Year: 1874

telegraph company, in q letter to Ne'


York paper, says: The Herald is pro


baby correct in assuming that furthe


reduction of rates will not be made b.


the companies now doing the telegraph


business, for some time to come" Tn


Western Union company have adopted
some uniformity in their charges within
few years past, and made few othel
reductions in their rates, to the grea
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 prin-
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 lower than at the higher rates.
Mr.. Often has so often reiterated the
proposition that the expenses increase
in nearly as rapid a 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 the force of the facts which
we have given.


MIR. Orton truly says that the tele-
graph is only in its infancy. The growth
of its 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-
Der of letters sent when the postage was





increase In the correspondence that fol-
lowed upon the use of the five and three
cent postage stamp was enormous, rap
idly increasing from 80, ,0O0, 900 to 500,-
OOO, 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-
ductions 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-
quired for the business. The expense
of purchasing these lines have been
estimated by committees of congress at
from $40, 600, 900 to $4,000. 600. 1t is
not likely congress will feel disposed,
-, A. ,,,.ozr,,s Ai1y. Of o1r fiDaOcaa
to authorize snch an expenditure, es-
pecially as the object sought can be
accomplished without any expense to
the government.


The postoffice 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-
tenn, and urge congress TO pass the bill
authorizing the postmaster-ge 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
a single private corporation controls
the telegraphic correspondence of
nation, and has the power to give or
Withhold news to the press, and to mold
public opinion in 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.