The Birmingham age-herald., 1913-11-12
PUBLIC OWNERSHIP
OF WIRE LINES IS
MAKING READWAY
Proposition for orAcquirement
by Uncle Sam May
Come Up Soon
FIRST FIGURES ARE
TOO LOW, HOWEVER
Generally Felt That Telephone and
Telegraph Companies Represent
Actual Valuation of at
Least Half Billion
BY HOLLAND.

view 1orE, november u.-lEpecial b-In-
formation comes to this city from WASH
ington which gives a more serious view
Of the proposition that the government
take over the telephone and telegraph
companies than has heretofore been
taken. II this information is correct.
the agitation for governmental purchase
and operation OF the telegraph and tele-
Phone is to be continued persistentIy.
Those who advocate the plan are thought
To be sincere They are not doing this
Tor any demogogic or notoriety purpose.
They profess TO be convinced that the
best public interest will be, served il the
government assumes control of all of
the agencies for communicating 1ntelli-
gence by mail or by wire.
1t may be that this agitation win lead
to favorable consideration by Congress,
either the one that meets on the first
Monday of January OF a later Congress,
aud with the present temper of some of
the people In some parts of the country IL
is not at all unlikely that the proposition
may be urged with good faith and with
clined to adopt 1t.
Aside from the political considerations
associated with the proposition there are
two others which must be carefully con-
sidered by Congress IL that body is to act
wisely upon the propositions. One of these
co4siderations is financial The other is
ecd1omic. II was the financial consider
atf which caused the abandonment of
thd Proposition brought 30 years ago to
thd attention Of Congress involving the
purV Vhase and operation of the telegraph
lines That was a time when the tele-
phone was thought to be no more than a
toy, and when the stupendous CONNER
cial values which are in the little appa-
ratus were understood by no one. not even
by Professor Bell himself.
Those who were behind the curtain in
the late seventies were persuaded that
Jay Gould, when he turned his attention
In part from railroad affairs to the tele-
graph had in contemplation the. possible
purchase by the government of the tele-
graph line His representatives who were
in Washington in the late seventies did
not hesitate to say that Mr.. Gould would
be only too glad were the government
to purchase the telegraph lines which he
awned and those which he contemplated
4 constructing provided the government was
willing to pay his price. IS
DIR. Norvin Green visited Washington In
the early eighties In the interest of the
Western Union Telegraph company, OF
which he was president. He then said
to the present writer that of course his
company would be willing to sell to the
government provided the government was
willing to pay a fair price. Always
however, when actnaries and experts fig.
ured upon the price proposition they re.
poH1Testimatea of reasonable cost which
who were advocating government
pXiase of the telegraph thought al.
togther too high. They were then conf.
81 that the public did not care enough
js nut public ownerhip of the telegraph tc
Grant 1T in approving the purcha Sc oi
lines at n price which the experts
10 were impartial would call fair.
Now the Telephone
occasionally since that time vague in.
Nations have been made by men in pub
life, never men of capital, that the
ernment ought to take over the tele-
r. and telephone These intimations
IL stronger after the commercial
iii 'ty of the telephone had beer
iii and especially after inven-
iii ,iness sagacity had so won.
iii Hoped long distance service
iii e reports from Washington
iii 10000 as the cost price al
iii government would be able to
Ill o telephone systems of the
-ates. This quotation is SO far
Ill figures which would represent
iii lble inventory of the telephone
uItgraph companies' properties that
ukneral impression In this city was
j. the figures must have been misquot-
The capital stock OF the telephone
I'D telegraph companies outstanding on
:. May 1, 1912, was $685. 10000, round num-
bers. The presumption has always been
that every dollar of this capital stock
represented actual values. In addition
bonds were issued for the purpose of ex-
tending the plants of the telegraph COM
panies throughout the country which In
1he aggregate being the apreciabe value
of the properties up to about $500, 600 900.
The government. it is said here possibly
has 1t In its power to acquire these prop
critics for $500. 100000, but In order to do
that there must be some confscation or
some utilization of the taxing power
which the government possesses whereby
the market value of the properties can be
deprecated more thai one-half.
Another Feature
There is another feature of the propo-
stion from the financial point of view
which it is thought has not occurred to
the men in public life who are now urg-
ing government ownership and operation
of the telegraph.
President Theodore N. Vail, in a recent
personal conversation intimated that as
soon as money market conditions were
favorable his companies would seek funds
10 be Utilized in expanding the telephone
plants and in perfecting economies and
in encouraging invention by means OF
which the business obtained by these
companies would be 80 greatly increased
through a reduction in rates as fully to
justify large expenditures Of fresh cap
fta1.
So the question is asked In this CITY:
DO these men in public life in WASH
3ngton who are now urging government
ownership and direction of the telegraph
realize what amount of fresh capital
would be required If these quick intelli-
gence systems are to be perfectly deyel-
oped, and do they think that the gov
ernment will always be ready to respond
10 appeals made for fresh capital for this
Rpurpose?'/
The Economic Aspect
Former Postmaster General Thomas L.
James, who was In his day very high
authority upon postal subjects, has never
favored government ownership of the tele-
graph and telephone companies. He has
often gone 30 far as to say that were
the postoffice deparement to be managed
with the skill. energy and business sa-