Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1875-12-04
CHEAP THLEaRAPHY.

ErerSny Rbst makes the following analy-
sis OF the project of cheap telegraphy in
Canada, and draws favorable augury
for the success of the proposed Nation,
oil Telegraph Company; 5i9o2 e.d. r
-" During tho early part of this year
there was good deal talked and writ
ten about cheap telegraphy. Recently
something has been said and written
about new telegraph company---the
National, organized on the Pacific
Coast-and which appears at present to
afford the only hope for lower rates.
The officers of the existing lines, especi-
bally those of the Western Union, ap-
pear to think that the. establishment of
a new Line, such as, the g National"
would only be vast of money, and
that cheaper rates would be unremun-
erative.a But the simple fact that the
Western Union Company pays eight
per cent. dividends on its enormously
watered capital is of itself sufficient
refutation of the association that lower
rates would not pay. For if the West
ern Union lines could be duplicated for
less than one-half of the present capi-
tai it is very clear that messages could
be sent at half the present rates,
and yet yield eight per cent. dividends.
:, In. making comparisons with other
| telegraph systems the Western Union
people are found referring to England,
where reduced rates under Government
management do notappear to have been
a success. 1t is hardly possible, how
ever, to make any comparison between
the telegraph system Of thickly set
tied country like England and o sparse
~ settled country like this. But a very
fair comparison can be made between
our system and that of Canada, where
two companies are in operation-the
Montreal and the Dominion
which, in smaller way, may be COM
paired to our Western Union and At
lantic and Pacific. l shall compare the
Western Union with the Montreal, these
being the representative companies.
s"The Western Union has in round
numbers, 900 miles of poles, with q
capital of say $33 1000, 900, and bonds
to the amount of about 6, 500, 600, in
cluding the real estate bonds-78, 900
miles of poles at at nominal cost of $780,
500, 600. - 1ei ssas -.lee.- a,s.4i.-4
".The Montreal Company has, in
round numbers, 8 900 miles Of poles,
with capital of 81 500, 900 and own as
much real estate in proportion to its
capital as the Western Union, which is
why I include the real estate bonds of
that company in its capital. The Mon
treal, I believe, has more offices in pro-
portion to mileage than the Western
Union. It will thus be seen that the
Montreal operates more than one-tenth
as much milage as the Western Union;
but take ten times the capital of the
! Montreal, and we have the capital Of
what company like the Western Union
should not exceed, namely, SIS 900 900
or not more than thirty eht percentum
of the present capital of that company;
and yet understand that the Montreal
Company s STOCK has also TO some eX-
tent been watered. The Montreal stock
pays regular dividends, which must be
high, as it stands at some forty per cent
UNI premium. ag a2 !. o,
| "But the one feature I desire partic-
ularly to call attention to is the fact
that both the Canadian companies have
uniform rate OF twenty-five cents for
ten words, whether the distance be a
hundred or thousand miles, the only
exception being that like messages from
one Office to another, when the distance
is shorter, can be sent for fifteen cents
The Dominion line was started several
| -,.o.o n x,c n NJ x.,oc fba oanca of n rad1n.
| ton of rates to the present figures, yet
the money which built the new line was
not lost but has earned eight per cent.
| dividends ever since it was fairly in op-
Grafton, and its stock sells at about par.
"Here then is telegraphy cheap
enough to satisfy and serve the public;
and surely what our neighbors on the
north can do can be done here. We
! claim to be ahead of them in enterprise.
Shall we lag behind in SO important a
matter as this when once we know we
are behind?
"The existing companies here have
made fearful blunder in swelling their
capital to proportions above the actual
cost of construction; and SO long as
they coutrol the business the public
must suffer. But there is no reason
why. relief should not be sought, and
that can only be got through new COM
pany starting on basis OF capital not
exceeding the actual cash cost OF con-
struction. II the National or any 9TH
er new company. will build lines on
that basis, aad afterward carry on their
business on strict business principles,
there is every reason to believe that the
undertaking will prove very unremuner-
ative to the stockholders even at mes
sage rates as low as those now charged
by the Canadian lines, and the pubiic
would reap an enormous advantage by
the change.
D- Mrs. Lincoln Is said to have fully
/ -. \ r..~s..~ In~ Ia s,aaladv and IN