The San Francisco call., 1910-04-24
GOVERNMENT PHONE
lines REDUCE COST
Western Canadian Provinces
Buy Systems With Proceeds
of Bond Issues

Consul General John E. Jones of
Winnipeg finds that government owned
and operated telephone systems have
had a sufficiently important test in
western Canada to demonstrate their
success, as practically the entire tele-
phone system of western Canada is
thus conducted by the provincial gov
ernment. Jones describes it's opera
ton:
The most interesting feature of
government owned utility is the saving
II eHects for the general public, and 1t
IS really upon the relative saving IL
effects over a private owned system
that Its success is reckoned. Under
government ownership there has been
a material reduction in telephone rates.
chased from the Bell company, rates
for exchanges to 200 subscribers were
$50 for business telephones and $40 for
private service. Since the government
been reduced to $24 and SIS. There
mas been no decrease in the cost of
business telephones in the larger cities
OF OF Alberta, but the pirate service has
been reduced from SIS to $40
N Saskatchewan the rates were S24
20 $50 for business telephones and SIS
farmers rural telephone companies,
with an aggregate capitalization of
1000 subscribers at $12 to $40 per an
mum.
In Manitoba the telephone rate on
rural lines has been reduced from s24
TO $40; and, while there has been no
decrease in the cost of business tele-
phoneS, private service has been cut
from $50 to $25.
COST FOUR MILLIONS
1t do IS estimated that there are some
5ia, 5S,Ooe miles of telephones in western
CSndua, supplying a subscription list
OF some 10000. The telephones in all
tne western provinces were purchased
from the Bell company and minor con-
Germs at an aggregate cost of some
S4,0OO.O00, and they now represent a
capitalization of at least three times
lnat amount. In all the provinces
o Wnere the telephone service was taken
over from private corporations the
money was supplied by the sale of
provincial bonds.
Manitoba differs from Saskatchewan
ana Alberta provinces by having an
oiners having special government tele
phone departments. But not all the
teIephone lines ire under the direct
government management While Mani
toba guaranteed bonds of nearly $500
900 to construct rural lines, none of
theSe were built during 1909. 1t is
probable that the 10 existing lines will
pe taken over by the government. At
the low. rate of $40 a year the mu-
inequalities are content to let the gov
eminent do the work
BONUS PAID FOR POLES
In Saskatchewan the farmers lines
are built and owned by the farmers
themselves. To encourage such con
struction the government grants a
bonus on all telephone poles required.
During the last two years Manitoba
has constructed over 500 miles of tele-
phone connection and at least 1000
miles of rural lines. Alberta has built
LAPS miles of long distance and rural
service; and Saskatchewan has not only
constructed 645 miles of long distance
wires, but has nearly 1000 miles of
rural lines.
The government of Alberta owns all
the telephone lines and operates them
owned service. the legislature of 1906
voting s25 900 for initial expenses. and
a line was constructed from Calgary
to Banff, nearly 100 miles. 1t is stated
that the Bell charges for long distance
service up to so miles was l cent
a mile in Alberta. Under the govern
ment owned system the charge is lust
one half this amount
In Manitoba there are now 112 ex-
changes, serving approximately 10000
subscribers. When the system was
there We're but $4,000 odd subscribers.
and the marvellous growth during these
two years is pointed to as evidence
OF the success of the government owned
system. During the last year $500
new rural subscribers were added.
bringing the list up to 5000. This rep
resents the number of farmers having
telephones in their homes with direct
long distance connection with the large