Year: 1874

The president of the Western Union


telegraph company, in letter to New


York paper, says "The Herald is pro-


badly correct in assuming that further


reduction of rates will not be made by


the companies now doing the telegraph
business, for some time to come" The


Western Union company have adopted


some uniformity in their charges within


a few years past, and made few other


reductions in their rates, to the great


benefit of the public and the company;


but the public are under no obligations
to the company for making these reduc-
tions for President Orton, in his annual
report, informs his stockholders that
they were forced upon them from the
competition of opposition companies.
They have recently purchased the prln-
cipal opposition lines, and have reduced
their rates so low that the remaining
companies are unable to make any
money. Now that this great monopoly
is free from all fear Of competition,
they announce that they will make no
further concessions in rates.


That the company are able to make
further reductions is shown by the facts
given in the annual reports. From these
it appears that the rates have been re-
duced nearly one-third in six years, yet
the cost of doing the business is so
much less, in consequence Of its great
increase, that the net profits are greater
at the lover than at the higher rates.
Mr.. OIton has so often reiterated the
proposition that the expenses increase
in nearly as rapid ratio as the busi-
ness, and therefore reduction in rates
cannot be made, that he has persuaded
himself of its truth, and is unable to
appreciate tie force of the facts which
we have given.


Mr.. Orton truly says that the tele-
graph is only in its infancy. The growth
of it's business is much more rapid than
that of the express Or postofice, and at
the same ratio of increase the number
of kilograms that will be annually sent |
ten years hence is larger than the num-
ber of letters sent when the postage was
reduced to five cents. The Immediate
increase in the correspondence that fol-
lowed upon the use of the five and three |
cent postage stamp was enormous, rap
idly increasing from 100000 to 5OO,-
00O 900. There will be the same increase
in the telegraphic correspondence If the
same relative reductions in rates are
made, for the same causes would ope-
rate to produce like effects. The people
cannot hope for such reductions from
the Western Union telegraph company,
because there is now no reason to in
duce it to make them, and because the |
loss of net revenues from the great re-
duotions in rates necessary to popular
ize the telegraph would be greater than
the saving of expenses on each telegram
from the great increase in the business.
Sach reductions can be made under the
postal telegraph system, for that will
save nearly one-quarter Of the present
expenses, and would therefore authorize
a reduction in rates of nearly forty per
cent, and yet leave a sufficient profit
on the greatly increased business.


The postmaster-general will ask con-
gress to purchase all existing lines of
telegraph, and build the new ones re-
uuired for the business. The expense
of purchasing these lines have been
estimated by committees Of congress at
from $4O,OOO,O 600 to $7O,O0O.OO0. 1t is
not likely congress will feel disposed,
in the present condition of our finances,
to authorize snch an expenditure, es-
pecially as the object sought can be
accomplished without any expense to
the government.


Tho postofioe department will fur
nish the offices, and the postal telegraph |
company will transmit the messages at
rates fixed by congress.


If the people desire to have cheap |
telegraph, and to have the news fur
nished to the press at low rates, they
must support the postal telegraph sys-
TEN, and urge congress to pass the bill |
authorizing the postmaster-general to
contract as he now contracts for the
carriage of the mails. If, on the other
hand, they desire to perpetuate an over
grown monopoly, which is every day
growing more powerful, then let them
continue the present system, by which |
single private corporation controls |
the telegraphic correspondence of a
nation, and has the power to give or
Withhold news to the press, and to mold
public opinion i'll its own interest. Such
a power is too great for any private
company to hold, and should be in the
hands of the people, to be used only for
their benefit.