The Sentinel=record., 1918-12-17
Private Owners

Maeh'ngtOn, Dee. G-OWGer5ail by tine aotermneut of the telegraph an4 telephone systems oL the nation Was Characterized as "impcratye" by Postmaster General Burlesm today in a letter 10 Representative Moon. chairman ol tho house committee on Hostoificcs and post roads.
 Alr Burlesou said the tenn can be acquired "wi.hCut the anpropIia tion of a dollar from the puhijc treas uy by applying to an amortization fund for .5 years the savings made under government ownership through elinination or duphcaiions in Janus and operating cApen4cs
 in support Of thc government owned resolution inrducad in the house last week by Representative Moon. lhe postmaster. general ala,ed from tbe recent letter Of Theodore \. Vail president of the American ToleaLoHa < Teleerarh company, and from the annual reports of number of the Postmaster generals since the Cilt war all of whom agreed. h. said tha mernmeu. control, ownership would greatly conri ute Co the cffil- iency of service
 "Thc economic importance of the proposition 10 acquire the properties by tho go1erHmen is very sreat' Mr. Burloeon wrote "Prvato lapital| is invested in public service enter rrises with tho expectation of seven tn eight Tor cent and often q greater return upon the inve9,mut This oi course the public is eA ec.ed to- pay. Whiio the government can hog TOW money @ four au one half perl cent The public. hcNe ever. pays the charae in either event The differ cnca between four and ouc-E half pei cent and eight per cent for the money invested in N1ro s.stems cr tue Unit od States would maintain and pay fo; tho rropetty Iu eighteen years and nine m0nths
 "rhe eo,cmmen ss owner. wolld no more expect to chIr1c tur iHteros on the iuvc4tW-nt than@j voHld for money invested in postal facilities navy yards. or ther public property
 Ay justification for The permanent tas.ue over Of the wire systems. Mt. Buresou said
 To establish and maintain means of communication l. as much the function of the government aa Is the proyision for national defense More over. it is essential to the develop m.ut Of tho country and to the pro- es and prosperity of ifs people Ii is n defense o' the national interests as much in peace, a5 in Var EX- tension of the wire service should bn determined by public needs. not the opportunity for private gain
 The postmaster general said he be- lioted that an effective rlan could or worked out by which inc waste Of comactitign can be eliminated and the advantages of private imitation in research, inyesdgation and cNperi- mentatiCn not Dc lost
 Calling attention t1 tho fac- that under tho eXislmc law the telephone and tele ~aph properties will auto matieally rever, to the pIiy lie owners u5au proclamation by the orc idont CT a state Of peace the letter says that many irdependnt telephone com panies could not take hack tbe prop critics without serious loss to the u- yestors ant great detrment 10 inc service Many of these companies, the letter says were operating at 2 less swing 10 waste incident ta com petition and diversity Of state reeuia- lion and as proper denreciaiiou funds have no been sei aside, the rro1erties were drifting into a condition whero proper public service ooald net ae rendered.
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