The New York herald., 1877-02-27
CHEAP TELEGRAPHY.


ACTION.
The action Of tho managing board Of the Atlantic and
Pacific Telegraph Company yesterday determines doa-
nitely the construction Of 10000 miles Of lines
and immediate reduction OF rates upon the lines
operated by the company. The reduction decided
upon Is considerable one, tending toward desirable
uniformity in the rates OF teiegraphc charges. and Is
apparently well systcmatzed. IL is not sweeping as
was at first contemplated but is long step In tho
direction desired by the public In view OF the prob
able effect OF this step upon the OF the Western
Union Telegraph Company President Orton called
upon, in order to ascertain the position which the
Western Union Intended to take In the which
seems imminent A full statement of the attitude
Of the company ut the present uncturc given BY
Mr. Orton, aud follows the report OF the directors
meeting which is published below
TRUSTEES
full board meeting OF the directors Of the Atlantic
and Pacific Telegraph Company held at their
Broadway Office yesterday morning. and the commit
tee appointed to consider the question OF the reduction
OF rates and to prepare schedule submitted their
port The report OF the committee adopted and
the schedule incorporated following order to go
into effect on and after March l, 1877
THE REDUCED RArK
The uniform rate OF twenty five cents, heretofore in
use between all stations Of tho Atlantic and Pacific
Telegraph Company throughout New England, will be
States OF New York, Pennsylvania New Jersey. Della
ware and Maryland and intcrchangcably between all
Engla nd except such us more than 800 miles dis
tant IRON each other whero the rate Will be thirty
cents THOMAS 7. ECKERT President
dna approval was given to the order providing for
the construction OF 10 900 miles OF lines, and I'm
mediate arrangements ordered to DO made for
the supply OF material and the carrying the work.
On the completion of the important business before
m ed tn nj mo
President
ATTITUDE OF THE WESTERN UNION.
President Oron, in answer to the inquiry made by
HERALD representative 10 the ground which tho
Western Union intended to take, gave what may be
considered definite and authoritative statement
Its Importance and interest at the present uncture may
be readily perceived
srequires something more than boastlul prospectus
Mere procIamations on paper at,ackinga rival orsan
against tho comet An organized tcegrapnic
system is necessary, which amount OF
money on hand can purchase. This system
we have. The gentlemen who propose to parallel or,
IN sense to duplicate tho lines OF The Western Union
Telegraph Company seem 10 ignore tho essential ee-
ment OF time. The Western Union company Ia
twenty five years old, and II has been growing every
year since its foundation. have been connected
with the company for eleven years, during which its
has increased moro than thrcefold
ITs PRESENT RESOURCES.
'lts carrying capacity has been more than quad
ruped and It's rate OF charges has been reduced hty
two per cent The Western Union Company has made
more and greater reductions OF rates the average
without competition, than all th, have been made
IN consequence OF competition. When came into the
business the rate between New York and San Fran.
cisco 81 So and between New York and points in
oregon and British Columbia II was from 50 to So The
present maximum ratio on the Western Union lines is
81 50 and the successive reductions TO bring
TO this figure have been made voluntarily by the West
ern Union Company, no one of them having been pro-
motcd by the acts OF competitors. Now. how much
tbo'We Union Company can be damaged by what
OF fscitics II is possible Tor any other
company<o provide during the current year can only
be ascortancd by experience. II will not be Unfair
however, to judge the future by the past Tho gross
receipts OF the Western Union Company for tho caen
dar year, 1876 were more than $40, 000, 900. Tho
profits we're nearly So 500, ,o00 and these items
larger Than in any year since the corporation into
existence.
THE coMPAxy's GROWTH
'srhe fact must not be overlooked that the Western
extent than It's rival We purchased from the manu-.
facurers last year than 5000 mics of wire all
OF which has been erected and We acquired control by
pui chase and lease of about 600 miles In short
tho growth OF the Western Union is constantly greater
than that Of It's rivals, that tho relative difference
between Its facilities and theirs has been greater every
year since the beginning. How soon Is II likely to be
beaten this II maintains, is determine.
ton, this rate OF GROWTH
"A FRUITFUL ILLUSTRATION
81 have sometimes used this illustration in speaking
OF the threats OF our rivals to duplicate our property
person or firm has been in the business Tor
twenty-five years, and has hand every variety Of
tree, shrub and flower Of all ages, between year
very much alarmed at threats that his business to
be destroyed by a new man who had got unlimited
prairie land and means 10 provide himself with seed
There would always be twenty-five years between
two concerns have always believed that the tcc-
graphic business of this country could be proltaby
carried on at lower rates.
COMPREHENSIVE REDUCTION RECOMMENDED.
ut IS two years since, IN one OF my reports 10 our
directors. expressed the opinion that II would be
practicable to have not more than four rates
live cents, fifty cents, scventy-hve cents and ST.
throughout the nitcd States As the volume of bus,
us na vvla
transacted before assuming such proportions, 1t was
necessary 70 increase the carrying capacity OF tho
lines. IL Is tho policy of the estcrn Union to mako
this increase gradually, by making an appropriation
each year OF portion Of the pronts accruing 1t is
tho proceeds OF these increased iactcs that enables
TO get new dollar in place Of the dollar drawn from
u.s. either by competition reduction OF rates. by
both. For example, our company Is now dong bust
ness at about 600 moro stations than had year
ago. Now, suppose that tho receipts OF these new
stations average $40 week each that will bring in
$4,000 week IN the aggregate, or S3l2, 900 year
NEW LINES BUILT.
Mr.. Orton said that no estimate could be made with
out very full data Of The time required to build The
TO- 900 miles of competitive lines projected by the At
lantic and Pacific Company There are only few
manufacturers IN the country In the first place who
could contract to supply any large quantity There
no large stocks on hand, and there rs no company
which could possibly manufacture TO- 900 miles
IN ono season. A large addition might no doubt. be
made TO the working facilities OF tho company
was prepared to say that the Western Union would
year as the Atlantic and Pacic He ,hosgnt that The
long start OF The former in point OF time and available
facilities, among which OF the most important was
the direct communication Afforded between distant
points, would give the Western Union decisive ad-
vantage In the competitive which was likely to
onsue
REDUCTION RATES.
He could not say definitely whether the westcr rn
Union would meet the reduction OF made yescr-
day by the Atlantic aud Pacific by corresponding al
teraton In Its schedule. 1t woud be necessary first TO
examine closely the lines which disad co us
competition to be ieared whether
tho reduction would seriously affect the business and
profits Of the company The change of rates might be
comparatively imperative so lar as the companys in
tcrest was concerned IL true that a forced rc-
ducton had bocn made twice before but whether tho
same step would be nccessitated nc could not mt
present say. No categorical answer such que stion
could be given, but could be mado That
company will defend It's own interest and Is prepared
to carry expensive war; II necessary In maintc
nance OF its rIghtfu position.
BEARING FORGED LETTERS.
On the 23d OF September Elijah X. Bangs of No.