Savannah morning news. [volume] (Savannah) 1868-1887, 1882-10-23
Postal TeIegraphy.
Chicago Tribune.


1t is said that Postmaster General Howe
intends to devote considerable space in his
annual report to the subject of postal tele-
grsphy, and will make detailed statement
showing the great superiority o. the British
system over the American system. The
former is owned and managed by the gov
ernment, and the latter practically controlled
by one giant corporation. English ex-
perience has proved that an improved SER
vice is rendered at reduced cost to the
public by applying to telegraphic CORE
spondence the same principles which govern
correspondence by mail. Business progress
certainly demands equal facilities and the
minimum cost OF service In both systems of
communication.
The popular reception of Mr.. Howe's sug
gestions on this subject will depend largely
upon the tendency he shall develop as to the
means to be adopted for the establishment
Of a government system of telegraphy. 1t is
believed that Jay Gould looks fondIv and
confidently to the sale of the Western Union
Telegraph COmpany's plants, franchises.
patents and appurtenances to the govern
ment as the ultimate realization of
the huge tock-jobbing schemes in
capital stock of the Corporation
is now $50, ,OOO, 600, and Mr.. Gould is said to
entertain the hope that the government NAV
be induced to pay 500, 900, 600 for the in
vestment which the capital stock nominalIv
represents. Ii such a sale to the govern
ment upon such basis be undertaken It
will be the greatest job of the century. and
it will meet with popular protest powerful
enough to create havoc in Congressional
aud official circles.
English experience not only teaches the
advantages of a postal telegraph system.
but also furnishes a warning against the ac.
quirement by purchase Of existing lines at
extravagsnt prices. The English Govern
ment was outrageously swindled in this
way. 1t bought up telegraph lines at a capi.
taliZation more or less fictitious, and then
discovered that it was loaded down with
rotten poles, defective wires, obsolete an
plisnces, and burdensome contracts which
greatly impeded the achievement of cheap
rates and efficient service. It would be su.
preme folly for the American Government
TO repeat this error. The capital stock of
the Western Union Company represents
abundant watering, the payment of immense
bonuses for crushing out competition. the
absorption OF blackmailing schemes. the
losses of bad management in rival comma
nies, and the manipulations that have been
made in the stock by various parties In con
troll. It has been roughly estimated that
$25, ,000, 900 would duplicate the actual plant
represented by the $50, ,O00. 900 of Western
Union capital stock, and the advantages of
substantial construction would make the
smaller investment more valuable than the
larger. There is no claim upon the govern
ment to assume all the past losses. all the
bad investments, and all the cost of buvinp
off competition which the Western Union
capitalization represents in the interest of
monopoly.
II the system of postal telegraphy shall
ever be adopted for this country it will not
be to enable Jay Gould and his associates to
realize on fictitious stock, nor to ado. to the
bulk of the national debt, nor to increase
the expenses of the government, but to
furnish the people with low and uniform
charge for telegraph service which shall
make the system self-sustaining, COM
prehensive and expeditions. This object
cannot be secured by paying at the
start from three. to four times as
much for telegraph facilities as they
would cost to establish anew, and the
country is not prepared to tolerate new
era Of bribery and corruption which would
be necessarily Incidental to any nepo-
tiation of job involving the expenditure of
from $50, ,0O0, 900 to 500, ,0OO, 600 of govern
ment money. When the Post Office Depart
ment went into the parcel delivery business
it did not buy out the express Companies.
nor is 1t any more incumbent on the Gov
ernment TO buy out the telegraph Companies
at their own price: In order to establish a
system OF postal telegraphy.