Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-16
VAIL OPPOSED TO
WIRE OWNERSHIP
Continued from First Pase.)


ton and particularly of obsolescence;
impossible theories of operation, and
mistaken policy founded on prom
ises, prophecies and assertions ex-
aetly the same in character as those
now being used to bring about gov
eminent ownership in this country,
and upon q failure to understand and
appreciate the advantages of private
as distinguished from government or
ganization."
There is no sound reasons
glven,' says the report, "or real
advantages promised for government
ownership and operation which do
not apply to or cannot be secured by
government regulation"
Private initiative, invention, enter
prise, risk, spurred on by the incen-
tive of reward, have changed the face
of the world, and the resulting I'M
earned increment largely constitutes
the wealth of nations; without it
many of the great scientific industrial
developments would have remained
scientific curiosities, even if they had
been evolved at all"
The advantages of one telephone
system Is clearly set forth, as are the
differences between the exact techni-
cal knowledge required for operation
and the judicial ability necessary for
regulation.
Government administration" the
report says, is more or less a game
of politics, and while with government
operation 1t may sometimes be posi-
BILE to have efficiency, 1t VIII always
be impossible to have economy.
THE government owned European
telephone plants, Notwithstanding tho
low price of foreign labor, are carried
at a much higher cost than those of
the Bell system, and yet every one
of them uses the Bell system as a
model. The book value of the plant
of the Bell system per station Is less
than 60 per cent. of that Of Belgium,
less than rs per cent that of Austria,
about IS per cent. that of Germany,
Great Britain and Switzerland, and
all of them government owned
Best Service In America
Mr.. Vail brings out the fact that
Americans are better supplied with
telephone facilities than any other
people. having six times as many tel
ephones per capita as Great Britain
and thirteen times as many as
France, and that the rates here are
as popular as those of any govern
ment owned plant.
In showing the inability of the post
office to operate the telephone ousl-
ness efficiently he says:
1.-THE success of the parcel post has
been set up as q reason for the gov
eminent operation of the telephone
and telegraph. Why it should be is
hard to understand. The two services
have nothing in common ana are IN
no way comparable. The parcel post
Is not in any sense o new service.
1t has merely increased the volume Oh
the mails by removing some hmlta-
lions as to size and Welgns OF pack
ages mailed, and making some reuuc-
tion in rates of postage for mercnan-
disc"
"It would be q question of capacity;
the experiment would be disastrous
principally because the postmasters
are not fitted by experience or tram
ing for the telegraph or telephone
business. but also because it would
be secondary to their grocery-dry-
goods-notlon shop, their principal
business"
Growth of the System.
Dupring the past year subscribers
telephone stations have increased
until now there are S,13S,017, "a gain of
GIG. 943. These stations reach 100000
| localities, or 10000 more than the
number of postoffices. The total wire
mileage is 16,111.011, of which 81 per
cent. is copper
More than half the wire mileage
IS underground, the total underground
plant representing cost OF SlSl,-
100000.
The number of daily telephone con-
nections showed q growth OF nearly
nj
q, 237, 900 a day. Europe has only two
fifths of the telephone traffic of the
United States.
The extension Of the telephone plant
during the year amounted to $b4,-
81, $50, making a total for fourteen
years of $646, 200. According to
present estimates the construction FOR
the current year will cost in the
neighborhood of S560O0,O00, OF which
the local resources Of the companies
will supply s25OOO,OOO.
The engineering evolution of the
telephone which has been accom-
plished by the engineers, is reviewed
with special reference to the marked
Improvement of telephone exchange
equipment and methods of operation,
and the extension of transmission In
the underground circuits between
Boston and Washington, and in the
work of connecting the Atlantic ana
the Pacific for telephone commune
cation. At headquarters the Bell
system has o force Of $50 engineers
and scientists, staff unequaled In
the world, wholly engaged on studies
In describing the work of the legal
department, the cooperation of the
Bell System with the Interstate
Commerce Commission is shown, and
the correspondence is given setting
forth the agreement with the De-
partment of Justice
Mr.. Vail shows how the disposal
of some $50, 900, 600 of Western Union
stock was brought about so as to
separate completely the two com
panies During the three years of
association the gross revenue of the
Western Union increased 40 per cent,
the wages of operators were in
creased 80 per cent. and large sums
were set ASIDE for revenue and re-
construction.
The report says that the financial
condition of the Western Union with
some s15, 1000, 900 net of liquid assets
was never better.
The report shows that under the
pensions, disability benefits and in
surance plan, in 1904 cases en-
ployes of the Bell companies had
participated in the benefits and the
payments have aggregated over one
million dollars.