Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-12-26
Government Telephones.
from the Philadelphia Record.

From the Philadelphia Record.
Preliminary to the discussion OF any
definite plan of Government ownership and
operation of the telephone and telegraph
systems of the country must come the in
quiry whether the acquisition and man
agement of these vast properties would |
accord with a wise and prudent public |
policy. We are not confronted by theory,
but by a matter-of-fact actually. The
concern of the public is to get satisfactory
service at reasonable cost; and, if these
desiderata be obtainable through the regu-
lative activity of the Interstate Commerce
Commission and the Public Utility Com
missions of the States, it matters little who
owns the properties. The theoretic areu-
ment that the electric transmission OF
communications is as much part OF the
postal function as is the manual transmits
sion of letters by mail, weighs very little
by the side of the very practical considera-
tions involved. 1t may be true that the
first electric telegraph in this country was
operated by the Postoffice; it is true that
the law of 1857 authorizes the acquisition
of the telegraph lines at their appraised
value by the Federal Government. What
of it? When Postmaster-General John
Wanamaker twenty-four years ago recon-
mended Government ownership of the tele-
graph lines there was no Interstate Com
merce Commission in existence with power
to correct abuses and establish rates.
Postmaster General Burleson in his re-
port meets the argument of the invariably
higher cost of public, compared with pri-
vate, management by the citation of sta
tistics showing the efficiency and economy
of our postal service. He also points to
the readiness with which the service
adapted itself to the handling of the enor-
mously increased quantity Of mail matter
brought in by the parcel post. But this
enlargement of the postal function involved
the acquisition of no new instrumental
ties. and only moderate increase Of the
service force. Government ownership and
: operation of telephones and telegraphs
would involve the enlistment into the pub
I lie service of a new force Of managers,
operators, messengers, etc., comparable in
i number with the entire postal service as
now constituted. The nature of the en-
! ployment is different and entirely foreign
e to that of the postal force. Furthermore
: in the conduct of the business instrument
S talities are used that are utterly unrelated
d to those now used by the postal service.
9 And what property it is The tota
n capitalization of the American Telephone
s and Telegraph Company, including inter
IS company items, was $l,294,835,468 OF
h December 81 last the total Of stocks
bonds and notes outstanding in the hand
Of of the public on the same date was $725,
N 100000 Theodore N. Vail, president o
10 the company, declares the book value O
lie its property to be $l60.000,000 create
ID than all outstanding securities, and tn
" appraised value of the property to be fror
le 10 to so per cent. more thanits book value
lie Congressman David J. Lewis, of Maryland
'd who has studied the problem and prepare
he bill on the subject. thinks that the valu
81 of the property involved is 00,000,00O
n. and this may be taken as the most favol
7o able estimate.
CT 1t may be claimed that. since the Gov
n eminent would not expect to make a prof
le it could give the public lower rates tina
III any private corporation. Granting thi
Do and granting also that the cost of Cover
ment operation would be no higher, ne
public debt approximating billion dollal
would have to be taken care of. The il
as terest and sinking fund charges would haN
IL to be added to the service rates. meanir
ty fixed charge of at least 100000
as per annum. 1t may be doubted, therefor
ds whether the Governments telephone ar
iy- telegraph rates could be fixed at lev
in much, if any. lower than that to which Il
is company rates could be forced by Cover
lat ment regulation. All the results desir
I'd could be obtained without agitating Blu:
les ness circles by the prospect of billio
A dollar Government fiotation in a tie
led money market.