"
Ttife
V
FEBRUARY, 1914
15
w.
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commoner
I
Government Ownership of Tele
phone and Telegraph
Following are Associated Press dis
patches, dated Washington, Jan. 31: !
Government monopolization of
telegraph, telephone and wireless
communication , "and such other
mqans for the transmission of in
telligence as may hereafter develop"
is recommended in a report sub
mitted to the senate today by Post
master General Burleson. Immediate
government ownership of telephone
lines is recommended, with a system
of license for the other agencies of
communication establishing a gov
ernment monopoly even where there'
is not actual ownership.
The report is that made to the
postmaster general by a special com
mittee appointed by him, and was
transmitted to the senate in response
to a resolutipn asking that he- make
an investigation of the subject as an
extension of tho postal service.
The' report declared that the "only
way to afford to the people the com
plete and modern postal facilities
that the constitution makes it the
duty of the government to provide,"
is by carrying out these suggestions:
"One that congress declare a
government monopoly over all tele
graph, telephone and radio communi
cation and such other means for the
transmission of intelligence as may
hereafter develop.
"Two That congress acquire by
purchase at appraised value the com
mercial telephone network, except
the farmer lines.
"Three .That congress authorize
the postmaster general to issue,, in
his-discretion and under such regu
lations as he 'may prescribe, revoc
able licenses for the operation, by
private individuals, associations, com
panies, and corporations of the tele
graph service and such parts of the
telephone service as may not be ac
quired by the government'
The recommendations are signed
by Daniel C. Roper, first assistant
postmaster general; Meritt O. Chance,
chief clerk, postofiice department,
and John C. Koons, superintendent,
division of salaries and allowances,
composing the committee. They
were accompanied by statistical in
formation collected after one of the
most exhaustive investigations under
taken by the' postofiice department.
BEHIND OTHER NATIONS
The report states that the United
States is "alotie of the leading na
tions which lias left to private en
terprise the ownership and operation
of the telegraph and telephone fa
cilities," and that practically all of
the economists who have treated the
subject are agreed that telegraph
and telephone facilities should be
controlled by tho government.
It declared further that Theodore
N. Vail, president of the American
Telephone and Telegraph company,
by his statement that the telephone
business must be "under common
control" and "sufficiently strong to
constitute practically one system,
intercommunicating, interdependent,
universal," has' himself pointed out
that the most efficient telephone
service can be attained only under a
condition of monopoly.
The report continues:
"The private monopoly has no in
centive to extend its facilities to un
profitable territory, but the govern
ment must serve all the people.
This universal service is accom
plished by the equalization of rates.
In fixing rates, the policy of this
government is to superimpose no
charge for taxation, but only to
Bee to it that the service as- a whole
is self-supporting. The private
monopoly, on the other hand, must
make a profit, and, in providing for
this, tends to increase its rates to
the bighest price that will not, by so;
greatly restricting the volume of,
business, impair the aggregate profit.
"It is obvious that the longer the)
acquisition by the government off
these . facilities is deferred, the'
greater will be the cost. Moreover
It is economic waste to permit pri
vate enterprise to build up vast
properties that must eventually be
taken over by the government in re
suming its constitutional monopoly,
at a cost out of all proportion to the
vaiue ol tue parts ot sucn properties
that may be utilized to advantage in.
the, postal system.
BACKWARD IN MAKING EXTENSIONS-"So'
far as the public generally is
concerned, the en tiro telegraph serv
ice 'is owned and operated by two
telegraph companies. Telegraph fa
cilities have not beOn extended to
the small towns and villages along
with the government postal facilities,
nor 4ias the cost of the service been
reduced in tho inverse proportion
that would seem warranted by the
increasing volume of business trans
acted. Neither has the volume of
business in this country, in propor
tion to the population, been as great
as in countries where this facility is
owned and operated governmentally.
"It is needless to enter into the
manifold advantages and benefits
that would accrue to the people from
a universal telephone service. As it
has done with the, mails, it is the
duty of the government to- make this
facility, available to all Of its .citizens
Without, discrimination.
data .the capitalization of the long
distance and toll, lines' represents ap
proximately -$200,000,000 and the
capitalization, of the entire commer
cial network approximately $900,
000,000. Tho cost ,to tho govern
mtnt would be less than the ap
praised value, since it would be un
desirable for the government to pur
chase the real estate holdings of the.
companies. Exchanges could be
leased until accommodations could
be provided in the postoffices and
stations." ,
The report was sent to the senate
in response to a resolution intro
duced by Senator Norris.
The report" points out that, the
founders of the nation were alive to
the importance of keeping1 under gov
ernment control all means of com
munication and provided in the con
stitution that congress have power to
establish postoffices and post roads,
It was clearly the intention, the re
port adds, that the government
should control every means of trans
mitting intelligence.
