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diff --git a/old/62214-0.txt b/old/62214-0.txt deleted file mode 100644 index e623986..0000000 --- a/old/62214-0.txt +++ /dev/null @@ -1,6568 +0,0 @@ -The Project Gutenberg EBook of The proposed union of the telegraph and -postal systems, by Western Union Telegraph Company - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - -Title: The proposed union of the telegraph and postal systems - Statement of the Western Union Telegraph Company - -Author: Western Union Telegraph Company - -Release Date: May 23, 2020 [EBook #62214] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK PROPOSED UNION--TELEGRAPH, POSTAL SYSTEMS *** - - - - -Produced by Richard Tonsing, Adrian Mastronardi, The -Philatelic Digital Library Project, and the Online -Distributed Proofreading Team at https://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive/American Libraries.) - - - - - - - - - - THE - PROPOSED UNION - OF THE - TELEGRAPH AND POSTAL SYSTEMS. - - - STATEMENT - - OF THE - - WESTERN UNION TELEGRAPH COMPANY. - - - CAMBRIDGE: - - WELCH, BIGELOW, AND COMPANY, - PRINTERS TO THE UNIVERSITY. - - 1869. - - - - - CONTENTS. - - - REVIEW OF HON. E. B. WASHBURNE’S PAPER ON THE UNION OF THE TELEGRAPH - AND POSTAL SYSTEMS. - - Page - - A merited Compliment to Professor Morse 1 - - Congressional Aid 2 - - Erroneous Charges against the American Telegraph System 3 - - Brief Statement of Facts 4 - - Statistics of the Telegraph in Europe and America for the year - 1866, from Official Reports 5 - - The Complaint of Indifference to Public Convenience without - Foundation 5 - - Official Statistics of the Telegraphs in Europe for the year 1866 7 - - Statistics of the Western Union Telegraph Company, of the United - States, and of the Montreal Telegraph Company, Dominion of - Canada, for the year ending June 30, 1867 7 - - The asserted Union of the Postal and Telegraph Systems in Europe - an Error 8 - - The Shortcomings of British Telegraphs 9 - - The Telegraph System of the United States Unparalleled for its - Extent and Efficiency 10 - - Asserted Effect of Governmental Control on Belgian Telegraphs 11 - - Early Belgian Rates contrasted with American 12 - - Natural Increase in Telegraphy 13 - - Unfortunate Effects of Low Rates and Competition 15 - - American and European Rates compared 15 - - The Peculiarities of the Belgian Telegraph Service 17 - - Belgian Officials acknowledge the Imperfections of their System 18 - - Instructive History of Belgian Telegraphs 19 - - Singular Idea that a Small Telegraph System is more Difficult to - Manage than a Large One 20 - - Necessity for the Unification of the Telegraph System 22 - - Estimate of the Cost of Building Telegraph Lines 24 - - Doubts regarding the Estimates of Telegraph Experts as to Cost of - Constructing Lines 27 - - Incorrect Assertion that American Telegraphs are not constructed - according to Specifications 29 - - Cost of American Telegraphs estimated by European Data 30 - - Value of Western Union Telegraph Property, based on European data 32 - - Erroneous Estimate of the Value of the Western Union Telegraph - Company’s Property 33 - - The Organization of the Western Union Telegraph Company 35 - - Financial Statistics of the Western Union Telegraph Company 36 - - Stations, Lines, and Employees of the Western Union Telegraph - Company 39 - - English and American Telegraphs compared 40 - - Acknowledged Superiority of the early American Service 41 - - Remarkably Low Tariffs of the early American Telegraphs 42 - - No Similarity between the Telegraph and Postal Systems 43 - - Collection and Delivery of Telegrams by Letter-Carriers - Impracticable 45 - - Mr. Washburne’s proposed Experimental Line 47 - - London District Telegraph Company 50 - - Telegraphs under Government and Private Control compared 51 - - The Telegraph and the Press 52 - - - REVIEW OF MR. GARDINER G. HUBBARD’S LETTER TO THE POSTMASTER-GENERAL ON - THE EUROPEAN AND AMERICAN SYSTEMS OF TELEGRAPH. - - Erroneous Statements relative to Belgian Telegraphs 56 - - Belgian Telegrams delivered by Post 58 - - Want of Uniformity in Rates 58 - - Assertion that Commercial Messages are transmitted at a Loss 61 - - Correction of Erroneous Statements 62 - - Tariffs not Increased by Consolidation of the Lines 63 - - Erroneous Assertion that a Large Proportion of the Offices are at - Railroad Stations 64 - - American and European Telegraph Tariffs compared 65 - - Rules of the European Telegraphs 66 - - Rules of the Western Union Telegraph Company 66 - - Statement showing the Minimum Rate for Telegrams from London to - Principal Cities in Europe, and from New York to Principal - Cities in America 67 - - Singular Notions of Practical Telegraphy 68 - - Absurd Theories regarding the Working Capacity of Telegraph Lines 69 - - Impossibility of Utilizing the Telegraph Lines by Night as well as - Day 70 - - Proposed Incorporation of the United States Postal Telegraph - Company 72 - - Messages delivered within a Mile of the Office free 73 - - European Charges for delivering Telegrams 74 - - Telegrams to be placed in the Street Boxes 75 - - Privileged Persons to have Priority in the Use of the Wires 75 - - Proposition to operate Telegraphs at a Loss, and Make Money by it 76 - - Speculative Telegraph Schemes 77 - - More Startling Inventions for Rapid Telegraphing 78 - - Erroneous Table of European Statistics 79 - - European Telegrams counted Several Times 82 - - Labor the Principal Element of Expense in operating Telegraphs 82 - - Prevailing Error of all Theorizers on the Business of Telegraphing 83 - - Statistics of Traffic through the Atlantic Cables from July 28, - 1866, to November 1, 1868 86 - - - PROGRESS OF THE ELECTRIC TELEGRAPH IN AMERICA AND EUROPE. - - The United States 87 - - Proportion of Telegrams to Letters 87 - - Early History of the Telegraph in America 88 - - Evils arising from Separate Organizations 89 - - The Unification of the Telegraph accomplished 90 - - Telegraph Companies in the United States 91 - - Statistics of the Telegraph in the Dominion of Canada 92 - - Statement showing the Progress of Telegraphy in Austria 93 - - Statement showing the Progress of Telegraphy in Belgium 94 - - Bavaria 98 - - Denmark 98 - - Statement showing the Progress of Telegraphy in Great Britain and - Ireland 100 - - Decrees regulating the Use of the Telegraph in France 102 - - Peculiar Character of the French Telegraph 103 - - Statement showing the Progress of Telegraphy in France 104 - - Increase in Telegrams not due to Low Rates 104 - - Greece 105 - - Prussia 105 - - Statement showing the Progress of Telegraphy in Prussia 106 - - Russia 106 - - Switzerland 107 - - Statement showing the Progress of Telegraphy in Switzerland 109 - - Royal Decree relating to Telegraphs in Spain 110 - - Turkey 111 - - - REASONS WHY GOVERNMENT SHOULD NOT ENTER INTO COMPETITION WITH THE - PEOPLE IN THE OPERATION OF THE TELEGRAPH. - - Political Reasons why Government should not Control the Telegraph 113 - - The Post-Office Department not Competent to manage the Telegraphs 114 - - Government assumes no Responsibility 116 - - The Proposition to Erect Competitive Governmental Telegraphs - Unfounded in Public Necessity 117 - - The Telegraph Bill proposed to be enacted by Congress without - National Example 118 - - - - - REVIEW - OF - HON. E. B. WASHBURNE’S PAPER ON THE UNION OF THE TELEGRAPH AND POSTAL - SYSTEMS. - - -In the second session of the Fortieth Congress, 1868, a bill was -introduced and a paper submitted by Hon. E. B. Washburne, of Illinois, -relating to the “Union of the Telegraph and Postal Systems” in the -United States, which has naturally attracted public attention, and -especially of that large class of our citizens who are identified with -the Telegraph interests of the country. The paper bears upon its face -such evident marks of care, and the case is presented with so much -earnestness and apparent sincerity, notwithstanding the frequency of its -errors and the illusory character of its appeals to the practice and -experience of foreign nations, that it cannot fail to produce upon the -public mind an unjust impression that the usefulness of this great -invention is injuriously restricted, and its operations unfaithfully -managed, by the organizations having it in control. - -To correct these erroneous impressions by calmly and respectfully -criticising the statements thus presented, and proving the honesty and -fidelity with which the Telegraph service is performed in this country, -is the object of this paper. - - - A MERITED COMPLIMENT TO PROFESSOR MORSE. - -In the acknowledgment made by Mr. Washburne, in the opening of his -paper, that “the world is indebted to the genius of a citizen of the -United States for the practical development of the electric telegraph as -a means of communication,” we heartily concur. That citizen is still a -member of the Company to which his great discovery gave birth, and on -whose success he largely depends for support. To it he gives his ripened -genius and matured wisdom, justly priding himself upon the success of -his invention, and desiring for it the largest and widest use. - -But Professor Morse needs more than the simple honor of making a great -discovery and of placing it at the disposal of his fellow-men throughout -the world, and when it is considered that the effect of the system -proposed to be inaugurated by Mr. Washburne’s bill would be the -inevitable destruction of all existing telegraph investments, and -possibly the impoverishment of the great inventor himself, the -compliment seems a barren one indeed. - - - CONGRESSIONAL AID. - -Congress, it is true, aided the introduction of the Telegraph by an -appropriation of thirty thousand dollars for a public experiment and -test of its capacity. But it may well be questioned whether this -appropriation was not, after all, an injury rather than a benefit, both -to the inventor and the people. It left no property to enrich its -possessors, and no models to guide them in erecting new structures, -while it was obtained by sacrifices which have cost the inventor -infinite sorrow, and clouded a score of years with litigation. The time -occupied by Congress in the consideration of the offer of the invention -to government for one hundred thousand dollars (which was rejected) -consumed nearly two years of the patent, and exposed the inventor to the -endurance of a most annoying uncertainty. - -Government, however, most effectually insured its successful extension, -when, contrary to the practice of European powers, it declined to assume -the control of the Telegraph, and referred its inventor, after the -thorough investigation of the Postmaster-General, to the people as the -proper recipients of his discovery. It was the healthy act of a -government which recognized its duty to protect, instead of absorbing, -the enterprises of its citizens. That duty is as clear to-day as it was -then. - -When government rejected the control and ownership of the Telegraph, -although offered for so paltry a sum by the inventor, it was accepted by -the people as a legitimate enterprise, and they have given to it all the -capital, skill, and labor required for the fullest development of its -usefulness. - -Although many years elapsed after the introduction of the Telegraph in -this country during which it maintained but a feeble existence through -numerous weak and limited organizations, that rendered the business -expensive and precarious, it now begins to crystallize into strength and -harmony; and the projectors and promoters of the enterprise feel that -they have a right to expect the fruit of their labors, in the proper and -legitimate return which the humblest citizen receives for his work, and -which government was, in part at least, organized to secure. We -therefore pronounce the Washburne bill an unwarranted and unjust -measure, which, while proposing an ostensible public good, essays to -provide it by the destruction of vast private interests for which it -proposes no compensation. - - - ERRONEOUS CHARGES AGAINST THE AMERICAN TELEGRAPH SYSTEM. - -To the charges made by Mr. Washburne, in the prefatory sentences of his -paper, against the management of the Telegraph system of the United -States, little need be said. They are without the shadow of proof, and -require no other answer than an explicit denial. Yet American telegraph -companies may justly complain that a public man, while ostensibly -performing a service in the interests of the people, should deem it -necessary to traduce a vast interest by the use of terms so broad as to -attract to it, even without proof of their justice, unwarranted -disparagement and suspicion. - -Mr. Washburne’s statement that “the telegraphic system has made less -progress toward perfection, and has been practically of less value to -the masses of the people in our country, than in any other civilized -country on the globe,” is so sweepingly erroneous as to excite our -profound astonishment, which is increased by the still broader assertion -that, “while in nearly every country in Europe the telegraph has become -a speedy, certain, and economical medium of communication, the -inestimable benefits of which are extended to the inhabitants of small -towns and communes as well as to the great centres of trade, in this -country telegraphic communication has always been uncertain and -expensive, and limited to chief towns and cities.” - - - BRIEF STATEMENT OF FACTS. - -In reply to the above we desire to present the following facts. - -The population of Europe at the last authentic census was 288,001,365, -nineteen twentieths of which belonged to the Caucasian race. It contains -thirty-nine cities, each possessing more than one hundred thousand -inhabitants, and the accumulated wealth of nearly two thousand years of -civilization. - -The United States has a population of only 31,148,047, and contains but -ten cities of one hundred thousand inhabitants, while its utmost -civilized history reaches back scarcely two and a half centuries, and -the accumulated wealth of its civilization cannot average fifty years -throughout its cultivated area. - -The population of Europe being nearly ten times greater than that of the -United States, as is also its accumulations of years of civilization, -while, according to Mr. Washburne, its telegraph facilities vastly -outstrip ours, it should, of course, possess far more than ten times the -number of telegraph offices. - -But, in truth, there is not even an approximation to this provision of -telegraphic convenience based on population; for while the United States -alone possess 4,126 telegraph offices, all Europe contains but 6,450, of -which 2,151, or more than one third of the whole number, belong to Great -Britain, where the telegraph has heretofore been free from government -control. - -It is significant of American enterprise that continental Europe, with a -population of 260,000,000, possesses but one hundred and seventy-three -more telegraph offices than the United States, with her 31,000,000 of -widely scattered people. While in the United States there is a telegraph -office to every 7,549 of its inhabitants, in continental Europe there is -only one to every 60,249! - -The following table will serve to show the proportion of telegraph -offices to population in the principal countries of Europe and of the -United States, the number of miles of line, and amount of telegraph -business of each. - - TABLE A. - - _Statistics of the Telegraph in Europe and America for the year 1866, from - official reports._ - - ┌───────────┬─────────┬──────┬───────┬────────────┬──────────────┬───────────┐ - │ │ │Miles │ Miles │Total Number│ │Proportion │ - │COUNTRIES. │Number of│ of │ of │of Messages │Population.