National Republican. (Washington City (D.C.)) 1872-1888, 1872-12-05

managed az 10 realize from the receipts Of tho
telegraph Itself sufficient, after meeting all
expenses, 10 pay the interest M the purchase
money, provide for all necessary annual eH'
tensions, and gradually TO recover thu
principal, even at tho greatly reduced
rates which prevail In foreign Countries.
While the limited data now nj my command
VIII not permit mo to give detailed estimates,
my INFORMATION on the subject Is sufficiently
accurate IN enable me to lay before you tho
following general plan. Before Il can ba
elaborated, II Is necessary that should BIS
authorized to appoint the appraisers provided
Tor In the act NJ 1884, and, In addition thereto,
that commission should lie appointed, tn
consist Of three members, cOnyersant with
the subject, to examine tho different systems
Of telegraphy and to prepare q scheme for
submission TO Congress with tho report OF the
appraisers.
Upon the enforcement Of the act Of 1900,
the United States will come into possession
OF some 1000 miles Of telegraph line, carry
Ing about 1900 miles Of wire. Upon the
suppOsition, however, that II tho companies
not now operating under the act shall decline
to accept its provisions, II will 10 necessary
for the Government to build lines Of lts own
covering their territory, have made the fol-
lowing estimates, to include the tota, facili-
ties Of all the companies, ~ shown In the Ia
bio, CTelegraphs 81 viz, 1000 miles Of line
and iB5, 900 miles Of wire.
The majority Of lines In this country have
Guiding patents, being probably much less
than sl0,OOO,OOO. In fact, the poles have
been erected In many cases entirely without
cost 10 the telegraph companies, by the rail-
roads along whose tracks they are built. But
| should II prove impossible for the appraisers
TO ascertain this cost for each Of the compa-
mics, the sum for which the Government could
| duplicate the existing system IL easily deter
mined. Data In possession Of this Depart
ment show that many lines have been lately
~ H. ali h0tN
fully up TO the average standard, for not more
than ellis per mile Of single-wire line, and
| ESQ per mile Of additional wire. For equip
ment an allowance Of 20 per mile Of line Il
| ample. We're all the wires to be strung at tho
same time, as they would be II tho present
system were to I've duplicated by the Govern
ment the cost would probably be much less.
| The cost Of a new system, equal In extent To
| the present, would, at the above rates. be
ell $50, 600. Many Of the wires having, how
ever. been In use for a long time, the apprais-
crs would probably deduct largely from this
amount on account Of deterioratiOn hut the
/ sum 80 deducted, at least, would have TO he
/ paid out for reconstruction.
| II may be proper 70 state that one Of the
companies has advanced the theory that the
Government should purchase not only Its tel
egraph lines, property, and effects, but also
the goodwill Of Its business, based on present
and prospective profits. As II IL difficult TO
see how mere goodwill can he brought before
| the appraisers under the law "a 1t stands, IL
| In, perhaps, unnecessary for me to discuss AT
much length the merits Of this claim. II has
not hitherto been thought necessary for the
Government, In undertaking enterprises In
which private parties arc also engaged, either
| To acquire the facilities Of such private parties
or to compensate them for their loss on ac-
| count OF its competition. Up to the year 1851,
| the Government was certainly at liberty To
compete with telegraph companies, "a II now
docs with banks and express companies In lts
| money-Order business and parcel-post. II,
then, as claimed by this company the act OF
1858 bound the Government no. to enter the
telegraphie field for Eve years, and when II
did enter to buy out the existing lines instead
| Of building a more perfect system Of Its own
the granting Of these and the other cOnccs-
sionS contained in the act ought to have i'm
proved the position Of the Government, In
stead Of making Il worse.
There was nothing compulsory about the
act; its acceptance by the companies was
purely voluntary. II looked toward a future
postal telegraph, set time after which the
companies might expect 10 see one established
and offered Inducements, which II seems were
sufficient, for the companies 10 agree to yield
up their facilities upon the expiration of the
time designated.
The manner In which the British Govern
ment recently acquired the telegraphs cannot
he cited a. precedent for the United States.
