Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1883-01-31
A Postal Telegraph.

In 1869 the English lines OF Telegraph |
were taken by the government on the theory |
that the transmission of intelligence is a
governmental function, that the electric |
wires were an improved means to that end,
and that in connection with the already ex'
isting postal system the usefulness oil the
telegraph could be very largely extended
not only without any considerable increase
for service but at a very substantial reduction
in the charges for telegraphing Practice
has sustained the theory. The increase In
the number of offices has more than trebled
under government management. Against
six and one.half million messages sent in
1860, thirty.one and one.half million were
transmitted in 1882 aud the number OF
lines and wires has increased proportionately'
Instead of high rate according to distance
under private management, uniform rate
of about twenty five cents for twenty words
to any part of the kingdom was established
by government. The financial results for
the first ten years were the payment of
operating expenses, payment of the ex
a surplus of ten million dollars applied to
pay interest on the bonds issued for the pur
chase of the lines. Postal telegraphy in
Great Britain has been a financial and
moral success. The moral and financial as.
poets of the business in this country under
private management appear to be some
what as follows In 1858 the Western Union
company had capital of a few hundred
thousand dollars. BY the issue of Sls,0O0,-
900 in stock dividends and 100000 for
the purchase of competing lines the capital
had been swollen in 1866 to 800 100000
BY the purchase of rival companies and, ii
is alleged, by the issue Of stock many fold
the cost of the purchase, the capital of the
Western Union in 1880 had risen to over
Si1,000000, on which, by charges for tele-
graphing, the public were expected to pay
dividends. At that time the America
Union company, controlled by Jay Could
began the construction of system of com
peting lines which the event proved wa
simply stock obbing operation, designed
to force the Western Union to buy at a great
advance and which at the proper time for
its own interest sold out to that company
Thus the American Union was absorbed
and at about the same the Atlantic aud Pa
cifc company. The actual cost Of each was
three million dollars, and yet the America
Union was put in at Sl5,000,000 aud the At
lantc and Pacific at SS,400000. In order
to absorb in dividends its immense earnings
levied upon the public, under plausitle
pretext a still further issue of Sl5,000,00O
in stock was male, bringing the capital OF
the now consolidated Western Union up to
SS0,000,000 1t is claimed that there has
never been paid by stockholders Sl6000,-
600 since the beginning OF the Western Union
company and that its present immense cap
ital is chiefly water The rates of the com
pany are made to admit of dividend upon
this enormous fictitious capital and upon a
bonded debt of several millions. The
earnings of the company for 1882 were over
seven million dollars-about nine per cent
of its inflated capital, or fifty per cent Of
capital actually paid in. In other words,
upon this representation of the facts which
we believe is not disputed, about three
fourths of the sums charged by the W stern
Union company for transmitting messages is
sheer extortion. There may be other mo-
nopolies equally fragrant, but this relates to
the transmission of intelligence 1t is tn
monopoly of natural force which has been
applied to the transmission Of intelligence,
just as the post horse WAS aud steam
is now. By its exclusive possession in the
hands of private company, rates are
charged which are practically prohibitory
to the great mass of the people and to the
less wealthy portion of the business com
munities. The welfare of the people is the
especial concern of the government. The
high rates charged by express companies for
carrying small parcels induced congress q
few years ago to introduce into the postal
system provision for carrying merchan-
disc. So now some Of the ablest statesmen
of the country, influenced by the oppression
of stock spectators who have got hold OF
the telegraph, have taken decided stand
in favor of postal telegraph. In the list
of the advocates of this measure are men
like the present postmastergeneral, Senators
Plat of Connecticut, Sherman of Ohio and
Eimunds of Vermont. Instead of buying
out the bloated corporations now in posses
sion of the business Mr.. Edmunds is in ia
vor of the United States building its OWL
lines, and expresses his intention, if no one
anticipates his action, at the next session o.
congress to propose the initiation of pos
tai telegraph for the United States. Hi
proposition will be simply to order the
postmastergeneral to buy the poles, wir'
and machines, to set up the lines along thu
great post routes of the country in all direc
tions and as time goes on and economy viii
warrant it, extend the wires to every ham
let in the country. 1t ought to be done, ant
the indications are that it will be done
within very few years.
VERMONT correspondence of Springfield
Republican, "People are laughing in thei
sleeves over Hiram Atkins's vain attemp
to convert the unterrifed democracy in thi
state to Butlerism. Hiram always had al