Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1874-01-08

The President off the Western Union
Telegraph Company, in letter to New
York paper. saws: 1.-THE Herald is proba-
blv correct in assuming that further re
duction of rates will not be made by the
companies now doing the telegraph bust
ness, for some time TO come" The West
ern Union Company have adopted some
uniformity in their charges within few
wears past, and made a 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 for making these reductions
for President orion, in his annual report,
informs his stockholders that they were
forced upon them from the competition
of opposing companies. They have re
Gently purchased the principal opposition
lines, and have reduced their rates so low
that the remaining companies are unable
to make any money. Now that this great
MONOPOLY is free from all fear of competi-
ton, they announce 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
it appears that the rates have been re-
duced 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 a
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 pOst-office, and at the
same ratio of increase the number of
kilograms that will be 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, rapidly
increasing from 100000 to 500, 100000.
There will be the same increase in the
Geographic correspondence if the same
relative reductions in rates are made, for
the same causes would operate to pro-
duce like effects. The people cannot
hope for such reductions from the West
ern Union Telegraph Company, because
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-
auctions can be made under the postal
telegraph system, for that will save nearly
one-quarter of the present expense, and
wouldEtherefore authorize reduction in
rates of nearly forty per cent, and yet
leave sufficient profit on the greatly in
creased business.
The Postmaster 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 $4,000
600 to $40, 100000. It is not likely Con
gress will feel disposed, in the present
condition Of our finances, to authorize
such an expenditure, especially as the OBJ
lect sought can be accomplished without
any expense to the Government.
The Postoffice Department will furnish
the offices, and the Postal Telegraph Com
pdIy Will GIduSLulL tuS ucSSdSeS DIT fdtts
fixed by Congress.
If the people desire to have 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 per-
petuate an overgrown monopoly, which
is every day growing more powerful, then
let them continue the present system, by
which a single private corporation con.
trolls the telegraphic correspondence of a
nation, and has the power to give or with
hold news to the press, and to mold pub
lie opinion in its own interest. Such q
power is too great for any private com
pany to hold, and should be in the hands
of the people, to be used only for thei1
benefit.