mails only two or three times a week are content, never having known better facilities. Growing towns deserve the postal improvements given them, which are usually based on the amount of postal business. Mail service of some kind is so necessary for public enlightenment that the government must often supply it at a loss. As telegraph service is not similarly necessary-is perhaps not even desired by people unwilling to pay for itthere would probably be little demand for telegraph offices or extensions not likely to receive a self-supporting income.

Success Would be Certain.-It is true that the success of the postal department is due largely to its use of capital in railroads, whose private owners bear the risk and develop the improvements. But in the people's willingness to pay in full for telegrams, interest on capital, and allowance for depreciation of plant, could be included in charges, which then would doubtless seem low. As the cost of all the telegraph lines would probably fall considerably below $150,000,000, at the highest monopoly value of shares, and as the employees number only 45,000, about a quarter of those in the postal service, government ownership would seem to be a safe undertaking.

Benefit to Society from Government Telegraphs.-A uniform rate of about a cent and a half each for first ten words, regardless of distance, or even if confined to a portion of the country, would greatly increase the use of the telegraph, promoting business, saving time, and adding to public welfare. The British per capita use of the telegraph is nearly double that of the Americans, despite the larger incomes of the latter. Difference in rates must be the reason.

National Ownership of Telephones also, with local exchanges in charge of postmasters, is favored by Professor Seligman. Use of the telephone, especially in large cities, is now restricted by high charges. Very likely, both the telegraph and the telephone monopolies in America will pass before long under government ownership. The reasons for the change seem so conclusive, and the transfer would be so easy, that a general attempt at public regulation of charges would scarcely be worthy of serious consideration. France took possession of her telephone system in 1899. Great Britain also has just begun to take possession of hers. The Canadian government recently made an inquiry into the feasibility of public ownership of telegraphs, but the result did not encourage embarking in the enterprise.

The Parcels Post and Postal Savings Bank.-The British system of postal savings banks, and of sending express packages at low rates by mail, would no doubt be very useful to the people of country districts in America. Perhaps these two small lines of service might well be added to the post-office department. Both have lately been urged, and both will probably be adopted soon. Opposition from banks, express companies, and country merchants fearing loss of trade from mail orders sent away, would be similar to opposition that has always been incurred by improvements. In fact a parcels post is already in operation between the United States and Germany, Newfoundland, Hawaii, and Central and South America. The limit of weight is II pounds, and the postage 12 cents a pound.

Rural Free Delivery of Mail, established long ago in densely populated England, is now being gradually introduced into America, somewhat rapidly during the last

two years, and with decided success, increasing the postal business, and lowering cost of postal service in some cases by discontinuance of country post-offices no longer needed. It is hoped that this mail service, soon perhaps to reach all rural population that is not too sparse, together with the electric car lines, will lead more people to live in the wholesome atmosphere of the country.

CHAPTER V.

MUNICIPAL MONOPOLIES.

Unlike Railroads, the tendency with local monopolies is clearly toward public ownership. For the same reasons that a city must own its water works and bridges, essential every moment to its life and business, it is coming to be felt that it must also own its car lines. Especially is this true with systems of vast importance and costliness. The great underground rapid transit system begun in New York is to be built and controlled with some of the ripened wisdom of experience. Its cost will be about $35,000,000 and its length 21 miles. The company building it, at a contract price paid by the city with its bonds, is to operate it for fifty years, and pay back to the city, as rental, the interest on those bonds, and also one per cent more, to form a sinking fund for paying the bonds at the end of the fifty years. The road then becomes the city's property, unencumbered (though the company has a right to renew the contract for twentyfive years more). New York city owns some of her docks, renting them for a good return on the capital; and some far-seeing men think she should buy all her water front, to give best possible facilities to foreign trade, which in late years has been drifting from her to Boston, and to ports further south.1

Municipal Operation Not Yet Successful in America.But operation by the city, economical and efficient in 1 Coler, 126, 170.

Europe, will seldom be wise in this country until poli tics for profit have become less common - until the best man is sought for a city position, and is kept in it as long as he remains the best man for the place. The lease of the New York car line is a surer method than city operation for obtaining street car service to best advantage.

Nor Does Municipal Ownership Yet Seem Wise Ordinarily. By safeguarding the public good in every possible way in terminable franchises, granted to private companies building their own plants, it would seem that street car, gas, and electric service may usually be obtained with best results for the present. Such safeguarding is now coming to be the prevailing practice.

Long Term Franchises given by a city to corporations, without full return to the public in a percentage of income, in rates fixed very low, or in a purchase price or fixed rental, are no longer freely granted as they were some years ago. The service to be furnished by the companies was then desired and not possessed, while the large future value of the franchises was not adequately foreseen. New York's new charter prohibits franchises for a longer term than twenty-five years. One of these rich franchise prizes, worth many millions to the company obtaining it, is still sought sometimes from a subservient or purchasable council, and the measure rushed through before the people learn what is being done. The state legislature also is occasionally involved, and like the city council is subjected to strong temptation by wealthy schemers after franchises. Both the governor and the mayor may then become tools of corruption by not using their veto power. The purest-minded country