Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1886-07-09
rhe Government and the Telegraph.

"Shall the government own the tele-
graph 2" is one of the most important
questions pressing for an answer in this
county, at the present time. The ques
ton is ably discussed III the current mum
Der of the Norm american RCriCW by
the Hon W. A. Phillips, a wellknOwn
eX-member of Congress, and author of a
recent volume on political economy, ent
tied Labor, Land and Law" which is re
ceiving wide and marked attention, just
now, from the most intelligent readers of
the country Mr.. Phillips's services, also,
in connection with the congressional com
mittees on public works. law, currency
and banking have given him great IA
miliarty with all such topics as the one
of public telegraphy
Telegraphing, as he holds, is merely a
new and improved form of carrying in
formation, public and private, from one
place to another. Essentially it is the
same thing as the postal service. 1t is for
the interest and benefit of the whole peo-
pie. Why. then, should the government
have permitted it to fall into the hands of
private companies and monopolies such,
however. is the fact, although the first
telegraphic line in the United states was
constructed, owned and operated by the
government, which now erects and oper-
ates an extensive military telegraphic sys-
tenn But the latter is not paying insti-
tuition, and the corporations are perfectly
willing that the public should have 1t.
In Europe, tclegraphy is almost eXclu-
sively under the management OF the va
rious governments. This is no reason
why it should be so in America, except
that Europe happens to have the justice
and common sense of the matter i'll her
favor. Here. remote or thinly settled
parts of the country are deprived of tele-
graphic communication, because there is
little or no money in such service for pr.
vate enterprise. and, still worse, telegraph
and news companies control the transmits
sion Of news, and have thus established a
virtual censorship over it.
In Britain the telegraph was at first a
monopoly; but nearly twenty years ago
lin 1868 Parliament, being convinced that
teleg1aphy properly belonged to the pos
tai system, passed an act providing that
the "plant and trade" should he negotiat-
Cd for and paid in three per cent consols.
-
some twenty companies, on the basis of
compensating them for twenty years
profits. This value amounted to some
S31 600 600, and -, O0O,0 GOO was deducted for
depreciation of the plant"
At first the rate was fixed at one shill-
ing for twenty words to all distances, but
was reduced rs fast as possible, to the eN-
tent of some 81 100000 Il year. In 1871,
after the government had furnished an
enormous Increase of new facilities "the
net revenue was much more than the
charge for capital invested" that is, the
| interest. For the fiscal year ending IN
| 1871 the net earnings of the system were
about l,5l7 600. In 1873 the earnings had
been reduced to about $1S3,00O Yet in
| 1871 less than ten million messages were
sent, md in 1873 nearly twenty millions.
In the United States teltgraphy is {
vast monopoly. In 1868 the stock capital
of the Western Union was 100000. II
1854 it had grown to $S0,0O0,0OO. The in
crease is mostly fictitious. 1t pays : PEE
cent dividends on deluge of water.
In order to do this, it now requires ne
| profit of more than six millions and a half
The company charges about 40 cents, a
an average, for each telegram and make
nearly hundred per cent over the cost
| Mr.. Phillips insists that no monopol!
should be permitted to handle a strict,
ana really postal business in this way
| He insists, too, that governments alon
can enforce the complete sanctity of tel
egrams, which is as necessary as that OF
letters. SO the United States must owl
the telegraphs.