The Daily Alaska empire., 1931-10-28
SALE OF CABLE SYSTEM
 UNDESIRABLE.

The desire of the Administration to sell the Washington Alaska Military Cable and Telegraph System commonly known in the Territory as the Signal Corps System, can be explained only on the ground that President Hoover is strongly opposed to the Federal Government intruding into the recog- nzed field of private business enterprises. on principle there can be no serious criticism of such policy. But in its application, there ought to be finer discrimination shown than is evident in this instance There are other business activities engaged in by the Government that should be carefully studied before any such action is taken
 The Federal Government is engaged in business on a broad scale in Alaska. It operates rail transportation system and a line of steamboats It manufactures and distributes power competing with privately utilities. It is a purveyor of oil, coal timber and waterpowers Through the post office it competes with the printer for stationery It is landlord lessor and merchant. It engages in fur-farming extensively and in some branches of that industry comes into direct competition with private enterprises And out of all of its business operations the cable wireless telegraph and land telegraph communications system is the only one to pay its way.
 Peculiarly this one, which renders the most timely service of all to the people of Alaska and which probably saves to the public the greatest sum of money each year. is the one it is sought to sell For the fiscal year l93o the Signal Corps gross receipts from it's Alaska lines were From this othsr lines, owned by private interests, received share amounting to $5o59716, leaving to the Government total of s620 28683. This, of course was not profit It. total expenditures for all purposes were s57o Arc 3l, leaving clear profit of s438l652 But pat o1 the expenditures listed were not caused by the operation of the lines. Pay and allowances to operating personnel amounting to $3l5 163 81 were properly chargeabe to maintenance of the Army. Even if the system should be turned over to private interests this amount still would be expended Thus there was chaJgeable to the Alaska system the sum of s261 306 50 The cost of operat- ing the Dellwood, the cableshp, was 6l83673 That vessel is now going the reserve list, and costs of operation and sntenance thus will further be cut to less than S200,000, which would leave a profit of some S47o,000 per year.
 In the receipts of the system are shown tolls for Government business amounting to $3l2s777 73. This is matter of bookkeeping, of course under the present system However, it would become an actual cash transaction if the system were sold Not only that but there would be a radical increase in that item, if comparative rates available can De taken as an indication of the charges that would be assessed under private ownership and operation No one questions for an instant that tolls would be materially higher under il than those that now prevail. It is true that considerable proportion of the Government messages now handled by tee- graph would probably go by mail if the Government sold the system This would result in a less efficient service to the public and instead of being an argument for the sale ought to be factor in determining against it.
 These are but a few of the many valid Ob- jections to turning the Alaska system to private interests Such transaction would be one of the severest blows to the Territory that it could re- ceve The Administration should not press the matter for the time being