The Washington herald., 1915-05-30

to census reports. the fourth largest
Industry In the country IN investment
per capita.
To keep up with the tremendous de-
mand for service. we have been put
ting approximately Sixty Million DOL
lars year into extensions and addi-
tfons. Since work began on the Pan
anna Canal in 1914 the Bell System
has spent more money in extending It's
lines and charging its property than
the Government has spent not only
IN constructing the Canal but in Sc
curing the necessary rights of way.
In no other country has the demand
Tor telephone service been met as IL
has been met here. In Toxic there are
applications for telephone service from
| upward of thirty thousand people who
cannot be served because the Govern
ment has not provided the equipment
! necessary to serve them. Similar con-
gestion is found in all countries OF
Europe, and though this planning for
the future and building in advance Is
| one OF the very important elements
| that go to make for adequate and or
hcient telephone service. the advo-
Gates of Government Ownership have
paid little or no attention to II.
1t is sometimes said that the rates
are higher here than they are in
account is taken of the lower pur-
, chasing power of money in the United
States as compared with other coun-
tries. There has recently been pub
| lished the report of a Committee of
| the American Federation of Labor,
which report was based upon investi-
cations of conditions in Europe With
In the last year. In this report we
find the following:
Nor is there any comparison
between the wage of the European
tram employe and his brother in
the United States. From the view
point of the purchasing power of
a dollar, II has been estimated by
careful observers that the cost of
living in various parts of the
United States is rs to So per cent
higher than IT is in various parts
of Western Europe. The difference
in the money wage of the street
railway men of these countries is
much greater. The highest wage
paid any body of tranway work.
ers in Europe is safely so per cent
less than the rate paid in this
country in the same occupation.
Taxes Not Mentioned.
They say nothing about taxes, and
| this Is important as the Federal Gov
eminent pays no taxes of any kind
| not even on its real estate. The Bell
System alone Is paying taxes at the
| rate OF something more than Twelve
Million Dollars per year. In this State
the New York Telephone Company
pays taxes as follows: To the Federal
Government, a Net Income Tax and
Emergency Revenue Taxes; to State
and local authorities. Capital Stock
Tax. Gross Earnings Tax. State, Coun-
ty and Town Taxes. Village Taxes
School Taxes. Highway Taxes, Spe-
cial District Taxes. Personal Property
Tax. and a Mortgage Tax: these ag-
gregate approximately Two and One
half Million Dollars per year. But
even with the difference in the pur-
chasing power of money and in tine
matter of taxes Che latter veraging
in New York State something like
Three Dollars for every telephone IN
service), the rates in the United States
are lower on the whole than the rates
charged abroad. IL the comparison be
based on relative Development.
In Great Britain the revenue per
telephone is greater than tn same rev.
enue here by $500 per annum. In the
German Empire 1t is greater by $3.50
per annum, and in France n "a great
er by 1920 per annum.
At the rates prevailing in Great
Britain. the American public would
have paid last year for it's telephone
service $54. 900. 900 more than was paid.
At the German rates, the increase
would have been in excess of s25,00o.-
900. while at the French rates it would
have amounted to an increase Of sS3,-
900 900.
1t is common knowledge that the
telephone service in other countries is
not to be compared with service here
as to adequacy and efficiency. but the
statement has been made so often
that rates are higher here than abroad
that IL has been generally accepted
as true. This universal belief. how
ever does not hold water when tes,-
ed. The inaccuracy is due first to the
fact that the governments abroad have
not taken the telephone service to the
rural districts: the very thing that
Mr.. Lewis says can only be done by
government has never been done by
government, but has been done by the
Companies. and in comparing rates
this rural development is lost sight OF.
But even more serious is the circum-
stance that the rates have not been
fairly compared: a few instances of
this and / shall leave you TO form
your own opinion of this so-called
gress.
The statement is made that the rates
in New York City are higher than
the combined rates of London and
Paris. The New York City rate used in
this comparison is given as s22S.00
per annum. The fact is that more than
so per cent of the subscribers in New
York City pay $500 or less per an
mum, while less than Il of per cent
pay as much as s22S00 for single lin.
service.
Washington, d c., in the comparison
Is given a rate of s1Ss.o0-a rate paid
by less than one hundred large users
of the service in an exchange of over
$4,000 telephones.
Rate Is Limited.
When IL suits his purpose, however,
he finds a low rate for service here.
as in the case of Trenton, ~ J. II
would appear that our rate for Tren-
ton is $500 per annum. There is such
rate, but II is for a limited number
Of messages, the standard rate being
$4,000 per year. And so 1t goes on
through the list-it would tire you to
hear more of II. But here is a sample
Of what can be done in making u
case" that amused me when I read it.
1t must needs be shown that America
Is far down in the list of the countries
Of the world in the matter Of cheap
rates for telephone service. and so we
find him Ut In all in the Record) con-
sidering as countries the several con-
stituent states of Australia. There
are Queensland, Tasmania. West Aus
tralia. Victoria, New South Wales. and
Middle Australia--siX great nations
these that surpass us! But that is not