New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-15
TELEPHONE PROBLEMS.
ppblio Regulation vs.. competitiOn.

From Engineering News ,,..
vi, TTlf be eterm8aed IN December iii when
Postoice will add to its trunk lines ana ITS LGa-
don exchange all the plant Of the National Iele-
nhoue Company. This is IN accordance with an
4sfeeent empany ' made last February and ra
fe5 ~ The House of Commons in August. The ma
of the company at Lls "a Ia Isnr IN the Case Of
o4Ice bas csnceIea the seven licenses already
gTante5 and not acted upon by municipalities, and
has given notice that the licenses for the five mu-
newed at the time of their expiration in 1911
The apparently exceIept pIg8q, ma , TH
Company is due the fact that Il retained TO u
bona ei+7,a+ico frst by limiting the main license
IF The COMPANY to twenty-five years and second by
Dqmg ana Il aT this has retarded the development
of the British telephone system IN extent ana eI-
Inc NaE0Ia = 1ebb+ eTpect In 1911 and doubtless
start WA ~ The PosTofics acting Is
it believed in interest of the PUBLIC paved the
in isf1 and that at price which seems TO be gen.
orally regarded as fair and reasonable 10 ooth par
ties # then. any one has suffered from the snort
who possibly though by no means cer IAN o
dozen years OF the license had the company not
been facing the pro6a3e sur eIqer 81 us egSliT
deficiency in service on this account It has been
fostofice to make it more than good when the
of public ownership begins six years hence
z
relative advantages Of public and private owner
shin Of telephones II is obvious that the best ser
vice demands a single highly centralized system.
rightly controlled by the public. in the matter OF
service rendered and rates charged. Attempts
AZ telephone competition might possibly be war
ranted in municipalities which had foolishly neg
Iectad to retain control and If which honest and
Intelligent efforts to secure readjustment OF rates
and an Improve in service had met with no re-
spouse from the existing companies. But even
under such circumstances the dement's OF cou1pet-
ton are liza bic to be mora apparent than real
new company might compel an old one 10 reduce
its r. BY one-half but II can rarely II ever drive
an old cor1Denv out Of business failing in this II
becomes necessary for those who wish Compre-
with two telephones This generally means higher
total charges than were paid 10 the old company,
and In addition the great nuisance OF Two teleS-
Dhones The streets also needlessiy encuIn-
bered above or beneath, with the duplicate line
system and altogether there Is a waste or good
money on the part Of the competing telephone COM
panies and loss Of money and time on the part of
the telephone subscribers
since II Is Inevitable that the American telephone
service viii eventually be unified, and since there
ia no likelihood here or emulation OF the British
Posfnfire in assuming ownership or the telephone,
there Is Ali the greater reason Tor public control IN
America than there was in Great Britain when IL
rrertaT fFs twenty-hve-year license in 1886. How
This cor+roI is TO be achieved under complex
5ondtions OF national. state and municipal gov
arnTrent we are not prepared to say The prob
lem should be faced at by at least the state
ana local governments The fetch OF competition
sLo,G he abandoned once for all. IN this and many
otbsr bra inches OF the public service and in it's
Mace a strong competent and honest public regu-
ation OF recognized natural monopoly should Be
establishes