, 1873-10-11
855.NDo.00


Total expended to July l. 1s73. 214 o81.7o
THO work on tho building las not progressed as rap
idly ~ was expected aud It viii 10 impossible to oo:
lsil Tho delay las been accustomed wholly by Tho In
ability to Esa,curo tho granite within the time required.
BY weh o COS. viii viii u Ds somewhat
All tho work ia being dono in tho most thor
ongh aud substantial mannort and tho building prom
city, Tho total cost for land and building, furnished
and equipped with the machinery and apparatua re-
1t lie 81 date Of he consoHdaion viii the American
Telegraph Company. July !, 1890, the capital Of tho
waa wass" IS il % now h. Tho Company vss s % thea
in possession Of about Is ooo mica Of wira, which
anss M t.t III us ss tssHs sss on s sss
f5ows. Illinois, and in Northern missouri. d
were ss- Owned and controlled BY Other comps.
nics, Although tho Western Union Comnany owned q
which paint connection was Ind with tho Callfcrnia
md Pacific Coast lines, ta business from Chicago to
tho Missouri River was obliged to pass over the lines
qutrcd by lease and purchase the lines Of the Illinois
and Miassstppt COMPANY, which occupied tho states
Company, which occupied Northern Missouri; aud of
to California State Company which occupied the ter
ritory on the Pacific Coaat mud Salt Lake City.
on tho 1at Of July, ls7a tho Western Union Com
peny controlled and orerned than 900 mtlos
es wt5s oprang ss IN
Durlng tho period Of seven yoars in which the Com
pAnyrH lines and W1rCA have been doubled In extent.
aud the capital stock outatanne las been reduced ~
representing Ii tIe aggregate moro tim *15odoo ooO,
0o0o 900 messages IN 1866 to about in 1873.
Tue gEoas receipts during the same porloa aye grown
Increased either in proportion 10 the voun,o of busI
9 to % Tse o # s e
| tho CAUSES which haye produced this result scoms
proper at this time. They aro mainly these:
i. Tho enhanced cost Of labor, Of poles. wire, and
q Tho reduction Of rates rendered necessary by the
tho route Of their linus III tha hrst Instance a,d Inter-
reduction in other sections IN order 70 equaxe rates.
mud thereby remove the tnduconent for computing
lines to extend still further.
At tho Same timo TINT competition Inns been opezat-
Ing to reduce the rates md iuercase the ezpenses, wo
been called upon u oyery session Of Congress- for
tho Inst four ycars to de!und the policy aud manage
meat Of thu Company from charges made BY numbers
9a and In ow y s Ie Tho eea
Of tleso hostile proceedings agaust tho Company Inns
tue tho 10
and reducing tho ratos than tho actual condition OF
tho coinpanys affairs may as first sight to uati
order to satlsfy you Of tho wisdom Of their nctou.
The scale Of ratos xol by competition Oh tho most
boon applied recently to tho whoo country Gust Of tho
Rocky Mountains. 50 that tho indreomept to subscrbo
ho sne II rScs onser oxs
At tho ratos established, i Is impossible for any
| competing company to rcalzo profits, md aole Of
them aro known to bc, and a are eliycd to bo opor-
aung ut loss, Aa result, the e1tenson Of compet
ing inca ccased and It Is not believed that capital
DO found wherowith to naugurate enterprises
in any quarter Tho tlmo In not distant, therefore,
when the Western Union Company will he without .
substantial competitor in the conduct Of business
which, notwithstanding tho enormous growth of tho
Of wires already provided and in progress
the capacity of which te Duplex Apparatus hereiabe
fore spoken Of will 10 abe to double ut Aau coat It ia
believed that tho constantly increasing volume Of
b.sincss, tho growth Of which will be stimulated BY
tue present low and uniform rates. be successfully
bundled with csa annual Investment In con-
hructtou than has heretofore been necessary that
with competition checked aud in process Of being ex
tInguslea, he percentage Of Of . expenses may Do r.
ed at IN early day by tho resumption Of regular di
dends. Respectfully submitted.
WILLIAM OnroN, President