The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-12-21
Postmaster General Explains
Necessity of Government
Ownership Of Lines.
AVS IT WILL BE AN ASSET
AND NOT A BURDEN
savings Made Under Changed
Conditions Will Pay Cost in
25 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
,ostoffices and post roads. Mr.. Bur-
son said the systems can be acquir-
Il without the appropriation of dol
r from the public treasury by ap-
lying to a mortization fund for 25
ears the savings made under gov
.nnlent ownership through elimina-
on of Implications in plants and OPP
rating expenses.
IN support Of the government own
,yship resolution introduced In the
aouse last week by Representative
yfocn, the postmaster general quoted
ion the recent letter Of Theodore
y. Vail, president Of the American,
telephone and Telegraph Company,
md from the annual reports Of a
,uln Der Of the postmasters general
ince the Civil War, all OF whona
creed, he said, that government con-
sol or ownership would greatly con-
.bute to the efficiency Of service.
The economic importance Of the
deposition to acquire the properties
y the government is very great" Mr..
;ur!eson wrote Private capital is
l.vested in public service enterprises
.ith the expectation of to 8 per cent.
ad often a greater return on the i1l-
.estment. This, of course, the public
(. expected to pay while the govern
:ant can borrow money at 1-2 per
.ent. The public, however, pays the
.l,arge in either event. The differ
rce between IL per cent. and per
.ant. for money invested in the
vire systems of the United States
,-ould maintain and pay for the prop
..ty in 18 years and nine months.
"he government, as an owner, would
. more expect to charge for interest
:, the investment than it would Tor
:.oney invested in postal facilities,
:avy yards or other public property
AS Justification for the permanent
liking over Of the wire systems, Mr.
3urleson said:
ITO establish and maintain means
i communication is much the func-
:on of the government as is the pro-
sion for national defense 4. More
yer, it is essential to the develop
lent Of the country and to the prog
.ess and prosperity Of its people. tt
; defense Of the national interests
= much in peace as in war. Ex-
,,nsion of the wire service should be
?etermined by public needs, not the
pportunity for private gain.
The postmaster general said he be-
ieved that an effective plan could be
:orked out by which the waste OF
ompetition can be eliminated and the
dvantage Of private initiative in re-
earch, investigation and experiment
ation 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 owners
:pon proclamation by the president OF
state of peace, the letter says that
any of the Independent companies
.ould not take back the properties
,-ithout serious loss to the investors
nd great detriment to the service.
tTany Of these companies, the letter
rvs, were operating at a loss owtnS
O waste incident to competition and
i:versity Of State regulation, and as
roper depreciation funds have not
cen set aside the properties were
.ifting into a condition where proper
5ublic service could not be rendered: