Five Mile Beach weekly journal., 1914-03-27
Failure OF Government Owner
shin Not Confined 10 Europe

- RFA01L AEE 2. 1880 -
the agitated acquisition of this coun-
try's telephone systems by the FEEDER
al Government, 1t is bat natural to re-
view the experiences of other nations
In the conduct of great public utilities,
and, from such observation and study,
to weigh the probability of our own
Government successfully copingwith an
undertaking which has been pursued
by such unfortunate and pronounced
developments in England aud in
every Continental country.
The general rule of inefficiency and
inertia which charaterizes the opera
ton OF the telephone and the telegraph
under public ownership, and which
has been the subject of many recent
dispatches from the other side, is not
confined merely to Europe. For, de-
plorable and even ridiculous as have
been portrayed the conditions which
attend the furnishing of telephone SER
vice by the British, French and other
European governments, we need not
cross the ocean to find like examples
Of the disastrous results which have
followed the public acquisition and at
tempt at operation of the great pubic
utilities.
At least three of our own states,
North Carolina, Maryland and Texas,
have made a trial of public ownership.
Each attempted to operate a railroad.
But after fifty years Of political mis-
management, North Carolina leased
its line to a private company. Mary
land went a step further and sold what
was left of the Western Maryland to
the Goulds some years ago,-and Texas,
disallusioned and Disguised, is now
trying to unload its road upon some
private company. Measured by every
standard, not only were these railroads
financial failures, but they proved to
be utterly inadequate in the furthering
of public service, as the States them
selves will testify.
Our Federal Government has, In like
respect, experimental with the opera
ton Of q public utility-the telegraph
system in Alaska. During the year of
1911 the last on which authoritative re-
ports are at hand, It's financial state
ment sho wed a substantial deficit of
$2e, 500, and this Notwithstanding the
fact that its mile-for-mile charges are
$50 per cent or nearly three times those
made by our private owned companies
In this section of the country.
Our Canadian neighbors have had
their disappointing experience, too.
The Provincerof Manitoba, IN Canada,
not SO many years ago became enthus-
ed with the idea of public ownership of
telephone lines-extravagant promises
of more efficient service and lower rates
having been doled out by the political
party which stood behind the project.
The telephone plant of the Bell conn
pany In that province was taken over
by the government, and-just as was
promised-the rates were reduced.
But Manitoba's dream was short lived.
For 1t was soon realized that the re-
duced rates were quite insufficient to
operate the system without a substan-
tial loss, and the subscribers to the SER
vice, who had been hood winked into
believing that public ownership really
promised them increased benefits, were
In a short time confronted by a vastly
less efficient service, coupled with a
rate increase of 25 per cent,-and the
charges are still mounting.
1t would seem to be the rule Of his
tory that ~nonation canbe developed into
a good business man. Perhaps merely
the modern systems of party politics
stand in the way. Yet it is more like
ly that the dismal failure of every ma
tion in the conduct Of it's important
business undertakings are attributable
to the ever increasing requirements OF
government which leave all too little
time for the performance OF those ex-
acting public services which now
require all the initiative ability and
high organization Of private enterprise.
A prominent senator once made the
statement-without denial from any
competent authority-that our nation,
which wasted three hundred million
dollars q year, or more than a third of
its revenues, in the legitimate functions
of government, would easily waste its
funds in wen greater proportions were
it to go into business and with It's man
agement subject to the review and
decree of the men employed.
Were the promised benefits of public
ownership of the telephone lines sub
stantiated by the experience of other
nations, the people Of this country
might perchance be disposed to pocket