The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-23
CHEAP TELLGRAPHY.

To THE EDITOR OF THE HERALp:--
In the HERALD of this day you give the above head
ing To report Of meeting Of the Atlantic and Pacific
Telegraph Company, at which "a sweeping reduction
OF rates determined upou'
Does this mean that the proposed reduced rates are
based upon sir calculation Of the business war to
yield TAR percen - 10 the shareholders. that
the reduced be lasting? Ii SO, then 1t may
be that will ENJOY cheap tecgraphy Or is the cause
OF these proposed reduced rates to be truced spirit
OF oppositony If this latter the moving cause we
may possibly have for few months lower rates at tho
expense Of the Shareholders and the usual OF the
opposition will be amalgamaton OF the rival com.
panies and the consequent raising OF the rates
what they What the experience OF the RI.
val companies for the past? 1t is well known the
Western Union has with difficulty paid per cent
per annum, and the Atlantic and Pacific has ye. pay
It's first dividend. There be but two reasons for
this. One the business done at their not
been sufficient, or the manage has been defective
In either how is reduction Of rates affect the
shareholders? Can II be expected that they are so
full Of philanthropy that they will pay out OF their
pockets Tor tho telegraph business OF their beloved
fellow countrymen?
Cheap rates Tor opposition sake means ian inter.
neclne war TIL tho weaker goes TO the wall and the
usual result will lollow-namey, stronger monopoly
and higher rates
do not deny that fair competition is good for the
public, provided tho public we'll served ard the
sharehp ders receive lair dividends Ii the snare
holders have not received fair dividends in the past at
their old rates, how can 1t be expected that reduced
rates can be maintainedY 1t Is said lower rates will
bring increase OF business That true; but will
not business require Increase OF out
lay to do the busincssy There limit 10 the business
that can be done over telegraph line. 1t IS well
known that during the business hours Of the day all
fnn.rr
Impossible 10 do more business which reduced rates
might cause, unless by putting up wircs IL
amounts this that past rates with the wires worked
up ~ their greatest capacity did not remuneraie the
shareholders, and an increase the lower
must bring IN less profits TO the Shareholders
In fact was II not Tor the scientific improvements
namely, the duplex and quadrupex telegraph systems
which have been used tor few year past by the
Western Union, the rates would have remained the
same they five years ago; the natural In
crease oil business would have necessitated
large outlay for new lines The Atlantic ana Pacific
quadruplex system, and, it Is said has the
control o an automatic system, by which latter sys-
tenn 1t is claimed that one line be made do the
services Of ten lines by the Morse SYSTEM oil four
lines by the quadruDlex system
Here is the key 10 cheap lelegraphy- namcly the
increase In the carrying capacity OF line by the
oil quadruplex and automatic systems These the
only means by which chcaD teegraphy can be
obtained, aud the telegraph company, which controls
the best OF these systems must be able TO 90 the SER
cheaper and more expcdIousy Tor the public aud
with greater profits ~ its shareholders.
IL " very evident that reduced rates Tor opposition
The business telegraph company does at
rates below cost the more money will the odcrs
lose, the sooner Will the company become insolveut
and then lis antagonist will have u clear field and the
pubic vii! be subject to powerful monopoly II tho
managers OF the telegraph companies will pay more
attention 10 the use OF improved systems OF tclcgraphy
which Will increase the carrying capacity OF their
lines, instead OF nghtlDg like Du,lsp and ''bears' in
Wall street ihc public Will not have long for
low rates, nor will shareholders wait long Tor good
dividends from their Increased business Opposition
without such improvements may give US reduced rates
Tor short time, but VIII surely end In higher rates
and monopoly. ANrI-MONUPuLY.
NEW YORK Feb 90 1877