The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1880-01-22
cheap TeIesraphy.

That cheap telegraphy must come
aud come speedily in this progressive
age, has been clear 10 all intelligent
observers of the rapid strides the coun
try is making in every channel Of L.
gitimate growth, excepting only the
managers of the Western Union Tele-
graph Company. 1t has blindly and
doggedly assumed that, because il has
strangled or bought of all competitors
in the past, it can continue TO do so IN
definitely. 1t has thus increased its
capital by the purchase of opposihon
lines aud by watering its shares, until
lt has about reached the point where
cheap telegrsphy Involves the destruc-
tion of its dividends. Al its property
employed to-day in its business could
be replaced for little If any more than
ten millions; but it's paying interest or
dividends on eight times that amount,
and must tax the business OF the coun-
try exorbitantly to sustain its monop-
oily.
Had the Western Union adopted the
earnest advice of this journal year or
two ago, and reduced the pnce of tele.
graphy fifty per cent, II could have
maintained the felt, and the natural
increase in patronage would haye gwen
a fair return even on ITS largely fien-
tious capital; but it trusted to its power
and its large reserve Of profits 10 pre-
vent the establishment OF anything like
general competing line. When Il
was disastrously defeated in Congress,
after most desperate struggle to con-
troll Congressional ec.ion, it should have
appreciated the admonition and bowed
to the inevitable; but it blindly PER
sisted in its extortiuns until It has-loes-
the sympathy of all business circles aud
finally it is confronted with competi-
tor that 1t can neither buy out nor COM
pete with. The declaration Of Congress.
that the railway telegraph lines should
be opened to private business, plainly
meant that the Western Union must
give way either to reasonable rates, de-
structive competition or the control OF
telegraphy by the general government.
1t was simply notice that telegraphy
must be cheapened here as II is IN
Europe, and that il competition fails
to effect il the government must.
The logical result of the refusal Of
the Western Union to proffer cheap
telegrapby is now manifest IN the prac-
tically established success of the Amefi-
can Union Company. It was regarded
at first as mere speculative venture OF
Mr.. Gould; but. while no one doubts
that Mr.. Gould would sell out or com
pete as best promoted his own interests.
he has now made il so complete in ita
ramifications that it is worth more Is
him than the Western Union can sford
to pay for it. 1t is understood that he
has finally negotiated the American
Union into all the lines OF the fennsyl-
vania railroad company, snd by the
facilities of the new company viii be
equal if not superior 10 the facilities Of
the Western Union; and as the cep
ital invested will not be more than one
tenth the capital Of the present West
ern Union monopoly, 1t is no difficult
task TO calculate the result. There will
be cheap telegraphy and the Western
Union will be compelled TO accept half
its present rates for dividend busi-
ness, instead of securing the whole telc-
graphy of the country indefinitely, BY
doing it SO cheaply as TO preclude COM
petition. Philadelphia Times.