The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-11-14

there are two others which must be
carefully considered by congress if
that body is to act wisely upon the
propositions. One of these consider
atoms is financial. The other is eco
nomic. 1t was the financial consider
alton which caused the abandonment
OF the proposition brought thirty years
age to the attention Of congress in
yClving the purchase and operation of
the telegraph lines. That was a time
when the telephone was thought to be
no more than a toy; and when the
~stupendous commercial values which
are in the little apparatus were I'M
derstood by no one, not even by Pro-
fessor Bell himself. .. u
Now the Telephone.
OCCASIONALLY since that time vague
intimations have been made by men in
public life, never by men of capital,
that the government ought to take
over the telegraph and telephone.
These limitations became stronger
after the commercial practicability of
the telephone had been demonstrated,
and especially after invention and
business capacity had So wonderfully
developed ong-distance service.
One of the reports from Washing
ton quotes $500, 900, 900 as the cost
price at which the government would
be able to acquire the telephone sys-
TENS of the United States. This quo
tation is SO far. below the figures which
would represent a reasonable inven
tory of the. telephone and telegraph
companies properties that the general
impression in this city was that the
figures must have been misguided
The capital stock of the telephone and
telegraph companies outstanding or
Nav I 1910 uyo n cQ4E nm nm ,,n,,rS
numbers. The presumption has al
ways been that every dollar of this
capital stock represented actual val.
ues. In addition, bonds were ISSUED
for the purpose of extending the plants
Of the telegraph companies through,
out the country; which, In the aggre.
gate, bring the appreciable value O.
the properties up to about $500, 600,
900.
The government. it is said here
possibly has in its, power to acquire
these properties for 100000, 900, bur
in order to do that there must be some
c~onfiscation Of someN utilization of thu
taxing powers which the government
possessed whereby the market valu.
of the properties can be depreciatee
more than ope-1lalf.s
Another Feature.
There is another feature Of tn,
! proposition from the financial point O.
view which It is thought has not oc.
cured to the mensin public life. wht
are now urging government owner.
ship and operation of the telegraph.
Pres. Theodore N. Vail, in a recen
personal conversation, intimated tina
as soon as money market condition.
were favorable his companies Woult
seek fsnds to be utilized in greatl.
expanding the telephone plants, and ii
perfecting economies and In encour
aging invention by means OF which tn,
business obtained by these companie
would be SO greatly increased through
a reduction in rates as fully to justif.
large expenditures of fresh capital.
So the question is asked la thf
city: do these men in public life Ii
Washington who are now urgin;
governmdat ownership and direction
OF the telegraph realize what amour
Of fresh capital would be required /
these quick intelligence systems ali
Ito be perfectly DEVELOPED and do the,