The Washington herald., 1914-06-08
PUBLIC OWNERSHIP.
Dead Hand of the State" Has
Blighted Everything in England.

A remarkable demonstration of the
practical working Of public ownership
has been given in the London Times in
series of articles on the British tele-
graph and telephone systems. The dead
hand of the State" it is shown. has
blighted everything 1t touched. De-
veIopment. efficiency have been sacri-
feed. especially in the matter OF tele-
phones, and the harvest to the Treas
ury has been persistent financial loss.
The telegraph system was acquired by
the Postoffice Department in the SOS by
purchase from several companies which
then controlled it. 1t was a financial
loss after the second year. In that first
year when the commercial methods of
the old owners remained operative 1t
netted a clear profit of 5000 pounds. The
next year the profit dropped TO 1900
pounds. The third year it disappeared
altogether. Year after year the cost OF
operation went up: presently it ceased to
pay interest on the money raised to buy
out the private owners: at last there was
not revenue enough to cover working ex-
penses.
Yet the government had a monopoly
fortified by act of Parliament. a statute
so sweeping in its powers that IL was
used to strangle telephone enterprise at
its start and stunt its growth until the
government took il over also as a public
monopoly in 1912. When the telephone
promoters first sought privileges they
contester the Postoffice powers in the
courts. but were defeated. The govern
ment had them by the throat: it treat
ed the whole telephone idea as an in
vasion of the telegraph monopoly.
II was a case of officialiSm against
progress and II appeared to the heads
OF the telegraph service in the light of
a duty to throw every possible obstacle
in the way of telephones which would
bring in an element of competition. They
exacted the most oppressive financial
conditions that the new experiment could
bear. and they stipulated that no trunk
lines should be established-that is, they
prohibited all long distance communi-
cation. few days later public opinion
became so angry over the latter absurd
ity that the postoffiCe authorities estab-
lished trunk lines of their own. Then a
haltng. half-hearted long distance service
was given by private and public CO.
operation.
But the burdens of the telephone COM
panies remained so great that the serv-
ice was always decades behind the age.
The government. it was plain. would have
to Tree il or acquire 1t. The latter plan
was chosen. The enabling act was pass
ed in 1911; the postoffice was fully in
charge in 1872. Inside two years a heavy
financial loss accrued. It is true that in
the report of l9le-13 surplus of f3CS 343
over running expenses and fixed charges
is shown. but to offset this the govern
ment loses annual payments aggregating
G3ie,5H which the companies made in
license fees for the mere privilege OF
existing, >and also whatever profits had
been realized under the mixed arrange
ments for the use of its trunk lines.
general revolt against work piled on
them took place among the transferred
employees a few months ago. In conse-
quence the stan is to be enlarged and
higher wages are to be paid. In effect IL
is estimated that there will be a final
net loss of revenue of ElOo,O00 or more
annually, and the public debt has been
increased El2,OOo,0o0 by buying out the
old owners.
All this might be forgiven If a con-
spicuously good servNe were substituted
for the old lame one But England re-
mains. with the exception of France.
the most poorly provided country as to
telephone facilities among the advanced
nations. 1t is admitted that the pOstoffice
people are doing what they can amid the
tangle of red tape to improve the system,
but general dissa tisfaction marks the pub
lie attitude. All agree that the working
VI TIC IL iipl NpiUpd-
rable TO that of a backwoods town in the
United States
Further, looking at the future in the
light of the past, no one hopes for any
welcome to progressive ideas at the
hands of oficialdom. When some new
scientific invention-say wireless develop
ment-tends to supersede the telephone
there is no reason to doubt that it will
be hampered. delayed, strangled in the
interest of the government monopoly just
as the telephone has been for the last
forty years.-New York Sun.