Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1918-12-17
ACQUIRING Of WIRE
CONCERNS BURLEsQN
SAYS IMPERATIVE
Wouldn't Require Dollar
Companies Could Be Paid
In % Years-Is Economic
Importance His Belief

WASHINGTON, Dec. lb.-OWner-
ship by the government of the tele-
graph and telephone systems of the
nation was characterized as "imper
ative" by Postmaster General Burleson
today, in a letter to Representative
Moon, chairman of the house commit
tee on postoffices and post roads. Mr..
Burleson said the systems can be ac-
quired without the appropriation of a
dollar from the public treasury" by
applying to an amortization fund for
% years, the saving made under gov
ernment ownership, through elimina
ton of duplication in plants and oper-
ating expenses.
In support of the government owner
ship resolution, introduced in the house
last week by Representative Moon, the
postmaster general quoted from the re-
cent letter of Theodore \. Vail. preSi-
dent of the American Telephone and
Telegraph company, and from the an
nual reports of q number Of the post
master generals since the civil war,
all of whom agreed, he said, that gov
ernment control or ownership would
greatly contribute to the efficiency of
service.
Importance is Great
THE economic Importance of the
proposition TO acquire the properties by
the government is very great Mr.
Burleson wrote. Private capital is in
vested in public service enterprises
with the expectation of seven to eight
per cent, and often a greater return
upon the investment. This, of course
the public is expected to pay. while the
government can borrow money at fouI
and one-half per cent. The public how
ever pays the charge in either event
The difference between four and one
half per cent and eight per cent for the
money invested in the wire systems o
the United States. would maintain an(
/ pay for the property in IS years ant
nine months. The government, a:
owner, would no more expect to charge
1 for interest on the investment. than i
would for money invested in posta
| facilities, navy yards or other publi'
property"
AS justification for the permanen
/ taking over of the wire systems, MI
Burleson said:
"To establish and maintain means o
communication is as much the func
tions of the government, as is the pro
vision for national defense.
Moreover it is. essential to the devel
| opment of the country and to the prog
FeSS ana prosperity Oh llS people.
is defense of the national interests, a
much in peace as in war
Extension of the wire services shoul
be determined by public needs, not tn
opportunity for private gain
Eliminate Competitive Waste
The postmaster general said he be
lieved that an effective plan could b
worked out by which the waste @
competition can be eliminated and tn
advantage of private initiative in re
search, investigation and experimental
tion not be lost.
Calling attention to the fact tha
under the existing law, the telephon
and telegraph properties will automa
tically revert to the private owner!
upon proclamation by the president {
a state of peace, the latter says tha
many of the Independent telephon
companies could not take back til
properties without serious loss TO tn
investors and great detriment to tn
service. Many of these companies, th
letter says, were operating at a los
owing to waste, incident to competitio
and diversity of state regulation, an
as proper depreciation funds have ne
been set aside, the properties WEI
drifting into a condition where prope
public service could not be rendered