The New York herald., 1870-02-28
TIE POSTAL TELEGRAPH SYSTEM.
Speeches OF Nix. 0rtOn and Mr.. Hubbard Before
the Senate Postal Committee.
THE MONOPOLY ARGUING AGAINST MONOPOLY.
MIR. HUBBARDs FACTS AND FIGURES.


lows
Whatever differences OF opinion have existed con-
cernng the policy OF the governtpent In that regard.
the fact Will be conceded that during the past forty
competition OF the cheaper labor or Europe has
been prominent item in the oreeds OF all political
ing the extent to which the principle should be car
ried but no party has yet mad the temerty to ignore
epsoH Unjust IKE K
more than hair the cost Of performing which Is paid
for labor. should be demanded Of plivate corpora.
tons IN the United states at the same rates
as u is ohered In the most densely popu-
lated countries OF Europe. The governments
for public convenience or an element Of power have
no privilege TO ray for, have no stockholders OK.
can oe SO manipulated as to exhibit only q trining
loss. II the demand which Is now being made that
the price Of teesraphlng IN TINS country shall be
reasonable one, what shall be said to that larger
class who demand cheaper food, and clothing and
the telegraph il essential only to the rev; and the
latter are abundantly able 70 pay the rates now
charged. II IL IL sound policy to 80 egiSlate as to
enhance the price Of the necessarles OF life, what
soiid reason can be assigned on the other hand for
forcing down the rate Of wages for another CLASS Of
lahorf
Ours has never been considered a paternal gov
ernment. people competent 70 govern them
requisite for promoting social and commercial
intercourse and for the development or the re-
ments have gone much further Ihan the telegraph IN
making provision for their subjects. There are gov
ernment baths, with the accessories OF government
soap and towels; and In France the government
builds opera houses and provides balls and enter
tainmenls with soldiers IN uniform present to pre-
serve order. The imperial autocract who Is held
upon the throne by the bayOnets OF his soldiery
white women are laboring In the feds and along
graphy to subjects return for the greater priyi
leges which ne has wrested from them.
Mr. orion then proceeded 70 discuss the report OF
the committee, reading that portion which speaks OF
consolidating competing companies as something TO
be desired, and also the removal OF competition lie
suggested that inasmuch as the ONLY charge made
against his company was that OF being great mo-
nOpOly whether II was the policy OF Congress to fOs-
ter consolidation and abolish competition when the
result would inevitably be the establishment OF q
greater monopoly than now existed. He stated that
competing lines were now IN operation IN majority
OF the States, all OF which were being extended and
that II business not lnteriered with BY Con-
gress II was probable that within a shor, time--a
year or two az the farthest-cOmpetiiO In tee-
graphing would exist all over the country. Compe-
tOn rarely promotes the interests OF shareholders;
buy so long as the latter are ready 10 invest capital
in such enterprises the public VIII certainly not com
plaln and the governments has no right to interfere.
He called attention to tue reference In the report
OF some statement made by the chairman Oh the
Select Committee on the Postal Telegraph in the
House. and addod that tnat Is committee recently
appointed at the request Of member Of the House,
when not yet organized and the opinions OF tue
chairman, therefore, are entitled to no more weight
man who has not had the opportunity TO investigate
the subject. But II 1t was worth while TO quote and
make part OF your report tho casual remark of the
has the fact been ignored tnat the House Committee
on Post Offices which had this subject under
guments concerning 1t than even the Senate com.
mittee-why, say, has no mention been made OF the
fact that the House committee near the close Of the
not only to the Hubbard scheme, but TO two or
three others which had been referred to its That
report was duty published and is one OF the docu-
ments Of the House; and neither the conclusions Of
the committee nor the reasons therefor have ever
been controverted. Speaking OF the OF lnes ne
said rarely the measure OF value, although 1t
may properly be taken into account as an aid In
asccraining 1t. II The government proposes to pur
cnase a property anu buslness-say In the city OF
I New York--Woud the question be asked, wnat d.d
1t costf And on the other hand II It should be de-
cided to remove the capital to the Mississippi VAL
| 10y, and this building was put up for sale.
