Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-05

labor investigation. These preferences
were frequently made in the promotion Of
where the business originated. For in
stance, in the lumber regions, messages
dealing with the lumber business had
priority. while in the localities where
Embarrassing was the dominant industry
messages relating to the sale and ham
ding of fruit took precedence.
IN the bureau Of labor Investigation
Of 1908 the Western Union TELEGRAPH
Western Union Tells stated that
Of Years Business. NJ u &c. eou .a..
many franks" passes and "deadhead"
messages had been issued and carried in
its business. The fact was brought out
that the Western Union, during that
fiscal year. had collected $2O746,OOO for
messages handled and 81, 5O2. 600 for press
business carried. The net profit of the
years operation was s.. 10000. The usual
rate charged the big newspapers for
leased wire service is $50 per mile per
year. The fiat rate between New York
ana washington was estimated at $4,000
between New York and Chicago at $4,000
an ana between New York and ST. Louis at
$2l,Ooo Many large private corporations,
as Well as the metropolitan newspapers,
frequently make use Of leased wire serv-
ice.
Perhaps the cheapest telegraph service
in the United States today available to
the general public is that Of the Chicago
Milwaukee Telegraph Company. This
line was built in 1873, and the company
put In rate of a cent word between
the TWO cities. with minimum charge of
10 hr,o
board OF trade business between the two
cities. Later the Western Union sought
to overcome this competition and to put
IN rate Of one-half cent a word,
with minimum charge Of cents This
rate was met by the Chicago Milwaukee
line. In 1904 the Western Union raised
Its regular rate to % cents for a ten
WORD message and made a. special rate
to board of trade members of 10 cents
The Observation-Disclosures line now handles
business at the rate Of a cent a word,
with a minimum charge Of Is cents AT
this rate. however, it will not deliver
messages except by telephone.
It is asserted by many that the United
States would be making bad bargain to
acquire the
Purchase Of Lines ,teIegra phi
Held a Bad Bargain. t tbe canntr OF
at their present-day capitalize ton 1t is
commended by those who take this view
that the cost Of reproducing all the lines
now In existence would be much less than
the cost of buying those now in opera
ton. It is claimed that no stock in the
country represents greater amount of
water than the telegraph stock, and those
who hold this view point to many strik-
ing Illustrations Of finance in the palrny
days Of stock jobbing quarter Of q GEN.
fury ago.
In 1882 the executive committee Of the
National Board of Trade reported that
the capitalization of the Western Union
telegraph Company was $685. in 1858.
In eight years II had increased to $50, Co.,
600. and the board Of trade committee de-
cared that SIS. 100000 OF this consisted
Of stock dividends The friends of the
telegraph companies assert that the con-
were extremely unjust to the telegraph
companies. They say IL the time ever
comes that set of disinterested engi-
neers Is called upon to make an APP
praisal Of their properties it will be found
that the capitalization is based on in
trfnsic value rather than on earning
power.
There are many people who believe that
the present agitation will go the way of
those which have gone before. Upon
nine different occasions committees of the
House of Representatives have reported
In favor Of the government ownership or
control of the telegraph business Of the
country. Likewise committees of the
Senate have made similar reports in
eight different sessions. Yet. the net re-
suit Of it all has left the telegraph COM
panies as firmly intrenched in the mas
terry of the telegraph business Of the
country as ever before. The telegraph
companies feel that their provision of
night and day letter service has served
to meet most Of the arguments offered
by the advocates of government owner
ship or operation.