Year: 1873

The President of the Western Union
Telegraph Company, in a letter to a
New York paper, says "The Herald
is probably 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 iu 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 reductions for President
Orton, in his annual report. informs his
stockholders that they were forced upon
them from the competition of oppo-
sition companies. They have recently
purchased the principal 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 reduced nearly one-third in six
years, yet the cost of doing the bust
ness 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.. Orton has so often
reiterated the proposition that the ex-
penses increase in nearly as rapid
ratio as the business, and therefore re-
| duction 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.


Mr.. 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 postoffice, 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
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 $4,000, 900 to 5O0,-
600, 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 operate
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.
Such reductions can be made under the
postal telegraph system, for that will
save nearly one-quarter of the present
expenses, and would therefore author
ize a reduction in rates of nearly forty
per cent, and yet leave asufficient profit
on the greatly increased business.


The Postmaster General will ask
Congress to purchase all existing lines
of telegraph, and build the new ones
required for the business. The ex-
pense of purchasing these lines has
gress at from $40, 600, 900 to $40, ,000,-
600. It is not likely Congress will feel
disposed, in the present condition of
our finances, to authorize such an ex-
penditure, especially as the object
sought can be accomplished without
any expense to the Government.


The Postofice 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 a 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 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 a 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 COM
pany to hold, and should be in the
hands of the people, to be used only fol
their benefit.