Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1883-09-07

GOVERN MENT TELEGRAPH.
Mr.. Norvin Green, President Of the
Western Union Telegraph Company,
testified before the Senate sub Commit.
tee in New York City to some interest
ing and important facts. He stated that
the stock of the company consists of
500. 900 shares, with a face value of 500
each, or a total Of $50. 600. 600, and that
he considers the plant and business
owned and controlled by the Western
Union to be worth fully $50, 600, 900.
He further stated that the number Of
messages delivered in 1882 was IS, OOO,.
900, and for the present year the total
would approximate 43. 200. 600. In sup
port of his theory as to the value of the
Western Union franchise he said that
the receipts for 1883 would reach &c..
900, 900 and that the running expenses
would be sll 900. 600, thus leaving
49, 200. 900 for construction and repair
account and the 6 per cent dividend
which is annually declared.
1t thus appears, according to the CAL
culations Of the New York Herald, that
the public pays the Western Union sl9.-
100000 in . single year for the trans.
mission Of 10000 600 messages, or A
cents per message, N which the COM
pany makes a profit of 10 per cent on the
face value of it's stock. The enormous
business and its handsome profits explain
the frequent starting Of rival companies
there are ever now three new ones in
the field-and the remorseless determin-
alton of the Western Union to swallow
them up as fast as they appear. The
business is far too profitable to be relin.
pushed, and, having practically a mo-
nopoly, Western Union can fix its own
tariff and maintain its present rate Of
profit indefinitely. Competition would,
of course, materially reduce the margin.
The facts as given by Mr.. Green with
such clearness are very encouraging for
the establishment of . Government pos.
tai telegraph system. 1t is conceded
that the entire plant of the Western
Union can be duplicated for $50, 600. 600
therefore the Government could deliver
5000, 600 messages at an expense
to the public of $l4, OOO, 600, or 80
cents per message. 1t could do all this
while paying its employees better wages
than the Western Union is willing to do,
and yet realize 3 per cent on its invest
ment. The people of the United States
would therefore save s., 900, 900 per an
num-, have a cheaper service and be for
ever delivered from the dangers of tele
graph monopoly or . disruption Of bust
ness by strikes.
We believe the plan Of q Government
telegraph is not altogether Democratic
as it would place that much more patron
age in the hands of the Administration
and render Capitalization easier; still, on
the ground of general public policy, we
are in favor of it.
We believe the press Of the United
States, or . majority Of them, favor it.
The Pittsburg Dispatch rightly says
s'The Government postal telegraph ide'
is clearly one that will not down." Thu
New Haven Palladium remarks tina
what is wanted is - competition tha'
can neither be bought off nor consoli
dated out of existence" The New
Hampshire Legislature has adopted
joint resolution favoring a Government
line; the Georgia Legislature will, it il
said, do the same thing; the Richmond
Chamber Of Commerce is considering Z
resolution to the same effect, and in othel
parts of the country public bodies arr
moving. The Pittsburg Gazette says:
If it is proper for the Government t.
avail itself of the railway train, thu
steamer and the ocean steamer IN carry
ing the mails to all parts of the country
why should it not take advantage OF tn
telegraph linef If steam may be EN-
ployed a. An agency why not electricity
Speed il ono Of the most essential thing
in the Transmission Of the mails. ano
since the great bulk Of the business inter
course Of the country can be conducted
by telegraph, why should that agent mol
be made subservient to the purposes o
the P~ostofice Department? As the loco
motive excels the horse in swiftness, sc
the electric current outstrips the engine
In engrafting the telegraph upon tn
postal system there il no necessity fol
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