, 1873-01-18
THE POSTAL TELEGRAPH SCHEME.
Relations OF the Federal Government to
the Telographio Service OF
tho Country.
4 Comprehensive Statement by tho
Hon. David A. Wells.

3Te4uose tnIOuBA tlelr IIebluont, nm' VlloHt
Commissioner Of tho Revenuo, that ho would
talse up and Investigate tho whole subject, md
prepare such comprehensive, statomont
~ n hia 5uaRmont tho combined f9sts 9;,a
concluding paragraph Of tho lestor Addressed TO
Mr. Wells clearly indicatcH tho spirit in which
tho Wentorn Union Desired the Investigation
nhoula be- conducted III furthoranco of such
"A1l information in poasosnlon Of tho Wcstorn
Union Company will bio placed without resorvo
At your disposal, brt, in so doing the Company
would disolaim in adynnoe any intention Or do
sire to anticipate or influence tho conclusions.
They ask nothing but what in right. Thoy trust
that they sha]l not bo Obliged, through tho oxer-
oiso Of superior powor in tho hands ot, the Fcd-
eral Government tosubmit to anything which is
wrong"
In pursuance OF this request, Mr.. Wells un-
dcrtook the Investigation, and his report ont
bodyng full and popular, but scientific, dis
cushion Of the whole subject, has Just been
an Momao Of PG
Avos, has beon filed by tho Western Union
Company as part Of tho case by thom submitted
to tho consideration Of Congress-. tho whole
forming thicl! pamphlet which will, undoubt;
the same author, aa 4 substantial contribution to
our economic and industrial literature;
Mr.. Wells, in tho outset, roylows tho origin,
sraphie syato1n Of the United States. and clearly
establishes tho following Important facts:
l. That, unlike the rai1rond systom Of tho
country, tho telegraph In tho United States, with
tho exception Of small Congressional, approo-
Invention, has received substantially no favors
from the public, or tho Federal Government,
but, on tho contrary, and IN opposition to TUG
pzaetiso Of al otlercountriee, has been subjected
State taxation, tho taxes paid to to tl,o Federal
Government alone, from 1865 to 1870, having
boon in exceas Of 81 900, ,00o. That having boon
thus loft exclusively, to private ont,orprse, tho
comparatively greater extent than In any othor
country, thero being one milo OF wire to evory
222 PERSONS in the Unltod States, as compared
with ono to every 631 in Europe, while the ratto
persons in tho former, and ono to ovory nine in
ete, sns 'esiss TSst ths Telegraph sa 4 doing
der q. FREQ system, attention is asked
to compute all the nows matter delivered by tho
American telegraph to tho American pross, as
separately transmitted to each paper, it would
comprise m aggregate equal to all the dispatches
Of every kind sent over all tho tolegrapls Of tho
world within givon period selected for conf
s. That since tho consolidation Of the various
lines, in 1866, to form tho Western Union, not
been . marked reduction of ratcs by this Com
pany, the recent oficial assertion Of tho Post
master General to tho contrary, so that at
the present time tho average a,m charged
for tho transmission Of mcaaagos is not in OK
cess Of one-hnf that required In 1866 for similar
service; and as contribution to economic
science attention Is asked to the circumstances
thst tho average charge at which telegraphit
messages are now transmitted in tho Unitol
States for tho public is less than the Average
cast for doing oouIyelont work in 1866, although
since that poriod thoro has boon marked ad
vance in the wagoe Of employees in almost over.
department Of service, aud worry great increase
other materials
1, The value of tolegrnEhio Stock az nn invost
ment, is shown by tho fact TINT from 1866 t
1872 the aggregate dividends paid to tho stock
ho1ders md tic several companies haa no
coualled 3 per cont nor annum. During the luB
fiscal year the apparent net profits Of the West
orn Union Oompany wore a2,790, 900, or los
than 7per cent on the capital but out Of thi
nurc6ascd oyer 10000 miles Of wire additional
Iii Of which was nearly az essential to tho &c
co1nmodation Of tho business and local Interest,"
Of the country as was tho expenditures
Eng 1os ncludSa led in sso sho 'fPns Po OF for
ma:ntonanco and repair Of lines previously q
iBtine and If It bo roplied TINT tho amount thu
deriyed from receipts md expended for i'm
proveonts and construction represents profht A.
stockholders, it is sufficient answer that If 1t b
60, il is profit That, up to the present timo la
accrued wholly to the public md not to til
atockho1dorg aud that for au Indefinite {utur
a]nrco nnnuaI expenditure for similar purpose
viii Be- abgoIutely Indispensable.
Coming noxt q tic, consideration Of II
ouostion Of Federal interference wit
Inc telegraph, mr. Wells submits the 70
towing POINTS Under tho head Of dirot
cost liz shows tho probable immediate expend
ture to DO mot by tho National Treasury woul
be- from 500, 200 to go, ,0OO, ,000 The abaurd
ty Of the estimate submitted BY the Postmaatt
Goneral in his recent report all tho exietir
linos Of tho country could bio replaced for abo,
sI2.o0o 000.~is shown BY tic fact that fully tn
.sun' haa boon expended for 90 much only Of Il
~ hns boon Constructed since 1866, and that il
cost Of such labor and material as would bo +
qu1red in any present construction LAS not sin
contrarv' in some respccts has be-
Augmented. 70 meet this nocesanry large .
pondituro 4 new national loan would probah
have to be- authorized, Tho Government wou
ho arain placod in tho position Of q borrowe
tie Wholo nocossitating now issue OF bond