The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1874-01-08
Postal Telegraph.

The President Of the Western Union
Telegraph Company, in letter to New
York paper, says: 1.-THE Herald is proba.
bly, correct in assuming that further re-
duction of rates will not be made bv the
companies now doing the telegraph bust.
ness, for some time to come" Tie West
ern Union Company have adopted some
uniformity in their charges within few
years past, and made few other reduc-
tons in their rates, to the great benefit of
the public and the company; but the
public are under no obligations
to the company fer making these
reductions; for President Orion, in
his annual report, informs his stockhold-
ers that they we've forced upon them from
the competition of opposition companies.
They have recently purchased the princi-
pal opposition lines, and have reduced
their rates so low that the remaining COM
panics are unable to make any money
Now that this great monopoly is free
from all fear of competition, they an
nounce that they will make no further
concessions in rates.
That the company are able to make
further reductions is shown by the facts
given in the annual reports. From these
1t appears that the rates have been reduc-
ed nearly one-third in six years, yet the
cost of doing the business is so much less,
in consequence of its great increase, that
the net profits are greater at the lower
than at the higher rates. Mr.. Orion has
so often reiterated the proposition that
the expenses increase in nearly as rapid
q ratio as the business, and, therefore, re-
duction in rates cannot be made, that he
has persuaded himself of its truth, and is
unable to appreciate the force Of the facts
which we have given.
Mr.. Orton truly says that the telegraph
is only in its infancy. The growth of its
business is much more rapid than that of
the express or postoffice, and at the same
ratio of increase the number of kilograms
that will he annually sent ten years hence
is larger than the number of letters
sent when the postage was reduced
to five cents. The. immediate
increase in the correspondence that fol-
lowed upon the use of the five and three
cent postage stamp was enormous, rap
idly increasing from 5O,OOO,OOO to 5O6,.
100000. There will be the same increase
in the telegraphic correspondence if the
same relative reductions in rates are
made, for the same causes would operate
to produce like effects. The people can.
not hope for such reductions from the
Western Union Telegraph Company, be-
cause there is now no reason to induce it
to make them, and because the loss of net
revenues from the great reductions in
rates necessary to popularize the tele-
graph would be greater than the saving
of expenses on each telegram from the
great increase in the business. Such re.
ductions can be made under the postal
telegraph system, for that will save nearly
one-quarter of the present expense, and
would therefore authorize a reduction in
rates of nearly forty per cent, and yet
leave a sufficient profit on the greatly in
creased business.
The Postmaster-G General will ask Con-
gress to purchase all existing lines of tel
egraph, and build the new ones REQUIRED
for the business. The expense of pur-
chasing these lines has been estimated BY
committees Of Congress at from O,O0O,-
600 to $70,0O0,O00. 1t is not likely Con.
gress will feel disposed, in the presen
condition of our finances, to authorize
such an expenditure, especially as the OBJ
ject sought can be accomplished without
any expense to the Government.
The postoffice Department will furnish
the offices and the Postal Telegraph Com
pany will transmit the messages at rates
fixed by Congress-.
II the people desire to have a cheap
telegraph, and to have the news furnished
to the press at low rates, they must sup
port the postal telegraph system, and
urge Congress to pass the bill authorizing
the Postmaster General to contract as he
now contracts for the carriage of the
mails. If, on the other hand, they desire
to perpetuate an over-grown monopoly,
which is every day growing more pow.
erful, then let them continue the present
system, by which single private corpo-
ration controls the telegraphic cores
pondence of nation, and has the power
to give or withhold news to the press, and
to mold public opinion in its own
interest. Such power is too great for
any private company to hold, and should
be in the hands of the people, to be used
only for their benefit.