The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-06-19
Senator Hill, of Colorado, and Con-
gressman Anderson, of Kansas,
Ably Argue for the Postal
Telegraph.
THE GOVERNMENT EARLY CON-
TEMPLATED TAKING THE
TELEGRAPH SYSTEM.
How Monopoly Charges Are Kept
Up By Private Companies.
THE QUESTION OF CONSTITU-
TIONALITY AGAIN DIS
CUSSED.
Danger of News Censorship By
Private Companies.

Private Companies.
The postal telegraph system had an
able and Jealous advocate in the
Forty-eighth Congress in Nathan P.
Hill, United States Senator from
Colorado, who was made chairman OF
the Senate committee on postoff1ces
and post-roads. On January IA, 1884,
Senator Hill spoke at length. He
said:f
THE FIRST LINE A GOVERNMENT
.k TELEGRAPH.
IAN act was passed March 3, 1S43,
appropriating $4,000 to test the prac-
ticability of establishing system of
electromagnetic telegraphs by the
United States. A line was built from
Washington to Baltimore and placed
in charge OF the postmaster-g general.
For three years it was maintained by
the Government, and it's revenues
were directed to be placed in the
treasury of the United States for the
benefit of the Post Office Department,
in the same manner as other revenues
from postage. But the people were
slow to recognize its advantages, and
its workings were so imperfect that it
was thought to be unavailable for
long distances. Under the act of June
10, 1916, the line was sold to private
parties, and the invention passed
from the hands in which it had been
properly placed, and from which alone
the public could ever hope to realize
its full benefit.
GOVERNMENT AID TO TELEGRAPH
COMPANIES.
"Down to 1860 the Intervention of
the general Government had been
confined to the passage of few acts
granting aid and protection to parties
proposing to extend the telegraph to
the Pacific coast and to the Atlantic
Gable Company. In June of that year
Congress offered a bonus of $4,000 a
year for ten years, in addition to
rights on the. public lands, to parties
who would undertake the construc-
tion of line from the Missouri to the
Pacific. This offer was accepted by
certain directors of the Western
Union Compay and the line construct
ed from Brownsville. Nebraska, dis
tance Of LOO miles. to Salt Lake City,
San Francisco. -Four hundred and
Of this line, from Brownsville to Sedg-
wick, were erected by Charles M. Steb-
bins, a well-known telegraph builder
and operator, at cost Of $67 per mile.
The western end, according to Mr..
Stebbins' statement, was built more
expensively, at large profit to the
contractors, but the whole cost only
$l47 900. or about $l34 per mile.
HOW 1000 BECAME $1,000, 900.
"On this expenditure 81 900, 900 OF
stock was issued in the name of the
Pacific Telegraph Company. Mr..
Stebbins, in a sworn statement, March
26, 1870, said: "This $1,000, 900 of Paci.
fic Telegraph stock prominent men
OF the Western Union Telegraph
Company being the sole owners) was
afterward taken into the Western
Union Telegraph Company by issuing
therefor $2.000,OO0 of Western Union
Telegraph Company stock. After this
the Western Union Telegraph Com.
pany's stock was trebled, by which
manipulation an original expenditure
OF $l47 900 land a part Of that not
honestly spen0 came to represent S.,
O0O, 900 Of Western Union stock
1.-The property thus represented by
$4,000, 900 Of stock had itself beer
three times paid for by the Govern
ment bonus Of $4,000 for ten years. ;
Mr.Hill traced the familiar consoli
dation processes Of the Western
Union, beginning in 1866; and yet. il
spite of the enOrmOua stock dividend'
and inf1ations, the profits in 1883 were
shown to be over seven and half mil
lions, in 1866, paid, Of course, by tht
people who sent kilograms.
CHE GOVERNMENT CONTEMPLATED
TAKING THE TELEGRAPH.
July "a, 1866, Congress passed al
Sct, by which any telegraph company
Ehen or thereafter organized, ant
which should accept its provisions
was granted the right of way over al
post-roads, navigable waters, and pub
lie lands, with certain other privilege!
on the latter. Each company accept
Ing the act was to agree to give Gov
ernment messages priority, to trans
NIT them at rates to be fixed by tn,
postmaster-general, and to sell its
telegraph lines, property and effect
at an appraised value to the Govern
ment at any time after five years from
the passage of the act.
Mr.. Hill contended that all tn,
companies which accepted such fran
chises and their stockholders had b.
this act fair notice of the intention
of the Government at some time t.
assert it's right to perform the tele
graphic business as part Of it's pub
lie functions.
AS to the attempted control of gov
erenmental action by the Western
Union Company, Mr.. Hill quoted tn
annual report of it's president for 1877;
1.-THE franks issued to Government
officials constitute nearly one-third o
the total complimentary business
The wires of the Western Uniol
Company extend into 81 States and