The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-11-07
ENORMOUS PROFITS.
BUSINESS OF THE WESTERN
UNION TELEGRAPH CON-
PANY.
The Dividends 1t Has Paid On
Watered Stock.

During the twcnty-seven years from
1867 to 1893 inclusive, the miles of
telegraph wire grew from 1921 in the
former year to 9,201 in the later
year, the number of telegraph mes
SageS increased from less than $780,
600 in 1867 to more than $4,000, 600 in
1893. In 1867 the average toll per mes
sages was 81 ,O47 and the average profit
per message was $0.413. In 1893 the
average toll per message was $0.317
and the average profit per message
was SOL the average profit being a
little more than one-third of the toll
charged. The fact that the telegraph
company gets an average profit of 1l.3
cents on every message carried by it
ought to be surprising, but the gross
and net receipts are astounding. Mr..
n. A. Dunning who has made special
inquiry into the matter of the West
ern Union Telegraph Company de.
clares:
The capital stock of the COMPANY
in 1851 was 1888, 100. 1t declared stock
| dividends between 1858 and lS66-eight
years-of 1910, l47, and added only
$l,931, $50 for new lines, making its
capital stock July l, 1866, $40, l33, 800,
| nine-tenths of which was water. One
year later it doubled it's capital by
making it $40, Sos, 800.
THE largest dividend up to 1874 in
any one year was Ala per cent-a bret
| ty good showing when we remem be r
that the immense capital stock on
which it was declared was almos
pure water. AT one time it distrib-
uted $lO,0OO.O,O of stock to it's share
holders, and in 1878 it distributed $lO,-
COO 900 OF stock TO it's shareh olders, in
1878 it distributed as dividends $4,000
600, and in 1881 $19000,COO.
IAN Investment of LOCO in 1858 in
Western Union stock would have re-
celyed in about thirty years more than
$4,000 in stock dividends. 1t has
realized $l0O, OoO,O 900 in net profits in
| twenty-five years. Its watered stock
is over 100000. 900, while Mr.. Wanna
maker declares its entire plant could
be duplicated for $4,000, COO Its CAPT.
tai stock is now $l50,OOO, OOO."
1t is in view Of these facts that the
Peoples party declares that 1.-The
telegraph like the post-of1ice being a
necessity for the transmission of
news, should be owned and operated
by the government in the interest of
the people," AS the affair6 of the
great telegraph monopoly have been
conducted in the past the enormous
fortunes that have been earned there
by, are so much money taken away
from the people. All the tolls paid to
the Western Union upon all the
multifarous transactions of the bust
ness world, are in the end taken out of
what otherwise would have been paid
to the farmers and other producers. or
are recovered by those who paw for
the sending of the messages, in the
enhanced charges made for the goods
sold to the people. In other words,
telegraph tolls like the interest paid
the banks and the charges made for
the use of the railroads, all ultimately
fall upon the people. Why should not
the plain people, the great masses
whose toll produces all our wealth and
who constitute all that is good and
healthful in the nation, have and own
these telegraph lines, and get the
benefit and use of them at actual
cost? Instead ofpaying George Gould
more than II cents of net profit on
| gentleman to race his yacht against
that of the Prince of Wales, why not
save it all to the American people?
The old parties stand for the Western
Union Telegraph Company, for Gould,
! for Vanderbilt. for Rockefeller, for
Havemeyer, for the corporations, for
the few, for the non-prGducers. For
these ali policies are shaped, ali pro
jects pushed through, all legislation
enacted. The new party stands for
the people, for the toilers, for the
humble, for the poor, for the many.