Year: 1873

| 4SlGkA1Ph SSAEAhy ASNAHE9 49,
circumstance that sooner or later tht


question Of the relations Of the telegraph
ic service Of the country to the Fedora


Government would seriously occupy the


attention, alike OF Congress and the pub
Ilic, preferred q request through their


President, VIM. Orton, Esq, to Hon


David A. Wells, late Special Commission


er Of Revenue, that he would take up and


investigate the whole subject, and pre-


pare such comprehensive statement o.


the case as in his judgment the combined


facts and circumstances might warrant


The concluding paragraph of the letter
addressed TO Mr.. Wells clearly indicates
the spirit in which the Western Union
Company desired that the investigation
should be conducted.


"In iurtherance Of such investigation
all information in possession OF the Wee
tern Union Company will be placed with
out reserve at your disposal, but in so do
ing the Company would disclaim IN ad-
vance any intention or desire to anticipate
or influence conclusions. They ask moth
ing but what Is right. They trust they
shall not be obliged through the exercise
ofsuperior power in the hands oI the Fed
eral government to submit to anything
which is wrong"


In pursuance OF this request, Mr. Wells
undertook the investigation, and his re-
port embodyiDg a full and populsr but
scientific discussion OF the whole subject
has just been submitted, and by permis-
sion the Committee on Appropriations OF
the House of Representatives, has been
filed by the Western Union Company Ns
part Of the case by them submitted to
the consideration Of Congress, the whole
forming a.thick pamphlet which will un-
doubtedly take its place with the lormer
report Of the same author, as substantial
contribution TO our economical and indus
trial literature.


Mr.. Wells, in the outset, reviews the
origin, development and present condt.
tion Of the telegraphic system of the
United States, and clearly establishes the
following important facts: First, That
unlike the railroad system OF the country
the telegraph in the United States, with
the exception of a small Congressional
appropriation to enable Prot. Morse TO
test his invention, has received substan'
TALLY no lavors from the public or the
Federal Government, but on the contrary
and in opposition to the practice OF oil
other countries, has been subjected from
the very first to Onorous National taxa
tlon. The taxes paid to the Federal
Government alone IRON 1865 to 1870 hav.
ing been in excess OF million and q
half of dollars. Second, That hav-
ing been thus lett exclusively to
private enterprise, the telegraph has de-
veloped more rapidly and to u compara'
lively greater extent than in any other
country, there being one mile OF wire to
every 222 persons in tho United States, as
compared with to 0S1 in Europe, while
the ratio of messages transmitted is as l
TO every persons in the former and l to
0 in the latter. As illustrating, further.
more, what the Telegraph is respectively
under free and governmental system,
attention Is asked TO the fact, that il 2t
the present time we were to compute all
the news matter delivered by the Amcri'
can telegraph to tho American press Us
separately transmitted, it would comprise
an aggregate equal to all the dispatches
OF every kind sent over all the telegraphs
in the world, within Q given period sc.
lected for comparison. Third, That since
the consolidation oil various lines in
1866 to form the Western Union,
not a single year has elapsed
in which there has not been marked
reduction Of rates by this company, the
recent official assertion Of the Postmaster
General, to the contrary Notwithstanding,
so that at the present time the average
sum charged for transmission OF messages
Is not in excess Of on0.half Of what was
required in 1865 for similar service; and
as contribution to economic science, at.
tention Is asked to the circumstance that
the average charge Gt which telegraphic
messages are now transmitted in the
United States for the public is less than
tho average cost for doing equivalent
work in 1866, although since that period
there has been aanarked advance In the
wages OF employees In almost every dc.
partment of science, and very great In.
crease in the cost OF wire, telegraph poles
and some other materials.


Fourth. The value OF telegraph stock
as an investment Is shown by the fact
that from 1865 to 1872 the aggregate
dividends paid to the stockholders and
the several companies has not equsled
Q per cent per annum. During the last tls.
cal year the apparent net profits Of the
Western Union Company were 100000,
or less than per cent on the capital in
vested, but out Of this net gain or profit
the company constructed or purchased
over1 900 miles OF wire additional, all
Of which was nearly as essential to the
accommodation Of the business and local
interests Of the country as was the ex-
penditures not included in the surplus Of
$03O00 during the same time, Tor the
maintenance and repair Of the lines pre-
viously existing; and II it be replied that
the amount thus derived from the receipts
and expended for Improvements aud
construction represents the profits
equally, with tho dividends paid
directly to stockholders. It is sufficient
answer that lift be so it IS q profit that up
to the present time has accrued wholly to
the public and not to the stockholders,
and that Tor an indefinite future large
annual expenditure for similar purposes
will be absolutely indIspcnble. Coming
next to the consideration of the question
Of federal interference with telegraph,
MIR. Wells submits the following under
the head Of direct cost; he shows that the
probable immediate expenditure to be
met by the National Treasury would be
from sixty to seventy millions, The alb
surdity OF the estimate submitted by the
Postmaster General in his report that all
the existing lines Of the country could be