The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-12-23
GOVERNMENT OWNERSHIP
OF TELEGRAPFIS WOULD COST
LESS THAN S9O,O0OO,OOO
REPRESENTATIVES, LEWIS


the other 10 countries giving much
lower telephone call than the latter
rates.
THE Subscribers rates in American
cities, compared from continental
cities, are about three times as high.
For example New York. where 5400
calls, about 16 per day, under a meas
ured service tariff cost more than the
four unlimited yearly rates of Lon
don Paris Berlin and Stockholm to-
gether. For like services, Baltimore
people pay more than the rates for
London and Paris combined, and Wash
ington pays as much as the five cities
! of Amsterdam, Rotterdam, Auckland
Toxic and Copenhagen combined.
In postal-telephone countries the local
CAN tariffs tend TO run about one-half the
charge for letter, While here 1t runs
with the street car fare, and sometimes
exceeds it, when it IS three times the
letter rate.
Divides Service
while competition does not supply a
remedy because it divides the service and
necessitates the payment for two phones.
yet it throws an interesting side light on
the tendency of a private monopoly to
jack up the rates. Thus of 60 of the great
American cities, "a, averaging 342, 4S6 in
population, pay an average annual phone
rate of s53 under competition, while the
ether 36 cities averaging but 13S, 500 in pop
ulation, without competition, pay an aver
age rate of ISL. Since competition can
only augment the total cost of operation.
IL is apparent how private monopoly and
high rates go hand in hand.
ut will be unnecessary to take over the
telegraph lines here Capitalized at $780,
! 100000, as both kinds of communication
can be handled on the telephone wires,
which exceed the telegraph wires in mile
age in geographical distribution
The cost of acquiring the telephone
networks in indicated as something less
than $500, 000, 000 for which it is proposed
to issue per cent bonds, payable in 50
years. 1t is calculated that the postal
system, but super-imposing the telegraph
service on the telephone lines at half
present telegraph rates may net some
$50, coo annually from that traffic alorc.
which with the present profits of the tele-
phones and after the deduction OF interest
on the bonds and depreciation, would sup
ply the department with a large surplus
for extensions, and so forth"
Although Postmaster General Burleson,>
in his annual report favored the principle
of government ownership of telephone
and telegraph lines President Wilson
has not made up his mind on the ques-
ton The Postmaster General had long
conference with the President today and
it was understood that the subject was
discussed. 1t is not believed the admin
istration will take any definite position
now.
After his conference with the President
Mr.. Burleson manifested an indspos-
ton to discuss the subject
1T will take some time.p he said. ito
work the problem out. to get facts and
figures on it,
No Hurry for Movement
The Postmaster General indicated that
he was in no hurry to press his recon-
mendations and that he would make a
complete survey of the subject before
further expressing himself on it.
1t is certain that the subject will not
be pressed by the administration at this
time and the Presidents desire not tn
take a position on it was regarded gen
orally as meaning that he did not con-
slider it of immediate Importance.