New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-12
MUNICIPAL TELEPHONY.

THE Municipal Journal and Engineer" an
American periodical, refers approvingly to a
: recent experiment IN the conduct of CONNER
~ cial enterprises by local governments abroad
The venture in question is in the field of teeph-
:. ony. The time may come when an undertaking
Of that kind may be deemed iudicious, but we
do not think IL has arrived yet. At present
facts enough TO justify confidence and enthu-
- 1iasm are not available. The magazine Just
- mentioned cites five exchanges that have been
established in Great Britain under municipaI
auspices. The one at Hull has not gone into
operation, and that at Brighton has not been
- fl service long enough TO supply a financial re-
port. To q third, in Swansea, there are only
80 subscribers, and. though It ought not to
= be ignored entirely, 1t apparently does not yet
tell an instructive story. Hence consideration
is limited TO the showing made by Portsmouth
and Glasgow.
The two principal questions involved touch
the quality Of the service rendered and the
financial return on the capital invested. AS to
the FIRST Of these there is evidently no reason
70 complain The subscribers seem TO be salts
q fed, and even pleased. Such should certainly
be the case where there is a thoroughly mod
ern installation and nothing else would be ex-
pected in new exchange. After all, though,
II matters little to the world AT large whether
. she patrons are well served or poorly. Other
: communities which are watching the exneri.
2 mens care chiefly TO learn whether it can be
Z made 10 pay. Is it success or a failure ne
: .cuniarily?
To ascertain the truth on this vital point is
not so easy as might be supposed Figures are
not supposed TO lie, but sometimes they are in
n complete or otherwise misleading 1t NAV be
taken for granted too that local officials in
such cities or boroughs have undertaken mu-
nicipal telephony will put the best possible con-
struction on the facts. 1t IS excusable there
z fore. TO accept their conclusions win some re-
"a serve-at least at frst-especlally II any one
= whose opinion is worth needing dissents from
them.
- The hnancia! exhibit for Portsmouth does not
g at glance invite criticism, and perhaps de-
serves none. After deducting from the gross
revenue the operating and maintenance ex-
penses the royalty 70 the postal department and
= The long distance charges, there was left the
first year about $1,000 which SAYS "Tbe Mn
= nicipal Journal and Engineer" is equivalent
= 10 dividend Of over per cent" Allowance
vathen being made for interest and sinking fund
balance OF S6,136 is left that has been SET
g eside as a depreciation fund" Only tela-
phone expert acquainted with the outlay for
-sSano character OF the Portsmouth plant could
tell whether the possibilities of deferiorotio,
: : have been fully met but It may be taken to-
granted that they have been
e Regarding Glasgow there has been much spir
-. ifed controversy for the last year or two t.
p was alleged by Engineering" about tyro1ra
months ago that the actual cost Of the ipstaI,a-
Ton IN that city exceeded the original estimates
aspg 90 per cent and the fact was cited as an
= explanation Of difficulties" in which the cor
> poranon found Itself involved. The low fgpres
gwen IN The accounts for the working costs