The Columbia herald. [volume] (Columbia, Tenn.) 1850-1873, 1873-11-14
The Postal Telegraph.
From the Boston Advertiser.

-Four years ago, Mr.. Gardiner G
Hubbard, of this city, In an address *
the Board of Trade, stated that tn,
tariffs of the Western Union telegraph
company were high, arbitrary and If
regular; that a large reduction in rate
could be made without diminution O.
the profits, which would increase the
business without a corresponding in
crease of expenses, and that a still
further reduction of rates and of tariff
could be effected by the adoption of the
postal telegraph. He has advocated his
reform before congress, and obtained ia
vorable reports at the last congress from
committees both of the Senate an6
Housy. Mr.. Orion, in his annual re
port to the stockholders of the Western
Union telegraph company, says these
efforts have induced the company tc
proceed more rapidly with Increasing
the facilities and reducing the rates
than they should otherwise have done
The average rates in 1859 were 81
now, according to this report, they are
81. Offices then, 3, 469 now, $40, 6
reduction of 333 per cent. in the rates
and an increase of so per cent in the
Offices.
Mr.. Hubbard said that large reduc.
tions in the rates could be made without
any diminution of the net profits. This
Mr.. Orion denied, alleging that the ex-
penses increased in proportion to the
business, and that large reduction OF
rates was therefore impossible.
The net profits when the average rate
was ST were 81, 534, 900; at 81 they are
g, S57, 900, with an annual saving to the
public of g, 900, 600 in the reduced rates.
Then 6, $751; messages were annually
transmitted now II, 100000.
Mr.. Orion says no dividends have
been recently paid. This is true, but in
the meantime the company has doubled
its business, added fifty per cent. to its
miles of wire and other properly, has
purchased and now holds nearly twenty
per cent. of it's bonds and 81, 900, 600
stock in other telegraph companies,
amounting in all to $12, 100000. The
COMPANY has thus proved tie truth of
the position assn ed by Mr.. Hubba, d,
that "a large reduction of rates would
be followed here, as it had been abroad,
by an increase of business and net FRO
fits. Mr.. Orion very plain y intimates
that no further considerable reduction
III IdLCS Will DG IlhNCs AAS6S IdGCo d1G
now higher than those of any other
civilized country. The local rates are
For twenty-five miles or less, twenty
five cents for over twenty-five IN les
and under fifty, fifty cents Tor over
fifty and under one hundred, evenly
five cents with an average rate, as Mr..
Orton says, of sixty-one.
The rates abroad are as follows
In Great Britain m .......... e.. ........2 IS cents.
Belgium, Switzerland, Baden and Neither
Greece aud Italy ........................ DO d"
In France from 10 cents tO....... ..... ..... 90
In North Germany from II cents to...........S8 90
In Austria from 10 cents
The average rate in all Europe is 40
cents.
Mr.. Hubbard maintains that the rates
can be still further greatly reduced, and
proposes the following rates $50 miles
or under, 25 cents between $50 and 800
miles, so cents between 500 and 1000
miles, rs cents. By night, 1000 miles
or under, 25 cents, with an average rate
of about As cents.
These rates Mr.. Orion substantially
admits in his report are possible, for he
says that with the duplex apparatus
which they are rapidly Introducing up
on their lines they can perform double
the business on the same wires at a
small extra cost. If the postal system
is adopted the people will realize the
benefit from these great improvements
in reduced rates. IF not, they will all
go into the pockets of the stockholders
of the telegraph company.
Two plans for uniting the telegraph
with the postofice were submitted to
the the last Congress. The postmaster
general desired authority to purchase
and operate all the lines of telegraph.
The other plan authorizes the postmas-
ter-general to contract with the postal
telegraph company to transmit tele-
grams between all offices, to receive
them at all post and telegraph offices,
and deliver them as they are now de-
livered at the rates above named, five
cents of the rate to be paid to the de-
partment for the Office work performed
by it. This plan relieves the depart
ment from all expenses of purchasing,
and operating lines, fixes
the rates at low and reasonable charges,
prevents any Capitalization of power in
the executive, and takes the telegraph
out of the hands of private parties
three gentlemen, it is said, at the annu-
al meeting, represented $50, 200, 900 out
of $40, 100000 of the capital of the COM
pany. This plan was approved by the
committees of the senate and house,
and will be brought before congress
again this winter.
Mr.. Orion says the Western Union
have checked all competition, bought
out all competing lines, with two or
three exceptions, which are doing los
ing business and are in process of being
extinguished that soon the Western
Union telegraph company will be with
out substantial competitor in the con-
duct of a business which is now in its
infancy, although transmitting over r.,
600, 900 messages a year, and collecting,
distributing, aud furnishing the tele-
graph news to the press all over the
country.
We prefer to see the postal system, as
approved by committees of congress, in
augurated, and the country relieved
from the danger of corporation of such
power, controlled by Mr.. Vanderbilt