Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-02-07
The Telegraph Monopoly.

Tie public mind seems to be coming TO the
conclusion that the government Is the only
power strong enough TO free this country from
the grasp of the telegraph monopoly lately
formed by combination or all the principal
companies In the land. This combination con-
trolls nearly all the wires In the country and all
the b 8 inventions for improved and rapid tel
egraphy. opposition created and owned by
private enterprise has failed to secure any per-
manent benefit to the people, for the reason
that the sole object OF the organizers OF such
opposition-to make money-has been most
easily achieved by either selling out to or CON-
bining with the Western Union company. The
people no longer have any confidence 10 the
ability OF competing lines built up by pri-
yate capital to resist the tempting offers
OF the monopoly, and hence, with almost
one accord, they turn TO the government
for relief The short-lyed competition
created by the Atlantic and Pacific.
and subsequently b. the American Union. de-
aonstrated the fact that rates are much lower
VIXEN two lines exist than when one company
monopollzeS telegraph facilities. 1t Is lust as
natural for monOpolles TO exact high prices as
for water TO run down hill and nobody is inno-
cent enough to believe that the Western Union
Is sincere In Its pretence that it has swallowed
up opposing lines mainly to cut down Its ex-
penSeS that IL may reduce telegraph tolls In
TIE progress OF construction OF the American
MON lines wherever and whenever It reached
point enabling IL to compete with the Western
MON. rates from and to that point were iuarne-
diately reduced but, as rule, at -comDet-
Ing points Western Union rates were increased
10 compensate the company for the enforced
reduction elsewhere. The well-authenticated
saying that competition is the life OF trade ap-
plies with as much force to telegraphlc commu-
nicatiOn as TO any other kind OF busl-
ness. But 1t Is equally true that there
are two sides to the question OF estab.
fishing government system OF telegraph. 1t
would very largely increase the already extern
siYe government patronage by adding depart
ment that could, un.ieT shrewd control. be
made 10 exert powerful political influence Il
would put an end TO the telegraph as busi-
ness enterprise In this country because no
BODY could afford 10 set up competition against
the government. In otner words Il would
paralyZe q branch OF business that without
government interference. must eventually be
come great industry, employing millions OF
eapitai and thousands Of persons. IL this great
and growing country telegTapaic Competition
through private enterprise ana capital IS fneV-
liable In time, but people who suffer from pres
ent monopoly are not willing to wait for time
and circumstances 70 develop that opposition.
House last Monday is a proper measure. be.
cause It proposes TO inquire into both
sides. indeed all sides ani all phases
OF this Important question before
committing the government to any
sort OF policy. This bill provides for board OF
appraisers, two TO be appointed by the govern.
ment. two by the telegraph corporation and
these four to select fifth, whose duty &c shall
be TO examine into the affairs OF the existing
telegraph corporation and ascertain the cash
value OF It's wires aud other property. This
board Is 70 have power to send for persons and
papers, and TO examine persons who can give
Information In regard TO the value OF the tele-
graph property. cost OF erecting aud repairing
wires ard OF operating the same. under oath.
The President Is required TO request from gov
ernmentS operating lines OF postal teIegraphy
1uli information as 20 the COST the benefits and
disadvantages and such other facts as would be
useful In aiding this government to determine
Inc otst policy for Ii TO adopt. Ir Is contem-
plated 10 have all this information ready 10
submit 10 Congress at the next session. when
That body NAV act with all the lights att sinable
before II. Under the act OF Congress OF 1850 10
aid Ia the construction OF telegraph lines. ETC.,
telegraph companies are compelled to sell their
property 10 The government at the appraised
value, whenever the government may deter
mine TO purchase and enter upon the postal
telegraph system. Therefore, no obstacle to
SUCH purchase aAd transfer of the property
can arise, but the government can nave the
option OF buying existing lines or OF erecting
new ones, as Congress might see hit to direct.
However, as the construction OF lines by the
government would so depreciate the value of
existing lines as 10 make 1t but poor property,
because competition against postal telegraph
system could not live. the government has the
advantage from every point.