The Washington times., 1914-03-16
RAPS OWNERSHIP
Of WIRE LINES BY
THE GOVERNMENT
Privately Owned System Cheap
er, Says Report Of American
Telegraph and Phone Co.
By GEORGE H. GALL.

Containing a broadside against public
ownership and operation of telephone
lines. the annual report for 1913 OF the
directors OF the American Telephone
and Telegraph Company. signed by
President Theodore y. Vail, was issued
today. The report is for the Bell tele-
phone system in the United States.
Our opposition to Government opera
ton and ownership is not based on pc
cuniary, partisan. prejudiced. or per-
sonal reasons says Mr.. Vail. 1T is
because of our interest in the upbuild-
ing of a great public utility and its
preservation.
We are opposed to Government own
ership because we know that no gov
ernment-owned telephone system in the
world is giving as cheap and efficient
service as the American public is get
ting from AL its telephone companies.
We do not believe that our Government
would be any exception TO the rule
No Comment By Burleson.
Mr.. Vail declares that the popular
impression that the Postmaster General
recommended TO Congress the acquisi-
ton by the Government of the wire sys-
TENS of the United states is wrong. The
Postmaster General has made no re-
port or recommendation, he says. He
explains that "a special committee of
Postoffice officials, designated by the
Postmaster General for the purpose OF
gathering information, had prepared
some more or less relevant material.
Upon a request from the Senate for
the information that had been collected,
the Postmaster General forwarded the
findings OF this committee without COM
menL
There is a deficit in all Government
oWLed systems, the report says, not the
result OF a definite pc icy to give q
cheap service to individuals at the coSt
Of ALL bat TO errors in management
UnCerestimates, disregard of mainteT-
anCe depreciation and obsoleScence, inn
POSSIBLE theories and failure to under
stand and appreciate the advantages OF
priv ate as distinguished from Govern
meut organization.
Government regulation is advocated
by reasoning that, since ''aIl monopolies
Should be regulated Government
or nnewship would be an unregulated
n-CnOpoiy.
HnVate incentive necessary.
There are no sound reasons given"
says the report, 'or real advantages
promised for Government ownership
and operation which do not apply 10
or carnct be secured by Government
regulation"
Private initiative. invention, enter
prise, risk, spurred on by the incentive
ot reward, have changed the face OF the
world, and the resulting unearned in
c! cment largely constitutes the wealth
OF nations; without il many of the great
scienuhc industrial developments would
nave remained scientific curiosities, even
II they had been evolved at all
Government administration is more
o. less a game of politics, and while
with government operation it NAV
sometimes be possible to have eff
Siency. II will always be impossible TO
have economy
The gOvernment-owned European
telephone plants, notwithstanding the
low price of foreign labor. are carried
az much higher cost than those of
the Bell system, and yet every one of
them uses the Bell system as model
The book value of the plant OF the Bell
system per station is less than 50 per
cent that of Belgium; less than 10 per
cent that of Austria: about S5 per cent
that Of Germany. Great Britain. and
Switzerland: and all Of them govern
nent owned
Mr. Vail declares that Americans are
better supplied with telephone fac lities
than any other people. with six times
as many telephones per capita as Great
Britain and thirteen times as many as
France. and the rates here are as popu-
lar as those Of any goVernment-owned
plant.
He SAYS that there can be no COM
paflSon between the parcel post system