[1]│of Offices │ - │ │Stations.│Line. │ Wire. │Transmitted.│ │ to │ - │ │ │ │ │ │ │Population.│ - ├───────────┼─────────┼──────┼───────┼────────────┼──────────────┼───────────┤ - │Austria │ 856│24,618│ 73,854│ 2,507,472│ 39,411,309│ 1 to│ - │ │ │ │ │ │ │ 46,311│ - │Belgium │ 356│ 2,187│ 6,146│ 1,128,005│ 4,530,228│ 1 to│ - │ │ │ │ │ │ │ 12,416│ - │Bavaria │ │ 2,115│ 4,945│ │ │ │ - │Denmark │ 89│ │ 2,515│ 308,150│ 1,684,004│ 1 to│ - │ │ │ │ │ │ │ 18,921│ - │France │ 1,209│20,628│ 68,687│ 2,842,554│ 38,302,625│ 1 to│ - │ │ │ │ │ │ │ 31,681│ - │Great │ │ │ │ │ │ │ - │ Britain │ 2,151│16,588│ 80,466│ 5,781,189│ 29,591,009│ 1 to│ - │ and │ │ │ │ │ │ 13,750│ - │ Ireland │ │ │ │ │ │ │ - │Italy │ 529│ 8,200│ 20,120│ 1,760,889│ 24,550,845│ 1 to│ - │ │ │ │ │ │ │ 49,000│ - │Norway │ 73│ │ │ 269,375│ 1,433,488│ 1 to│ - │ │ │ │ │ │ │ 19,773│ - │Prussia │ 538│18,386│ 55,149│ 1,964,003│ 17,739,913│ 1 to│ - │ │ │ │ │ │ │ 32,955│ - │Russia │ 308│12,013│ 22,214│ 838,653│ 68,224,832│ 1 to│ - │ │ │ │ │ │ │ 221,508│ - │Switzerland│ 252│ 1,858│ 3,715│ 668,916│ 2,534,240│ 1 to│ - │ │ │ │ │ │ │ 10,000│ - │Spain │ 142│ 8,871│ 17,743│ 533,376│ 16,302,625│ 1 to│ - │ │ │ │ │ │ │ 100,000│ - │United │ 4,126│62,782│125,564│ 12,904,770│ 31,148,047│ 1 to│ - │ States │ │ │ │ │ │ 7,549│ - │Dominion of│ 382│ 6,747│ 8,935│ 573,219│ 3,976,224│ 1 to│ - │ Canada │ │ │ │ │ │ 10,400│ - └───────────┴─────────┴──────┴───────┴────────────┴──────────────┴───────────┘ - -Footnote 1: - - From the Annual Cyclopædia. New York: D. Appleton & Co. 1868. - -In large sections of the United States the proportion is much greater. -Thus, the Pacific States embrace an area of 600,000 square miles; -Belgium, 11,000. The former provide an office to every 2,500 of their -population; the latter, one to every 12,416. Thus, the Pacific States -sustain five times as many offices in proportion to population as -Belgium, to say nothing of the great disparity in the condition of -service by the vast range of wild territory occupied by the one, and the -fine roads and cultivated area of the other. - -In view of the facts shown in the preceding table, how can it be said -that in America the telegraph is less practically provided to the people -than in any other civilized country on the globe? - - -THE COMPLAINT OF INDIFFERENCE TO PUBLIC CONVENIENCE WITHOUT FOUNDATION. - - “Instead of an auxiliary to the postal system, controlled, like it, - by the state, sought, like it, to be made useful to the great masses - of the people without regard to the pecuniary profit to be secured, - as in nearly every civilized country in the world, we see the system - in this country in the hands of rival companies, anxious only for - profit, extending their lines only to prominent places where such - profits are to be secured, and too indifferent to the public - convenience. In short, the popular verdict of the people of this - country, if it could be heard, would be that the telegraphic system, - in view of what it is in other countries and might become in this, - is practically a failure.” - -_The above complaint is without the least foundation. In no country in -the world is there so vast a system of lines under one control as in -this; in no country is the business done so well or so cheaply; and -nowhere else has there ever been so earnest an endeavor made to serve -the people faithfully and satisfactorily._ - -A great majority of the towns in this country having even less than five -hundred inhabitants are already supplied with offices, and they are -rapidly increasing. During the past two and a half years more than one -million of dollars have been spent by the Western Union Telegraph -Company alone in the construction of new lines, and during the same -period it has opened more than eight hundred new offices. This it is -constantly doing, as much to satisfy existing public wants as for the -promotion of its own future interest. Over one hundred offices have long -been sustained at a loss, because needed to protect the lines built -through comparatively desert regions to reach distant points of -intercourse, and several hundred more are maintained which barely pay -expenses. In fact, it is a standing rule of the company to open and -maintain a telegraph office at all places in the United States reached -by its lines, on a guaranty that the receipts shall be equal to the -necessary expenses; and, by associating the duties of the telegraphic -service with other productive labor, they are often rendered extremely -light. It also offers to extend its lines to any place not reached by -existing lines, where the inhabitants will advance the cost of building -them, the money so advanced to be refunded to the contributors in -telegraphing at ordinary tariffs. Under this arrangement a large number -of offices have been opened and extensive lines built, to the -satisfaction of all parties. - -Into such arrangements the government could not enter with any similar -rapidity, or by so healthy and economic processes accomplish a like -amount of substantial benefit to the people. The fact that there is -scarcely a community to be found anywhere in America where the people -are unable to meet these offers of the Telegraph Company, is the best -reason why government should not furnish at public expense what the -people are so able to provide for themselves. - -In reply to the statement that our company is anxious only for profit, -and that its charges are exorbitant as compared with those of other -countries, we respectfully call attention to the following table, -showing the average cost of telegrams in Europe and America for the year -1866. - - AVERAGE COST OF TELEGRAMS IN EUROPE AND AMERICA FOR 1866. - - _Official Statistics of the Telegraphs in Europe for the Year 1866._ - - ┌─────────────┬──────────────┐ - │ │ Total Number │ - │ │ of Messages │ - │ Name of │ transmitted, │ - │ Country or │ including │ - │ Company. │ inland, │ - │ │international,│ - │ │ and transit. │ - ├─────────────┼──────────────┤ - │Austria │ 2,507,472│ - │Belgium │ 1,128,005│ - │Bavaria │ │ - │Denmark │ 308,150│ - │France │ 2,507,472│ - │Great Britain│ 5,781,189│ - │ and Ireland│ │ - │Italy │ 1,760,889│ - │Norway │ 269,375│ - │Prussia │ 1,964,003│ - │Russia │ 838,653│ - │Switzerland │ 668,916│ - │Spain │ 533,376│ - │Submarine │ │ - │ Telegraph │ 410,760│ - │ Co. │ │ - │Malta & │ │ - │ Alexandria │ 28,067│ - │ T. Co. │ │ - │Mediterranean│ │ - │ Extension │ 77,400│ - │ Telegraph │ │ - │ Co. │ │ - │ │ ———————│ - │ │ 18,683,727│ - └─────────────┴──────────────┘ - - ┌─────────────┬────────────────────────────┬──────────────┬──────────────┐ - │ │ │ │ │ - │ │ │ │ │ - │ Name of │ │Value in U. S.│Value in U. S.│ - │ Country or │ Receipts │ Gold Coin. │ Currency.[2] │ - │ Company. │ │ │ │ - │ │ │ │ │ - │ │ │ │ │ - ├─────────────┼────────┬───────────────────┼──────────────┼──────────────┤ - │Austria │Florins │1,644,742 x $0.48 =│ $789,476.16│ $1,168,424.71│ - │Belgium │Francs │ 961,112 x 0.19 =│ 182,611.28│ 270,264.69│ - │Bavaria │Florins │ 322,886 x 0.41 =│ 132,383.26│ 195,927.22│ - │Denmark │Dollars │ 308,150 x 1.09 =│ 335,883.50│ 497,107.58│ - │France │Francs │7,707,590 x 0.19 =│ 1,464,442.10│ 2,167,374.30│ - │Great Britain│£ │ 512,707 x 4.86 =│ 2,491,756.02│ 3,687,798.90│ - │ and Ireland│sterling│ │ │ │ - │Italy │Lire │4,120,311 x 0.19 =│ 782,859.09│ 1,158,631.45│ - │Norway │Dollars │ 343,645 x 1.09 =│ 374,573.15│ 554,368.26│ - │Prussia │Thalers │1,275,785 x 0.72 =│ 918,565.00│ 1,359,476.20│ - │Russia │Roubles │1,872,659 x 0.77½ =│ 1,451,310.72│ 2,147,939.86│ - │Switzerland │Francs │ 684,471 x 0.19 =│ 130,049.49│ 192,473.24│ - │Spain │Dollars │ 554,475 x 1.04½ =│ 576,654.00│ 853,447.92│ - │Submarine │£ │ │ │ │ - │ Telegraph │sterling│ 60,368 x 4.86 =│ 293,338.48│ 434,214.95│ - │ Co. │ │ │ │ │ - │Malta & │£ │ │ │ │ - │ Alexandria │sterling│ 52,142 x 4.86 =│ 253,410.12│ 375,046.97│ - │ T. Co. │ │ │ │ │ - │Mediterranean│ │ │ │ │ - │ Extension │£ │ 31,200 x 4.86 =│ 151,632.00│ 224,415.36│ - │ Telegraph │sterling│ │ │ │ - │ Co. │ │ │ │ │ - │ │ │ │——————————————│——————————————│ - │ │ │ │$10,328,994.37│$15,286,991.61│ - └─────────────┴────────┴───────────────────┴──────────────┴──────────────┘ - Average cost of telegrams in Europe 81⅚ cents. -Footnote 2: - - The Commercial and Financial Chronicle gives the lowest price of gold - in 1866 as 124⅞, and the highest 167¾, making the average 148, which - we have adopted as the standard value for that year. - - _Statistics of the Western Union Telegraph Company of the United States - and of the Montreal Telegraph Company, Dominion of Canada, for the year - ending June 30, 1867._ - - ┌─────────────────────┬───────────────┬───────────────┬───────────────┐ - │ Name of Company. │Total Number of│ Receipts. │ United States │ - │ │ Messages. │ │ Currency. │ - ├─────────────────────┼───────────────┼───────────────┼───────────────┤ - │Western Union │ 10,067,768[3]│ │ $5,738,627.96│ - │ Telegraph Company │ │ │ │ - │Montreal Telegraph │ 573,219│$258,000 gold =│ 381,840.00│ - │ Company │ │ │ │ - ├─────────────────────┴───────────────┴───────────────┼───────────────┤ - │Average cost of telegrams in the United States │ 57 cents.│ - │Average cost of telegrams in the Dominion of Canada │ 66 cents.│ - └─────────────────────────────────────────────────────┴───────────────┘ - -Footnote 3: - - These are exclusive of railroad messages, of which this company sends - many millions per annum. In fact, the safety of all the roads in the - United States is largely due to the free use of our wires in running - trains. - -The total receipts of the Western Union Telegraph Company for the above -year were $6,568,925.36; but of this amount $521,509 were received for -transmitting regular press reports on contract, and $308,788.40 from -other sources,—leaving only $5,738,627.96 for telegrams. - -Of the 10,067,768 messages sent during the year, 8,004,770 were on -commercial and social matters, and 2,062,998 containing special press -news, the latter amounting to 75,359,670 words. - -Of the regular reports there were delivered to the press 294,503,630 -words, which, allowing 20 words to each message,—the European -standard,—would amount to 14,725,181 telegrams, in addition to the -number given in the table. The average telegraphic tolls on these -reports were three and one half cents for a message of 20 words, or one -and seven tenths of a mill per word. - - - THE ASSERTED UNION OF THE POSTAL AND TELEGRAPH SYSTEMS IN EUROPE AN - ERROR. - -In referring to the action of European governments, in their early -recognition of the telegraph system, Mr. Washburne says:— - - “At once, after the invention and successful establishment of - electric telegraphs, every government in Europe where lines were - built, except that of Great Britain, established a telegraphic - system in connection with its postal system. _Anticipating, as they - might well do, that in private hands it might be so constructed as - to draw to it, by its speed, safety, and economy, a large proportion - of the correspondence, and thus become a rival of the post_, these - governments, acting in the interests of the people, have made the - system part and parcel of the postal system, and have thrown around - it all the safeguards which in every civilized country the postal - system enjoys.” - -The above statement, with the exception of that portion printed in -italics, is remarkably incorrect. - -In no country in Europe does it appear that the telegraphic -administration is connected with the post-office.