Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1911-09-16
Public Ownership Costly to British
Taxpavers.


and operation of the American rail-
ways, telegraph and telephone lines
should study carefully review of
government ownership of the tele-
graph in Great Britain, as recently
published in the London Spectator.
The investigation of the English
newspaper shows that public owner
ship of the telegraph lines has been a
costly financial failure.
''Forty-fve years ago, in 1866, says
the Spectator 1.-THE proposal for the
purchase by the government of the
British telegraph lines was first adj
vanced, and an allegedly conservative
estimate set the cost at 81, 800, 600.
1t took nearly three years to complete
the negotiations, and in 1869 Parlia-
ment appropriated s7 900, 600 for max
ing the purchase nearly three times
the original estimate; but in addition
to that the government was called
upon to pay the railroad companies
for their freehold interest in the tele
graph equipment running along their
lines, the right of way having been
only leased by the telegraph compan-
les; that meant another e., 000. 600
so the acquisition of. the business
stood the British government ell,
100000, or approximately $50, 000 600.
1t was still predicted that within
twenty years the net revenues would
materially reduce the tax rates on the
properties of the people. The disll-
lusionment came quickly. For the
first two years of government opera
ton there was a small net revenue,
but after that the returns could not
be made to meet the interest on the
capital investment, and for thirty
nine years this enormous interest has
been paid out of the exchequer-the
pockets of the people. Then tele-
graph rates were reduced under the
popular cry that reduced rates would
increase the business and that in
crease would produce profits
just the reverse was the result. The
cost of maintenance and operation in
creased enormously under government
ownership; and, revenues falling far
below this and the upkeep and neces-
sary Improvements constantly calling
for more money, the drain on the ex-
chequer became increasingly heavy"
In its assuming up the Spectator says:
when all these facts are taken in
to namely, the original CAPT
tai which has never been repaid, the
advances from Parliament upon which
no interest is charged, and the annual
deficiencies on working expenses
70
commercial loss to the country by
the state purchase of the telegraphs
is not less than e35, 0OO 900. Nor can
we console ourselves with the reflec-
ton that for this e35, 600, 600 the state
has valuable asset, for that asset,
such as it is, involves every year on
its working an additional loss of over
81 900, 600. From commercial point
of view the purchase has been an I'M
mitigated failure. To reply, as the
advocates of state action invariably
do, that the public has received COM
penSatiOn in the shape of a more eff
cient and cheaper service, is plauSi-
BILE but unconvinciug. For even if
we make the large assumption that
the service is better and cheaper than
it would have been if it had remain
ed in private hands, we are entitled
to ask by what right the taxpayer is
deprived of his money in order to
substitute persons who send telegra phic
messages? The latter are a minority
of the population; they are mostly
well-to-do, and they are principally
represented by TWO classes purely
commercial men, who look upon tele-
graphing as a business expenditure;
and the racing fraternity, who GER
talnly have no special claim TO the
charity OF the taxpayer.
1.-The working cost per one thousand
words telegraph in Great Britain to-
day is actually more than it was thir-
ty years ago. The fatal incapacity of
the British government to conduct a
business enterprise has here been de-
monstrated beyond all question or
cavil. 1t is to an experience like this
that thousands of well-meaning re
formers are seriously inviting the
people of the United States today.
Is it TO be wondered at that conser-
vative and farsighted business men
have little patience with these theor-
ists?''