The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-07-22


On all this capital the total dividends declared
for the past year have been, all the lines except
one-nothing on that one, two per cent Since
competition commenced on any Of these routes no
dividends worth mentioning have been declared by
either line. 1t is about six years since the first
(Nlorse) lines were constructed Houses lines to
Boston and Philadelphsa were opened in lst7 and
'is; to Buffalo in 1850. Baine's Lines to Boston
and Washington were opened in lSi9, and to Buff
falo in 1880 The aggregate dividends to this date
declared on all the lines, excepting Bane's Wash
ington line, are something less than one per cent
per annum on the capital stock. Baine's wash
ingten line is owned by two gentlemen Of Balti-
more. They have issued no stock, and what they
have made or lost am unable TO say.
1t is evident that the business at present, divided
as il is among so many lines, Is not suf Jient to
afford profit In fact, it barely pays the working
expenses, without making any allowance for de-
probation. The receipts for the year 1850 will,
probably, reach $3.50 000 while the working ex-
penses alone will average at least 10000 to each
fine You think the business must largely in
crease. do not. | shall not look for a large In
while the system remains in its present inn
perfect state. A radical change must be effected
before the lines can become reliable; and. unti
they are So the great body Of the public will con-
tinue 20 use the telegraph a heretoiore-only in
eases Of necessity, and as a last resort -,
But the item of depreciation is one Of no small
ma gnitude Telegraph material-especially such
M composes the lines now in existence lis peculiarly
perishable. IL is afact not yet fully understood OF
appreciated, that none Of these lines will last to
exceed eight years. Their reconstruction requires
an annual reservation Of at least one-eighth tho
original cost Suppose the original cost to be, In
reality, half the capital stock the depreciation
exceeds s13 900 per annum II the lines are unable
to make dividends without this reservation, 1t Is
easy to they will not very soon make them with
it, Experience has not gone quite far emo Ugh yet
to give the companies generally realizing sense OF
this matter. J can assure them, however that II u
believed, by those who understand II, to be the
most embarrassing feature OF the whole enterprise
A great mistake has undoubtedly been made in
the original construction Of all telegraphs. They
are alt 5gether two frsil. The slightest breeze up
sets them; They tumble down almost as soon as
put up. Besides requiring to be replaced by new
line every six or eight years, the cost OF Keeping
them in repair 10 enormous. IL Is this bean pole
style Of M aking them that has caused all the mis-
chief OF course, such wicker Work Is not 20 pe
depended upon for n single hour. Constant inter
ruptons constant annoyance, loss of reputation los
Of business, and runoas expense for repairs and re-
construction must ever follow such lines. And yet
lines continue to be built in this manner Ii would
seem that II structure was too weak to answer
the purpose foT which il was designed, the common
sense reinsdy would De TO make II stronger. lou
must understand, however, that the manner of get
ting up telegraph lines is peculiar.
OF ali the 1900 miles which have been put up at
these rates, know Ct but one small section OF ten
miles properly constructed. The section OF the
House line from Wall street to Harlem should be q
model for all lines hereafter 10 be built or rebuilt.
such line will stand hrm full twenty years. IL
will very rarely be out OF order, and trhing sum
will keep II in repair. liad ali the lines been quilt
after t,is fashion, shouldno at this day be
PEELED TO listen TO the complaints Of the public nor
the groans OF stockholders. The reliability Of the
telegraph would have satisfied the one, and its
vastly Increased basiness afforded ample remuners-
ton n the other.
have said there was one chance in which your
proposed inycstm Mt would turn out extremely well.
Ii is the consolidation OF these nine companies
into one. Could this be done, the lines properly
rebuilt aud worke ed with set Of offices, officers and
IN m, nc doubt IL would pay a handsome proht.
More busine "a would be done-ninitely better
dene-and all nj less than half the expense. Take
Ae year lsJe, believe the squire would net vary
ar from this
Total receipts Of nine lines ....... t2SOooo
Expense Of porking same us5ted. 80. SlO500o
Reserve fot reconstruction .......... 2soo 10000
Net proats. tl5OO0o
A dividend Of 10 per csat the whole million and
n half Of capital.
In rebuilding assume that but one line Of posts
Similar 30 those Of the House sec.ion-would be
nut u, on each route. There lie no difficulty in all
the xires being placed one line OF that descrip
tioc; S2J.nyD annually would be sufficient TO re-
construct rs fast 81 needed. Whsnth routes were
once gone over, the subsequent appropriations
would be less
have not space to 60 into she details OF this
scheme nor the proofs Of its s3yantages. IL might
easily be arranged, provided o majority Of the
stockholders Of the several companies would vote
for it. Let the capital stock be fixed at some
fgure, say tl.50D,UO0, and q board Of appraisers
chosen 10 divide Il equitably among the companies.
This T. all that !: required.
When this is done you may expect TO see the
stock profitable, and not before. should be glad
TO see such union effected II will be proud
dav Cor thc telegraph, when these twenty two wires
sbsll radis,efon Oas oebcs in ths city Of New York,