Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-01-04
VAIL ON SERVICE
HERE AND ABROAD
President of American Telephone
Sees Little Chance of Gov.
eminent Ownership.

New York. Jan 81 consular tho dan.
ger point has been passed in the Cnited
states on the question of governments
ownership Of public utilities. espcci,,llv
telegraph. telephone and railroad lines"
yesterday declared Theodore y VAN.
president Of the American Telephone ana
telegraph company and the Western
Onion Telegraph company.
PRECEDENT Vail's declaration was in.
spired by news cablegram from Lon
don relating to the taking over BY tina
British government Of all the privats
telephone lines in the United Kingdom
and making them a part OF the uovern-
ments system. The government for wears
has owned and operated the entire tele-
graph system o. the United Kingdom
through its postofiice department. f.
has also owned and operated % TELEPHONE
system In competition with the priyata
system which II has just absorbed Ac-
cordng to the latest statistics availa lie.
the consolidation places In the hands Of
the government less than $4,000 t.lo-
phones.
That number" said President WI.
'just about equals the number of +, le-
phones owned and operated by o.r
company IN Greater New York alone
We have in operation in the whole
country about six million telephones.
Other companies own and operate be-
tween one and two million. So we
have altogether about five times a.
many telephones as are now under
British ownership and control
COMPARES TWO SYSTEMS.
ours is growing rapidly all the
time. while there is no notable growth
in Great Britain. The American Tele-
phone and Telegraph company is capt.
talized at 5000 o00. the capitaliza-
tion represented by the British tele-
phone lines Is less than 500. 1000. 900.
The service in this country returns
fair dividends. If government owner
ship Of telephone lines in Great Brit
ain pans ont no better than has gov
eminent ownership of telegraph lines.
the British treasury viii have TO make
good a heavy annual deficit.
Last year, for example President
Vail went on, according to the Brit
iSh postmaster generals report thera
was deficit Of S5.0OO.000 on account OF
the telegraph service. This deficit was
paid from the general revenues Of the
empire Every man, woman and child
in the United Kingdom had to con-
tribute in some form Of taxation to
This deficit. But what proportion Of
the men. women and children of thu
United Kingdom used the telegram
service even once during the year, II
would he interesting to know, becaus.
then we would have an excellent OBJ.
tect lesson in the cost 70 the peopls
or government ownership.
Should the government take over ths
telegraph and telephone lines in the Uni
ted States. l believe It would not be long
before the American people would he
clamoring for their return to private
ownership. The masses in no country use
either the telephon or the telegraph. IT
i only that class who can afford the con-
venience Of this means of quick inter-
communication But government ownvr-
ship would distribute the burden of he
cost of maintenance alike on all classes.
QUESTION OF EFFICIENCY.
There is another question. and that
Is efficiency Government ownership
minnl.zes, II It does not destroy, !ndlvid.
nal incentive Neither the telephone moi
the telegraph service IN any part Of Great
Britain is as prompt. thorough and etfl-
cient as in the United States. Govern.
ment revenues and expenditures are never
80 closely and economically managed AZ
are those Of private corporations. Private
corporations must make profits or go into
bankruptcy. Hence, the greatest possi-
bile economy is sought by their manage.
ment.. The largest possible amount OF
business is striven for In order 10 keep
busy. to the end OF making revenues ex-
coed expenditures. No government bus!-
ness is managed in this way
The management or operation L
such utilities Is not a proper function
Of government All that government
should do Ia TO see to It that every ono
of its citizens shall get impartial Justice
and be protected In his business rights.
When that is done, government has dis
charged its duty. But when 1t ventures
into the field OF managing the peoples
business il invariably distributes the
burden Of taxation !neQuitably. Govern
ment regulation and supervision, INTEL
lgentv applied. is all right. but owner
ship control and operation are all
wrong"
Mr.. Vail added that the tendency of
both telephone and telegraph charges
In the United States was downward.
He said the telephone rate has been
cut in two in the last ten years His
wish is to reduce it still further ny sub
shutting the message rate everywhere
for the existing rental rate system.
Under the direction OF Mr. Vail the
Western Union has introduced night letter
kilograms at half rates and cut cahld
rates - one-half All the other cahla
and telegraph lines. including those owned
hv the French md German governments.
have had - follow Mr. Wallis idea