The Washington times., 1894-05-11
GOVERNMENT TELEGRAPHy.

Unless something unforeseen happens advo-
Gates of the bills for governmental ownership
and control OF the telegraph will be given a
hearing this morning at 1880 before the
House Committee on Post Offices and Post
Roads. The first hearing on the subject was
given on Friday last and continued on Satur-
day.
At to-day's meeting it is expected that Hon.
Marion Butler, of North Carolina. president
of the National Farmers Alliance and Indus
trial Union. will lie the first speaker in sup
port of the general principle of governmental
control. Hon. Isador Rayner, OF Maryland.
who introduced in the House the bill prepared
by the International Typographical Union
committee, will follow, and Hon. James G..
Mcguire. of California, will occupy the re-
mainder of the time
The telegraph is naturally an adjunct of
the postal service. 1t is only quicker means
for the transmission Of intelligence among
the people. There is no more reason why it
should be controlled by private corporation
for its own profit than that the carrying of
the mails should be intrusted to private
hands.
Just half a century ago this month the first
telegraph line in the world began operations.
1t was constructed between this city and Bal
timore. and the entire cost was met by an
appropriation by Congress. By this govern
mental aid the utility and future possibilities
OF the telegraph were demonstrated. 1t was
operated as public function until 1S47. and
the rates for its use were fixed by officials of
the government. In the years between 1874
and 1647 a number of other lines were estab-
lished in various sections OF the country and
some OF them were quite successful and paid
handsomely on the investment, but the gov
eminent line between Washington and Bal
timore never paid operating expenses, and
thus it came to pass that tho control was
surrendered to private parties.
In taking this STEP however, Congress did
not in anyway waive the right to control the
telegraph as public function. Nearly every
Postmaster General, from Cave Johnson. who
was in Office at the time of the surrender and
earnestly protested against it, down to John
Wanamaker, of the last administration. made
strenuous efforts to induce Congress to re-
sumo some sort OF control, either by actual
ownership and operation or by leasing the
lines for postal telegraph purposes.
What is known as the national telegraph
act became law June "a, 1866, and by it
the Postmaster General was vested with au-
thority to arbitrarily tx the rates to be paid
for all government business, and it also pro-
x-tIaI fbnfo or nm ftar G
five years Congress might assume control of
any or all the lines by paying their appraised
value. These terms were accepted by all the
companies then in existence, and the law is
still on the statute books
Shortly after the passage Of the act of 1866
several of the leading companies were consol-
idated, and the process of absorption pro-
gressed so rapidly that in few years one
company controlled practically the entire tele-
graphic business Of the country and its COM
munications with foreign nations. Many at
tempts at competition have been made, but
either crushed or swallowed up by the great
anaconda.
From very small beginnings the company
which now controls the telegraphic business
OF this country has grown to be one of the
most colossal monopolies the world has ever
known. Starting with a capitalization of
s24o, 900 in 1852, it has grown to s10O, ,OO0, 900
in 1898. with a bonded Indebtedness of nearly
S15 900 900 more, on which the people must
pay dividends. Last year its receipts were.
in round numbers, nearly So, 900, the
profits on which were nearly s7,5OO, 600.
The present agitation for governmental
control OF the telegraph is based on broader
lines and has behind it a more substantial
support than any similar movement hereto
fore. Bills have been in almost every Con-
eress since 1869 for postal telegraphy, and
they have been indorsed by state legislatures,