Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-08-09

points 10 New England and points north OF
the Ohio and Potomac river, and east OF the
Mississippi. Also the American Rapid Tel
egrsph Company and Postal Telegraph Gem
pany. No sooner had these companies or
ganiz d than the Western Union Telegraph
Company Immediately entered suit, with
claims OF absolute right to the page patent"
and such litigations are now pending, al
though not as yet pressed 10 trial.
The Mutual Union Telegraph Company
having been subjected to litigations in the
interest OF the Western Union Telegraph
Company, has finally succum5ed, and on
Saturday, February 10, 1888, there was an
alleged lease Of the Mutual Union Tele-
graph Company by the Western Union Tele-
graph Company. The principal opposition
company o remaining which promises any
permanency is being developed by the Balti-
more and Ohio Railroad Company. These
various opposition companies that have eI-
isled from 1866 to the present time, while
fnslly absorbed by the Wss.ern Union TeIe-
graph Company, have been the means Of
greatly reducing the csst Of telegraphic com
municatIon 10 lhe government, the people
and the Press. Notwithstanding this the
Western Union Telegraph Company have
continued 10 show enormous gross and net
earnings, 60 that, although they increased
their capital from S4l 600, 1000 in 1880 to
SSO,OOO,0OO in 1881, the profits OF The busi-
Dess have enabled them, according TO their
statements, TO pay six per cent. on the doubled
capital and accumulate a surplus. This ia
the strongest evidence that the rates can be
very much reduced 10 the people by the con-
struclion Of lines for cash instead of through
construction companIFs issuing large amounts
OF bonds and stock as bonuses.
A BARRIfR TO PROGRESS.
the question Of postal telegraphy has,
during this Interim, from lime 10 lime been
actively disclosed, ana ST various sessions Of
Congress bills have been introduced, long in.
vestigations have been made by Congres sionsl
commiitees, all looking 10 the cheapeuipg cf
The coat OF Geographic communication by
some measure CT legislation. Obi sction has
always been made by the Western Uait n
Telegraph Company to the establish ment Of
a postal telegraph system controlled by the
United States government in correction with
The postC flee service OF the country, and Gun.
dry attempts at the establishment cf such
postal sysiem have been d, feated by the in
terpesition OF agencies and Influences Ut
known to your committee. The laler combi-
nations which have resulted in the maintsin-
ing and extending III monopoly Of the West
ern Union Telegraph Company have given
renewed Interest to The question OF the policy
TO be- iollowsd by Congress. The telegraph
has now become q matter of ABSOLUTE neces-
sity TO the people Of this country, and the
Iumber Ct messages transmitted annually is
increasing in ratio with every year.
QUESTION FOR SERIOUS
Whether such postal system shall be es-
tabiIshed or not, or whether the control OF
th1 telegraph business of the country shall
ne lett IN private hands, subject to such leg
i7tatton os 0sassssa may deem advisable TO
secure reasonable competition WI hUur dan
ger OF con-iant ais ,rpiion on the part OF the
Western Union Telegraph Company, is a
question TO be sell uely considered aside and
apsrt from the fact that the rates could be
largely reduced aud yet the telegraph system
be a source OF grsat revenue 10 the govern.
menl Of the United States.
IL lie believed that there is al the disposal
OF the government or of any corporate n
which snail receive the sympathy and rscog-
milton OF the government methods of trans
hitting ielegrsphic messages that would en-
able a reduction in cost from twenty-five 10
fifty per cent. which, upou lines constructed
upon q cash bass, would still furnish large
returns on the capital so invested, and yet
greatly benefit the people of the %couotry.
This reduction in the cost Of tslsgraphic
service, hoSever, would raise the question as
10 whether a large reduction in such cost
would not TO soDe extent effect the revenues
OF the Postoffice d partment by inducing the
business men OF The country 10 transmit the
larger portion of their business by telegraph
rather thar, as they now do, by mail. These
matters ccu'd only be inteliigently discussed
after The inquiries were Instituted, as sug
geettd by the propos d bill, creating a COM
mission 10 report up the subject at the
next session OF Congress.