The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-17
GOVERNMENT WIRES
FAILURE, SAYS VAIL
Contrasts Bell Efficiency With
Poor and Costly Ser
vice Abroad.
WARNS NOT TO SELL STOCK
Annual Report Shows Valua-
ton to BE $61, 100000
Above Book Cost.

sour opposition TO Government opera
zion and ownership is not based on
pecun,ary. partisan. prejudiced or personal
reasons. but Is because OF our Interest IN
the upbuiiding OF a great public utility
and It's preservation says President
Theodore n. Vail OF the American Tele-
phone and Telegraph Company in his an
nuai report.
I'VE are opposed TO Government owner
ship because we know that no Govern
ment owned telephone system In the world
n giving as cheap and efficient service as
the American public Is getting from all It's
telephone companies. We do not believe
that our Government would be any excep-
ton to the rule"
More than half OF the report Is taken
up by a brief by Mr.. Vail against Gov
eminent ownership. The failures and err
rors of Government ownership In Eng
land and elsewhere are presented. the eff
ficiency Of the American private system
IN contracted with the operation OF the
post office.
Don't sell your telephone securities.
President Vail tells the Stockholders. De
cause every valuation that has been made
has found the value Of the property well
above the market price"
for dividends on the common stock for the
year ended December 81. 1913. were 332.-
s2O.0s0, against sS2.0s2.s4b In 1912. This
10 equivalent to s.55 per cent. on tho SS%%.-
siS,3O0 stock. against e.57 per cent. on the
s334,sO6,375 stock the year before. Sur
plus for the year was $5,46S.053, against
s6.o47.357.
Gross earnings established a new record
OF s2l5.512.s22. an increase OF fl6.40o,s6s.
President Vail says that the company $
engineers place the reproduction value or
the property. including cost of intangibles.
at s61 ,O0O. 900 In excess OF their book cost.
The Postmaster-tieneral, says President
Vail, has made no report or recommended
ton that the Government take over the
wire system Of the country and the popu-
lar impression that he has Is erroneous.
government administration Is more or
less a game of politics. and while with
Government operation ii may sometimes
be possible 10 have efficiency, N Will al
ways be impossible to have economy" says
Mr.. Vail.
Government regulation can effectually
curb monopoly and selfish exploitation
and make them useful without destroying
them. by subordinsting them to the public
for the public advantage. Government
ownership and operation would destroy in
dividual initiative.
"In England, where the post Office pays
q very handsome net revenue. its tele
graphs show relatively much largei
deficit, while the revenues and ordnar,
expenses OF the telephone operations show
a small balance. excluding, however. de
probation and obsolescence which hav'
not yet become fully determined. but which
cannot be ignored
''These deficits are not the result OF 6
definite policy to give cheap service t
Individuals at tn. cost of all, but ar
dine IN I'm nlnaRDmtut'
During the past year subscribers tele
phone stations have increased until nov
there are s.133.Oi7. a gain OF 616.?43
More than half the wire mileage Il
underground, the total underground plan
representing "A cost OF s1Sl.5O0,00O.
The number of daily telephone connec
lions showed n growth OF nearly 100000
reaching an average OF 100000 a day