The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-01
CHEAP RATES Is PLEA
FOR j. s. WIRE LINES
Congressman Lewis Says Nation
Could Also Give Better
Service.
"SOCIALISM." rs REPLY
Samuel L. Powers Defends Pri-
vate Enterprise Before
Republican Club.
SOCIALISM," rs REPLY

An unusually large attendance marked
the Saturday discussion at the Republi
can Club. on West Fortieth street. yester-
day because of wide interest in the sub
ject announced, SHOULD the Federal Gov
eminent Add the Telegraph and Tele-
phone Business to the Post Office Depart
mentg'
A bill Is now before Congress 20 carry
the proposition into effect, and Congress
man David ]. Lewis of Maryland. the
father OF the proposed law, was the first
speaker.
The important matter in connection
with the postall2ation of the telephone
and the telegraph" said Mr.. Lewis. lis
that the rates as "a whole should he lower
to the public as n whole under the Gov
eminent ownership service. otherwise the
argument fails. Even IL private persons
possessed an absolute monopoly yet they
must fail TO render the greatest public
service because the public service motive
would be absent. They would naturally
conduct the monopoly with the object of
profit. and usually the higher the price
charged the greater the profit.
''To illustrate this the Chicago and Mil
waukee Telephone Company for many
years charged a rate of Is cents for ten
words. After the American Telephone
and Telegraph Company secured control
OF this lesser company the rates were
raised to % cents.
I'm three years the volume OF business
fell from l03.24s words TO 51.6s9.
by this transaction the Bell Company
gained the salaries OF two operators and
two messengers, whom II was able TO dis
charge by reducing the service to the
public by one-half.
such was and is the rule of private
fnanciering. Under postal control and
the public service motive the 10 cent rate
while 1t paid expenses-apd 1t did
motive unless the public or the postal
system Is itself the owner.
COntradicts Efficiency plea.
There ia widespread conviction that
public operation is inefficient. Doubtless
this is true in some kinds OF employment
But there IL an exception. Such, for
example. is the rural and city carrier
with his scheduled route and deliveries.
and so is almost the whole postal system.
SO too would be the work OF the tele-
graph and telephone systems.
The relatively proh!b,,ive rates OF the
Bell system have relegated the services to
a comparatively small volume of activity.
whereas the low rates In Norway have
enlarged the volume OF business. In Nor
way the Government controls the bust
ness, dS IL upeS III .NtN LttltNu ana III
most OF Europe In New Zealand the
rate Is ~ cents. half OF the rates in this
country. whereas that country Is equiva-
lent 10 one State here They have eight
kilograms to 100 per capita there. In the
United States the proportion is / 1-l0 per
cent.
with the single exception OF Japan our
postal rates are the lowest among all
countries. and these rates are now paying
more than the cost OF the service. For
telephone and telegraph service the rates
here are the highest in the world and the
efficiency is the lowest
Argument ON other SIDE
Samuel l.. Powers OF Boston. former
member of Congress controversial the