The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1883-03-01
The Telegraph Monopoly.

anu labor alike Ill one common ueStfuc-
tion. That is my opinion.
The Telegraph Monopoly.
The lease, or rather absorption, Of
the Mutual Union Telegraph Company
by Jay Gould and his associates in the
Western Union Company ought not to
excite surprise in any quarters, since
it has been the practice Of so-called
companies to run sooner or later, like
small snakes. into the mouth Of the
older one---with this difference, how
ever, that the competitors remain in
the capacious NAV of the devourer. So,
while we may not be justified in saying
that the Mutual Union was organized
and equipped as a temptation to the
Western Union in the way of absorp-
tion. still it was clear enough that this
would he the ultimate destiny of the
competitor.
New telegraph companies are s',s-
pected Mt the very outset. They have
dangerous habit of running parallel
to older lines, or within such close
hailing distance that competition is i'm
possible; for there can be no competi-
tion where combination can be
made at any time or business can
he pooled. The public, therefore,
looks upon each new telegraph line
either rs M invitation to the older line
to take it upon the compulsory ground
OF blackmail, or rs an unfortunate
upon the highway liable to be gathered
in ut any moment. These experiences
have been very frequent in the history
OF the Western Union. It has been
kept very busy absorbing competitors.
usually little and cheap concerns, easy
Of digestion, and it has developed such
capacities in this direction that the es-
tablishing of rivals to it is an exceeding
~ profitable business. It's last absorp-
ton was its biggest. The Mutual Union
was strong company, we'll equipped
and manned and managed, and If it had
not Welded to the tempter it could in
time have been in position where it
| could have broken the monopoly Of the
older concern and given the public the
| benefit Of cheap rates. The considera-
tion. however. was evidently too much
for it. and it went the way Of the others
at swinging price to load down the
already inundated and burdened capital
of the Western Union. with fifteen
millions more. 1t was gigantic pool,
and when the banks give way somebody
will suffer, but it is safe to say JAY
/ Gould will not be found among the
bruised lambs.
There are some dangers ahead Of the
monopoly. 1t substantially has the
field to itself, but it is very top-heavy.
A twenty-million concern carrying a
hunlred-million-weight cannot be called
well-balanced or ballasted. It is very
liable to tcpple over and come down
with a crash. There will come time
when people will object to pay tolls
that may enable it to declare dividends
on fictitious capital representing five
times its real value. More than this, II
will require unusual courage for spccu-
lators or blackmailers to construct any
more rival lines. The public has been
defrau,led SO often that it will not only
regard any new lines with suspicion,
hut it will have nothing to do Will
them. 1t has grown tired Of fostering
and nourishing young lines and bring
ing them up to that condition where
they are fit for the monopoly market
The Western Union may have the field
to itself, therefore, for time. but il
will find there is limit to the taxation
of business for the gains Of spectators
1t may absorb every other line, but it onl,
adds to the weight which may topple j,
over 1t has the opportunity to make
itself the great system Of intercommu
nication for the transaction Of bushes.
and the spread of general intelligence
at cheap rate, and that will be its sal
vation; hut constant absorption of com
peting lines, adding millions upon mill
! ions Of water to its capital, and a taxa
ton of the people to pay dividend,
upon il, is not very sure or safe route
, to that salvation. If it does not upse
itself Of its own weight, it will ut leas
rouse public sentiment to that pitcl
that the Government will step IN ant
. interfere to protect the country from
unrighteous exactions, and either tax,
the concern or build line which vii
afford relief, as has been done in Eu
rope, where the people have cheal
rates. One Of the surest predictions
that may be made for the near future il
cheap telegraphy 1t has got to come
because it is demanded by the business
and intelligence of the country, backe,
by the Government, and against tina
triple force even Jay Gould's hug,
monopoly cannot long make headway
If it does not yield, all the worse for it
Chicago Tribune.