New-York tribune., 1873-01-18


oenonstrsi.on hAd failed 10 convince w."
THE GOVERNMENT AND THE TELEGRAPH.
CORRESPONDENCE BETWEEN THE HON. JOSEPH
MEDILL AND THE PRESIDENT OF THE WEST
ERN UNION TELEGRAPH COMPANY.
MAYORS OFFICE, CHICAGO, Dec. II, 1872.
The Hon WILLIAM ORroN. Ncic- York
Ny DEAR SIR: Believe me that my long delay IN nan an
have been trying spare enough 10 make such repy
the Importance OF the SUBJECT ana my ISH Ieslo W
Whether what have to say will be connected or dis:
;onted Will depend upon the breaks OF the circuit oI
thought and interruptions during its cOmpOsluoh' i
have not the aid Of senogapher 10 Tapldy lot oOWn
other engagements and duties. with tins preface pro
ceed TO reply TO your very lucid and able letter arguing
Yonf information that favor the taking Of the tee-
graph by Government is correct TO TINS extent tha1
deem il only "a question OF time when u must assume
mat control II the Government should take the tee-
sTapb why not the railways r. you ask reply, IL will
have 10 do that or later 1t may be generation
hence before done but eventually the patience ana
endurance Of the people with railway monopoly and ex.
torton w wear ont and the Government will be ordered
by them regulate the charges Of these corporations or
tSe capital invested in the railroads is 200 times greater
than that invested in the telegraph will be proper
tiOnateiy costly 10 purchase and dhcult 10 man
age them; therefore, the public will submit to mpo-
sition and punder long time before venurng TO Pur.
chase them aud undertake their management; and IL
may he done In your day or mine But the assump
ton Of the telegraph would be but small matter IN
point Of cost month or SIX weeks surplus revenue
devoted to the buying OF bonds, would pay the ex-
uqnz q :
the whole Umon-so that the question OF cost Is nor
very serious natter and there legal distractions
tempate the ACQUISITION Of the telegraph by the Gov
erInent, after stated day, was accepted 10y your COM
To my mind all the points YOU make against Govern
ment control of the telegraph apply with equal or
mails II il is proper and expedient for the Government
10 manage the latter II IS equally so 70 manage the
of IN the OF the mails than OF the telegraph Inc
Express Companies can urge all your reasons ana many
m
business OF their hands and depvng them OF large
profts The enormous mail business which now costs
the people less than SIS 100000 per annum left 10 the
uncontrolled discretion OF the Express companies
would be reduced three-fOurths in quantity by nigh
doubled. Tue smallest package, weighing less than
newspaper by express costs It's sender fifty times
as nc s the Government charges for the same weight
of newspaper other mailable matter for the same
postal service fan into the bands Of private enter
prses," Express Companies, who would manage II
with eye single to stockholders profit We should then
have as many rates of postage ana as ones rs
We now have on express paekages' AFTER thelr ex-
perience OF the blessings Ot cneap ana UNIFORM GVNern
nen postal service, the people would not tolerate tue
oppression Of private monopoly tor single month You
refer TO the comparatively Iew persons wIo use use tae ~.
wires against taxing the many IN order 10
furnish cheap teeaphy 10 that few But is II safe 70
that, II the Government shoulu gTealy Ieuuce
existing tolls, serious deficiency would result 10 oe
made good out Of the National Treasury THINK not.
The increase business would keep pace with reduction
of charges, until exceedingly low rates were reached
Zen men would nav cent word for messages of all
lengths. some OF them containing perhaps hundred
have urgent business, account Of the high tariff
imposed. But lower the price sufficiently and the num-
her OF messages and offered would he limited only
by the capacity OF the wires 10 transmit them This is
random guess work or mere opinioh OF hine out Is
decrease of tolls caused an Immense expansion
of business You ana remember Wheh the government
charged twenty-five cents postage on letter; and we
also remember how few were sent When 1t was pro
posed to reduce the postage 10 ten cents there was LOUD
would uure only TO the benefit OF merchants bankers
and SPECTATORS aud cause great dehcleney OF
ls f4Y
ing. But the reduction actually increased the revenue
and diminished the annual deficiency Again and again
Iongres cut down the postal tariff until was but three
cents letter for any distance one OF TWO cents on
oirculaT and onefourth OF cent on newspaper To a
the reported deficiency beng caused Dy the 1dnKeu
and free matter aud subsidies paid 70 ocean steamers
Ike causes produce like effects, as the Government
would seek no profit, but merely reeompense approx
mating 10 cost might safely Tsze existing tolls 10 rates
as comparatively cheap as postage on letters. and
thus, pOpularize this lightning dissemnator OF
sneef OF thoughess persons that the telegraph is pat
ronzed on, by bankers brokers' produce dealers stock
as truth Of political economy, that the
consumption Of whatever is desirable .,c is a.,
thing cheap enough and there limit TO the demand
ior It. Teeaphng would furnish NO exception TO the
rule What you state concerning the ll-paNhg cnar-
acter Of telegraph stock rather surprises me- 1 was
Iaboring under me common IMPRESSION that not 10 per
stock subscribed and pald AZ cdsh py Tue eock
holders but that 80 per cent OF its present STOCK ana
the prodnct OF undivided earnings ana issues
OF watered" shares; that, as matter OF iact the
itiOn the cash dividends and cost OF maintenance
and operation. NJ mistaken IN this opinion, the
whole pubic are also mistaken. But as the company
as never published Official statement, setting forth
Ibe actual facts pnblc will he apt adhere 70 Its
Ires4ut opinion until they do. You say 1t has not
bsep considered heretofore one Of the functions OF
,r (,oyerument 10 make necessary cheap" have
"A notable exception III the postal ser
c No., also remark, " on the hand IL has been
policy for 30 years 10 make many products
T,6clally dear" Is there not slight iDaccuracy In
tJ,s safcinentf As recOlec the policy OF the GOV
Iloeu IRON 1876 1861, was just the reverse OF that
making products artfcay dear and the annual repeal
i Foea al taxes 1861 cODVlnces e that II s lot the
,r,at policy OF the Government W make products aIt
i,rSIly dear by maintaining high taxes and imports.
Non lay down a proposition as iubuahehtal' ia regard
la me duty OF the Government, IN leaving the supply OF
,r H. trivate competitIOn j fally subscribe 10 the
,er pilneIple; but regard the telegraph system as
IN excciaOu You admit that " the Telegraph company
rks only Il money" which is tbe soe oDJect VI
al yecuUiaTy corporations. . ..,oou,, q -.
Ine present telegraph system ~ pfdcucaDy mo
toy Competition, such az VIII Denenl lne Pcope, ~
t o tbe question. The Western Union Gas tsLADeneu
,,..,f teyOnd the reach OF competition IL car @ .Iush
III sr OF control all rivals, aud exact lie own terne
tr,Io the public; and this II does. The supposed COM
,.tlliou of the other companies IL little moro tnas
iuyfb 40 far as cbeapeDing tolls is concerned no
no,olv OF business similar in eject 10 corner on
siIck or product and places the puDDo al the mercy
of Inc CORPORATION enjoying IT, The rule Oh huch COZ
Italon is 10 perform the Least service Tor tlo bOst
Ispey because profit and BOt pubhc goOd s De hct1-
atlng motive Of share 0Whert aDu uaseIs ~ tpo
ordinary &yoc Of life competition regulates pTices
s4 reduces sbsD 10 The proper relative se' ana GOV