[4] In France and Spain -the telegraphs are under the control of the Minister of the Interior. In -Russia, Prussia, and Italy they belong to the Ministry of Public Works. -In Belgium the telegraph, railways, and the post-office form a general -division under the Minister of Public Works, but are kept distinct. In -Austria the administrations of the telegraphs and the post-office were -at one time united, but it was found expedient to separate them. In -Switzerland the telegraphic organization is nearly the same as -Prussia’s; the post-office, customs, and private establishments supply -the elements of an auxiliary staff, but all the persons employed in the -transmission or delivery of telegrams depend on the administration of -Telegraphs for their compensation, and in the annual budget an -appropriation is made for that service distinct from the post. - -Footnote 4: - - Telegraphic Journal, (London: Truscott, Son, & Simmons,) Volume XI. - page 131. - -An effort was made in France in 1864 to consolidate the post-office and -telegraph service, but, owing to the strong opposition evinced on the -part of the chief functionaries of both services to such amalgamation, -it was relinquished. - -It was not until several years after the introduction of the electric -telegraph in America that it was opened to the people by any European -government. Even in France the electric telegraph was established as -late as 1851, and its spread throughout the empire was exceedingly slow. -The semaphore telegraph, a defective and inefficient system of conveying -intelligence by the exhibition of signals,—introduced by Napoleon at the -beginning of the present century,—was still in use, and, notwithstanding -the manifest advantages of the electric telegraph, as shown by Arago to -the House of Deputies, government long refused to employ it, and, when -finally adopted, it was for some time used in connection with the old -system. - - - THE SHORTCOMINGS OF BRITISH TELEGRAPHS. - -Mr. Washburne says of the British telegraph:— - - “In Great Britain, as in the United States, the telegraph was left - to private enterprise and competition. Only a few weeks since, after - a twenty years’ trial of the system in the hands of private - companies, the people of the British islands, with singular - unanimity, demanded to have the telegraphic system placed under the - control of the postal authorities, and a bill was introduced by the - present government for that purpose.” - -It is complained of Great Britain, which provides one quarter of all the -telegraph offices in Europe, that the telegraph companies there have -left eighty-eight places in England and Wales having a population of two -thousand and upwards, and even whole districts, without an office. - -Whatever may be true of the meagreness of the provision of telegraphic -facilities by English companies, and which these companies vigorously -deny, no such complaint can, with justice, be made in the United States, -notwithstanding the vast ranges of territory which must be traversed to -meet the communities which need and ask for them. - -Without intending any disrespect to the postal authorities of the United -States, it may be said that the post-office system of Great Britain, -because of the superior character of the control which long and careful -study has enabled it to secure, is far in advance of our own. In fact, -there is nothing more apparent to an English visitor than the low -_status_ of our postal arrangements, as compared with that of his own -country. It is natural, therefore, seeing the postal system so admirably -managed, that English merchants, whose tendencies are all toward -governmental direction in matters of this character,[5] should desire to -see the experiment of a similar control of the telegraph. In fact, it is -only this class of citizens who have asked for the change, the memorial -having gone solely from the different Chambers of Commerce throughout -the kingdom, no appeal on the subject having ever been made to or by the -people of Great Britain, and therefore the assertion that the people -with singular unanimity demanded it is not sustained by the facts. - -Footnote 5: - - Witness the proposition recently so much discussed in England, that - the government should assume control of the railways also. - - - THE TELEGRAPH SYSTEM OF THE UNITED STATES UNPARALLELED FOR ITS EXTENT - AND EFFICIENCY. - -Mr. Washburne says, “There is abundant reason to believe that the -telegraphic system of Great Britain, which is declared a failure on such -high authority, is, in all respects, greatly superior to our own”; but -he fails to give any of his reasons for this belief, and we are -compelled to assert that it has no intelligent explanation except in a -strangely morbid hostility to this company, which exhibits itself on -every offered occasion. In all respects the telegraph lines of this -country are equal to those of any other, and in some important ones -superior. They extend from the Gulf of St. Lawrence to the Gulf of -Mexico, and from the Atlantic to the Pacific Ocean, connecting in one -unbroken chain more than four thousand cities and villages, forming a -system by which every event of importance happening in any section of -our vast territorial limits is published within a few hours in every -other; through which verbatim reports of the speeches in Congress are -transmitted from the capital to the metropolis, and full abstracts of -them to every considerable town in the nation, on the day of their -delivery; which supplies the metropolitan journals with more telegraphic -news every day than is contained in the combined press despatches of -Europe. Such a system, in its vastness, skilful manipulation, and the -rapidity of its unceasing development, we believe merits the public -approbation, and is not unworthy of the American name. - -Our system of telegraphy is unique. Nowhere else can there be found such -an extent of lines under one control. The lines of the Western Union -Telegraph Company, extending throughout the United States and portions -of the Dominion of Canada, enables it to transmit messages between every -section of the country, without undergoing the delay of checking or -booking at intermediate points; and between most of the large cities -without retransmission. This work, over a territory so vast, although -only two years have elapsed since the confederation of lines was -effected which made it possible, is fast assuming, under increased care -and enlarged experience, the certainty and uniformity of mechanism. In -all its effective features, the world may safely be challenged to -produce anything to compare with it. The extent of lines and wire -belonging to the Western Union Telegraph Company is more than twice that -of France, three times greater than that of Prussia, and equals the -aggregated systems of Austria, Prussia, and the lesser German States, -Italy, Spain, Belgium, and Switzerland, and it is increasing in larger -ratio than any European system. The Western Union Telegraph Company -alone has added to its lines, during the year 1868, more than five -thousand miles of wire, or as much as the entire system of Belgium, -leaving unsatisfied demands for an equal extension in the year to come. - - - ASSERTED EFFECT OF GOVERNMENTAL CONTROL ON BELGIAN TELEGRAPHS. - -Mr. Washburne says:— - - “In Belgium, where the telegraph has always been under the control - of the government, the charge for telegraphing twenty words - throughout the kingdom is half a franc, or, say ten cents of our - money. In Switzerland the charge is the same. In both these - countries offices are opened in nearly every town and village; in - both telegraphing is reliable and certain; _complaints of delays and - errors are almost unknown, and the lines in both countries yield - large profits_.[6] - -Footnote 6: - - See official acknowledgment of inefficiency on pages 18 and 19; - also, on page 96, an admitted loss in performing the service at - established rates. - - “In Belgium, in the year 1853, with an average charge of 5 francs - and 7 centimes, or say $1.02 for twenty words to any part of the - kingdom, the number of messages sent was 52,050, yielding, francs, - 265,536. In the year 1866, with the charge reduced to about 17 cents - for twenty words, the number of messages had increased to 1,128,005, - yielding, francs, 962,213. The same remarkable increase is found in - the statistics of the telegraphic system of all countries where the - telegraph is under government control.” - -If by the latter clause of this statement it is designed to convey the -idea that government control, _per se_, stimulates the use of the -telegraph, or that even a reduction of rates, without this control, is -incapable of producing this result, it may justly be challenged as -utterly unsustained by the telegraphic experience of this country. The -coupling together of these two influences seems designed to prove that -the one necessarily involves the other, whereas the question of rate is -altogether independent of management, whether government or individual. - - - EARLY BELGIAN RATES CONTRASTED WITH AMERICAN. - -Respecting the Belgian tariff of 1853, of $1.02 in gold per message, for -a distance not exceeding fifty miles, it must be regarded as -prohibitory, except to those whose necessities compelled its use. The -American charge at the same period for even greater distances was -twenty-five cents. Instead, therefore, of any surprise at the -comparatively limited use of the telegraph by the Belgian people under -the circumstances, it may well be regarded as extraordinary that it was -used so much. - -Had private companies in the United States attempted to impose such a -tariff at the period named, public opinion would have compelled an -immediate reduction. While there can be no doubt that, within certain -limits, a diminished tariff will usually be followed by an increase in -the number of messages, experience has demonstrated that this cannot be -relied on as invariably true, except where the charge has been -unreasonable or exorbitant. It must be remembered that, when a tariff -has been reduced one half, there must be an increase of more than one -hundred per cent in the number of despatches, to yield the same revenue, -meet the cost of added labor, and provide the necessary additional means -of transmission. So great an addition in the number of messages, -unattended with a corresponding increase of wires and operators, would -result in such delay and inaccuracy as to render the service of no -value. - - - NATURAL INCREASE IN TELEGRAPHY. - -It should be remembered, too, that an increase follows the supply of -more ample facilities, when these have been inadequate to the wants of -the communities for which they are provided. - -There is also a large natural increase, altogether irrespective of the -charges for transmission, which must be allowed for, before the -legitimate effect of the inducements presented by cheapness, or the -opportunities furnished by the multiplication of wires or increased -capacity in the machinery, can be estimated. Thus, in December, 1848, -which in the United States bears a fair comparison with Belgium in 1852 -as to date of telegraphic introduction, at the office in Buffalo, N. Y., -the receipts amounted to $330.54; while in the same month of 1867, with -no decrease in the tariff, the receipts were $5,392.07,—an increase of -over 1,600 per cent, and exceeding by 400 per cent that which in Belgium -was caused, as claimed, by reducing the tariff from $1.02 to 17 cents, -but which, in Buffalo, resulted from simple natural increase caused by -the growth of the country and enlarged telegraphic facilities. The -annual gross receipts of the Magnetic Telegraph Company, extending -between New York and Washington, were as follows:— - - 1847, $32,810 - 1848, 52,252 - 1849, 63,367 - 1850, 61,383 - 1851, 67,737 - 1852, 103,232 - -Up to the close of 1848 the above company had a monopoly of the -telegraph service between these two cities, but in March, 1849, the -House Printing Line commenced operations between New York and -Philadelphia, and, together with Bain’s Chemical Telegraph, was -continued through to Washington in the autumn of that year, so that from -1848 to 1852 the above statement only shows the receipts of one of the -three lines doing business between these places. If the receipts of the -other two companies were as large, it exhibits the remarkable increase -in the amount of business done, in five years, of more than 900 per -cent, without any reduction in rates. - -The number of messages transmitted by the Magnetic Company in 1852 was -253,857, at an average cost, according to the receipts, of forty cents -each. - -The average cost of the French telegrams for the same year, according to -the official tables furnished by Mr. Washburne, was 11.28 francs, or -$2.25 each. - -For the year ending November 1, 1868, the Western Union Telegraph -Company transmitted over the same territory embraced by the lines of the -Magnetic Company in 1852, 1,556,004 messages, the gross receipts upon -which were $546,262.05, being an average of thirty-five cents per -message. There are two rival companies operating lines between New York -and Washington at the present time, so that the comparison between the -business for the past year and that of the previous year above given is -quite complete. - -The gross receipts of the New York and Boston Magnetic Telegraph -Association for the year ending - - July 31, 1848, were $34,835.14 - „ 1853, „ 82,214.16 - „ 1854, „ 79,683.73 - „ 1855, „ 101,307.98 - „ 1856, „ 102,151.78 - „ 1857, „ 103,134.06 - „ 1858, „ 98,097.73 - „ 1859, „ 96,136.06 - -In 1848 the above company had a monopoly of the business between these -places, but in 1849 two rival companies constructed lines over this -route and divided the business with it. - -In 1848 the tariff between New York and Boston was fifty cents for the -first ten words, and three cents for each added word; and to -intermediate points twenty-five cents for the first ten words, and two -cents for each added word. - - - UNFORTUNATE EFFECTS OF LOW RATES AND COMPETITION. - -In 1849 the rate was reduced between New York and Boston to thirty -cents, in 1850 to twenty cents, and in 1852 to ten cents. None of the -lines, however, paid their working expenses from the time of their -construction up to 1853. Even in 1848, when there was no opposition, the -expenses exceeded the receipts by $1,199.00. One of the three lines was -sold at public auction twice within three years after its construction, -to pay the debts incurred in operating it. In 1853 two of the lines were -united under one control, and an amicable arrangement entered into -between the two remaining companies, by which the rates were advanced -approximately to those of 1848, and they remained unchanged for the next -ten years. - - - AMERICAN AND EUROPEAN RATES COMPARED. - -In 1851, when the tariff between New York and Boston was twenty cents, -the average French rate was $1.56, and the Belgian, for less than one -third the distance, $1.56. - - In 1852, New York and Boston, tariff, 10 cents. - „ French, average „ 2.25 „ - „ Prussian, „ „ 2.35 „ - „ Belgian, „ „ for less than one 1.21 „ - third the distance, - „ Austrian, „ „ 1.55 „ - 1866, New York and Boston, „ .30 „ - „ French, average, .83 „ - „ Prussian, „ .65 „ - „ Belgian, „ for less than one .25 „ - third the distance, - „ Austrian, „ .46 „ - -When the Belgian lines were opened to the public, an act of the -legislature, dated March 15, 1851, established a charge of 2½ francs for -a message of twenty words, if transmitted within a circle of 75 -kilometres (i.e. 50 cents in gold for a distance of about 46½ miles), -and five francs (one dollar gold) for any distance beyond the limit of -75 kilometres. - -The increase from 52,050 messages in Belgium in 1853 to 1,128,005 in -1866 is, no doubt, in part justly attributable to the reduction of the -prohibitory tariff of the former year, but it is not greater or more -remarkable than the increase during the same period in America, where no -reduction from the early rates has been made, and where, nevertheless, -the business has improved year by year until it has grown into its -present volume, exceeding that of any nation on the globe, on whatever -basis the comparison be placed. - -Belgium transmitted 