, 1872-12-03

~ az aa to realize from the receipts of
the telegraph itself suthclent, a1ter meeting an
a4nenses. to pay the interest on the purchase
money. % provided for all necessary annual exten-
eions and gradually to recover the principal, |
e. evan at the ereatly reduced rates which prevail
=; fora;ar -, countries. While the limited data at
nv command will not permit me- to give detailed
estimates, my information on the subject is suf-
fciontly accurate to enable me to lay before yon
can eau be elaborated, it Is necessary that
/ ehonld be authorized to appoint the
appraisers provided for IN the act of
1866 and, IN addition thereto, that a commission
should be appointed to con- consist list o. three maR IT,
different systems Of telesraphy and to prepare
scheme for submission to Congress with the
report Of the appraisers.
Upon the enforcement Of the act Of 1866, the
United States will come into possession OF some
$4,000 miles OF telegraph lpe, carrying about
60,000 miles of wire. Upon the supposition,
however, that it the companies not now operat~
ing under tho act shall decline to accept it's pro-
to build lines OF it's own covering their territory,
I have made the following estimatea, toincludo
the total facilities of all the companies, shown
in the table Te1egraphs, 81, viz, 77ooo miles Of
line and 165, 900 miles Of wire.
The majority of lines in this country have
been built very eheaply, their entire cost, in
eluding patents, being probably much less than
$4,000, 300. In fact, the poles have been erect
cd in many cases entirely without. cost to tile
telegraph companies, BY the railroads ;s along I;
prove Impossible for the appraisers to
ascertain this cost for each OF
the companies, the sum for which tho
Government could duplicate the existing system
Department show that many lines hare been
lately built, probably not Of the best quality put
fully up to the average standard, for not more pre-
than sis per mile Of single, wire hne. md Sao
per mile Of additional wire: For equipment, IT, an
allowance Of IS per mile Of line is ample: We're
all the wires to be strung at the Hano time, as
| they would be if the present system were to Pc
! duplicated by the Government, the COST "ouio
| probably be much less. The cost Of new sJs.
the % above s rates, "a be s11, 1000, Many Of the
| wires having, bowo9er, been in use for long
| time, the appraisers would probably deduct
Target; from this amount on account Of deterior,
| alton but the sum 80 deducted, at least, WOULD
| have to be paid out for reconstruction.
It may be proper to state that one OF the
| companies has advanced the theory that the
! Government should purchase, not only it's telc-
graph lines, property, and effects, nat Mso the
! Goodwill Of its business, based on present and
prospective profits. AS it is difficult to sec how
| mere goodwill can be brought before the ap-
praisers, under tile law as it stands, it is, per
hapa. unnecessary for me to discuss at much
length the merits Of this claim. It has not
hitherto been thought necessary for the Govern
ment, in undertaking enterprises in which prl~
vate parties are also engaged, either to acquire
the facilities Of such private parties, or to COM
Competition. Up to the year 1866, the Govern
ment was certainly at liberty to compete
! with telegraph companies, as it now
! does with banks and express companies
| in itB money-order business and parcel-post:
II, then as claimed By this company, the act OF
1866 bound the Government not to enter the tel
egraphic field for i've years and when it did en-
ter to bny out the existing lines instead Of build
ing more perfect system OF it's own the grant,
ing Of these and the other concessions contained
in tho act ought to have improved the position
Of the Government, instead Of making 1t
| worse.
There was norniuk ounlJuIeury aoous Inc i,
it's acceptance By the companies Was purely vol-
graph, set time after which the companies
might expect to see one established, and offered
Inducements which it seems were sufficient, for
the companies to agree to yield up their facil-
ties upon the expiration Of the time designated.
The manner in which the British Government
recently acquired the telegraphs cannot be cited
rs precedent for the United States. Thsre
was no such previous agreement between Her
Maiesty's Government and the companies OF the
United Kingdom as is contained IN our act OF
1866. Tho British Government offered to pay
twenty years profits, and the companies having
accepted the proposition, the sitting Parliament
sanctioned it. Had the companies been earning
per cent which is 8 fair return to British capl-
tai on 3 reliable home investment, the price
would have simply equalled the cost Of the lines
1t turned out that their profits we're nearer Is per
cent; hut the new Parliament, With some oppo-
Bition, sustained the agreement, and authorized
ever, that the British Government has
Post Office, and naturally took q
commercial view Of the acquisition Of the tele>
graphs The argument was, that, il the profits
were higher than Was expected, the Government
would get so much more for its money, and the
sooner the purchase vas completed the better
The comprehensive, energetic, and careful man
has enabled the British Government to realize
without the data to be acquired by the com:
mission which have asked to be appointed, !
facilities which will be necessary to meet the IN
crease Of business on existing routes, or the ex-
act extensions which should be undertaken t.
points not now reached by the telegraph. Will
thorough reconstruction, however, the use or I'm.
proved Instruments, and the separation OF posta
from railway wires, the capacity Of existing
routes na;, without Doubt be doubled. Ger
tain1y will this be the case If, as is anticipated
the additional messages induced by toW tariffs
nre largely Of q social character, sent out o.
business hours, and permitting moro equa
distribution of business throughout the day anG
night An increment Of twenty messages pel
; day between any two Offices viii, at an ayeEagt
receipt Of 33 cents, yield 81 $50 per year Of 30l
working days, which will put up so miles Of ad
dition1 wire. at $50 per mile, and leave $3.50 fol
additional expenses. A buainese Of forty mes
sages daily, twenty each way, will yield So, 900
sufficient to build single wire line rs miles, q
s130 per mile (including 80 per mile fos add
tionaf expense away from railroads), leaving
s71o for operating and expenses: Whenever
| therefore, such an increase takes place on q cir
cult already established, or such business cal
be predicted Of m Office away from the line, tht
, extensions will be justified. There are, IN
doubtedly, large districts and important points
wholly unpro7ided wlth telegraphic facilities
. but cannot at present indicate them with accu
r racy. The present system extends to 6,162 diff
> fercnt points, with about 600 branch offices: a
perhaps 1000 Of these, principally mere railroa'
? stations, there are no Post Offices. Should
i ! not be found e1pedient at any Of these latte
Offices to open Post Offices, the Department
! could secure their use to the public By such al
) rangements with the railroads as prevail j
Europe In Great Britain, according to MI
: Scudamore's report there are 1907 rai!
, way stations open to the publ
| for telegraphic business, and 3,291 postal tele
graph stations; but the railway offices transm m
: only per cent Of the messages. While, there
: fore, these Offices must be counted among tn
: telegraphic facilities, their receipts and thel
a J oocf ofao .rs11 al ha small. IL has bee