The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-17
WOULD ACQUIRE
WIRE SYSTEMS
OUT OF SAVINGS
BurlesOn Asserts Not a Cent
of Treasury Outlay Will
Be Necessary.
LONG DEFENCE OF PLAN
Postmaster-General Contends
Service Will Be Improved
by Economies.
LONG DEFENCE OF PLAN
Special Despdtch 70 Tns suN.

opfc1df DeSpdtch 70 Iht Dun.
WASHINGTON, Dec. ia lengthy
defence Of the Government programme
for the naturalization of the telegraph
and telephone systems was made to-
day by Postmaster Burleson in letter
to Representative Moon (Tenn.), chair
man OF the House Post Office Commit
tee and nominal author OF the resolu-
ton to provide Government owner
ship OF the wire systems One para
graph said:
The information acquired through
Federal control Of the telegraph and
telephone systems since August last
enables me to assure you that the en-
tire wire system can be acquired with
out requiring the appropriation Of a
dollar from the public treasury and
that through the savings by the elimi-
nation Of the Implications in plants
and operating expenses, the entire
telegraph and telephone systems Of
the country can be paid for through
an amortization fund in twenty-five
years without increasing the rates to
the public and at the same time de-
velop a national wire system available
for the use OF every community In
the country coextensive with the
present postal system"
Would Pay Out of Savings.
VhA L. txx,, ~
quiring the wire properties according
to Mr.. Burleson is great. Private
capital is invested in public service
enterprises with the expectation OF
Z or 8 per cent. and often a greater
return upon the investment" he wrote.
This, Of course. the public is expected
to pay while the Government can
borrow money at AZ per cent The
public however, pays the charge in
either event The difference between
4h and 8 per cent. for the money in
vested in the wire systems OF the coun-
try would maintain and pay for the
property in eighteen years and nine
months"
Mr.. Burleson asserted that the same
principle which justifies Government
ownership of the postal system applies
equally to wire systems.
TO establish and maintain means OF
communication" he added, 'is as much
the function OF the Government as is
tho provision for national defence. An
established and widely extended means
OF communication is in fact part of
the national defence. Moreover, II Is
essential TO the development OF the
country and the progress and pros
perity OF its people. 1t is a defence OF
the national interest as much In peace
as in war"
In Pursuit of PROFITS.
Private ownership Of the wire sys-
temr has restricted operation to areas
profitable 20 the owners, Mr.. Burleson
contends. The competition is that OF
pursuit Of profits and not rivalry for
public benefit or gain. On the basis
Of an extended survey OF the situation
said by Mr.. Burleson TO have been
mede, he wrote: 1T clearly appears
thar unification OF control and opera
ton are necessary to eliminate the
wastes and inherent defects OF the
competing and duplicating system
Which has heretofore existed. II would
be as logical TO have two or more
post offices in the same town operating
Independently"
More than half the communication
was devoted to an effort to show that
his attitude on the question of Gov
ernment ownership OF the wire sys-
tens has ample precedent. Going
back TO lS45 the letter cited recon-
mendations for Government owner
ship or control OF the wire systems
made by various Postmaster Generals
including Howe In 1882, Gresham in
1888, Wanamaker in 1889, 1890, 1891
and 1892: Payne in 1908, Cortelyou
in 1906 and Hitchcock in 1911.
/ Mr.. Burleson denied the possibility
of the contents OF any private mes
sage being revealed or the possibility
of the systems being used for political
benefit, adding:
"In this connection your attention
Is called TO the fact that the act
OF Congress approved October 2s last
provides heavy penalties for divulglng
the contents OF any telegraph or tele-
phone message. In fact this Law
Continued on Fourth Page.