New-York tribune., 1873-01-18

Simensicns which nd no paracIin the expeTience OF
any other one nsSS sss az s sss states Of RSrpe
In outset the teegrarhc seryice OF tne NnSVv
semSsnss. which werS sradasib orSsnscd under char
tiers granted BY tho several states pus % ~ nS T s W
dated undcr the one charter of tho Western Union Cou
Psny since iSe eight Ster ~ sS s,ISh asr,Ss tho
continent. COugrss, on the Othcr hahd except To aW
whereby Government communication with the raoiio
Coast And the military stations Of remote tern
10 ss any acts ef Incorporation legisate In favor
any COMPANY As distinct nom the rSst, and has
the policy o. leaving TIE CREATION and control o tele
rrSphic companies exclusively 90 the states
Any rcNVS OF the experience ~ the telegraph In the
Unee states would, furthermore, be imperfect whlch
omitted to can attention 70 the circumstances that,
while the raroad system 0l the country has grown up
under the stimulus Of grants by Congress OF money ana
of millions Of acres OF is public lands supeladded TO
subscriptions. hOuptieS. snd exemptions innumeraole
NON States counties and municipalities tee teleSap
sss 1as psSS SH S'' FST '1sS %S aSd ''S 10 the ts
donsnoa msde by CoaSreSs IN 'nS money yalne
Of all tho privlcCcs since granted % the SOFerhnet
s,rSn Srs Sion military and postroads to cross the
wilderness of the plains 90 preempt land Tor ectal o
cupatlou ghi granted to every eitzen-it capable
~ dlreci prcf that through work performed for the
Government and never paid for ana 10 services rem,
connagraton the coast survey aud science generally
al which payment was never asked or expected
ne Western Union Tee graph Company alone has made
u both Government and the public compensation
Which, say the least has been in the nature OF four
fold equivalent.
TAXATION OF IHE TELEGRAPH IN THE UNITED STATES.
Again while in all other countries the capital fran
chse aud business Of the telegraph has been carefully
exempted from taxation, in the United States on the
other hand, rule Of exactly opposite character has
been recognized Thus from 1865 TO 1871 the several
Telegraph Companies OF the United States paid directly
the Federal Government in the form Of internal reye
addition 10 State and local taxes. and system
national customs taxes materials OF construction
aud operation which last In the wire alouethe
leading
cost siTicO per cent ton gold bass beyond what IS
Britain, Belgium, Switzerland, or Hollands And
although at the present time the national internal Teye
nue. taxes on the receipts OF Telegraph Companies have
been repealed the aggregate OF local. and customs taxes
pany equivalent to ten per cent o tI onenha OF us
total annual gross receipts for the transaction OF 9qs
ness. Aud yet we fnd the Federal Government, which
IN part uphOds and usthe the continuance OF such tax
alton, assuming through ITS representative the position
companics Because you do not transact your business
cheaper ought deprive you OF the privilege oi DONG
DEVELOPMENT SINCE 1866.
Since the final consolidation OF 1850 The telegraph fac
ies OF United states have been increased 10y the
construction OF tEan $1,000 miles OF additional
line miles of wire and by the opening Of more
than 5000 stations, at which messages be trans
lited ana delivered. The expenditure rendered neces-
sary ug h Development has been about tcetee millions
of dolrs OF which the Western Union Company has paid
about rn6 millions IN addition TO the cOnttiDnons OF
amour g. ,Jout two and half miliOns-the increase
durin- ga gear eudng june 30 1872 under tae au,plces
nue 1000 miles OF wire, and 6}l Offices.
REDUCTION RATES
During the time referred Co. moreover, not single
year has ELAPSED which there has not been marked
reduction OF rates. that at Ae present time the ave-
rage SUN charged the transmission of messages
not in onehaf that required in 1866 for the
performance OF similar service.
Tire assertion made by the PostmasterGenera 10 MS
recent report that the receipt message OF the
Western Union Company "has been increased eiegea
cents or nearly 20 per cent since 1851
tie undOubted reductions OF tariff between important
points," although fading some warrant IN the puDca-
tOn OF imperfect data IN 1862 Is nevertheless entirely
incOeC and deceptive-the average annual tariff on al
messages excluding press and market reports, aud all
railway and company service since 1858 having Deeh as
1859. so92: 1870. so77; 1871 so7s; 1872 sO628
As contribution 10 economic science, 10 may be fur
iner sd st Sne avTS e6gg IN & at bea Mnea 'egSpnG 9d
tie public Is less than the average cost for doing equya-
lent work 1866 although since that period there has
been marked advance in the wages of employees in
almost every department. OF service, and very great
other materials Thus, for example at the
present time to transport telegraph poles frem the up
per lakes 20 Chicago than II cost four years ago for tue
poles delivered at Chicago. Toe size ana weight and
Consequently the of the great portion of the wire
now used Or telegraph construction considerably
greater gold basis than It was in 1856 and the years
Attention is also asked to the fact that in nearly
every ~ lance IA when tue western Union company
has reduction of rates, t has been done with
fun knowledge of the fact that such reduction would
he acoomp1ned by an absolute decrease net
Ihu when, 1869, the present system was adopted Of
esiimlting teieTaphic distances by an . air line,
rather Than 10y the route actually trayered resulting in
average reduction Of all rates OF about 10 per cent
tse loss net earnings during the succeeding seven
months was Sl92y5 ana again, wheh III loO III adul-
ton 10 other reductions, system was adopted OF allow
ia mesises 70 be sent al niRht ON an II Lnes dn Tue one
half less than those charged by day. the net receipts OF
the Company declined in The succeeding twelve months
from sf8l 20 81 $685. thus entailing loss III SIN
gle year Of half million OF dollars That sucn
10 the Company. as well to the public. is
not 10 be disputed; but the fact that the Western
Union Company been willing. deliberately and III
repeated instances 10 submit 70 a very large ana lmme-
iate loss with the expectation OF utare gam through
tngry use Of
auet upon reduced charges. shows an amount OF prac
teal wisdom IN dealing WIN the p9oc W nserest, i.r
which those iuirusted with the Government Ot the
tinted states have met every proposition the reduc
non of taxes which only the exlgences
could furnish argument for continuance Inc iuf-
her circumstance should almost overlooked that in
the memorial addressed the Senate OF the United
states date OF February 1872 the Western Union
Company state that wOrK has been IN progress io some
rsIes, additional TO those already effected
TELEGRAPH STOCK AN INVESTMENT.
As further contribution To the recent history OF the
American telegraph it should be stated that during the
period of development under consideration from 1896
10 1874 the amount paid in dividends to stockholders in
the telegraph companies Of the United States has been
about millions less than ten per cent on their
aggregate stock capital estimated at S6O0OO
Iii be said That the actual value OF the franchises ana
property the several companies is less than the par
value OF their stock attention asked to the crcum-
stance that the Government of Great Britain three
years ago paid than thirty seven millions In gold
Tor system Of telegraphs in that country, operating
2gT4O miles of line and 1900 offices, compared with
present aggregate in the United States OF $4,000 miles OF
line and 6sOO Offices Ore million OF dollars per SBnum
again would be per cen-the rate contemplated IN
l. less by millions than the sum actually expended
by the telegraph companies OF the United States indie
pendeny in connection with railroads. during the
last years for Improvements and construction And
II be replied TO- thus aSo iass she ia amount mnro1e Ge
ents and construction represents pronts equally
y1 tS9 dds@S sooe and Raa Rsucent answer that
DC profit that up to the present tme mas accrued
wholly the public and not to the stockholders and that
a