14,025 messages in 1851 and 52,050 in 1853, being an -increase of nearly 400 per cent in three years, although the tariff had -been reduced less than 20 per cent. From 1853 to 1862 there was an -increase of over 500 per cent, with a reduction of tariff of about 52 -per cent. From 1862 to 1867 there was an increase of less than 400 per -cent, although the average tariff had been reduced from 2.07 to 0.85 -francs, or about 60 per cent. - -Other suggestive illustrations are contained in the tables furnished by -Mr. Washburne. Thus, in Switzerland, in 1853, at an average cost of 1.55 -francs per message, the number sent was 82,586. In 1854, at an average -cost of 1.62 francs, 129,167 were sent, showing an increase of 46,581 -messages at a higher tariff. In 1855, when the cost per message was -almost identical with that of 1853, the number had increased to 162,851, -or about 100 per cent. In 1859, when the cost of messages was 1.48, as -compared with 1.35 in 1858, the number had increased from 247,102 to -286,876, and in 1861, at the average charge of 1859, had increased from -286,876 to 333,933. In 1857 and 1862 the charges were exactly alike, yet -the increase in the number of messages in the latter year was 113,288, -or over 43 per cent over the former. The tables furnished by other -countries show similar results. In Prussia, in 1852, 48,751 messages -were sent at an average cost of 2.35, while in 1858, at a cost increased -to 2.95, 247,292 messages were sent, or an increase of over 400 per -cent. - -The effect of the policies of the two nations thus shown to be so -dissimilar are instructive. - -When Belgium, finding it necessary to reduce her tariff to one franc, -thereby first attempted to popularize the use of the telegraph, it was -done, notwithstanding all its advantages of free rents, absence of -taxes, and labor vastly cheaper than in the United States, at a loss to -the state of 41,417.19 francs. And when, upon the idea that a still -lower tariff might so develop the public use of the lines as to render -them self-sustaining, the Belgian government in 1866 reduced the tariff -one half, its expenditures were increased thereby from 653,280 francs in -1863 to 1,217,496 francs, entailing a loss of 255,282,000 francs, as -shown by Mr. Washburne’s report. In the United States, by keeping the -tariff at the lowest paying rates, the system has been extended to every -part of the country, touching the extreme limits of civilization, and -its realm of usefulness is yearly increasing. - - - THE PECULIARITIES OF THE BELGIAN TELEGRAPH SERVICE. - -The telegraph business of Belgium is peculiar. Half of it only can be -said to be Belgian at all, the other half being messages in transit, or -international, which are sent at comparatively little cost, and for the -transmission of which it makes terms with other nations. On the inland -or Belgium business proper, the only class which can with any propriety -be used in the argument in hand, there was, as has been seen, a loss in -1866 of thirty-four per cent, and in 1867 of thirty-seven and a half per -cent. The greater cost of an inland message arises from the fact that it -is received, forwarded, and delivered in the kingdom, requiring the -various service connected with such duties; while transit messages -simply pass through the state, and impose no expense for labor in -transmission, reception, or delivery, and international messages require -no delivery in the country sending them. - -But besides its annual losses to government, there exists a serious -drawback in the value to the people of the reduced tariff. The -diminished rate in Belgium is accompanied by no promise of prompt -delivery. Despatches at a half-franc each must take their chance of -transmission, and submit to the delay caused by other service. Speed -rates are established to compensate for loss by the reduced tariff. -Thus, a message requiring immediate transit is charged three times an -ordinary message, reversing the plan of the Western Union Company, which -transmits promptly and indiscriminately at ordinary rates, but makes an -immense reduction when the night hours can be used. Of course business -men, to whom time is money, are obliged to pay an extra franc to secure -that promptness and certainty of transmission without which the -telegraph is of little value for all important transactions. The tariff -has been, therefore, practically increased to one and a half francs, or -forty-two cents for distances which cannot average more than -seventy-five miles, and probably do not exceed fifty. The cheap messages -take their chance. In America, a repeated message is charged half a rate -more than the ordinary tariff. In Belgium it pays four single rates. -Cipher messages are also charged four times the price of ordinary -messages, while here they are received at ordinary rates. - -Were the United States government to construct lines under the Washburne -bill, and adopt this Belgian system, its tariffs between Washington and -Baltimore—about the average distance of the Belgian service—would be, -for prompt delivery such as our telegraph companies perform, _forty-five -cents_, instead of the existing charge of ten cents; for messages to -which no assurance of promptitude is given, fifteen cents; and for -repeated messages, _sixty cents_, instead of our present rate of fifteen -cents. If, now, with all its advantages of cheap labor and the profits -arising from international and transit messages, the Belgian government, -on these bases of charge, admits a clear loss in 1866 of 255,282 francs, -how will it be possible for Mr. Washburne to secure a profit to -government large enough in a few years to pay the cost of the line, on a -common tariff of fifteen cents for all classes of messages? - - - BELGIAN OFFICIALS ACKNOWLEDGE THE IMPERFECTIONS OF THEIR SYSTEM. - -As Mr. Washburne claims for European telegraphs speed, certainty, and -economy, it is well to be able to read Belgian official testimony on the -same subject. The last report of the Belgian department of public works -has the following paragraph:— - - “Imperfection has existed at all times and in all places. It is in - vain to attempt to obtain equally rapid and exact transmission under - all circumstances. Delay will occur, whatever may be done to prevent - it, by the blocking up of lines, by a temporary influx of business; - and, in a country where distances are short, that delay may equal, - and sometimes even exceed, the time that would be occupied in - transmitting by railway.” - -Official truthfulness and modesty thus lifts the veil from a system held -up for our admiration, and reveals its weakness. - - - INSTRUCTIVE HISTORY OF BELGIAN TELEGRAPHS. - -The history of the use of the telegraph in Belgium is instructive. - -During 1851, the first recorded year of its existence, there passed -between the offices of the whole of that kingdom, as shown by Mr. -Washburne’s tables, twenty-one messages per day. If we may suppose, what -seems scarcely credible, that only five of her chief cities were at that -time connected by the wires,—Ghent, Antwerp, Brussels, Bruges, and -Liege,—it exhibited the remarkable spectacle of a telegraph line opened -by government “in the interest of the people,” used to the extent of -about four messages per day at each of her five chief cities! - -Even after four years more had been used in the extension of her lines, -the daily transmission only increased to fifty-five messages per day for -the whole kingdom, showing how slowly and jealously the lines were given -to public employment, and how utterly futile is the assertion that the -public interest, at that time at least, controlled the state in their -management. - -The tariff, which had averaged during the first year $1.26 per message, -and had not, so far, been practically reduced, showed still more clearly -that only the rich used it, and that it was, on account of its cost, -practically beyond the employment of the people. The truth is, as Mr. -Washburne states, that the Belgian government, fearing its use in -private hands, and suspicious that by private energy the telegraph would -be made to rival, if not ruin, the Belgian post, seized and held it from -popular control. There is certainly nothing in the first five years of -its existence in Belgium which proves that government, as is claimed, -desired to give the fruits of a great invention to the Belgian people. -During all of these years, however, and in marked contrast to the lines -under government management everywhere, hundreds of thousands of -messages were passing over the telegraph lines in the United States, at -a tariff which made them available to all its citizens, and showing a -daily record in some of the smaller of its inland towns greater than -that of all the Belgian offices combined. - -When in 1866 the Belgian government, by the radical reduction of the -tariff to half a franc, endeavored to render the service more generally -useful to the people, it did so at the expense of the public treasury; -since on each of the 2,180 inland messages transmitted per day a loss of -thirty-eight centimes, or more than two thirds the established rate, was -sustained; and, as we have elsewhere stated, this loss would have been -much greater, but for a profit derived from international and transit -messages, which went to the credit of the whole service. - - -SINGULAR IDEA THAT A SMALL TELEGRAPH SYSTEM IS MORE DIFFICULT TO MANAGE - THAN A LARGE ONE. - -“It appears to be tolerably clear,” says Mr. Washburne, “that, in order -to assert the superiority of a system on a small scale, it requires even -more care and greater attention to cope with an increased traffic than -an establishment whose ramifications embrace a larger sphere.” - -This remark is made with reference to the necessity of great promptitude -in the delivery of messages in Belgium, where the places connected are -contiguous, and conveyance by railroad rapid and frequent. It is made -also to show that it is more difficult under such circumstances to cope -with an enlarged use of the telegraph than in the United States, where, -by reason of distance and the comparative infrequency of transit by -railroad, the necessity of promptitude is presumably less urgent. - -At first the argument seems fair, but when examined, it has no -foundation except in the general fact that distance and infrequent -transit by rail may render the telegraph valuable and desirable, even -without the promptness essential where transit is rapid and frequent. - -The weakness of the argument is evident when it is seen that, as -distances decrease, all the elements of cost and maintenance of lines -and the difficulties arising from elemental disturbances, lessen in the -same proportion. This admits of easy illustration. Look for a moment at -Belgium, of which Mr. Washburne treats so copiously. Located centrally -in that kingdom, in the form of a triangle, and separated from each -other by about thirty miles each, are her three chief cities, Ghent, -Brussels, and Antwerp. To connect either two of these a line of -telegraph thirty miles long is required, which government builds upon -its own property and protects by its own police. However thoroughly -built, its cost is necessarily small. There is no trouble or uncertainty -in working it. Its very shortness renders its perfection in the use of -all the appliances which science and experience have shown desirable -readily and cheaply attainable, and it is easily kept in order. When -increased public use imperils promptness by the limited provision of -wires, ten men, in a single week, can erect another. In all this the -very proximity of the points to be connected facilitates and economizes -every step required in meeting the enlarged necessities. - -The management of such lines, short, well-guarded, and permanent, is -almost solely confined to the arrangements for transmission and -delivery. - -In Belgium, therefore, which contains only two thirds as many offices as -the Western Union Telegraph Company maintains in the State of New York -alone, with her commercial centres near together, with an average of -less than three wires on her poles, with her 2,232 miles of line on -government property and protected by its authority, want of promptness -would be inexcusable, because so easily effected. Were New York and -Chicago only thirty miles apart, and all the messages of the United -States, now approximating thirteen millions per annum, required to be -passed between them at the rate of 36,000 per day, and within an average -of fifteen minutes from the time of their reception, as is now done -between the Chambers of Commerce of these cities, it could be -accomplished with comparative ease, and especially so were the land -which the wires traversed the property of the company, and the lines -guarded by the nation. Once render it easy and inexpensive to provide a -reliable outward structure, and the work of the telegraph becomes a -matter of simple internal organization, except as competition and the -necessities of extension in a land so vast as ours adds to the ordinary -cares of administration. The immense distances between our centres of -commerce, the multitude of far separated radiating centres of business, -the great exposure and defective protection of our lines, and constantly -increasing system of wires which are constructed as rapidly as new -demands for their extension are made, render the management of this -company one of the most arduous and complicated of private enterprises. -There is nothing in Europe or elsewhere which bears any proper -resemblance to the American telegraph system, nor with which it can be -properly compared. - -Between the systems of Belgium and the United States we witness the -following marked contrast. The companies here have only one tariff for -transmission, and all take their turn. The payment of an extra franc -cannot, as in Belgium, purchase priority, or give one advantage over his -neighbor. This is an imposition of the government, similar to, and even -less defensible, than that which in England requires four postages to -secure the safety of a letter. Here the companies offer to guarantee the -public against error by an extra payment of one half the ordinary -tariff; but the public, because of their confidence in the company, do -not avail themselves of this provision, to an extent of one in ten -thousand! Messages sent in cipher, for which no extra charge is made in -the United States, can only be sent in Europe by the