Evening star., 1928-01-04
INCREASED PACE
IN BIG BUSINESS
Private Wires and Phones
Helping to Solve Prob
lens of Today.


SDp"iai InEDlUn w iht
NEW YORK, January A. pace
of American business has Increased
90 fast that the ordinary transmission
Of messages by telegraph ana caple.
DESPITE the recent improvements. no
longer meets the requirements. This
was the statement made today by Of
ticials of the great communication
systems of the country and by b'isi'
ness men actively engaged In country
wide and worldwide operations.
According to both these authorities.
there has been n decided trend toward
the installation of private telephone
and telegraph wires between the or
fees and homes of business corpora
tions and executives and the central
transmitting stations Of the telegraph
cable and wireless companies.
Many Over Private Lines.
or the 200 900 900 kilograms handled
by the Western Union Telegraph Co
in 1927 at least IL 100000 were ham
died over private lines from the office
OF tho sender to the main office of
the telegraph company. This applies
to business communications alone and
does not include those messages sent
and delivered over private telephones
"ttAf wv 'ii'il EtS "tlc NoIiNNlNu py
the telephone company acting rs an
agent
During the next two years, Western
Union officials declare. the number of
business kilograms delivered over
private wires will he doubled. Zach
of the large communicate companies
has several thousand private lines
which run from business concerns
to the main offices Of the telegraph
companies. Tho majority OF these
are telephone lines. but nearly as
many arc telegraph lines using the
Morse system. The use OF the "sim-
plex" printers, according to officials Of
one company. is growing steadily In
the offices Of its patrons. This is an
automatic telegraph method.
Since Americans use the telegraph
In business to greater extent than
any other nation. it is natural that
they should take advantage Of the
additional saving OF time made pos
sible by the private lines. II Is esti
mated that Stock Exchange members
employing private lines can make IA
delivery in San Francisco in from
| to minutes. This plan naturally
recommends itself to the big bank
ing houses, TO whom n few seconds
time may mean difference OF thou
sands Of dollars.
Spiit.Second Banking.
This is especially true In the case
Of arbitrage operations. Arbitrage
or "split.second banking" as 1t is
called, has been defined az "the calcu
iation of the relative value at the
same time at two or more places of
stocks. bonds or funds OF any sort.
Including exchange. with q view TO
taking advantage of favorable circum
stances or differences in payments" +"
Naturally. many of the arbitrage op.
erations arc with foreign. countries.
ard these lightning like activities fire.
quently involve millions In a single
operation.
Financial institutions connected
with the cable offices by private tele
phone or telegraph wires can send
signals almost instantaneously from
New York 10 London. The time re
auired io transmit a cable depends.
therefore. on the number Of signals
or letters involved in the message
Most Of the arbitrage cablegrams are
in code and average perhaps five
words. Six or seven cablegrams n
minute Is Il common performance to-
day. and the ordinary time for send
ing a message TO London and getting
reply has been placed at less than
three minutes. II liz to take advan
tage OF this speed that various con
Germs are now installing private wires