SHOULD BE OPEN TO MASSES
The postal service has already
adopted practically every means of
transmission except electricity and
yet the United States alone of all na
tions, the committee points out, has
left to private enterprise the owner
ship and operation of telephone and
telegraph facilities. .
"These facilities are now for the
classes," the report comments;
''under government ownership they
will be for the' masses."
Government ownership of the tele
phone, rather than the telegraph
lines, is recommended for the reason
that telegraph service can be more
readily superimposed oh telephone
lines than telephone service on tele
graph lines: It is pointed out also
that because of the great cost in
volved it would bo unwise from a
commercial view for the government
to acquire by purchase the telegraph !
lines.
The telegraph business is on thet
wand, as cdmpared to the telophono
business, tho report says, and in tho
.decade from 1900 to 1910, while the
population of tho country increased
about 18 per cent tho average daily
telephone connections Increased 287
per cent and the number of telegraph
messages only 18 per cent.
The telegraph compan'es, the com
mittee says, have already lost most
of their short distance business,
owing to the development of the toll
telephone service, and probably will
lose much of the long distanco busi
ness when the toll rates become ad
justed on a cost basis.
Another objection to acquiring tho
telegraph lines i.s that even the dup
licate plants of rival companies would
be inadequate because tho lines have
been extended only to profitable territory,
The cost of acquiring the telegraph 1
facilities is estimated at $225,000,-1
000, as aga'nst $200,000,000 for long
distance and toll telephone lines. As
there are some 3,000 proprietors of
telephone lines, payments would ex
tend over a period that would allow
ample time to market bonds, the re
port adds.
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AnyWatch
You Want
on
PEACE AND PUBLIC- TOLICY
Regarding mankind as a whole,
the thing most to be deplored is war,
and the thing most to be desired and
definitely worked for is peace. Every
step that can be taken by any govern
ment to lessen the likelihood of war,
hasten its termination, or mitigate
its horrors if It should actually exist,
Is plainly due as an obligation to its.
own people, and to the cause of civil-;
Ization at large. It is too early to
ju.dge oE. the wisdom, and efficiency i
all details of the work of our state
department as directed by President
Wilson and Secretary Bryan. But
there can be no doubt concerning the
high motives of our foreign policy
and its benevolent attitude towards
other countries. Secretary Bryan lias
been negotiating a series of treaties
designed to assure a period of in
vestigation and inquiry into the na
ture of disputes before the outbreak
of hostilities. Such agreements with
several nations are already signed,
and many others are in prospect.
THE BRYAN TREATIES
The first of those treaties was with
the republic of Salvador, and it was
signed last August. Its opening article
is as follows:
"The high contracting parties agree
' that all disputes between them, of
every nature whatsoever, which
diplomacy shall fail to adjust, shall
be submitted ior investigation and
report to an international commis
sion, to be constituted in the manner
prescribed in next succeeding article;
and they agree not to declare war or
begin hostilities during such investi
gation and report."
An important thing about this kind
of commission is that it is to be a
standing body, named in advance,
rather than a board selected with
distrust and difficulty after the fail
ure of diplomacy to settle a dispute.
Each of the two countries names one
member from its own -citizens and
one from an outside country, and the
two governments choose a fifth mem
ber by common agreement, An in
vestigation by this commission may
occupy an entire year, but no longer
time, unless the governments agree
to extend the period. The two gov
ernments may deal as they choose
with the report of the commission,
neither being bound in any way. A
further article of the agreement de
clares that the two contracting
parties will not increase their mili
tary or naval program during the
period of the investigation, unless
danger from a" third power should
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compel such Increase, In which case
the menaced government will com
municate with the other, and the
obligation to maintain the military
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WIDE ACCEPTANCE OF PLAN
The treaty is valid for a period of
five years, after which it will con
tinue indefinitely in force, unless one
or the other of the contracting gov
ernments gives twelve months'
notice. Inasmuch as Mr. Bryan has
received the assurances of more than
thirty governments that they will
sign similar agreements with the
United States, the matter becomes
one of great importance. It will be
seen that a treaty of this type does
not provide for arbitration. It- is
greatly preferable that countries hav
ing disputes should find a way to
settle them by direct negotiation, al
though arbitration is the civilized
and proper way to proceed in case
diplomacy should fail. The advan
tage of Mr. Bryan's plan is that it
will diminish the danger of a sudden
outbreak of war. The secretary is
doubtless right in believing that
when disputes have been thoroughly
studied and reported upon by an in
ternational commission they will
have been brought into such rela
tionship to the forces of public opin
ion that they can subsequently be
settled either by the resuming of di
rect negotiation or else by reference
to The Hague tribunal or to some
other form of. arbitration. The
American Review of Reviews,
NO REST
"My old barber has left the city."
"You seem very regretful."
"Yes He had been trying to sell
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