Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-12-17
BURLESON SAYS
NATION SHOULD
OWN ALL WIRES
Can Pay for Itself in Eight
cen Years, He Tells
Congressman.

Washington, Dec. 16.-Ownership
and telephone systems of the nation
was characterized as imperative" by
Postmaster General Burleson today in
q letter. to Representative Moon.
chairman of the house committee on
postoff1ces and post roads. Mr.. Bur-
Lesson said the systems can be &C
CURED without the appropriation of
a dollar from the public treasury" 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.
In 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. president of the American Tele-
phone and Telegraph company, and
from h annual reports of a number
of the postmasters general since the
( Civil War, all of whom agreed, he
said, that government control or own
ership would greatly contribute to the
efficiency of service.
No Money on Investment.
1.-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 enter
prises with the expectation of seven
to eight per cent and often a greater
return upon the investment. This. of
course, the public is expected to pay,
while the government can borrow
money at four and one-half per cent.
The public, however, pays the charge
in either event. The difference be-
tween four n one-half per cent and
eight 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 nj 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:
Believes Plan Feasible.
"To establish and maintain means
of communication is as much the
function of the government as is the
provision for national defense. More
over. it is essential to the develop
nlent of the country and to the pro
gress and prosperity of. it's people. I,
is a defense Of the national interests
as much in peace as in war. Exten.
sion of the wire service should be de.
termined by public needs, not the op'
portunity for private gain"
The postmaster general said he be
lieved thai IN effective plan could be
worked out by which the waste OF
competition can De eliminated an6
the advantages of private initiative ir
research. investigation and expert
mentation would not be lost.
Calling attention to the fact tina
under the existing law the telephone
and telegraph properties will auto
matically revert to the private own
ers upon proclamation by the presi.
dent of a state of peace, the lette,
says that many of the independent
telephone companies could not take
back the properties without seriou:
loss to the investors and great detri'
ment to the service. Many Of these
companies, the letter says, were op'
Grating at a loss owing to waste in
cident to competition and diversity
Of state regulation, and as proper de-
probation funds have not been sci
aside, the properties were drifting in
to a condition where proper public
service could not be rendered.