It is stated that the Select Committee on the Telephone
Service have agreed by a majority to recommend that the Post Office shall grant licenses to municipalities on the same terms as it does to the National Telephone Company,—that is to say, 10 per cent, of the rentals charged to customers. A maximum and minimum rate will be fixed by the Post Office. The decision seems to us eminently wise and practical. The telephone exchange service being in its nature essentially -local, and not involving any very large staff or plant, is a service well suited to be in municipal hands. Municipalities cannot always be trusted to be discreet and economical when they are employers on a large scale, but to the owner- ship of telephone-wires little objection can be taken. On 'the other hand, to let the telephones get into the hands of a great corporation unrestrained by any effective competition would be a serious mistake. As far as possible, the State 'should prevent the creation of monopoly companies. When a monopoly is a physical necessity it should be in public bands.
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