The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-08-13

9 NHlfti4s VI the " eSleFu [ Mon. some years
ago paced The average number of words
in address and signature at seven per
message In the second place. even II
1 the average ordinary message here were
t"enty-one words, the comparison would
not fairly present the situation for
whatever may De the case here. il Is
perfectly certain that the aE-
trase message In England is not
words
The vital matters are the minimum
rates at which messages can be sent.
ana the actual average charge. for these
the extension of facilities really govern
the use OF the telegraph and give the
English people about double the per
capita use Of the wires that We attain a
few words more or less TO the message
Is OF comparatively little consequence. but
the ordinary minimum rate AT which any
message may be sent determines the
strata OF the population that can afford
70 use the telegraph and the frequency
Of its use by the whole middle class The
Internal rate in Great Britain is y cents,
that IS. message from any point IN
Great Britain TO any other point In Great
Britain may be sent for i cents. From
point In Massachusetts 20 another point
In Massachusetts the ordinary rate IS >
cents. In New York State the internal
rate IS . cents. IN Connecticut. y cents.
in New Jersey. % cents. etc The average
charge for all message IN Great Britain
Is about 70 cents, against q cents IN the
United States. BY Mr.. Clark's admission
g cents a messaRc added In Great Britain
would pay for all extensions and cover
the interest charges on debt overloaded
DF the purchase OF the INES at dbOut -FOUR
times their value BY Western Union
data less than 3 cents OF the y is due 10
distance. and the evidence does not Ia
yOr 1he idea that our telegraph runs up
its expenses by paying high wages. II.
then. the U-Cent charge Is not due 70
distance or wages. and the efficiency or
labor Is greater in the Western Union
in h. fuh mo
Bages per emplOye here-then. what Is
the reason for the 25-Cent minimum and
the 3l-cent average?
The vice president says that the Bal
timUre and Ohio telegraph (Which main
tanned a Decent rate on nineteen long
routes and other low rates averaging l6tz
cents a message on the whole SYSTEM
became bankrupt In consequence OF us
low tariff But Mr.. p. II. Bates who was
manager Of the Baltimore and Ohio tele-
graph system. testified at the Bingham
hearings, that the Baltimore and Ohio
made a profit In spite Of its low rates,
and that the Western Union succeeded IN
buying up the Baltimore and Ohio lines.
not because they proved Improbable. but
because disaster overlook the road IN
other departments. and Il sold It's tele-
graph business as the most avulabte
source Of realizing funds necessary 10
right itself
THE vice president gives a table Of the
1eficits In England footing ny S5I,OU,0yO.
but the estimates Of deficiency are made
by including the cost OF new construction,
extensions, and improvements every year
in the expenses 10 be subtraCtvd from in
come. whereas they belong In the capital
account and are so included by the vice
president in another part Of his testimony,
making them do duty on the deficit and
on the capitalization also.
The English deficit Is no argument
against public ownership of the telegraph,
any more than the postal deficit here IS IN
argument against public ownership OF the
post, OF the political condition Of Philadel-
phia. OF New York is an argument against
gOvernme mt by the people. There are plenty
of countries that do not make any such
deficit with the telegraph, and We can
follow their example until II Is deemed
wise to throw the electric wires open 10
public use, just as the roads are now, the
whole cost Of which IS a deficit but a
most beneficial one. which brings me 70 ,
my last point IN this connection, namely
that a deficit IS not necessarily bad
thing-lt depends on what you have 20
show for Il.
The vice president states the Western
Union stock and bond capitalization at
IS per mile OF line and $3.50 per mile Of
wire. and compares il with the British
capitalization, which he estimates AT
Il $50 per mile OF line and $Zl6 per mile OF
wire. by adding to the outstanding Cdpl-
tai debt the whole cost Of extensions and
improvements from the start although
these We're included In current expenses
in an earlier part Of his testimony dealing
with the English uencitl and making no
q S,WaEr for dGE.rlci1UGu I-eUcC3gst- that
the Capitalization IN some country that
has not made such drOpStCal purchase
France, OF Belgium or Germany, making
due allowance Of course Tor difference Of
wages etc Better still, 20 compare the
S645 a mile with the cost OF construction
in this country, OF with the Western n
ions claim IN recent tax litigation In Ohio.
that it's whole property IN that State did
not cost over S1o3 per mile Of line.
Even this contrast probably does not
show the real initiation in Western L Mon
capital, for the vice president took the
whole mileage Of poles and wire report
ed by the company. which. as We have
seen, there IL reason to believe is the sum
OF all the lines bought and built from the
start many OF them now In the junk
heap. Allowance for this would make the
divisOT smaller and the quOtient larger
The vice president says that the 'capl-
tai OF the Western Union Company has
resulted from the emalgamatiOn OF a large
number OF telegraph companies from the
beginning and every business man
knows that when companies anal KamaJe
the resulting capital II usually a good
deal more than the sum OF the former
separate capitals. What the people want
TO know in this connection is the rela-
ton between capitalization and the real
value Of the plant The practice OF leaEl-
" CapitaliZing franchises given by state
and city, thereby compelling the people
TO Day dividends on legislation and inter
est on abstract privilege, Is very QUes-
uOuaEle practice. Labor and pital &C
tually invested are the only things that
ought 10 draw income II IS SO with the
ordinary merchant and manufacturer. and
Il ought TO be so with a telegraph com
pany. The merchant cannot make the
people pay interest on a blue book, nor
on dead capital; neither should a carrier.
service for service. No charge for wind.
and no tax on the dead.