, 1873-02-11

IS GOVERNMENT MONOPOLY Cheap
Tho Nation holds that tIero are only four
cAutoa that would enable tho Government to
materially put down tho ratoa Of tolcgraphine,
and statos them to bo: l. Freedom from, TAXA
tion; 2. Exemption from lawsuits md claims
for damages; .. Control Of Post Office faoiitios
aud, 4. Monopoly Of tho business.
Tho Nation disroses Of tho first three Of those
apparent methods for reducing tho rates Of
talographing untcr the Government control. II
tho linos should be FREQ from taxation, it would
only bo transfer Of tho burden. Tho taxep
which tho telegraph companies now pny, d.
rcctly or indirectly, represent 30 much dovcrn-
mcnt royonuo. To take away this reyonuo
coming from tho telegraph lines would
simply bc to exact it from tho people at large.
III other words, tho Hnmo reycnuo would bo de-
n'andod, not from the people alono who uHe tho
telegraph, but in equal proportions from those
who make no use OF it. Government immunity
from actiona for damages could not diminish tho
loss that might onsuo from error or negligence.
The difference IL, tint tho loss would fall upon
an Innocent party instead of tho guilty or neg
ligent party. Tho people who uao the telegraph
will probably be unanimous in preferring to pay
higher rate rathor than incur tho risk Of I,
sorioua loss in every message which they COM
init to other hands. Tho saving that
would result from tho. uBo Of tho Post
Office rooms is estimated to be yory
small. Mr. orton testifleB that thooxpenditurce
for rent, light, md fuel amounted to only per
cent Of tho expenses Of tho Western Union Toll
egra2h Company during the last yoar. Tho bulk
OF these would hayo to bo born by tho Govern
mont bocauae ovory largo Telegraph station do
mands separate accommodations. In unimpor-
tant stations, these expenses arc already divided
with the railroads, the express companies, and
other business occupancy Of tho aame premises.
The Nation ia not 80 Buro, however, that tho
saving to tho people, by reason Of the monopoly
which tho Government would enjoy, would not
DO important, aud, for tho present, loavos tho
question opon for discussion. In support of
tho theory TINT great saving would rosult from,
this advantage, it is oitod that tho history OF
competing lines is PRODUCTION in ratoH at first. D.
consequent loss Of money, and a final agroe-
mcnt to mako mp losHes on both sdcs by over
charging. Tho advantage OF q monopoly ia in-
stanccd by tho fact That, whilo tho message
could be sent from tho Atlantic to tho Pacific
until very recently for loss than $5, any COM
pany would agree to transmit the same message
for 81 II 1t could DO guaranteed monopoly Of
the telegraph business Of. tile country. This is
probably truo. But the Nation doos not stop
to inquire why it is true. Tho roason IL ei1uply
because Nh absolute monopoly would enablo tho
company to build Or operate lines only whero they
would DO profitable. They would not bo forcot
as they arc nov, to establish connections whore
losacs absorb tho profits of other linos. Tho
Government would not posscss tlia advantage
III joining tho telegraph to tho mail Horyics,
it would undertake to establish routes all over
tie continent, md to mako tho former u much
OF IN accommodation to tho whole people as the
latter. The Government could not tnke tho
same advantages of monopoly tint private in
diYi.nals would enjoy. Congress- would, after
ita custom, yiold to tho domauds of districts.
Telegraph faclltioa would enter into trade with
protective dutles. 4 member from Arkansas or
Florida would tratte bis Influence with d mo,nber
from Pennsylvania, by which tho formor would
Voto for m increase Of tho tarifr on |
coal aud the latter for IN Increase OF tho to]o-
graph appropriation, 80 as to oxtoud tho aoryico
whoro 1t would not pay. 30 would oyory roason |
why private monopoly could afford to ohoapon
ratea fail In tho oaso Of Government monopoly.
We would not daso to trust to tho good faith OF
private individuals who should layo IN also.
luto monopoly; tho good faith OF Government
monopoly could only bo secured by I'll inoroaso |
Of taxation largely in excess of tho docreaao Of
rates. Such o plan would forco thoso who |
make 10 use OF tho telegraph pay moro for itu
maintenance thnn those who uno it.
II wo wore at prosont engaged In showing tho
objections to the Government control of tho
telegraph, instead Of simply rofutlng tho caimB
TINT aro urged in favor OF 1t, no should add that
any aud MI advantages that may DO olaimod on
tho part Of the dovornmont for ohoaponing tho
ratos OF tolegraphtug would DO sot aside by tho
opporsuultIos and temptations for corruption |