The New York herald., 1868-12-16

alone for the yea. ending June, 1868 show. as we
have already stated an increase Of only SIX per eent
MI Hubbard shows the difference ln lhe ,~ieoi!es ~
and practice OF European and American telegraph
companiea:-
In other the rates reduced with the growth Of
dussd Oy sompson Isa followed by
psn eoTpsne. and S. rates are newer
published without uniformly or sysem The - con- ,Ss
rates. and many NOT for that reason make use o ne e
IN Europe the rates for added wordr less than the rate
asse SassS word. nor 'oS
% s s' s ~spy ps %
n this country they are much higher From New Work 70
words for each word The rate. for added
wous woaSs Be- charged he Swiss rule was adopted
Mr. Hubbard then enters into an elaborate statis-
tcal examination Of the reasons assigned to justify
higher than the average foreign rates, and The
age rates several times higher than the foreign. He
does not consider them valid without troubling
readers with the argument, we shall quote such
detached facts advanced in tend to illustrate the
magnitude and character Of the business in our
country.
The enure investment Of the western Union
Telegraph Company up 10 June last was
e gfUss ss from e da1e aes o ss
199, of which $s 304 sl4 paid out for Ope
rating expenses. The annual profit on investment
was five and q half per cent. The average cost OF
foreign lines is $50 per mile Lines built IN the best
manner, and equipped ready for working cost less
tndn $l0O per OF wire, WITH an average OIL
wires to each mile OF line. The length OF wire owned
by the Western Union and United States companies
Is &C, 600 miles, average cost based on the united
capital is $45O The lines OF the American Company
embrace &c, 600 miles OF wire; the average cost per
mile. based on the capital ,ls $133 33.
The presidents OF the leading telegraph COM
panies IN a Joint letter, declared that reduction
OF rates would quickly lead to ruin. Against
their theoretical exhibit Mr.. Hubbard places
the actual results OF such reduction. The rates
In Great Britain were reduced twenty-six per cent
from %. 10 I'D in 1862 to rs. Id. In 1867 The
messages transmitted by the Electric and In
ternational Telegraph Company during that
period Increased from 1534 500 to $3.50. l49, 10j
1886 Ass, or 53 per cent. The expenses increased
from fl4S609 to f203, 739 or only 20 per cent The
net income increased from f70,s32 to s277l9, or 50
per- cent The proportion OF working expenses to
gross revenue was reduced from 81 per cent to 62
per cent; OF net revenue to capital increased from
$40 per cent to IL per cent, while the number OF
messages per mile OF wire increased from Al per
cent to SO per cent In short 'the European statis
tics prove that with lines built for cash, reasonable
reduction In rates, not forced by competition, but
based the Increase OF business will greatly in
good operator can easily transmit 200 words
an hour.
From the New York office OF the Western Union
Telegraph Company 2,44s, 900 words, or 1920 mes
sages OF twenty-five words each, can be sent each
day. The average number actually transmitted is
lS4,37s words or 1875 messages. On an average
nearly eighteen hours day the wires are idle
These various statistics should certainly induce
some OF our companies to try the experiment OF a
low tariff. Failing such voluntary action, what
remedy can be devised for the evllf