The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-03-09
The TELEG7sFE MONOPOLY.


National Telegraph Company-CapitaI
$lO,OOO,OOO-COntrOI of the Company by
the Government, Etc.
The business of telegraphing has recently
become very extensive, anu thoroughly rami-
fes every village and town in the land. The
great importance of transacting business
promptly by telegraphing has of course been
the means of making the transmission of mes
sages from place to place very profitable, as
almost any price might be charged for tele-
graphing in certain emergencies. Apprecia-
ting this fact, the managers of telegraph lines
have invariably worked under a high tariff
system for all classes of messages. Hence the
immense profits of which we have spoken.
Within a year or two the Great Western
Union Telegraph Company have obtained
control of nearly all the lines in the United
States, and have indeed made a monopoly of
the business, some persons maintaining that
they have taken an unfair advantage of their
exclusive rights and privileges. OF this fact
the public must judge, whose servants the
managers are, or ought to be.
HISTORY OF THE TELEGRApmc MONOPOLY.
A gentleman who is conversant with this
subject, but who is evidently in favor of the
establishment of new telegraphic enterprises,
writes as follows to a New York paper:-
1.-THE present Telegraph monopoly was or
S360,000. They made no dividends for seven
years but during that time they 'watered' their
stock, as was alleged, from their earnings, as
follows-Every share of stock represented by
the par OF 500 was increased four times, TO
the amount Of SaOO. Again this was doubled,
making $500. Twenty-Five per cent was then
added, making $1,000. Again this was doubled,
making $1,000. After this 1914 per cent. was
added, making S2666'66, so that one share of
stock of the par value of 500 was increased, as
was alleged by the Directors, out of the earn
ings, to S26G6'66, and such dividends were
made on this inflated capital that in the years
following the market value of the stock was
frOD n being
In the spring of the year 1854 the Directors of
this monopoly again doubled the capital stock
from about Sll,OO0,000 to about S22,OOOOOO, and
the pretense for this last initiation was the
alleged purpose of chea ening the market price
Of the stock, and making It's market value
"And ali this was done without assessing the
original subscribers the first dollar, the earn
s1ngs, as was alleged by the Directors, being
used for that purpose, thus piling up millions
unparalleled in the whole history of business
enterprise In any part of the world.
"The present telegraph monopoly are now
earning over six millions of dollars annually.
What they do with it is another thing. The
most of IT goes to rent of lines, which are owned
or leased by its directors and never gets to the
pockets of the present stockholders. See the
immense wealth accumulated by that party of
"The New National Telegraph Company pro-
pose to construct opposition lines to this huge
monopoly, and exactly on the opposite plan of
that heretofore governing the old Telegraph
companies, to wlt-by advertising for the con-
struction of their lines, and letting them to the
lowest responsible bidders for the benefit of
their stockholders, and not on the plan as here
tofore practised for the benefit of few.
1.-THE entire expense of running Telegraph
line after 1t is constructed and in perfect order
practical men estimate at about ten per cent. of
its gross earnings on all the great thoroughfares
where this New National Telegraph proposes to
construct trunk lines In fact, have been in
formed that the actual cost of sending mes
sage from New York to Chicago is not as much
as the cost OF carrying letter by the Post once
Department to and from the same points.
''In regard to the value of the franchise con-
ferred by the recent act OF Congress, the right
to run along the route of railroads and mail
routes, am informed that the old monopolies
in their watering process estimated the same of
the value of fifteen millions of dollars. 1t
might have been mere pretense, but thus they
then estimated It's value.
"In regard to the earnings of Telegraph lines
between Boston, New York, and Washington,
the Agent Of the New York Associated Press
said that the net earnings of the line between
New York and Boston in 1860 was even then
sufficient to pay a dividend yearly of over one
hundred per cent. ON the whole capital required
for building a frst-class line between the two
cities. See also what the associated editors of
New York said in the year 1860 that the Press
alone pays to the Telegraph between Boston,
New York, and Washington enough to pay
nearly one hundred per cent. upon the capital
required to build new and superior line be-
tween Boston and Washington.
"See also the facts that the old American
Telegraph Company owning the lines between
Boston and Washington, and owning little else,
though IT leases some other lines las per state
meat of Mr.. Cyrus w. Field and other promi-
nent mem, has capital inflated now about ten
times beyond what is necessary for building new
lines along that whole route, and pays handsome
dividends on that inflated capital Since this
statement was made by Mr.. Field, this line was,
in the year 1866, consolidated with the Western
Union and its capital again inflated from
S4,0000 000 to Sl2O00,000. The new National Tele-
graph Company proposes simply to give the
people increased telegraph facilities for COM
mercial and social correspondence and at more
reasonable rates than the present monopoly
now affords.
at proposes to construct its lines for cash
with the best materials and latest improve
ments and TO the lowest bidders at public let
tings, and seeks to interest the entire business
community in the enterprise, and IL is no great
wonder that such enterprises are terror to
telegraph monopoles."
EFFECT OF COMPETITION.
OF course every one desires that the Western
Union Telegraph Company shall be fairly paid
for its work, but there is no man who would
not be in favor of, at least, trying honorable
competition in this business, and, indeed, the
passage Of the National Telegraph act has
already been the means OF slightly reducing
the former eXorbitant tariff.
Under this act new companies may be
formed, subject to certain controlling prOvi-
sions, to be applied by the Postmaster General.
THE NEW COMPANY.
new association has been formed re-
Gently, which promises to be entirely sue
cessful. We allude to the National Tele-
graph Company, organized under the laws
of the State of New York and franchises con.
terred by the National Telegraph law passed
byCongress and approved July "a, 1866 The
capital stock of this Company is $40, 900, 900
divided into lOO 900 shares of 500 each
with principal Office at No. "a Broadway
New York city. The officers of the Compan,
are announced as fOllows:-
President George B. Seuter; Vice-President
hODeTG SQulreS. Treasurer, Frederick