would the untold millions winch il has cost
discussion Of the cost OF telegraph lines In thus
country at this time BY Congressional committee
terms OF the law OF 1865 whenever the government n
shall decide to purchase the telegram, the COM
panles have the rignt 70 select half the jury; and
until II IS proposed TO purchase there II no occasion
to consider either cost or value mere. He then
called attention to tbs error Of the commttee's re-
port In regard 10 the charges Tor messages from
Washington to the following places:--Waltham
Mass given ~ 81 .5 Is but 81 70; Chicago given at
q 7s - but 81; Geneva H. gwen at 49, Is but 81 so;
Omaha, given at 50 10, Is but ~ 55; Jackson Miss.
given NJ 50 20, Is out ~ SIS. He then called atten-
ton to certain provisions OF the BIN not previously
referred to- and OF the clause authorizing priority
OF transmission al special rates not named and said
II alter due consideration BY Congress and with q
authorize tns feature In telegraph service the in
ducenlent wonld be strong that / should be
almost tempted to urge the passage CT this bill IN
order that my company might avaOf Its provisions
and get control Of Its organization; for II you will
give rle the right by law 70 make my own rate for
messages requiring immediate Despatch care little
what The rate shall be for the small 1er which
Will consent to be delayed.
SPEECH OF MR. HUBBARD.
Mr.. Hubbard began by stating that 1t was true the
telegraph was principally used at the present time
by bankers, brokers' spectators and the press The
obJect OF the postal telegraph was to bring 1t With
the reach Of the many and make 1t an ordinary
means OF communication There are he said two
systems OF teegraph-the governmental and the cor
porate systems. The former Is In operation In all
the countries or Europe; the latter in America alone
comparison Of the two systems disclosed the fol-
lowing results:-The investment for 900 miles
OF wire IN Europe IL $Al,oooOoo Ia gold,
or S4s,00O,Oo0 in currency at the present
prices, while the Western Union Telegraph Com.
pany have 100000 miles OF wire, with Investment
or nearly $46 900. Four miles OF wire under the
government system would cost no moro than one
under the corporate system. In nineteen countries
III Europe 250Do,oOo OF messages sent for
$l3,000o QUO In currency while the Western Union
Telegraph Company transmits 600 or messag es
for S. 100000 The average rates under the govern.
mental system are rorty-0ve cents under thoc0rpo.
rate system seventy one cents. The argument OF
Mr. Orton that the rates per mile are less in this
country than in Europe is faaclous because dis
,
for on . good line 1t costs no more to send tele
gram nifty miles than 1t costs 900 miles, the ele-
graph is less used in America than In England
France Belgium, Switzerland and the Nerner-
lands; and in all the southern ana western
parts Of tins country it is probably less
used than In other parts OF the United States
Mr.. Orton says that the business cannot be done at
the great reduction Of rates proposed by the Postal
telegraph Company. The average reduction on
rates 1t is believed Will be about nifty per cent The
experience OF Europe shows that white tue rates
are reduced nifty per cent there the business has in
n ap af
expenses from twenty to thirty per cent. In swift
zerland the rates ON the lst OF January 1885, were
reduced from one franc to half franc The bust.
ness: a. . consequence. doubled, and the net re-
celpts were reduced only three thousand francs that
year. When the rates are low the pay for the in.
crease Of length OF messages nearly pays for the
increased rates In America II a union Of the tela
graph to the post 0fcesbe made there will be large
reduction III all the oiice expenses OF the telegraph
without any corresponding increase In the ex-
penses Of the Post ONCE Department. These
ONCE expenses are at least twenty-five per
cent or the present expenses OF the telegraph
II, then, the rates are reduced nifty per cent and
business II Increased 100 per cent with twenty-five
cent additional eXUen60. these Additional aY.