The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1938-04-14
The Telephone Report


The report on the American Telephone and Iele-
graph Company by Paul A. Walker Of the Federal
Communications Commission is said to be document
# 1000 pages. It's preparation has covered PERIOD
IF three years. Congress appropriated Tor the FEC
81 100000 to cover its cost and has cost the telephone
company Itself some $3OoOoO0 During the investi-
cation the commission has had its own men working
in the company numbering at times up to ESQ; they
have had their disposal more than $50 volumes OF
records, and have themselves issued seventy-seven
Volumes of reports In view Of all this, 1t would not
seem profitable for outsiders at the present stage
to attempt upon the basis of the short summary that
has been issued to judge the Walker report as whole
or to pass upon the accuracy of specific findings OF
fact
But it is fair to note not merely that President
Clifford of the telephone company has condemned
the investigation "one-sided from start to finish
that the summary of the report presents much that
is simply not true and that some of his objections
receive support from T. A. NJ Craven another member
of the FEC who notice of his disapproyal OF
The in which the investigation has been con-
Quoted and of his inability AS yet to reach final con-
illusions agree with OF the recOminerda ollS
contained in the report:
I'm spite of the TACT that the commission acted
within its authority when it denied the right of cross
examination and rebuttal TO the telephone company
[Mr Craven statesl feel that more could have been
accomplished and better feeling in general would
exist had this privilege been granted
4 believe that in general the report indicates
the necessity for improvement the existing regu-
ation of the telephone systems of the country How
ever III making this assertion believe 1t Is only ian
90 recognize that the telephone service in this country
is in general excellent but that it is capable of i'm
provement result of intelligent, constructive regu-
lation"
The Walker report has not yet been approved by
he full commission and Mr. CravenS dissent seems
70 indicate that that approval is not assured Ger
ainly there aspects of this preliminary report
calculated to puzzle most readers. The statement
hat the Bell System could cut telephone rates about
IS percent without nterruptng existing net earn
ngs" will seem almost self-contradctOry to the I'M
initiated The sweeping criticisms OF depreciation
practices, pension plans and public relations policies
will seem strange to those who have come TO believe
that the American telephone system whatever its
aults provides the most efficient telephone service in
he world But the recommendation that many per-
will be most slow TO accept is that the FEC should
granted power by Congress TO review approve OF
isapprove all Bell system policies and practices pro-
nulgated by the central management group OF the
american company" The powers asked for are in
ONE directions far of those exercised over
ne railroads by the ICC, and few of them seem
quivaent to Government management Our expert
nee of the ver-wdening Government regulation
and management OF business in recent years has not
cen such as to make it appear automatic that the
weeping powers for the FEC now asked for by Mr.
Walker would be i'll the public interest.