New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-02-22

terests to be affected before adopting legis-
lation so important in its consequences.
Representing, as this company does in u
large degree, the telegraph property, thn
graph progress of the country. ws
claim that in any proposed legislation
affecting telegraph property and business
so vitally as the provisions of this bill dc.
We are entitled to a hearing both as to tho
necessity alleged 70 exist for congressional
action, aud the effect OF such action upon
the private property involved. We protest
against the assumption of the committee OF
the Senate, without proof and without has
ing been heard in our defense, that tha
business OF the Western Union Telegraph
company is conducted in disregard of tha
rights OF the public to such an extent as to
render 1t necessary for Congress to inter-
| vene. We are not advised that any person
| has applied to the Senate for the redIess of
any grievance alleged against this com-
pany. Its managers are believed to POSSESS
| the confidence of the public, and are earn
estly striving to meet their wants by ex-
tending their lines into new territory
and by enlarsing telegraph facilities
as rapidly as the growth Of busi-
| ness demands. The telegraph facilities
Of the United States have been increased
within less than six years past by the con-
struction of $4,000 miles of line and 70,o01
miles of wire, and the opening of moro
than 5000 new stations. Of this develop
ment the Western Union Company has pro-
vided more than half, and has expended
therefor about $5,000,000. In addition to
the contributions of railway companies, in
cluded in its system, which amount to
$2,5O0, 900 more, probably the gross ex-
penses for new telegraph property by all
the companies in the country, including
railways, has amounted to nearly or
quite $l2,000,000 within these six years.
%l,.c n thn oh ffNrs
messages has been reduced one half, and
work has been in progress for some time by
this csmpany preparatory to further reduc-
tions, which will be made at an early day.
There have been paid in dividends to stock
holders in the telegraph company during
the process Of this development about
S5,OOO,00O, or an average OF less than
81 900, GOO year. This would be ten peg
cent the rate contemplated by this bill on
capital Of $l0,000,O00, which is less than
the snm invested during the same time in
extending and improving the telegraph
system, which previously represented more
lines and larger revenues than those for
which Great Britain recently paid more
than $50, ,000, 900 in gold That the capital in
vested in telegraphs in the United States is
not now and has not of late been receiv-
ing adequate compensation is well known
to all who are acquainted with the facts
The investment has been made, however,
i'll the confident expectation OF suitable re-
turn as the country progressed In p0puia-
ton and wealth. This company has con-
sidered the ordinary risks incident to
competing enterprises, where success
depends on the patronage of the pub
lie, but they have virtually overlooked
the possibility of danger from the govern
ment. or of an attempt by Congress, either
to take their property or to interfere IN
their business without just compensation, or
10 md hos IN
confer upon that company the right of the
exclusive use OF the vast facilities provided
for tire postal service at the public expense.
Private enterprise has already established
the telegraph throughout every State in the
| Union and in all the Territories but one
Arizona. The value of the services it has
| rendered without charge, in the interest OF
science and to sufferers by fire, and flood,
| and pestilence is far beyond that of all the
| pccuniary contributions it has received.
| Millions Of acres of the public domain have
! been granted to railway corporations, while
| the telegraph has received no grants OF
| land, except whereOn to plant its poles.
| While the deficiency Of nearly @25, ,O00, 600 In
| the revenues OF the Fostotfice Department
| in the past five years has been defrayedsby
| taxation upon the people, the extensions OF
the telegraph within the same period have
been made by means of private capital,
furnished by private citizens. This bill at
tackS tle results OF tnlS trDflS.', anu LII 3
becomes law will be fatal to then.
Second-Ihis bill creates a corporation.
and confers upon the corporaois special
privileges and extraordinary powers. Upon
what principle and for what purpose tho
particular persons named in this bill arc
proposed to be made the recipients of
franchise never granted by Congress be-
fore, and of immense pecuniary value III tho
event that they shall be enabled under
Of itS nrOyicJOpa n the fAE1~
graph property of the corporations created
by the States, and now engaged III the buisi-
| ness, we are not informed. They are au-
thorized to issue 81 600 900 of its stock for
expenses of organization, and rs there ~
| nothing in this bill to prevent the distriba.
| ton Of this stock among the cOrpOratoro.
! we assume that to be their expectation
The bill contains no provision requiring
| the contribution OF any money as basis tc<
| the issue of such stock. This stock is ers-
| titled to receive dividends at the rate of
| ten per cent per annum so that Con gress -
! in effect imposing II tax of 100000 year
| to be levied, either upon the postotiiees or
on the senders of messages, to give bonus
| to the bene etciaries under this bill as an in
ducement to engage in business in which
| they have now no investment, and in the
| conduct of which they have had no expexa
| ence 1t it be the policy of the government
| to give so large a bonus to encourage ia-
| vestments IN telegraphic enterprises, VIC
submit that justice requires that companies
now engaged in the business. and whose
property is at hazard, shall at least be per
mitted to compete for the gift.
Third-The bill provides that certain OK
penses heretofore borne by telegraph COM
panies, such as rent, light, fuel, messenger
and clerical services, and also for stamps,
shall hereafter be borne by the POstoffiee
Department. The inference being that the
necessary labor can be performed without
increasing either the number OF officials or
the expenses of the department. and that
it is on account of the saving thus ELECTED
| that the telegraphic service can be par-
formed by the corporation created by tho
| bill at rates which all past experience In
| this country has found to be Improbable.
The fact that this Elusive feature hAa
escaped the scrutiny of tho Committee ON
| POstofces and Post Roads is another evil
dence of the injustice OF acting on the bill
without subjecting the provisiDs to tks
criticisms of interested and competent OK
perts.
The bill provides for a class of messages
fsecton twO) termed registered kilograms,
which shall have precedence in transmits
sien, and for which double rates may bo
charged. On examining the report of ths
| committee to ascertain the reason for con-
ferring privilege of such immense value,
! we find no reference made to the subject.
| This company demonstrates against .
scheme which gives million dollars to
| create new monopoly under the pretensa
of checking an existing one. and which,
under the plea of efecting greater reduc-
| ton of rates than was obtained in Great
| Britain, cOvertly authorizes putting aside
| the ordinary messages of the Dublic. what