Year: 1872




The opponents of the postal telegraph ap-
pear to have settled down upon two points in
support of their position-frst, that the con-
troFof the telegraphic wires would be dan
gerous power in the hands of political ad-
ministration, and next, that the reduction of
rates promised by the government would de-
crease the profits, render it impossible that
the lines should pay, and impose burden
upon the taxpayers for their support. The
first objection affects political parties alone
the second affects the public, and if well
founded would be fatal to the proposed
change, inasmuch as the great object of the
assumption of the lines by the government is
to secure to the people lower rates and i'm
proved facilities


The danger of entrusting telegraphic mes
sages to the hands of government officers is no
greater than that Of confding letters to the
same agency An administration that would
be unscrupulous enough to tamper with tele-
grams passing between citizens would not hesi-
tate to delay, suppress or violate private cor
respondence passing through the mails, Tele-
grams are open communications, it is true
but for that very reason they are cau-
tiously guarded A person does not usually
send important secrets by telegraph except in
cipher; and hence, even supposing it to be
possible that tho confidential agents Of the
government could read every despatch trans
mitted over the wires they would not be likely
to find much to repay them for the trouble.
Besides, the Telegraphic Department of the
government would be less under political con-
troll than any other. Expert operators cannot
be found every day, and it would be impracti-
cable to conine the selection of electricians to
any particular political party. The operators
on government line would not be any more
accessible to the influence Of politicians than
are the operators on a line owned by private
corporation, and if an administration really
desired to make political use of the informa-
ton passing over the wires it would find it
as easy to do 80 through the instrumentality
of a company which owes its existence and its
special privileges to the party in power, as if
the business were in the hands of the govern
ment. The outcry against arbitrary power
and Capitalization would therefore deceive
or alarm no intelligent person, even if it
were not raised by organs which look approx
ingly upon the recent overthrow of sove-
reign State government by federal usurpa-
tion.


The pretence that the government could
not lower the present exorbitant rates ex-
acted by private monopoly without heavy
pecuniary loss is based upon the baldest
misrepresentation of facts. The Western
Union Telegraph Company represents over
forty millions capital through repeated ''wa-
tering" Of the stock, while its actual capital,
as represented by the value of the plant, is
under twelve millions. Responsible parties,
who are at the same time the most experienced
States, stand ready to duplicate every line
owned or leased by the Western Union, with
uniform wire as good as the best to be found
on any portion of the existing lines, with bet
ter insulators than those now in general use
in this country, and with the latest improved
instruments for the sum of twelve million
dollars; and out Of this they claim that their
profit would be at least million dollars. If
the government should take the Western
Union lines at the fabulous capital of between
forty and fifty millions, or even at the rate
of the present speculative market quotations,
which represent nearly three times the bona
fde capital, it might at first lose money by
reducing the rates for transmission; but if
new government lines are built, or if the lines
of the Western Union should be taken at their
real value Of say, twelve million dollars, the
rates for messages would be reduced fifty per
cent and yet realize much larger profit than
is made on fictitious forty-million capital.
The assertion that low rates have always de-
creased receipts is not supported by facts. In
England the cheaper the cost of telegraphing
the greater has been the profit. In every
country men will be found opposed to innova-
ton, who will argue against reductions Of
rates, and in country like Belgium probably
with some reason. But the people of the
United States need the telegraph more and use
it more than any other people in the world,
and it only needs reasonably reduced charges
to quadruple the present business. 1t Is
simply an absurdity to assert that four mes
sages at fifty cents message will not yield a
larger profit than one message at one dollar


The Western Union directors have them
selves supplied the best answer to the argu-
ment against the reduction Of rates by agree
ing, as we are informed, upon gradual
annual reduction of their present tariff, COM
mencing with the new year and extending
over four or five years. This must be done in
the expectation that cheaper rates will increase
fha profitc or II Ia m ,,pirst oct toxrardc tba
stockholders, who, even at the present charges,
receive little or no dividend The explanation
of the new policy may indeed, be found in
the fact that the bill known as the Hubbard
bill which establishes new COMPANY to build