Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1884-01-18
SENATOR HILLS SPEECH
In support OF the Postal Telegraph
Bill Attracting wide Attention.

Bill Attracting wide Attention.
Senator Hills speech in support Of the
Postal Telegraph bill has attracted more at
tention than any exposition yet furnished
here upon this subject. Some Of the figures
contained in it are very interesting. Re.
ferrirg to the British telegraph system, he
sets forth the rec sons which led to its trans
fer from private to public control, describ
ing legislative blunder by reason OF which
the government were made TO pay G7,0e0,.
90, when only f3,00V,0U0 had been esti.
mated as necessary for the purchase OF pri-
yate rights, and showed that, notwithstand.
rg this, the investment had proved
profitable one.
Since the date of the transfer OF the tele-
graph to the state-January 90, lS70-tbe
leneth of the line had been increased from
les v . ',"% ,uiles AMI that OF wire
from 4S, 800 miles to l3l, ,43l miles. The
number of offices had grown from Ass TO
5,747, end the number of messages from
about 6OOO, 600 to nearly $1,000, 900.
He treated the history Of the telegraph
in this country, referring TO the absorp'
ton of small companies into one general
system, ending in 1866 in tbs consolidation
Of the Western Union and the American,
by reason of which, he said, the Western
Union stood without an important rival in
the telegraph business OF the country with
a capital stock Of $1l 100000 and q total
nominal investment of $47, 81, $50, OF which
s22, AIS 600 represented nothing but pure
water and $96l5,000 property almost
worthless. The remaining $l5, Isl, $50 was
an exsggerstion Of probably 100 per cent.
of the cost of the plant which it repre-
sented.
Since that time. and by processes similar
TO those above described, the stock OF the
Western Union Company had been in
creased from sal, 100000 to $50, 900, 900, at
which figure it now stands. OF this in
crease Is, 52G, 500 represented stock divi.
depd declared two years ago, and the great.
pr pnIt Of the TsWaip5ar 'hP nnrrhaSa OF
lines OF the various competing companies
which have started up from time TO time.
The Bakers end brokers, the Insulated,
the Franklin, the Pacific and Atlantic, the
Southern and Atlantic. the Atlantic and
Pacific, the American Union, and the Mu.
tual Union have successiyely gone to swell
tie enormous aggregation OF consolidated
capital on which the people who send tele-
grams are Obliged to pay dividends. Other
competing lines are now starting, but they
will be short-lived, no matter how able
their promoters may be to carry them on.
v here eombinationis is possible competition
is impossible, and, in the nature Of things,
capitalists will not carry their schemes be-
yOnd the point at which they become un'
profitable.
1t is doubtful whether any legislation on
the subject of postal telegraphy will be had
this winter, but the debate on the subject
will enlighten public sentiment on the
n, after considerably. The strongest point
q. ade by Senator Hill in bis argument was
Il at improvements in telegraphy were fast
reaching that point where it would be pos
sible to transmit messages by wire as by
stean. Whenever this is reached the
Postoffice Department will be stripped OF
its most important business, and the same
ressOns which now keep the mails under
government control will then keep the
y Tres from private ownership.