The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-20
THE POSTAL TELEGRAPH.
To THE EDITOR OF The HERALD

To THE EDITOR OF The HERALD:-
In the Nation for December. 16, 1872 Is an article
entitled "Wouid Postal Telegraph be Cheap ?"
The writer says that sit is subject upon which the
public is Ill informed, thouph not Tor lack of teach
eIs," and the object is to give such information.
1t enuncates the proposition that teegraphy is
different from ordinary business, because any large
increase in the amount of business is followed by
au increase OF expenses which approximates closely
to the increase in work, and must therefore pre-.
vent any considerable reduction in rates, which it
seeks to prove by the statistics OF three countries.
1t says that in 1862 the Of messages trans.
mitted by single company in England 1874, $50.
In 1856 the total was more than double, being
3,50149. 1t then gives certain sta istics to the
number OF messages per mile OF wire at each date,
but omts to give the important TACT that the work.
ing expenses increased but Az per cent with an
increase OF los per cent In the business, while the
net proceeds increased at the rate so per cent.
These facts, 1t will be observed, contradict the
propositions Of the article
Belgium is the next example, and the years 1861,
1868 and 1865 are selected, when the rates were
high and the increase IN business small. In Decem-
Der, 1865, the rates were reduced SO per cent the
kilograms increased rom GA 034 1865 to 900
in 1866, or nearly douole, while the expenses in.
creased from $780, $50 to $l67, l9i or 25 per cent.
In 1869, 203S, 800 messages were transmitted at an
expense Of s260,0v0, an increase OF pearly 100 per
cent IN business and OF only 80 per cent in The
expenses. 90. .'t.t--
The writer has not given the correct figures In
eaca instance, as he has been lee l.lto error in
copying his statistics rom table which gives only
the inland kilograms and an estimate OF the ex-
penses. Our STATISTICS are taken from the official
returns OF the Telegraph Bureau OF Belgium.
ain the United states the total number Of mes
sages transmitted by the Western Union Company
in 1867 5,s79,OOO; IN 1871 1Oe46, 200, nearly
doube,n according TO the statement OF the Nation.
But again 1t alls to give the facts necessary TO
rive at a correct c0nclus on. The gross expenses
in 1867 were S3gl4 0o5 IN 1871 SIS I04 1883; showing
that, while the business was nearly doubled, tue
expenses were only increased about one-quarter.
The writer quotes certain lnaxms enumerated by
Sir James Anderson in his statistics of Tele-
graphy,n London, 1872, but omlts the most i'm
portant statement, which is, 'that in the interior
service OF Belgium the diminution OF net product
has been OF small Importance, and has been accom-
panied by an immense development of correspond
ence, that Is to say, OF service rendered to the
public"
The kilograms In Belgium increased from GA, O34
in 1865, wnen the rate was reduced from one franc
hundred per cent in six years. aI I The writer is
also mistaken when he says that the
business in Belgium is managed At noS Sss
treasury, for according to the fourth table IN Ssr
James Andersons book the surplus OF receipts
over expenses Tor construction, acquisition, extem-
sion ana operation oil tue system up 70 e ,nc'
was 5sls44 lrancs he also says tnat tne conclu"
ductlon of tarr has in all cases resulted in dimi-
mutton OF the net product What sir James amer
son actually SAYS Is, that the noTinai uhuua III
crease in biography is so great that ngn Iate
and small business maintained or series OF
wears will pay greater profits TO company than
larger business at reduced rates, anu gives
as an example the Atlantic Telegraph, and
saws that II the average talin OF the
arst eleven months--$64 messape--had been
maIntained to the 31st OF December, 1871
the net receipts OF the cable company would have
been 81 no 900 greater than they were, and that
the cable company would now be enjoying an an
nual dividend OF twenty seven per cent instead or
| their present dividend OF nom ten to fifteen per
| cent from tarn OF $40 message
The result, therefore, OF these statistics shows
that teiegraphy, as IN most other kinds OF bush
ness the expenses DO not Increase In the same
| ratio with the business and more extended ex-
| animation OF the statistics will show that ii may
| be safety assumed that, with an Increase Of one
| hundred per cent in tue business, the expenses
are increased about thirty-three ana onethird per
| cent, and that a proportonate decrease in the
| rates can be effected without Q reduction oil the
| profits.
Here, again. we. refer TO the statistics OF the
| western Union Telegraph Company which trans
mitted about SIX million messages IN 1857, at net
profit OF $2,t24,U0U, ana more than double that
number III 1872 with net receipts OF $2s0u,co0. at
reduction OF over one.thrd In the rates. and saw
ing OF over four millions OF dollars To me pubic III
! o single year. IL is uDon these facts That Tic