The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1884-05-29
POSTAL TELEGRAPH.


view of the Present Telegraph System
Extraordinary Powers of the Western
Union.
WASHINGTON, May 23.-The report OF
the Senate Committee on POst-offices and
Post-roads On the subject of postal tele-
graph has been completed by Senator Hill
1t gives history of the increase of debts
rentals and capital stock of the Western
Union Company and the value of its prop
erty, leased and otherwise, and says the cap
ital stock of SsO. 1000, 600 has arisen to nearly
the whole of it from stocks, dividends and
from purchases made of lines of other com.
panies, which were paid for by issues OF
stock. 1t is evident, the report continues
the prices which the Western Union paid in
its stocks for competing lines were vastly in
excess of either cost or earnings. 1t was
claimed before the committee by the West
ern Union that it had from time to time eX-
pended out of its current earnings consider
able money on construction account; that is
to say, in addition to its lines and equip
ments over and above their maintenance.
This may be true to some extent but cannot
be true to an extent justifying the enormous
stock dividends which the company has
made nor was the appropriation of the cur
rent income to the construction account suf-
ficient to prevent the payment of
munificent cash dividends to share
holders, who received in that way from
1867 to 1888, both inclusive, S34, 900, 600
in addition to stock dividends of $40, S07, 100.
As the process paid by the Western Union
in its own stock do not furnish even an APP
proximate idea of the actual cost of the
lines which it has purchased from other
companies, and as representatives of the
Western Union, which alone possesses the
information, have given no definite or de-
tailed account of the amounts of money it
has itself expended in the construction of
lines, the committee have endeavored to
ascertain what it would now cost TO repro
duce lines equal in every respect to those
which the Western Union have acquired on
all ways. The committee believes it to be a
large estimate to assume that the number of
miles of wire actually used and necessary
to its business Of transmitting kilograms is
$50, 900. The. committee believe also that
the average cost of the wire, in
Guiding poles, construction and i'll
struments for telegraphing would not
exceed seventy dollars per mile, which
would make the total cost S24, 500, 600. The
exact excess of capitalization of the Western
Union beyond the actual cost of its lines,
and beyond what it would now cost to re-
produce similar lines cannot be determined.
That it is enormous is entirely plain and
In reference TO inquiry whether
this excess of capitalization. arising from
stock dividends and from purchases of other
lines at inflated prices paid in stock, has
operated injuriously in the way of increaS.
ing the charges of the Western Union for
the transmission of kilograms, the com.
mittee deem it sufficient to say their own
conclusions correspond with the opinions of
the country that its effect in that direction
cannot be matter of doubt, and that it has
been very great. The swollen capitalization
Of the Western Union has created at one
and the same time cover, an inducement,
and in some senses a necessity for excessive
charges for kilograms. SO long and so far
as the public has been made to believe the
nominal capital was a real one, it has ten
led to induce acquieScence in excessive
charges, while the exposure of the actual
nature of the nominal capital does not di
minish the pressure of the motives which
lmpel the manager of the company to keeE
up the charges which are essential to the
of the present dividends upon
n.
he purpose of relieving the country of the
burden of the charges for kilograms, which
are too high, of making their charges more
equal as between different localities and
lifferent classes of kilograms, and of guard.
ng against the mischief and dangers of
having the control Of the telegraph business
If the country in the hands of a pri.
rate company which enjoys practical mo-
lOpOly, the committee have reported the ac- |
,Ompanying bill. The report says the con.
titutiOnal right of the Government to |
establish postal telegraph is undoubted |
md that there are obvious and sufficient |
answers to the objection that such line will |
operate injuriOusly upon private telegraphs. |
The report asserts that the passage of the |
postal telegraph bill will reduce the average |
harge per telegram from thirty-nine cents |
o twenty-five cents Immediately and to /
wenty cents in five years and secure uni |
Orm charges irrespective of the amount OF |
business in different places for kilograms to |
newspapers and to commercial news aSsO
cations, and continues as follows: Under |
he present telegraphic system the DOS
Utility of species of censorship which is
ne of the most alarming dangers which |
menace the country arises i'll two dis
met ways, each of which requires sep
rate consideration. The first is the power
which telegraph companies themselves have
n manipulating news for sinister Dur.
OSeS,; and second is the same power DOS
eSSed by the Associated Press and Other
imllar associations, not themselves owning
elegraph lines, but making special com.
acts for the transmission of kilograms over
mes owned and managed by others. twill
ppear that the power of the telegraph COM
any in this respect will be entirely taken
way by the pending bill, and that the power
t the Associated Press and similar aSSOcia-
Onf will be greatly reduced. For the pur-
Ose, the report says, of giving fabulous for.
Ines to its inside managers and their
riendS the Western Union need not send
ntrue marked quotations. 1t has only
D give true quotations a single hour,
r less than that, in advance to
hose whom it means to favor anG
he work is effectually accomplished. Nc
UGH power should be allowed to exist in
his country. If no past abuses can be
hown to have occurred, or even if believed
here have been, in fact, no abuses of it,
le temptation to abuse it is enormous, and
ill sooner or later prove irresistible. The
i'll will efTectually take the power away
'Om the Western Union or any other PR.
ate telegraph company by the low rates
hich it secures TO everybody, and by still
'wer rates which ii secures to commercial
SsociatiOns. Competition in furnishing
and financial news to all points
nd places is not to be expected under this
III, but it will be sufficient if it nsures. as il
sure to do, competition in furnishing
lch news to more important places whereby
e field for profitable tampering with pub
: intelligence will be so narrow that the
mptation will no longer constitute SEN
BILE danger.
A Well-known New Yorker Dead.
NEW YORK, May 23.-While sitting upon
lounge in his Office in the Mills Building.