The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-02-23
THE POSTAL TELEGRAPH
.-,, SCHEME, ....I'.

sional Interference with the Tele.
graph Business. y-rn s{Igl 4
The following is the protest Of the Wes
tern Union Telegraph Company, present
ed TO the Senate Wednesday, ~ y5t
Executive OFFICE W. U. r. Co, !
New York, February 10, 1879.
70 q @e Honorable, lie Sspqte cf;Me UniNt
States. - - - -
The Western Union Telegraph Com
pany hereby respectfully demonstrate
against the passage Of Senate bill No. 341
entitled bill 10 connect tho telegraph
with the postal service and to reduce The
rates Of correspondence by telegraph, re
ported by the Senate Committee on Post.
offices and Post Roads. Report No. 90
January 22d, 1872 The following arc
some Of the objections which we urge 10
the bill:
1. Although the report truly states that
the Western Union Telegraph Company
performs nine.tcnths Of the telegraph
business, and fairly represents the teie.
graph system OF the country, this com.
pany has not been applied TO by your
committee for any information, either
concerning its own business, or in relation
to telegraph generally, nor has Il been
offered an opportunity 10 be heard upon
the subject before the committee.
On single occasion, two years ago, the
President Of this company was, on his
own application, accorded hearing be.
fore the committee, limited to fifteen
minutes. Under these circumstances the
managers of this company have been
much surprised mt the publication in a
Senate document Of statements cOncering
this company which are erroneous in the
TACT or in the inlerenccs to be established,
and which are used to justify the very ex.
traordinary measures embraced in this
bill. This company is not prepared to
admit that the Senate Of the United States
is the proper tribunal before which to try
corporations created by the States either
for alleged undue expansion of capital,
unreasonable charges, or inadequate facili.
Ties, but We claim that whether the meas.
ure reported by. the Committee on Post.
offices and Post.roads is based upon
charges against this company or upon al
legged considerations Of public policy,
the justice and practice Of the
Senate alike require an inquiry into the
facts, and careful investigation of the
interests to be affected before adopting
legislation so important in its Conse.
quences. Representing as this company
does, in a large degree, the tele.
graph progress of the country, we claim
that in any proposed legislation affecting
the telegraph property and business so
vitality as the provisions of this bill, we
are entitled to hearing, both as to the
necessity alleged to exist for Congression-
al action, and the effect OF such action
upon the private property involved. We
protest against the assumption made by
the Committee Of the Senate, without
proof and without having been heard in
our defence, that the business of the West.
ern Union Telegraph Company is con-
Quoted In disregard Of the rights of the
public to such an extent as to render it
necessary for Congress to intervene. We
are not advised that any person has ap.
piled to the Senate for the redress Of any
grievances alleged against the Company.
Its managers are believed TO possess the
confidence OF the public, and are earnest
ly striving TO meet their wants BY. extend.
ing their lines into new territory, and en-.
larging telegraphic facilities as rapidly as
the growth OF business demands. The
telegraphic facilities OF the United States
have been increased within less than six
years past by the construction of thirty
thousand miles Of line and seventy thou.
sand miles of wire, and the opening ol
more than three thousand new sta
tions. OF this development the West
ern Union Company has provided more
than half, and has expended therefor
about 81, 900, 900 in addition to the con.
tributions OF railroad companies included
in its system, which amount to g, 500 900
more. Probably the gross expenditure
for new telegraph property by all the
companies in the country, including rail.
road companies, has amounted to nearly
or quite $1200O000 within these six
years. During this. period the average
charge for messages has been reduced
one,half, and work has been in progress
for some time by this company prepara.
tory 10 further reductions, which will be
made at an early day. There have been
paid in dividends to stockholders in tele.
graph companies during the period OF
this development about 81, 100000, or an
average Of less than $1,O00,O00 a year.
This would be 10per cent, the rate con-
templated by this bill on a capital of $10,.
100000, which is less than the sum In
vested during the same time in extending
and improving the telegraph system,
which previously represented more lines
and larger revenue than those for which
Great Britain recently paid more than
$780, 100000 in gold That the capital in.
vested in telegraphs in the United States is
not now and has not Of late been rcceiy-
ing adequate compensation, is well known
TO oil who are acquainted with the facts.
The investment has been made, however,
In the confident expectation of a suitable
return as the country progressed in pop.
ulation and wealth. Thus 1t has consid.
cred the. ordinary risks incident to com.
peting enterprises, where success depends
bn the patronage of the public; but they
they have wholly overlooked the possibil.
| ity OF danger from the Government of an
attempt by Congress eitherto take their
property or interfere with the business
without just compensation, or to create O
competing company and then to confer
upon that company the right Of the exclu.
sivc use Of the vast facilities provided fol
the postal service at the public expense
Private enterprise has already established
a telegraph throughout every State In the
Union, and in all the Territories but one
Arizona. The value of the service II has
rendered without charge in the interest
OF science, and TO sufferers by fire and
flood and pestilence, is lar beyond that Of
oil the pecuniary contributions ii has re-
ceived. Millions Of acres OF the public
domain have been granted to railway cor.
porations, while the telegraph has rcceiv.
ad M 0rantq nf lind nHrpnt vharnnr