New-York tribune., 1918-12-17
BurlesOn Asserts
1t Is ''Imperative"
u. S. Own Wires
Tells Congress Saving in
Operation by Government
Would Maintain and Pay
for Property in l8 Years

WASHINGTON, Dec. 16.-Ownership
by the government of the telegraph
and telephone systems of the nation
was characterized as imperative" by
Postmaster General Burleson to-day in
letter to Representative Moon, chair
man of the House Committee on Post
Offices and Post Roads.
Mr.. Burlcson said the systems can
be acquired without the appropria-
ton of dollar from the public treas
ury." by applying to an amortization
fund for twenty-five years the savings
made under government ownership
through elimination of Implications IN
plants and operating expenses.
"Tn support of the government own
ership resolution introduced in the
House last week by Representative
Moon, the Postmaster General quoted
from the recent letter Of Theodore N.
Vail, pres dent Of the American Tele-
phone and Telegraph Company, and
from the annual reports OF number
Of the Potmasters General since tho
Civil War, all of whom agreed, he SAID,
that government control or ownership
WOulu RTcdJly COiltllDuCS w 1Ai~ Si''
cheney of service.
Points Out Advantages
"The economic Importance of the
proposition to acquire the properties
by the government is very great" Mr..
Burleson wrote "Private capital is
invested in public service enterprises
with the expectation of to 8
per cent, and often greater return
upon the investment. 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 Az per cent and 8
per cent for the money invested in the
wire systems of the United States
would maintain and pay for the
property in eighteen years and nine
months.
"The government as owner would no
more expect to charge for interest on
the investment than it would for
money invested in postal facilities,
navy yards or other public property"
AS justification for the permanent
taking over Of the wire systems, Mr..
Burleson said:
"To establish and maintain means of
communication IS as much the func-
tion of the government as is the pro-
vision for national defence
Moreover, it is essential to the de-
velopment of the country and to the
progress aud prosperity of its people.
Needed in Peace Times
ut is defence of the national in
terests as much in peace as in war
Extension Of the wire service
should be determined by public needs,
not the opportunity for private gain"
The Postmaster General said he be-
lieved that an effective plan could be
worked out by which the waste of COM
petition could be eliminated and the
advantages of private initiative in re-
serve, investigation and experiment ia
tion not be lost.
Calling attention to the fact that un-
der the, existing law the telephone and
telegraph properties will automatically
revert to the private owners upon proc
lamation by the President of q state of
peace, the letter said that many of the
Independent telephone companies could
not take back the properties without
serious less to the investors and great
detriment to the service. Many of these
companies, the letter said, were operat-
ing at loss owing to waste incident to
competition and diversity of state reg
uation, and as proper depreciation
funds have not been set aside, the prop
critics were drifting into a condition
where proper public service could not
be rendered.