The Washington herald., 1918-04-07
TELEGRAPH
VALUATIONIS
CONTINUING
American Telephone and
Telegraph Company Next
Big Concern on Program.

The American Telephone and Tele-
graph Company is the next big con-
eern on the valuation program Of the
Interstate Commerce Commission. It
will be appraised a. soon a. the West
ern Union valuation Il completed and
the Postal Telegraph appraIsement,
ordered yesterday, Is well under way.
The entire valuation program. It was
said IN the commissions Office yester-
day. ID based on the supposition that
government ownership Of al telegraph
and telephone lines is coming. Secre-
tary MeGinty, OF the commission, de-
clared the order regarding the Postal
telegraph companies. forty-thres in
all. was drawn up with no mention Of
government ownership having been
made.
VIII Push Work.
He admitted, however, that the orig
inaI valuation effort. in the case Of
the Western Union. was based on Con-
gressional direction. with The idea
Of ultimate government ownership.
Whether or not government ownership
Is In immediate prospect. he added,
the commission will push the appraise-
nlent work a. rapidly as possible.
II recommendations Of Postmaster
General Burleson finally prevail and
Congress and the President decide to
take over the telephone and telegraph
lines, the commission will have a basis
laid on which compensation can be
arranged. Judge c. A. Prouty, di-
rector of valuation. will have charge
Of the work on the Postal Telegraph
system, and later on the American
Telephone and Telegraph Company.
Government ownership. proposed re-
peatedly by Burleson in his annual
reports to Congress-, Is winning sew
eral strong advocates in the Admin
istrative branches, although Con-
gress has shelved the successive re-
ports made by the Postmaster Gen.
eraL The Railroad Administration,
II Is understood, may have something
to say in favor Of Government con-
troll when the proper time comes. Di-
rector General McAdoo's stan has
found the telegraph business almost
tnextricably interviewer with the rail-
AOdu bysAcHls- 1ne WE1e companies
lease hundreds Of miles OF wire from
the railroads. and are forced to send
thousands of messages over railroad
wires at special toll rates. The roads,
on the other hand, rent many hun
dreds of miles of wire from the teIe-
graph companies.
The Railroad Administration, or at
least some OF its offfcials, feel the
railroad business could be conducted
much more efficiently IL the Govern
ment controlled the telegraph lines.
Many GOvernment-Ieased Wires,
Several other Government depart
ments are leasing hundreds of miles
OF wire from the various telegraph
and telephone companies. The Ship
ping Board. War Trade Board, War
Industries Board, and OF course the
War and Navy departments. do a
tremendous leased wire business. To
date, there has been no centralized.
bureau established to handle all the
wire leasing for the Government.
Each separate branch deals with the
companies for itself. The belief is
growing that IL the Government
could take over the wires, or at least
concentrate its dealings with the
wire companies, much money could
BE- saved
Postmaster General Burleson's next
move in favor of Government owner
snip can not now be forecast, but II
Is expected he will have support from
other cabinet members.