Charlevoix county herald., 1914-02-07
=. NIP
telegraph Lines
= ...n,ended by Postmaster
General.

Empnatlc recommendation tnat gov
ernment establish a monopoly of the
telephone and telegraph business was
contained in a report made to the u. S.
senate last Saturday by Postmaster
General Burleston.
1t was in answer to the Norris resolu-
ton requesting information which the
postofflce department had collected on
the subject and its conclusions were as
follows:
"The only way to afford to the people
! the complete and modern postal facili-
! ties that the Constitution makes it the
duty of the government to provide, is
to put into effect the following recon-
mendations:
"That congress declare government
monopoly over all telegraph, telephone
and radio communication and such
other means for the transmission of in
telligence as may hereafter develop. A.,
THAT congress acquire by purchase
at appraised value the Commercial
Telephone network, except the farmers
lines.
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 government. -
SUMMARIZES INQUIRY.
The report summarized the investi-
cations of a departmental committee
appointed several months ago to look
into the matter. 1t is complete in
dorsement of the government owner
snip plan advanced by Rep. David j.
Lewis, OF Maryland.
THE founders of the nation" the
report asserted, "were keenly alive TO
the importance of keeping exclusively
under government control all means Of
communication.
"The telegraph and telephone sys-
tens have long been recognized as
necessary adjuncts to a complete postal
service. As with all other privately
controlled public utilities, these facili-
ties have been extended in our country
only IN proportion as the service to be
performed has insured substantial divi-
dends TO the stockholders. Under pri-
vate ownership, therefore the telegraph
and telephone are for the classes.
Under government ownership, through
the postal machinery which is conduct
ed in the interest of the whole people
and already reaches every mans door,
the benefits of these facilities would be
extended to the masses
UNITED STATES STANDS ALONE
The report states that the United
States is "alone of the leadings nations
which has left to private enterprise the
ownership of the telegraph and tele-
phone facilities and that practically
all of the economists who have treated
the subject are agreed that telegraph
and telephone facilities should be con-.
trolled by the government.
1t declared further that Theodore B.
Vail, president of the American Tele-
phone C Telegraph Co., by his state
.ment that the telephone business must
be under common control and "suf-
ficientiy strong to constitute practically
one system, inter-communicating
inter-dependent, universal" has him
self pointed out that the most efficient
telephone service can be attained only
under condition of monopoly.
The report continues, :; t''' ~ =
'%''The private monopoly has no in
.centivs toextend its facilities TO un-
profitable territory, but the govern
!tetnrmnst serVeall the people. This
universal service is accomplished by
the equal division 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
whole is self-supporting. The private
hiOiiOpOtJb VII TIE OlilCI Hdnu, TluSl
make profit, and in providing for
this tends to increase its rates to the
highest point that will not, by grossly
restricting the volume of business, i'm
pair the aggregate profit.
WHAT CAPITALIZATION is
According to the best available data
the capitalization of the long distance
and toii lines represents approximately
$4,000, 600, and the capitalization of the
entire commercial net work approxim-
ately $90,0O0,0O0 The cost to the gov
ern ment would be less than the ap-
praised value, since ii would be unde-
sirable for the government to purchase
"-'