The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-07-16

81. 5S5, 900, and about $257, 800 for batteries,
or 4 total for poles wires instruments and
batteries of $11 ,056 665. With the exception
of one or two of the larger cities, that COM
pany does not own the buildings occupied as
Offices, and as all the above estimates are ex-
travagantly high real estate should hardly
be taken into consideration; but, allowing
the enormous sum of So 600, 900 for that pur-
pose, $500, 600 for patents, which in five
years will run out finally, and So 943, 335 for
corporation gall you have but $40, 900, ,OG0 as
the entire cost of the Western Union proper
ties and in reality the figures should be
100000. 1t must also be remembered
that these properties have deprecated in
value by reason of age, and hence the actual
value is much less than the first sum stated
above. The gross receipts of the Western
Union Telegraph Company for the last fiscal
year were $17 IA. 1852; expenses, 50 966, ,005.
81; profits, ST. lis, 070-a sum sufficient to pay
dividends, on correct capitalization, of over
30 per cent. But as President Green
states that the expenses were but So per
cent. of the gross revenues, leaving an
amount sufficient to pay dividends at the
rate OF AZ per cent, it is quite evident that
the estimates given were too high, and that
the Western Union company's property
could be duplicated at a much smaller sum
than S2o000,O00 His report shows an in
crease of so per cent. in the gross revenues in
five years, and over 130 per cent. in the net
pIOHtS uuTlUS tne same period, 0OCWltn-
standing the steady and very considerable
reduction in rates. 1t further states that
the same rate of increase for the next five
years Will produce gross revenues of $31, ,500,
600, and net profits of SIG, 600 900 per annum.
But as the growth of the company has been
in an increasing ratio, each five years show
ing larger per centage of increase than the
preceding five years, it may reasonably be
expected that there will be a still greater ratio
OF growth and even larger figures for the year
ending in 1887 than those already mentioned,
enormous as they may appear. He also says
that the gross receipts for the ensuing year
are estimated at SIS, 100000, and the net
profits at 100000. This amount is sutfi-
cient to pay 40 per cent. on the $40, 600, 900
capital stock"
1t will be seen by the foregoing figures that
the telegraph companies can afford to pay
their employees larger wages than are re-
ceived by any other class of skilled laborers.
Reasoning from these facts, the Brotherhood,
prominent member of which has supplied
them, reasons that the demands of the tele-
graphers are extremely moderate The last
report of the Postmaster-general shows that
the sum of SO, ,4S6, 10 was paid to 3,57o rail-
way postal clerks, route agents. mail-route
messengers ana local agents, or an average of
$8l per month for every man en-
ployed in that department The average
salary for commercial operators throughout
the country is not above $50 per month In
Boston and some OF the Eastern cities this
figure is the amount paid for new men,
strictly first-class, and to bring the average
salary of commercial operators up to that Of
the government employees just named would
increase the Western Union Telegraph Com
pany's expenses less than $4,000 per annum,
or, in other words an amount that would in
crease their expenses from 58 per cent of
their receipts to 60 per cent, leaving them
40 per cent. of the gross revenues as clear
profit, instead of 40 per cent, as was the case
during the past fiscal year. The Brotherhood
takes the position that If, in many respects,
unskilled labor can command greater remu-
neration for its services than can be secured
by skilled labor the time has arrived when
operators should begin 10 study the causes
that have brought about this state of affairs,
and, if possible, provide an adequate remedy.