Year: 1871

To THE EDITOR OF THE HERALD


| A bill has passed the House, without opposition


giving the right to land cables the shores OF the


United States terms OF reciprocity to both nations
| and peoples. The bill from the House has been


reported to the Senate by the chairman OF the Com


mttee Foreign Relations, with an amendment
making 1t unlawful for two or more cable compa-
MES to consolidate unite their interest This
amendment II adopted, would seem to be direct
attack upon an important interest Intimately con-
nected with commerce and damaging to the produc-
tive interest OF the United States If the proposed
law could be extended to other portions OF the
world besides that of the United States 1t would be
most unwlse, because it would in effect increase the
cost OF transmlssion; but to shut up the United
States and leave the balance OF the world free
to consolidate telegraph lines make union
Of interest, and thus largely reduce the cost
by reduction of expenses, Is giving to the
world commercially great advantages over the
United States. This fact can be Illustrated practi-
cally to the understanding OF all who seek the
right. 1t cannot ba denied that one company, vita
the facility to do the business between Europe and
America. can do so at less expense than two CON-
panies, because two companies with two separate
organizations cost in expense twice as much as the
one. This was illustrated on the completion OF the


French cable. Both companies adopted tariff for
ten words OF S. so. This was Improbable and the
companies, to save themselves from ruin, entered


into an agreement for a union Of interest, WORKING


under one organization ana saving large outlay IN
expense. In the case OF the two cables no addt-
tiona charge was made for the Transmission OF the
dispatches, although the tariff or 81 80, ruin0us
under two organizations, witha double set OF offices,
clerks, otcials &c, under the arrangement are
saved from ruin. yet without any provision to
provide new cables when the present ones are worn


out or become disabled. since the new arrange.
ment the shareholders have scarcely received IN
dividends a sum sufficient to pay seven per cent
interest on the new stock representing the two Eng


Atlantic cable being nearly wiped out and buried In
the ocean deep. IL Is remarkable fact, notwlth-
standing the Impression to the contrary that
neither cable has earned In any one year u sum
above expenses sufficient to have paid Or policy


OF insurance to protect the shareholders against loss


in case or inability by breakage or otherwise to


transmit messages, and yet the cry comes IRON the


press and the pubic FOR more cables and reduced


rates. The destruction by the adoption OF unwise


laws to ali telegraphic interest connecting Europe


with the United states Is o sman matter as COM
pared with the great agricultural interest OF the


United states. In order to compete successfully with


the world we must have equal facilities, not only


In the transportalon OF our crops but in the trans.


mission of orders to buy and sell. The merchant in


Liverpool wants facilities to buy grain, beef pork,
and cotton In New York, the same that exist be-
tween Liverpool aud the ports on the shores OF the
Baltic and Black Sea- The merchant. when he gives
his order wants to know the price, and II mis- order
Is filled he wants TO know the snip and her day Of
sailing. When he Is master or his situation and
ready to sell the cargo aoat to the first customer
Ths sG ned s sae wan se5ss


and the people are ready and willing for tariff that


will secure to them those faclIles and that on
terms oil reciprocity between the cable companies
and those using them. Surely Congress does not


deem 1t the part Of wisdom to throw obstacles In the


way OF ocean cables and the OF the United
States by deprvng those important interests OF the
privilege OF availing themselves OF the advantages
presented by consolidation, thus largely reducing
their working expenses, by which means they are
enabled to reduce their charges TO the public. The


railroads are leasing and consolidating IN order to
reduce expenses. The Western Union Telegraph
have leased and consolidated with other companies


until tney have absorbed almost the entre tele: Q.
graph interest In the country, and as the work OF
consolidation gone the tari to the public has


been reduced and the lines brought into condition
OF perfection unequalled In any part OF the world.
Merchants adopt this principle BY consolidating
their capital and reducing their expenses in pro-


portion to capital one store is found to be less
expensive than three or four. The same Is true OF
boOkkeepers, salesmen, &c. 1t Is true II Congress
pass law rendering It unlawful for two or more


persons to consolidate their capital arrange for


union OF interest 1t would create additional de.


mand for stores and might possibly increase rents
for season, but 1t would In effect throw business


into the hands Of large capitalists and be damaging
to the community at large.