The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-12-21
Postmaster General Explains
Necessity of Government
Ownership of Lines.
,AYS 1T WILL BE AN ASSET
AND NOT A BURDEN
savings Made Under Changed
Conditions Will Pay Cost in
% Years, Declares Postmas-
ter General in Letter to Mr..
Moon.

Washington, Dec. 16.-Ownership
= the government Of the telegraph
nd telephone systems Of the nation
:as characterized as imperative" by
'ostmaster General Burleson today IN
letter to Representative Moon,
hartman of the house committee on
.ostofices and post roads. Mr.. Bur-
son said the systems can be acquir-
Il without the appropriation of dol
n from the public treasury by ap-
lying to mortization fund for 25
ears the savings made under gov
nment ownership through elimina-
:on Of Implications in plants and OPP
rating expenses.
IN support of the government own
ship resolution introduced in the
aouse last week by Representative
loon, the postmaster general quoted
rom the recent letter Of Theodore
y Vail, president Of the American
telephone and Telegraph Company,
nd from the annual reports Of a
lumber Of the postmasters general
nce the Civil War, all Of whom
greed, he said, that government con-
rol or ownership would greatly con-
..;bute to the efficiency Of service.
The economic importance Of the
,ropoaition to acquire the properties
y the government is very great" Mr..
urleson wrote. Private capital is
,.vested in public service enterprises
18th the expectation Of to per cent.
I'd often greater return on the IN
estment. This, of course, the public
/; expected to pay while the govern
.:ant can borrow money at 4 1-2 per
ent The public, however, pays the
.l7arge in either event. The differ
nce between 1-2 per cent and per
.ant. for money invested in the
vire systems of the United States
rould maintain and pay for the prop
,ty in 18 years and nine months:
"he government, as an owner, would
D more expect to charge for interest
{. the investment than it would for
noney invested in postal facilities,
?avy yards or other public property.
AS justification for the permanent
liking over Of the wire systems, Mr.
:urleson said:
ITO establish and maintain means
t communication is much the func-
:on Of the government as is the pro-
sion for national defense More
.ver, it is essential to the develop
lent of the country and to the prog
ess and prosperity Of it's people. It
: a defense of the national interests
3 much in peace as in war. Ex-
ension of the wire service should be
determined by public needs, not the
pportunity for private gain.
The postmaster general said he be-
eved that an effective plan could be
rorked out by which the waste OF
ompetition can be eliminated and the
dvantage Of private initiative in re-
earch, investigation and experiment
alton not be lost.
Calling attention to the fact that
.nder the existing law the telephone
nd telegraph properties will auto
latically revert to the privae owaers
:pon proclamation by the president OF
state of peace, the letter says that
any of the Independent companies
ould not take back the properties
rithout serious loss to the investors
nd great detriment to the service.
'Tany Of these companies, the letter
rvs, were operating at a loss owing
waste incident to competition and
diversity Of State regulation, and as
roper depreciation funds have not
zen set aside, the properties were
'.ifting into a condition where proper
,ublic service could not be rendered: