Pine Bluff daily graphic., 1918-12-17
 OWNERSHIP
 IMPERATIVE
Burleson so Declares in Support of the Measure Authorizing Purchase of Telephone Lines.

Washington, Dec. 16.-Ownership by the government of the telegraph and telephone systems of the nation was characterized as Imperative" by Postmaster General Burleson today in a letter to Representative Moon, chair man. of the house committee on post offices and post roads. MT. Burleson said the systems can be acquired without the appropriation of a dol- lar from the public treasury" by ap- plying to an Amortization fund for 9 years, the savings made under govern ment ownership through elimination of Implications in plants and operat- ing expenses"
 In support of the government own ership resolution introduced in tho house last week by Representative Moon, the postmaster general quoted from the recent letter 0 Theodore N. Vail, President of the American Te.e- phone and Telegraph Company, and of the posmaster generals since the civil war, all of whom agreed he said, that government control or ownership would greatly contribute to the eff ciency of service.
 "The economic importance of the proposition to acquire the properties by the government is very great" Mr. Burleson wrote. Private capital is in- vested in public service enterprises with the expectations of seven to eight percent and often a great re- turn upon the investment. This ot course the public is expected to pay while the government can borrow money at four and one half percent. The public, however, pays the charge in either event. The difference between four and on half percent ana eight percent for the money invested in the wire systems l. of the United States would maintain and pay for the property in eighteen years and nine months. The government as own. CT. would no more expect to charge for interest on the investment than it would for money invested in patal facilities, navy yards or other public property"
 As justification for the permanent taking over of the wire systems, Mr. Burleson said:
 ITO establish and maintain means of communication is as much the funct- ion of the government as is the pro- vision for national defense, Moreover it is essential to the development of the country and to the progress and prosperity of it's people. It is a de- fense of the national interests as much in peace as ill 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 competition can be eliminated and the advantages of private initiative in re- search, investigation and expermenta- tion not be lost.
 Calling attention to the fact that
 under the existing law the telephone and telegraph properties will automa- tically revert to the private owners upon proclamation by the president of
 state of peace. the letter says that many independent telephone compan-
 ies could not take back the proper | ties without serious loss to the inves- tors and great detriment to the ser vice. Many of these companies, the letter says, were operating at a loss
 owing to waste incident to competi-
 tion and diversity of state regulation, and proper depreciation funds have
 not been set aside the properties were drifting into a condition where
 proper public service could not be l rendered."