payment of four -ordinary tariffs, and in some states in Europe, and among others France, -the government will not permit their being sent at all. - - - NECESSITY FOR THE UNIFICATION OF THE TELEGRAPH SYSTEM. - -It is curious to observe that the reasons assigned for the advantages to -be gained by governmental control are precisely the same which led to -the consolidation under one management of the great mass of the American -lines, and which has led to the unjust charge of monopoly as the work of -unification has progressed. - -Mr. Scudamore says: “When I began to collect the information on which -this report is based, I was not free from doubts as to the propriety of -the scheme; but, after patiently collecting and considering all the data -which I could obtain, I found myself driven, by the mere force of facts, -to the conclusion at which I have arrived. This conclusion, indeed, is -almost identical with that to which the directors of the Electric and -International Telegraph Company came in the year 1852, and which they -thus stated to their stockholders:— - -“The delays, inaccuracies, and expense of the continental telegraphs are -an exemplification of the great advantage to the public of the -administration _being under a single management_. _This circumstance -alone admits of the establishment of a low and uniform tariff...._ The -telegraph has already become a most powerful and useful agent, and has, -in a measure, been adopted as a means of communication by persons -employed in commercial pursuits, but, owing to the want of proper -arrangement and facilities, and the fact of the management of the lines -being divided _by several companies_, without unison in action or -interest, the public generally have been debarred from benefiting by the -immense accommodation and advantages the telegraph is capable of -affording.” - -In presenting the same idea, Mr. Washburne, with a looseness of -statement for which we know of no proper justification, remarks as -follows:— - - “There can be no doubt that the superiority of the continental - system over every other is due to the fact that the telegraph there - is a government institution, while in this country it is left to - private enterprise. Individual and associated effort have done much, - but, with the confusion of our telegraphic system before us, it - would be folly to shut our eyes to the inherent weakness of all - joint-stock enterprises. Absence of responsibility, waste of labor, - irresolute councils, expensive management, want of effective control - over subordinates, are among the evils of such associations, to say - nothing of the imperative demands of stockholders that dividends - shall be made and that none shall be hazarded. Under government - control one governing body would do the work now done by twenty, and - the obligation to realize profits would not interfere to prevent the - reduction of rates or the proper extension of the system.” - -Passing over the charges of “waste, irresponsibility, and irresolute -councils,” which serve to round the paragraph in which they occur, the -focal idea is the efficiency secured by a united control. That is the -very basis of this company’s organization. Discarding as false and -perilous any general assumption of the enterprises of the people by the -government, and accepting its refusal to attach the telegraph to its -administration, when offered to it by its inventor, as for the best -interest of the nation, this company early saw that united action -between the extremes of our territorial limits was as essential to its -own success as to public convenience. With numerous companies, of -limited jurisdiction, and tariffs on all bases,—which had to be added -and dovetailed to each other whenever a despatch passed between two -distant places,—there was neither certainty of correctness, promptitude, -nor the possibility of a low and uniform tariff. To secure all of these -the leading telegraph organizations combined. It was a step necessary -alike for public usefulness and success, and is accomplishing all that -could be desired. The system has penetrated farther, and compassed more -territory than separate organizations could have attempted or than even -government itself would have been willing to undertake. Its -administration is vast, harmonious, liberal, exact, economical, and -just. It uses its revenues largely to extend its realm of usefulness to -the people of every section of the country. It seeks to secure the -highest skill and character in its employees. Its aim is to give the -wires to the use of the whole people on the lowest terms consistent with -proper self-support and the just return which capital and skill demand. -It will accomplish all the nation requires of it, if allowed to solve -its own problem, making the wires the accepted right arm of the public -industries, and the emblem of universal unity and good-will. - - - ESTIMATE OF THE COST OF BUILDING TELEGRAPH LINES. - -Mr. Washburne says:— - - “Any one at all familiar with the prices of materials and labor in - the various countries will see that, as to materials for the - construction of lines, they are cheaper here than in any European - country, and that the whole cost of constructing telegraphic lines - must be less here than in Belgium or Switzerland. In the latter - country a large proportion of the lines are erected upon iron posts, - the prime cost of which with the stone base is from $6 to $9 each, - or from five to seven times the cost of the posts usually employed - in America. - - “As to the exact cost of constructing lines in the United States it - is difficult to procure reliable data. There are few questions - apparently so simple upon which so many conflicting opinions have - been printed. So simple a matter as the cost of posts, say thirty - feet long, the placing of them in the earth, furnishing and placing - the necessary iron wires and insulators and the fitting up of - stations with instruments and furniture, ought not, one would - suppose, to be a difficult thing to fix. Yet persons claiming to be - experts, and even authorities in all matters relating to telegraphs, - have differed very widely. Mr. Prescott, a telegraph superintendent, - and the author of a work on ‘Electric Telegraphs,’ estimates the - cost of a mile of telegraph, built as they ordinarily are, at - $61.80[7].... - -Footnote 7: - - This statement was written in 1859, and the object of the author - was to show the inferior manner in which a majority of the lines - were constructed at that time. - - “This is about the cost of construction of a majority of our lines, - but if built as they should be, they would cost $150 per mile. If - additional wires are added, each wire put up would be, per mile, - $32.80.” - -Mr. Washburne’s statement, that telegraph lines can be built cheaper in -the United States than in Europe, is entirely incorrect. Labor, wire, -machinery, insulators, and every appliance peculiar to the telegraph, -are very much cheaper in Europe than in America, and large importations -of wire are constantly being made from Belgium and England, -notwithstanding the heavy duty. - -The difference in the cost of labor in Europe and America is very great. -The most recent authentic publication on the subject[8] states that the -general average rates paid for all kinds of labor in the United Kingdom -are as follows: For adult males, in England, $4.96 per week; in -Scotland, $4.52; in Ireland, $3.16. For boys and youths, under twenty -years of age, in England, $1.44; in Scotland, $1.70; in Ireland, $1.38. -For adult women, in England, $2.76; in Scotland, $2.32; in Ireland, -$2.06. For girls, under twenty years of age, in England, $1.88; in -Scotland, $1.80; in Ireland, $1.62. These rates are stated to be high, -as compared with other countries in Europe. - -Footnote 8: - - Wages and Earnings of the Working Classes. By Leone Levi, F. S. S., F. - S. A., Professor of the Principles and Practice of Commerce in King’s - College. London: John Murray. 1867. - -In Belgium, coal-miners earn from 33 cents to $1.00 per day, the average -being 56 cents. In iron-furnaces, a puddler earns from 92 cents to -$1.10, and the under hands from 50 cents to 62 cents per day. In -iron-foundries, a moulder earns from 44 cents to 62 cents per day. In -Paris, the average for adult male labor is 76 cents per day, and for -women 38 cents; but in the interior of France the price is much less. In -Prussia, first-class engineers earn $1.10, and second-class 83 cents. - -Among the working classes in the United Kingdom are included all who, -whether as workers for others or as workers for themselves, are employed -in manual labor, be it productive of wealth or not; and they are divided -into five classes, viz. professional, domestic, commercial, -agricultural, and industrial. The total number of workers is estimated -at eleven millions, and the average weekly earnings in the United -Kingdom are: Men, under twenty, $1.59; from twenty to sixty, $4.18; -women, under twenty, $1.72; from twenty to sixty, $2.41. Average weekly -earnings from every avocation in Great Britain and Ireland, $3.16. - -Thirty per cent of the people of the United Kingdom live in houses the -rental of which is less than $31 per annum, and seventeen per cent in -those under $45 per year. - -In the preparation of the following table we have consulted Professor -Levi’s work on Wages and Earnings in England; “Government and the -Telegraphs” (London, 1868); “Special Report on the Electric Telegraph -Bill”; “Publications of the Statistical Bureau at Washington”; and the -official records of the Western Union Telegraph Company. - - _Statement showing the Average Cost of Labor in England and the United - States._ - - ┌───────────────────────────────────┬────────────────┬────────────────┐ - │ Prices paid per Day. │ England. │ United States. │ - ├───────────────────────────────────┼────────────────┼────────────────┤ - │Carpenters and Builders │ $1.14│ $3.25│ - │Dock Laborers │ .68│ 2.25│ - │Engineers │ 1.32│ 3.85│ - │Farm Laborers │ .42│ 2.00│ - │Iron Founders │ 1.10│ 3.25│ - │Moulders │ 1.25│ 3.50│ - │Letter-Carriers[9] │ .74│ 2.18│ - │Printers │ 1.02│ 2.50│ - │Policemen │ .85│ 3.00│ - │Railroad Conductors │ .92│ 3.85│ - │Soldiers │ .22│ .62│ - │Servant-girls │ .16│ .48│ - │Telegraph Employees[10] │ .41│ 1.29│ - └───────────────────────────────────┴────────────────┴────────────────┘ - -Footnote 9: - - The number of letter-carriers employed by the British Post-Office - Department for the year 1866 was 11,449, and the total expenditures - for the same $2,664,000, being an average of $232.68 per annum for - each man. - - The number of letter-carriers employed by the Post-Office Department - of the United States for the year 1866 was 863, and the total - expenditures for the same $589,236.41, being an average of $682.77 for - each man. - -Footnote 10: - - The cost of labor of telegraph employees is obtained by dividing the - total amount paid for labor by the number of persons employed of all - kinds. The average price per day for operators in the United States is - $2.25, and in England 62 cents. - -With a knowledge of the great difference in the cost of labor and -material in Europe and America which the above statistics show, we -cannot comprehend the propriety of Mr. Washburne’s assertion that the -whole cost of constructing telegraphic lines must be less here than in -Belgium or Switzerland. - -Even our poles are purchased in the Dominion of Canada, and paid for in -gold. The cost of transportation from the St. Lawrence to New York -cannot be much, if any, more than the cost of their delivery at London, -Havre, or Brussels. - -In the United States, telegraph-poles are of cedar or chestnut,—more -generally of the former. In England, the larch is the most common; in -Russia, the pine; in France, pine, alder, poplar, and other white woods; -and in Germany, spruce and pine.[11] - -Footnote 11: - - Telegraph Manual. - -The cost of a telegraph line depends, like the cost of a house or any -other structure, upon how it is built, but Mr. Washburne, or any other -intelligent man, ought to know that the price appropriated in his bill -for a four-wire line from Washington to New York cannot possibly build -it, even should government build such a structure as those which a dozen -years ago cursed the enterprise, and made it a reproach and shame. When -government builds a line of telegraph on the plea of public necessity, -it should require that its structures at least be equal to those of its -citizens. It is not strange that, with the crude and cheap ideas formed -by Mr. Washburne of telegraph structures, he disparages and undervalues -the properties of the existing companies, and ridicules the estimates -furnished Congress in their communications. - - - DOUBTS REGARDING THE ESTIMATES OF TELEGRAPH EXPERTS AS TO COST OF - CONSTRUCTING LINES. - -We quote from Mr. Washburne’s paper:— - - “In February, 1866, when, in view of the establishment of an - experimental government line of telegraph, the Postmaster-General - was called upon for information ‘in regard to the feasibility and - usefulness of establishing, in connection with the Post-Office - Department, telegraph lines,’ &c., ‘to be opened to the public at - minimum rates of charge, ... and such statistics and exhibits - predicated on cost of construction and capacity of transmission as - will best illustrate its practicability,’ he sent to Congress - lengthy statements, all of them prepared by persons believed to be - interested in or officers of existing companies, in which the cost - of a telegraphic line with six wires is put down by one writer at - $1,400 per mile, by others at $665, exclusive of river cables and - lines through cities. - - “Among other statements so furnished is an amended one by Mr. - Prescott, whose statement, when made part of a work intended as - authority in telegraphic matters, is quoted above. For reasons not - explained his views underwent a marked change between 1860 and 1866, - and he makes haste to refute his own previous statements. His - revised statement is as follows:— - - “‘It is well known by every person who has any knowledge of - telegraphy in this country previous to the publication of my - work in 1860, that comparatively few lines had been at that time - even tolerably well constructed; and one object which I had in - view in writing it was to call attention to this prevailing - fault, and endeavor to get a better system inaugurated. - - “‘Since then there has been a very