Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-01-31
SPECIAL COMMITTEE FAvoRs
PURCHASE OF TELEPHONE
ANorELEaRAPH, sYsrEMs.
DUTY OF GOVERNMENT
TO IMPROVE SERVICE
Advise Aequiremsnt Of Monopoly by
Government, Purchass Of Lines at
Appraised Value. With Exception Of
Real Estate Holdings, and Regulation
Of Service by Postmaster. General.

the senate the recommendations of the
departmental committee appointed by
him to investigate the prActibility Of
government ownership Of telephone
and telegraph lines.
The report declared that the s"only
way to afford to the people the COM
plete and modern postal facilities that
the constitution makes it the duty Of
the government to provide;ris by carry
ing out the suggestions:
"First-That congress declare a gov
ernment monopoly over al: telegraph.
and such other means Of transmission
of intelligence as may hereafter de-
velop. ~,
'Sscond-That congress acquire by
purchase at appraised value the, tele-
phone network except the farmers
lines.
"Third-That congress authorize the
postmaster general to issue in his dis
cretion and regulate under such reg
ulations as he may subscribe, revok-
able license for the operation by pri-
vate individuals associations, COM
panies and corporations Of the tele-
graph service and such parts Of the
telephone service as may not be ac-
quired by the government"
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
Of salaries and allowances. compos-
ing the committee. They were accom-
panied by statistical information coll
lected after one OF the most exhaustive
investtHations undertaken by the post
Office department. ~
.stzs: Y Statement 81 vail Cited.
The report states that the United
States Is alone Of the leading nations
which has left to private enterprise the
ownership and operation OF the tele-
graph and telephone faciiities and that
practically all the economists who have
treated the subject are agreed that
telegraph and telephone facilities
should be controlled by the govern
ment.
It was declared that Theodore Vail.
president Of the American Telephone
and Telegraph Company; by his state
ment that the telephone control must
.be under common contrcl' and "suf.
ficiently strong to constitute practically
one system, inter accommodating. in
ter dependent inter-uniyersal," has
himself pointed out that the most ef-
ficient service can be obtained under a
condition Of monopoly.
The rannrf continued.
"The private monopoly has no incen-
tive to extend it's facilities to unpro-
fitable territory but the government
must serve all the people. This uni
versal service is accomplished by
equalization Of rates. In fixing the
rates the policy Of the government is
to super-impore no tax but the private
monopoly must make profit and pro-
viding for this tend to increase its
rates to the highest price that will not.
by so greatly restricting. the volume of
business. impair the aggregate profit.
Deferred Action Decreases cost.
1T is obvious that the longer the ac-
QUESTION Of the government Of. these
facilities Is deferred the greater will
be the cost Moreover 1t Is economic
waste to permit private enterprise to
build up vast properties that must
eventually be taken over by the gov
eriment in resuming it's constitutional
monopoly at cost out Of proportions
to the value of such parts as may be
used to advantage in the postal sys-
tenn.
$50 far as the public generally il
concerned the entire telegraph service
Is owned and operated by two tele-
graph companies. Telegraph facilities
have not been extended to the small
towns and villages along with the gov
ernment postal facilities nor has the
cost of the service been reduced in the