There was no such previous agreement be-
tween Her Majesty's Government and the
companies Of the United Kingdom, rs con-
tanned In our act Of 1895. The British Gov
eminent offered to pay twenty years profit,
| and the companies having accepted the pro-
position, the sitting Parliament sanctioned H..
Had the companies been earning per cent,
which Ia q fair return to British capital on n
reliable home Investment, the price would
: have simply equaled the cost Of their lines.
II turned out that their proats were nearer
| Is per cont; but the new Parliament, with
some opposition, sustained the agreement,
, aud authorized the expenditure. II must be
| remembered, however, that the British Gov
eminent has always derived revenue from
G its post office, and naturally took q CONNER.
ciai view Of the acquisition Of the telegraphs.
c The argument was that II the profits were
: higher than was expected the Government
| would get so much more for Its money, and
: the sooner the purchase was completed the
better. The comprehensive, energetic, aud
. | careful management Of Mr.. SCudamore and
= his associates has enabled the British Govern
+ ment to realize this view
r. Without the data TO be acquired by thu
% commission which have asked TO he appoint
= ed, / cannot give An accurate estimate Of TIT
addltlSNal facilities which will be necessar,
u to meet the Increase OF business on existing
d routes, or the exact extensions which should
q be undertaken to points not now reached ~
the telegraph. With thorough reconstruc
II ton, however, the use Of improved instrl
i ments, and the separation Of postal from rail-
1
I. may, without doubt, be doubled. CeTtalnl
u will this be the case II, as IA anticipated, tn
J. additional messages induced by low tariffs ar
u largely Of q social character sent ont Of bust
Il ness hOurs, and permitting more equal dis
le tTibutiOn Of business throughout the day an
~ night. An increment OF 20 messages per dh
Al between any two offices WILL at an averag
" receipt Of S3 cents, yield sl $50 per year d
r 800 working days, which will pat up 90 mile
ne Of additional wire, at ESQ per mile, and leav
n SlSO for additional expenses. business q
" 20 messages daily, 20 each way, will yiel
81 S3, $50 sufficient 20 build single-wire line
" miles, at sl3o per mile, Oncluding per mil
III for additional expense away from railroads
" leaving EMO for operating and expense
- Whenever, therefore, such an increai
NJ takes place on circuit already established
co or such business can he predicted Ct O
II office away from the line, the above eXtel
ne sions will be Justified. There are undoubte,
lst ~ large districts and important poln
III wholly unpT0yided with telegraphic faclltie
" hut cannot At present indicate them vii
III accuracy. The present system extends
u, o, lG2 different points, with about 600 brand
nd offices. At perhaps 200 Of these, principal
M mere railroad stations, there are no pos
* otiices. Should II not be found expedlent
ST. any OF these latter offices to open post-oifice
oil the Department could secure their use to Il
ger public by such arrangements with the ra
re, roads rs prevail In Europe. In Great B-ital
M according to Mr.. SCudamore's report the
'th are l ,s07 railway stations open to the publ
TO- for Geographic business and 1921 post
nc telegraph stations but the railway Oftlc
IT. transmit only per cent. Of the messages
re- While, therefore, these offices must
are counted among the telegraphic facilities, the
receipts and their cost also will always
'as small. II has been broadly, hut think pro
rn- erly, stated that the transmission Of lette
az kilograms, or other correspondence shou
ne not be considered In itself as proper sour
tai Of revenue. The tax on correspondence Oug
to represent merely the actual cost, and /
re mail and telegraph should be used as free
red ~ possible to stimulate other sources OF Tt
led enue. Should the postal telegraph he Rdopts
ON the Government will probably staIt With
md business Of 100000 messages. After /
ent thorough renovation Of the lines, belle
IAN the tariff can be adyantageOusly reduced
a an average Of 80 cents throughout the Unit
to States. As minimum such tariff would
an too high. ] should, therefore, be In favor
adopting a simple graduated tariff, based up
nn well-known geographical divisions. To i
ent out such a tariff In accordance with the
led | pnuraa NJ ,r,,,1A l.. 49,.