marked improvement in the - construction of telegraph lines in this country. Small poles, of - inferior wood, which required renewing every few years, have - given place to large and more enduring ones of chestnut and - cedar, and small iron wire, which offered great resistance to - the passage of the electric current, has given place to - zinc-coated wire of larger size and greater conductivity. - - “‘But while the quality of the lines has greatly improved under - the experienced and liberal management of the telegraph - companies, the cost of constructing lines has kept pace with the - increased cost of everything else, and has more than doubled - within the past six years, so that lines which could have been - built in 1860 for $150 per mile could not now be constructed for - _twice that amount_. A substantial telegraph line, constructed - on the line of a railroad, with _cedar_ or _chestnut_ poles - thirty feet in length, and six inches at the top by twelve at - the butt, set forty to the mile, with most improved form of - insulator and best galvanized wire, would cost $400 per mile for - a single wire. If forty-foot poles were used (which would be - necessary if many wires were to be placed upon one set of - poles), it would cost $600 per mile for a single wire. When - fifty-foot poles are used, the cost is very greatly enhanced. - - “‘Mr. Brown estimates the total cost of all the telegraph - property in the United States at “a little more than - $2,000,000.” Now, if we estimate the present cost of the lines - and their equipment at the moderate price of $300 per mile, and - the number of miles of wire in the country at only 150,000, we - have a total cost of $45,000,000, without reckoning the value of - the patents, franchises, &c. - - “‘Mr. Brown states that “telegraphs properly constructed, the - timber well prepared and wire protected, will last for 20 - years.” This may be true, but it remains to be proved.’” - -We fail to discern any refutation by Mr. Prescott of his previous -statements. His reasons for a change in the estimates for building a -telegraph line in 1866 over those of 1860 hardly need be stated. If the -results of the intervening years of civil war, by which a million of -able-bodied men were cut off from the fields of labor, the industries of -the country burdened with enormous taxes before unknown, and prices -inflated by the issue of hundreds of millions of paper dollars, do not -suggest them, there is small hope of profit from the practical lessons -of the times. - - - INCORRECT ASSERTION THAT AMERICAN TELEGRAPHS ARE NOT CONSTRUCTED - ACCORDING TO SPECIFICATIONS. - -Mr. Washburne says:— - - “The officers of the telegraph companies, whose elaborate statement - is also forwarded by the Postmaster-General, estimate as follows:— - - “‘Cost of construction, including engineering, patents, and - franchises, per mile: one wire—six wires. - - “‘The cost of building lines varies according to locality, timber, - method, nature of the ground, and the wires to be borne. - - “‘A line from New York to Washington should be of the best class, - and would be represented by the following figures:— - - 43 poles delivered at stations, $161.25 - 129 arms, complete, 129.00 - 43 holes, five feet deep, tools, &c., 30.00 - Labor,—handling, preparing, erecting, &c., 25.00 - Six wires, at twelve cents per pound, 240.00 - Labor,—wiring, transportation, &c., 30.00 - Distributing poles, 25.00 - Superintendence, &c., 25.00 - ———————— - 665.25 - ======== - - 240 miles at $665.25, Washington to New York, $159,660 - Lines through New York, Philadelphia, Baltimore, and Washington, 16,000 - 22 cables at rivers south of the Hudson, 20,000 - Cable at Hudson River, house, boats, &c., 8,000 - ———————— - $203,660 - ======== - - “‘The cost of franchises and patents cannot be given. - - “‘Such a line built by government, carefully, and with reference to - permanence, with six wires, would cost $250,000. - - “‘If, however, it is seriously contemplated by the government to - construct lines along the great commercial routes, and if it be the - design in so doing to remove from the system, by every attainable - appliance or improvement, all its ascertained defects, a structure - of larger poles, and wires of superior conducting qualities, will be - built. Such a line should be constructed of the most solid and - durable wood, such as the black locust, so that masses of sleet or - moist snow, so destructive to present lines, would leave it - uninjured. Heavier wires also, which, by their increased conducting - capacity, would give greater facility and certainty to transmission, - should be used. - - “‘These improvements, with greater care taken in the execution of - the work than in that of ordinary structures, will, of course, - increase its cost in proportion to the care bestowed. And should the - government determine to provide facilities equal to those now - proffered by private companies, it would be necessary to erect at - least five lines of poles bearing six wires each, that being the - number (thirty in all) now in use between New York and Washington by - all the companies. - - “‘A common wire line, intended to bear one, and not more than two - wires, can be built for $150 to $180 per mile, the wire being number - nine, galvanized, the poles of limited size, and costing not over - $1.25 each.’ - - “It nowhere appears that such lines as all these writers insist - shall be built by the government have ever been built in this or any - other country. They seem to have taken it as matter of course that - the government, if the experiment proposed should be tried, will - depart from the usual method of construction and build the novel and - costly structures for which their estimates are made. One looks in - vain in the communication sent to Congress by the Postmaster-General - for any reliable information as to the cost of a telegraphic line, - constructed as such lines are in this and other countries, and such - a line as the government, if it should be determined to build an - experimental line, would probably build.” - - - COST OF AMERICAN TELEGRAPHS ESTIMATED BY EUROPEAN DATA. - -In reply to Mr. Washburne’s statement that no such lines as all these -writers insist shall be built by the government have ever been built in -this or any other country, we respectfully, but firmly, assert that he -is mistaken. This company possesses thousands of miles of telegraph -lines constructed after the specifications given above, and costing as -much as the estimates which he so emphatically distrusts. In order, -however, to set this matter of cost at rest, we will endeavor to -establish it by comparison with those of all other countries of which we -have been able to procure official data. - -Mr. Frank Ives Scudamore, one of the assistant secretaries of the -British Post-Office, and the gentleman who furnished the reports and -data by which the British government were induced to monopolize the -telegraph in that country, and who shows no disposition to overvalue the -property or services of private telegraph companies, testified before -the select committee of the House of Commons, July 9, 1868, that the -total number of miles of telegraph in operation in Great Britain in 1866 -was 16,000, and that the companies expended in constructing the same -about £2,300,000.[12] - -Footnote 12: - - Special Report, Electric Telegraph Bill, ordered by the House of - Commons to be printed, 16 July, 1868. See testimony on pages 149 and - 150. - -The capital stock of the various companies represented a larger sum than -this, and Mr. Scudamore himself acknowledges that he has got the amount -under the mark rather than over it; therefore we presume that Mr. -Washburne will allow this to be a fair estimate. Now £2,300,000 sterling -is equal to $11,132,000 in gold, or $16,475,360 in United States legal -money. This sum, divided by 16,000 miles of line, gives us $1,029.71 as -the cost per mile. - -The Belgian system comprised, at the end of 1866, 3,519 kilometres of -telegraph lines, equal to 2,187 English miles. The cost of constructing -these lines, up to December, 1866, amounted to 2,055,083 francs, equal -to $411,016.60 gold, or $608,304.56 currency; which would give $274.14 -for each mile of line. It must be borne in mind, however, that the -Belgian government, owning all the railroads, could transport all the -telegraph material free, and in many other ways greatly reduce the cost -of the lines; of course the right of way cost them nothing, and with us -this is an important item. - -Bavaria has 2,115 miles of line, which cost for construction 843,207 -florins, equal to $340,092.28 gold, or $503,338.35 in our currency. This -would make the cost per mile $240. The same conditions, however, which -reduced the cost of construction in Belgium tended to the same result in -Bavaria. - -In France there are 20,028 miles of lines costing 23,800,791 francs, -equal to $4,760,158.20 in gold, or $7,045,034.13 in currency, making the -average cost of each mile of line $351.75. - - RECAPITULATION. - - Average cost per mile of telegraph line in Great Britain - and Ireland, $1,029.71 - Average cost per mile of telegraph line in Belgium, 274.14 - Average cost per mile of telegraph line in Bavaria, 240.00 - Average cost per mile of telegraph line in France, 351.75 - - Total cost of telegraphs in Great Britain and Ireland, $16,475,360.00 - Total cost of telegraphs in Belgium, 608,304.56 - Total cost of telegraphs in Bavaria, 503,338.35 - Total cost of telegraphs in France, 7,045,034.13 - —————————————— - Total cost for the four countries, $24,632,037.04 - Total number of miles of telegraph line in Great Britain - and Ireland, 16,000 - Total number of miles of telegraph line in Belgium, 2,187 - Total number of miles of telegraph line in Bavari, 2,115 - Total number of miles of telegraph line in France, 20,028 - —————— - Total number of miles of telegraph in the four - countries, 40,330 - - Average cost of construction of each mile of telegraph - line for the four countries above named, $610.76 - - - VALUE OF WESTERN UNION TELEGRAPH PROPERTY, BASED ON EUROPEAN DATA. - -The number of miles of line belonging to this company is 50,760, and the -number of miles of wire is 97,416. - -Taking the average cost per mile of telegraph line in England as a basis -for a calculation of the cost of the lines of the Western Union -Telegraph Company, we have a total value of $52,166,079.60. If we -estimate the cost of our lines by the average cost of all the telegraph -lines in Europe of which any statistics can be obtained, we have a total -value of $31,002,177.60. - -Much has been said respecting the alleged unreasonably large capital of -the Western Union Telegraph Company. This company was organized in the -year 1851, with a capital of three hundred and sixty thousand dollars, -and constructed a line of electric telegraph from Buffalo, N. Y., to -Louisville, Ky., distance about six hundred miles. The cost of the line, -on a gold basis, was thus $600 per mile. The present extent of line -belonging to this company, if estimated by the cost of the original -line, and forty per cent be added for the premium on gold, would give us -$42,638,400 as its value. On the basis of the cost of the lines of the -Atlantic and Pacific Telegraph Company, the capital of the Western Union -Telegraph Company would be about $100,000,000, and, on that of some -other rival lines, nearly $200,000,000. - -The gross receipts of the Western Union Telegraph Company from July 1, -1866, to November 1, 1868,—two years and four months,—were -$16,088,498.86, and the gross expenses $9,862,272.31; leaving -$6,226,225.75 as the net earnings, being an average of over seven per -cent per annum on the capital of the company, which is $40,347,700. -After applying $1,934,040.61 of the receipts of the past two years -towards the construction of new lines, and the redemption of the bonds -of the company, it has made, with one exception, regular semiannual -dividends of two per cent. Such a property as this, if situated in -England, or any other country in Europe, would be regarded as so -valuable that its stock would be held at par, and yet it is selling in -our markets at the present time at sixty-four per cent discount, or at -thirty-six dollars per share! At this price the entire property, -including payment of the bonded debt, would only cost $19,415,672. - -Now what is the explanation of this singular distrust of the value of -this great property as shown by its insignificant present market value? -Less than four years ago the stock sold at above par, and its earnings -and prospects were then inferior to what they are at the present time. -An examination of the tables on page 39 will show that the gross -receipts and net earnings have constantly increased during the past two -and a half years, and there is every reason, so far as the management -and prosperity of the company is concerned, why its market value should -have increased instead of depreciating. The explanation for this -singular state of things is to be found in the constant agitation in -Congress of various schemes for the construction and operation of -government telegraphs, at prices very much lower than the cost of the -service. Let any industry be thus constantly menaced, and it must -necessarily suffer in public estimation as a safe investment. We trust -the subject will be effectually settled during the present session of -Congress, and the incubus which has so long rested upon this important -enterprise be removed. - - -ERRONEOUS ESTIMATE OF THE VALUE OF THE WESTERN UNION TELEGRAPH COMPANY’S - PROPERTY. - -Mr. Washburne says:— - - “The statement furnished by the officers of the telegraph companies, - for the information of the Postmaster-General, and by him forwarded - to Congress as his reply to the call for information, is well - calculated to remove all doubts as to the value of this kind of - property. Among other items of information is the following:— - - “The length of wire owned by the Western Union and United States - companies is 60,000 miles.[13] The average cost, as based on the now - united capital, is $450 per mile. This embraces, besides the poles, - wires, and apparatus, the following:— - -Footnote 13: - - This estimate was made before the consolidation of the American - Telegraph Company and other properties with the Western Union - Telegraph Company, and when its capital was only $27,000,000. - - Invested in buildings, $95,208.83 - Stocks in other companies, 1,429,900.00 - Office fittings, 360,000.00 - - “It is remarkable that while _the length of wire_ is given, the - length of line nowhere appears.