the other hand. must make proht,
and. in providing for this, tends TO In
crease its rates TO the highest point that
will not. by so greatly restricting the
volume OF business. impair the aggregate
profit.
.Jt is obvious that the longer the ac-
QUESTION by the government Of these IA
cilities is deferred the greater will be the
cost. Moreover, it is economic waste TO
permit private enterprise TO built 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 parts of
such properties that may be utilized to
advantage in the postal system.
TeIearaphic Facilities Lacking.
$50 far as the public generally Is con-
cerned, the entire telegraph service is
owned and operated by two telegraph
companies Telegraph facilities have not
been extended to the small towns and
villages along with the government postal
facilities, nor has the cost OF the service
been reduced in the inverse proportion
that would seem warranted by the In
,creasing volume Of business transacted
.Neither has the volume of business in
.his country, in proportion 10 the popu-
;lauon, been as great as in countries where
this facility is owned and operated gov
srnmentally.
1T is needless TO enter into the mani
fold advantages and benefits that would
accrue 10 the people from universal tele-
phone service AS it has done with the
mails. it is the duty Of the government TO
make this facility available to all OF ITS
---s.Lo,., fior