The Birmingham age-herald., 1914-02-17

TINS view alone is proven by the frequent
important additions made to the subma-
rine cables of the world.
New Gables Laid
For instance i'll the year 1913 new sub
marine cables We're laid by the British
government between England and ire
land. although the British postmaster
/ general controls the wireless telegraph
stations in Great Britain and Ireland
| Gables We're laid by the French govern
ment between France and Algiers by the
British Canadian and Australasian gov
ernments jointly between Australasia and
| New Zealand; by the Greek government
| between Chios and Mitylene, and the Ger
man government has arranged to lay an
other cable between Germany and Eng
| land this year. The Dutch government
is preparing to lay new cables In the
East Indies and the Japanese govern
| ment between Japan and China Private
English cable companies laid cables from
Arabia to Ceylon, and from Ceylon to the
Malay peninsula. In fact nearly 5000
miles of new cable was made and laid in
| 1913. The mileage of cables during the
last five years has increased from 247 900
| to 2S0,000. The governments have in
creased their cables by % per cent and
the private companies by II per cent.
| There is no instance of the abandonment
of submarine cable and the substitution
of wireless telegraphy. All this the
Mackay companies say indicates that not
only cable companies, but the govern
ments themselves are satisfied that SUBJ
marine cables are not TO be displaced by
wireless telegraphy.
Striking Event
The most striking event during che past
year, the report continues, has been the
action OF the Attorney General of the
United States in compelling the American
Telephone and Telegraph company to SELL
its holdings of Western Union Telegraph
company stock and to disentangle the al
fairs and properties of the two companies
| and withdraw telephone directors and Of
meals from the dIrectorates and staff of
the Western Union Telegraph company
| In other words, to make a complete sep
aration of the two companies the same
as existed before such stock purchase was
| made in 1863 This is due to the fact that
the Bell Telephone company, controlling
| one of the two great telephone companies,
Disseminated in favor of the one which
! II controls and in which 1t is financially
interested, instead of preserving the i'm
partiality which is required by all the
decisions of the courts in the relations
between the telephone companies on the
one side and telegraph companies on the
other 1t has taken four years to demon
strate that the union OF the Bell Tele-
phone companies with the Western Union
Telegraph company was illegal and un-
fair. not only as against the Postal Tele-
graph-Ca company. but as against
! public interest The result is gratifying
to the Mackay companies and it is hoped
that the diversion of the Postal COM
pany's business to the Western Union
will now cease. ...-,t.. +.
In discussing government ownership of
the telegraphs. the report states that the
spectre of government ownership arises
with periodical regularity. The United
States Postmaster Generals office has re-
sussitated the question again, but In
new form, and advocates the acquisition
of telephone lines in the United States
by the United States government and
using them for telegraph as well as tele-
phone purposes in competition with the
present two telegraph companies. Such
proposition will hardly commend itself
to the intelligence and fairness of the
American peoplel Furthermore, it has
been pointed out that it would require at
least 81, 600 100000 to pay for the physlcal
properties and the earning capacity of
the telephone and telegraph plants (Which
,atn.u- capacity must be paid for under
the decisions of the supreme court OF the
United States), and that the government
would have to pay the railroads in order
10 ,u.qu,te their rights in the Telegraph
lines now on the railroads, the same as
England had to do. The plan has met
with no support in the public press or IN
Congress or in public opinion.
Maintain Status Quo
| IT is to be mentioned also that every
municipality every state and even the
federal government itself has direct
Interest in maintaining the statu quo
because the telephone and telegraph
oompanies pay from s15,000,0o0 to $780,
100000 year in taxes, and the loss OF
Ithis revenue by municipalities, states
land the federal government, which
lwotld result from the government TAX
ling over the telephone and telegraph
lines, would make the burden of such
purchase still heavier.
Nor is this the worst consequence.
Judging from English experience the
vast sum of purchase money would be
entirely lost because under government
management the operating expenses
year by year would exceed the income
The following figures are taken from
a report of the Postmaster General Of
lGreat Britain showing the results of
government ownerships of telegraphs
lin that country:
Year 1908; receipts, $15,510, sos; ac-
ltual operating expenses, $17, $40; ac-
tual operating loss. $2O26,o35. Total
annual loss. including interest paid and
fresh money expended, $4,s47.425.
Year 1903; receipts, $15,492,245; ac-
tual operating expenses. $1S,394 ,005; ac-
tual operating loss, $2,901, 760. Total an
nual loss including interest paid and
fresh money expended, $5,24S,245.
, Year 1910; receipts, $1b,S3O,96O; ac-
tual operating expenses, $17,S41, ,015; ac-
tial operating loss. $2.01o,055. Total an
nual loss, including interest paid and
fresh money expended, $5,0S1,SS5.
Year 1911: receipts, $15,S29,960; ac-
tual operating expenses. $1S.659,710; ac-
tual operating loss, $2,S29750. Esti-
mated total annual loss, including In
terest paid and fresh money expended.
$5,911, sos.
Year 1912; receipts. $15,747.420; ac-
tual operating expenses, $1S,9S5, ,090; ac-
ltual operating loss, 1892, $40. Esti-
mated total annual loss, including in
terest paid and fresh money expended,
$5,636,965.
In concluding the reference to this
subject the Mackay companies say that
they feel there is little danger Of the
government embarking in such an en-
terprise, and that in any event the In
Iterests of their shareholders would De
lsafeguarded.
Refers to Rates
Referring to rates. 1t is pointed out
that the Commercial Cable company
continues to maintain its rate of 10
cents a word for carrying press matter
iduring the busy hours Of the day. and