[14] There is a vast difference - between the cost of a _telegraph line_ and a _telegraphic wire_. We - have seen the cost of a line with a single wire estimated at $61.80, - and each additional wire placed on the same posts, $31.80 per mile. - -Footnote 14: - - We have given the length of the lines, as well as the length of - the wires belonging to the Western Union Telegraph Company, on - page 32. - - “In the absence of any exact information on the subject, we may - fairly estimate that the lines of the companies named average three - wires to each line. They possess, then, 20,000 miles of telegraph - line, with an average of three wires thereon. They speak of ‘single - wire lines costing $180 per mile.’ This estimate is too high for any - line now in use; but if it be adopted as the basis of calculation, - and an allowance of $45 per mile be made for each additional wire, - we have, for the 20,000 miles of line owned by the companies named, - a cost of $5,400,000, represented by a capital stock of $41,000,000! - ‘The average cost’ per mile of each wire suspended on their lines, - ‘_as based on the now united capital_, is $450 per mile.’ If ‘the - united capital’ had been based upon the actual cost of the property - of the company, it would have been nearer $4,000,000 than - $41,000,000. - - “The ‘information’ furnished to the Postmaster-General is compiled - with the evident intent to discourage the experiment then - contemplated. It is incomplete, and is compiled with an intent to - mislead. To any one who will take the trouble to examine it - carefully, and to apply the proper tests to its assertions, it - furnishes additional arguments in favor of a careful experiment by - the government in the construction and maintenance of telegraph - lines under control of the Post-Office Department.” - -To impugn the motives of an opponent is the weakest of arguments. If his -statements are wrong, it is easy to show wherein, but wholesale -denunciation convinces no one of the strength of the cause or the -culpability of the assailed. We do not question Mr. Washburne’s honesty -of purpose in making his unjust and extremely erroneous statements -regarding the property or executive ability of the Western Union -Telegraph Company, but we do say that he is most egregiously deceived -upon all points which he has discussed. - -In reply to the charges which Mr. Washburne brings against the Western -Union Telegraph Company, of compiling information for the -Postmaster-General with an intent to mislead, of exaggerating the cost -of construction of lines, and misrepresenting the value of its own, we -respectfully present the following facts respecting the organization of -the company, the amount of its capital, the number of miles of line and -the number of miles of route, together with a statement of the number of -skilled persons in its employ. - - - THE ORGANIZATION OF THE WESTERN UNION TELEGRAPH COMPANY. - -In the spring of 1866 there were three telegraph companies, covering -vast areas of territory in the United States. Two of these companies -operated lines over separate divisions of the country, but worked in -connection with each other, while the third, which covered some portions -of the territory of the others, was a competitor for the business of all -sections. These three companies were the Western Union, with lines -extending from New York to California, and throughout the Western -States; the American, with lines extending from the Gulf of the St. -Lawrence to the Gulf of Mexico, and through the lower Mississippi and -Ohio Valleys; and the United States, with lines extending from Portland, -Me., to Richmond, Va., and from New York to Kansas. - -The necessity for direct communication between the East and the West, -and the economy of one set of officers and employees instead of two, -demanded the consolidation of the American and the Western Union; and -the still greater saving to all the companies by the uniting of the -lines and offices of the United States with those of the other two -equally necessitated its amalgamation with the others. - - Par Value. Market - Value. - The capital of the Western Union Telegraph - Company, which had sold at par and over in $22,000,000 $22,000,000 - 1865, was - The capital stock of the American Telegraph - Company, which sold at $180 per share in 4,000,000 7,200,000 - 1865, was - The capital stock of the United States 11,000,000 11,000,000 - Telegraph Company was - ——————————— ——————————— - $37,000,000 $40,200,000 - -The proportion of lines and wires to the capital varied with each -company, the American company having the greater number; and in the -terms of consolidation these differences were equitably arranged, and -the capital stock of the consolidated company was established as -follows:— - - FINANCIAL STATISTICS OF THE WESTERN UNION TELEGRAPH COMPANY. - - CAPITAL STOCK. - - At the date of the Report of October, 1865, the capital - stock of the company issued was $21,355,100 - It has since been increased as follows:— - October, 1865, by conversion of bonds 500 - November, 1865, by exchange for stock of California State - Telegraph Company 122,500 - December, 1865, by exchange for Lodi Telegraph Stock 500 - December, 1865, by exchange for Trumansburg and Seneca - Falls Telegraph Stock, 3,500 - December, 1865, by issue to Hicks & Wright for Repeater - Patent, 1,500 - December, 1865, by exchange for Missouri and Western - Telegraph Stock, 400 - December, 1865, by exchange for House Telegraph Stock, 1,400 - April, 1866, by 2½ percent Stock Dividend, to equalize - stock as per Consolidation Agreements, 472,300 - April, 1866, by consolidation with United States - Telegraph Company, 3,845,800 - June, 1866, by issue for United States Pacific Lines, 3,333,300 - July, 1866, by consolidation with American Telegraph - Company, 11,818,800 - July, 1866, by exchange for P. C. & L. Telegraph Stock, 4,100 - December 1, 1867, by fractions converted, to date, 49,100 - ——————————— - Total present capital, $41,008,800 - Of the stock issued for United States Pacific - Lines there was returned to the company, as - consideration for completing construction of - Pacific Line, $883,300 - The company owns also, 120,800 - —————————— - $1,004,100 - Out of this we have issued for— - Southern Express Co.’s Telegraph - Lines, $150,000 - California State Telegraph Co.’s - Stock, 124,700 - Other Telegraph Lines, 80,000 - —————————— 354,700 - —————————— - Now owned by the company, 649,400 - Balance, on which we are liable for dividends, $40,359,400 - - BONDED DEBT. - - Bonds of the American Telegraph Company, due in 1873, $89,500 - Bonds of the Western Union Telegraph Company, due in 1875, $4,857,300 - ——————————— - Total Bonded Debt, December 1, 1867, $4,946,800 - -The greater portion of the debt of the Western Union Telegraph Company -was incurred in the grand attempt to construct a line on the Northwest -Coast, and across Behrings Strait to connect with the Russian line at -the mouth of the Amoor River, known as Collins’s Overland Line to -Europe, which was abandoned on the successful submergence and operation -of the Atlantic Cable. - -The financial condition of the Western Union Telegraph Company May 1, -1868, was as follows:— - - CAPITAL STOCK. - - At the date of the Report of January 1, - 1868, the Capital Stock of the Company, - issued, was, $41,008,800.00 - It has since been increased as follows:— - By exchange for United States Telegraph - Stock, $10,800.00 - By exchange for American Telegraph Stock, 2,400.00 - By exchange for House Telegraph Stock, 100.00 - By fractions converted, 600.00 - ———————————— 13,900.00 - —————————————— - Total Capital Stock issued May 1, 1868, 41,022,700.00 - Of this there is owned by the Company, 675,000.00 - —————————————— - Balance on which dividends are payable, $40,347,700.00 - - BONDED DEBT. - - Bonds outstanding December 1, 1867, $4,946,800.00 - Bonds of 1875 since purchased and cancelled, 56,300.00 - —————————————— - Balance of Bonded Debt May 1, 1868, $4,890,500.00 - Maturing as follows: In 1873, $89,500.00 - Maturing as follows: In 1875, 4,801,000.00 - ———————————— $4,890,500.00 - - PROPERTY ACCOUNT. - - Telegraph Lines and Property, December 1, 1867, $47,733,640.68 - Since added, - By exchange of Stocks, as per Stock - Account, $13,300.00 - By Application of - Profits:— - Construction Account, $103,592.13 - Purchase of Telegraph - Stocks, 23,806.66 - Purchase of Real Estate, 3,011.14 - ———————————— $130,409.93 - ———————————— $143,709.93 - —————————————— - Total Property Account, May 1, 1868, $47,877,350.61 - - STOCK, BOND, AND PROPERTY BALANCES, MAY 1, 1868. - - Assets. Liabilities. - Telegraph Lines, Equipment, Franchises, - etc., $47,051,358.49 - Western Union Telegraph Stock owned by - Company, 667,342.50 - Productive Stock in other Telegraph - Companies, 52,471.81 - Real Estate, 106,177.81 - Capital Stock, $41,022,700.00 - Fractional Shares, 15,110.00 - Bonded Debt, 4,890,500.00 - Bond and Mortgage, Buffalo Property, 15,000.00 - Profits used for Purchase of Property, and Redemption of - Bonds, 1,934,040.61 - —————————————— —————————————— - $47,877,350.61 $47,877,350.61 - - STATEMENT OF INCOME AND EXPENSES FROM JULY 1, 1866, TO NOVEMBER 1, - 1868. - - 1866. Gross Receipts. Expenses. Net Profits. - July, $562,292.97 $410,382.40 $151,910.57 - August, 548,716.96 346,742.31 201,974.65 - September, 556,955.95 298,931.99 258,023.96 - October, 623,528.31 344,245.07 279,283.24 - November, 571,036.02 322,508.66 248,527.36 - December, 551,971.40 302,596.41 249,374.99 - January, 580,560.53 341,104.71 239,455.82 - February, 483,441.77 314,617.26 168,824.51 - March, 530,642.66 297,076.59 233,566.07 - April, 545,586.30 320,869.41 224,716.89 - May, 525,437.94 326,829.83 198,608.11 - June, 488,754.55 318,100.99 170,653.56 - July, 536,156.89 360,917.53 175,239.36 - August, 570,676.85 375,970.17 194,706.68 - September, 601,548.79 375,641.50 225,907.29 - October, 628,836.74 393,459.92 235,376.82 - November, 583,723.66 370,429.57 213,294.09 - December, 576,135.19 379,291.35 196,843.84 - 1868. - January, 539,794.00 366,446.02 173,347.98 - February, 600,183.32 345,855.52 254,327.80 - March, 587,962.23 335,947.64 252,014.58 - April, 602,257.05 356,349.18 245,907.87 - May, 597,374.47 349,165.41 248,209.06 - June, 579,911.00 353,375.50 226,535.50 - July, 601,730.61 396,163.66 205,566.95 - August, 602,304.73 376,452.03 225,852.70 - September, 630,665.36 372,197.50 258,467.86 - October, 680,311.81 410,604.17 269,707.64 - —————————————— —————————————— —————————————— - $16,088,498.86 $9,862,272.31 $6,226,225.75 - - - STATIONS, LINES, AND EMPLOYEES OF THE WESTERN UNION TELEGRAPH COMPANY. - -The Western Union Telegraph Company alone has - - 3,331 Telegraph Offices, - 50,760 Miles of Line, - 97,416 Miles of Telegraphic Wire, - 265 Submarine Cables, - 6,389 Skilled persons in its employ. - - - ENGLISH AND AMERICAN TELEGRAPHS COMPARED. - -It has been shown that, several years before there is any record of -regular public telegraph business in continental Europe, the system in -the United States was in popular use. There can be no question that what -restrained its use in Europe for so many years was governmental jealousy -of its power, and not ignorance of its capacity. The subject was freely -canvassed in the public prints, and was familiar to the learned men of -all European nations. Even in England, whose government aided its -introduction through private enterprise, the employment of the telegraph -was hindered by a tariff so high as to shut it out from general use. -Respecting this latter fact, so as to give in more marked contrast the -early history of the telegraph on the two continents, a few details are -given. - -The Electric Telegraph Company of England was incorporated in 1846, and -seems to have made its first work in the connection of the railway -stations, post-office, police, admiralty, Houses of Parliament, -Buckingham Palace, &c. As late as 1851 only eighty stations in the -provinces, including the chief cities and outposts, had been opened. -Priority of service was secured to the government, and the Secretary of -State was empowered, on extraordinary occasions, to take possession of -all telegraph stations and hold them for a week, with power to continue -so to do. - -The tariff of charges adopted was, for twenty words, including address -and signature, one penny per mile for the first fifty miles; one -half-penny for the second fifty; and one farthing for any distance -beyond 100 miles. The lowest charge was 2_s._ 6_d._, sterling. This -tariff existed as late as 1851. Compare these rates with those of the -American lines at the same period. - -From London to York, a distance of about 230 miles, the charge was -9_s._, equal to $2.25 gold. - -From New York to Boston, a distance of 220 miles, the tariff for ten -words, exclusive of address and signature, was twenty cents! - -From London to Edinburgh, a distance of about 400 miles, the charge was -13_s._, or $3.25, while from New York to Buffalo, 500 miles, the charge -was forty cents. On the English tariff of charges, a message from New -York to New Orleans would have been $11.46; the actual tariff was $2.50. - - - ACKNOWLEDGED SUPERIORITY OF THE EARLY AMERICAN SERVICE. - -On this subject we have the testimony of one of the best of British -popular publications,—“Chambers’s Papers for the People,” published in -1851,—whose words we quote:— - -“The scale of charges in the United States is much lower than in this -country; the electric telegraph is consequently more available to the -greater part of the population engaged in commercial affairs. Apart from -business and politics, the Americans have made the telegraph subservient -to other uses; medical practitioners in distant towns have been -consulted, and their prescriptions transmitted along the wire; and a -short time since a gallant gentleman in Boston married a lady in New -York by telegraph,—a process which may supersede the necessity for -elopement, provided the law hold the ceremony valid. A favorable idea of -the immediate practical utility of the telegraph may be gathered from a -communication to the present writer from New York. ‘The telegraph,’ he -writes, ‘is used in this country by all classes except the very poorest, -the same as the mail. The most ordinary messages are sent in this way,—a -joke, an invitation to a party, an inquiry about health, &c. At the -offices they are accommodating, and will inquire about messages that -have miscarried or have not been answered, without extra charge.’ The -lines in the United States are carried across the country regardless of -travelled thoroughfares; over tracts of sand and swamp, through the wild -primeval forest where man has not yet begun his contest with nature, -where even the rudiments of civilization are yet to be learned. Away it -stretches, the metallic indicator of intellectual supremacy, traversing -regions haunted by the rattlesnake and the alligator, solitudes that -re-echo with nocturnal howlings of the wolf and the bear. Communications -are maintained from North to South, East and West, through all the -length and breadth of the mighty Union, and with a frequency and social -purpose exceeding that of any other nation. In one stretch, Maine and -Vermont, where winter with deepest snows and arctic temperature usurps -six months of the year, are united with the lands of the tropics, where -the magnolia blooms and palm-trees grow in perpetual summer. Subordinate -lines bring the great lakes—the inland seas—into direct communication -with the ocean ports on the eastern shore. Nothing stops the restless, -enterprising spirit of that people.” - - - REMARKABLY LOW TARIFFS OF THE EARLY AMERICAN TELEGRAPHS. - -There is, indeed, nothing more remarkable respecting the presentation of -any great invention to the public than the fact that the electric -telegraph in America was thrown open to the public, in its very -inception, at the lowest tariff which has yet, under all the excitement -of opposition, been adopted. - -What was true of Great Britain with respect to tariffs during the early -years of the introduction of the telegraph applies, as has been seen, -equally to France and the other European states. Every tariff adopted -was, to a large extent, prohibitory, and the facts connected with these -years utterly falsify the statement that Europe has shown (until within -a very few years) anything like the spirit of liberality which private -companies in the United States have manifested in this matter. - -Since these early years no advance was made in our tariffs until the -third year of the rebellion, when the depreciation of the currency -necessitated the increasing of the salaries of employees from fifty to -one hundred per cent, and enhanced the price of material in a -corresponding ratio, compelling a considerable increase of the tariff on -despatches. Since the war closed, most of the important tariffs have -been reduced to their original standard, without any corresponding -reduction of the price of material or labor. - -In contrast with this, we need only to point to the large advance in -railway fares and transportation, in the cost of entertainment at -hotels, in the prices of daily newspapers, and in that of almost every -commodity or service which the people enjoy; and yet the telegraph, like -all other enterprises, has been burdened with the same increase in the -cost of labor and materials. - - - NO SIMILARITY BETWEEN THE TELEGRAPH AND POSTAL SYSTEMS. - -The idea which has been repeatedly broached, that the telegraph and -postal communication are in the same category, is entirely fallacious. -The telegraph does that which the post cannot do, and which, before the -telegraph was invented, remained undone. If the public use the telegraph -at a cost of 25 cents when they might use the mail at a cost of three -cents, it is obvious that the use of the telegraph implies something -essentially different from the use of the post. If they use the post, -with its tardy departure and delivery, instead of the telegraph with its -instant and continuous departure and delivery, it is equally obvious -that there is something implied in the use of the post that is not to be -obtained by the use of the telegraph. - -Postal correspondence and telegraph communication are two very distinct -things. - -A telegram announces sudden illness; death; an accident; prices of gold -every five minutes; prices of stocks every hour; sudden fluctuations in -the values of commodities; orders rooms at a hotel, while the sender is -_en route_ and flying to the distant city as rapidly as steam can carry -him; countermands orders and instructions contained in letters sent by -post; orders letters to be returned unopened; orders the arrest of -fugitives from justice after they have taken their departure on the -railway; orders the search for a package left in the cars, and its -return by a succeeding train; announces that the Merrimac has destroyed -several ships of war, and may get to sea in spite of the Monitor and -ravage the coast; announces that the flag has been fired upon at -Charleston, and in twenty minutes arouses the entire nation. None of -these things are possible for the post. Before a letter could convey the -intelligence of the sudden illness, the patient is dead, or -convalescent; the dead is buried; gold has changed in price a hundred -times; stocks have gone up and down; the man arrives at his hotel -twenty-four hours in advance of his letter; the instructions in the -letters have been acted upon, and no subsequent ones can repair the -damage; the fugitive from justice escapes out of the country; the -package left in the cars is irretrievably lost; the Merrimac has been -sent to the bottom, and the alarm caused by the tidings through the -post, which must continue until another arrival, is groundless; and the -flag has been insulted a month, before all the patriots of the country -have heard the tidings by the slow, plodding mail. - -The telegram is often the index to the more full and copious information -conveyed by the post, but it does not supersede it. There is no -similarity in the conveyance of matter by post or telegraph. - -A letter deposited in a post-office is placed in a bag, and carried to -its destination with no less labor and expense than if _ten_ letters -were so deposited. The time taken in transport is the same. A leather -bag covers a thousand letters as easily as a solitary note. It was this -fact which led to the reduction of postage. But it was accomplished -without the loss of an hour to government, without the enlargement of a -coach, or any considerable increase in the compensation paid for the -service. It involved no new brain-labor, no new responsibilities, no new -expense. Under such circumstances high postage was a folly, and to -return to it would be almost a crime. - -A communication by telegraph, on the contrary, demands a calm, -unoccupied brain, and a steady hand to manipulate its contents, letter -by letter. A slip of the finger from the manipulating key changes its -meaning; a truant thought alters the manuscript; a shadow of -forgetfulness mars its whole design. It demands a whole wire for its -use, and a given time for its solitary passage. Hence the necessity for -multiplying the wires and enlarging the operating staff. - -Added to all this is the necessity for repeating this process when -destined to any point not directly reached by the originating office. - -Over and over again have many of the messages left in the hands of -telegraph companies to be translated or re-written before they reach -their destination; very different from the sealed letter, which needs -but the toss of a practised hand to change its route and put it under -the cover of a new bag. - -The difference between the use of the post and telegraph is well shown -by the practice of the Western Union Telegraph Company, _which requires -all of its employees to use the mail, instead of the telegraph, in every -case where the interests of the company will not suffer by the delay_. -All check errors, and discrepancies in accounts, are settled by -correspondence through the mail, where the same might be done more -readily, though at far greater expense, by the use of the wires. Now, if -the company owning the lines, and working them, can better afford to pay -the postage on its communications, than to block up the wires with its -own free business, it shows a very radical difference between the -expense of transmitting matter by steam, or horse-power, and doing the -same by electricity. - - - COLLECTION AND DELIVERY OF TELEGRAMS BY LETTER-CARRIERS IMPRACTICABLE. - -The plan proposed for the collection and delivery of telegrams by -letter-carriers is equally impracticable. The rapid and safe delivery of -messages is the great difficulty with which the telegraph companies have -to contend, and the amount paid for this service forms a very material -portion of the expense attending the operation of the system. How would -this service be performed if left to the Post-Office Department? In -1865—the last year containing the statistics of the number of letters -sent through the United States mail—the Postmaster-General estimates the -number of letters transmitted at 467,591,600. No statement of the total -number of letters delivered by carrier in the United States is given in -the Postmaster-General’s reports for 1865 or 1866, but he states that -the number of cities at which free delivery is established is 46, and -the total number of carriers, 863; that 582 carriers are attached to ten -offices, from which are delivered 38,060,009 letters. If the remaining -281 carriers, who are distributed among 36 offices, deliver as many in -proportion, we have a total of 56,446,004 letters delivered for the -year, or about nine per cent of the whole number transmitted through the -mail. This does not present a very flattering result, and does not argue -very favorably for the satisfactory delivery of thirteen millions of -telegrams, through the same channel, at over 4,000 offices! - -Compare with these meagre results the operations of the British -Post-Office, which employs 11,449 carriers, and annually delivers -705,000,000 letters. - -As for the collection of telegrams from street boxes, the very idea is -in direct antagonism to the first principles of telegraphic -communication. A street box may answer the purpose of a place of deposit -for a letter intended for the next day’s mail, but those who desire to -communicate by telegraph want immediate and speedy communication. They -require their message conveyed, and very frequently answered, whilst -they wait in the telegraph office. They have no idea of depositing their -messages to await the diurnal collection from the street box. Indeed, -the idea is too absurd to be seriously discussed. There are upwards of -100 telegraph offices in the city of New York alone, and a proportionate -number of branch offices in all the cities. Is it probable that persons -who wish to send a despatch will walk several miles to send it by -government line rather than patronize private lines at their own doors? - -We cannot think that a department whose expenses exceed its receipts by -$6,437,991.85 in a single year; which cannot even _guess within a -hundred millions_ of the number of letters it transmits per annum; which -provides only forty-six free delivery offices out of a total of 29,387 -post-offices in the United States; which does not even pretend to give -the number of letters delivered free for any one year; and which sends -over 4,500,000 letters to the Dead-Letter Office per annum, is a very -proper guardian of so important an interest as the Electric Telegraph. - -The space occupied for the various telegraph offices in all the -principal cities of the United States is considerably greater than that -required by the post-offices, while the rent paid by our company, owing -to the more central and eligible situations of our offices, is greatly -in excess of that paid by the Post-Office Department. In New York, our -company pays $40,000 per annum for rent of its central office alone. So -far as space and eligibility of location is concerned, we could much -better accommodate the public by the delivery of their letters at our -numerous offices, than they are now accommodated at the remote and -inconvenient places provided for them by the government, and in all -respects we could much better handle the mails than the post-office, as -now located and generally conducted, could manage the telegraph. - - - MR. WASHBURNE’S PROPOSED EXPERIMENTAL LINE. - -Mr. Washburne says:— - - “In the present position of the finances of the country, it would - hardly be wise to enter upon an extended experiment. It should be - tried at first on a limited scale, and at small cost. If it proves - successful, and becomes what the telegraph under other government - control has become in other countries,—a source of revenue, as well - as an inestimable boon to the community,—it ought to be, and - doubtless will be, extended. The amount necessary to construct a - suitable line from Washington to New York, and to sustain it until - it becomes self-sustaining, will not exceed $75,000, and it is the - belief of experienced telegraphers that, with a tariff of charges as - low as that of Belgium and Switzerland, and with an additional - charge of single postage upon each message, the line would be - self-sustaining from the beginning, and would probably repay its - entire cost long before the value of the structure was materially - impaired.” - -The results of lowering tariffs for telegrams to a point approximating -the charge for letter postage has been tried so often in this country, -as not to require a new demonstration. The following statement will show -the result of a recent trial between the two important cities of Chicago -and Milwaukee. - -On the 12th of August, 1867, a rival line was opened between those two -points, having no connection with any other at either end. The -competition, therefore, was for local business only. The tariff -previously had been sixty cents. The average number of messages -transmitted per day for the ten days preceding the beginning of business -by the new company was sixty-nine, and the daily receipts fifty-five -dollars. On the opening of the rival line the rate was reduced to forty -cents, and the average number of messages sent by both was eighty-seven, -the receipts forty-seven dollars. On the 16th September the rate was -further reduced to twenty cents, with the following results: Average -number of messages per day for both lines, one hundred and thirty-three. -Average receipts, thirty-seven dollars. On November 8th the rate was -reduced to ten cents, and remained so for the next fourteen days, during -which the number of telegrams transmitted daily by both lines was one -hundred and sixty-seven, and the average receipts twenty-six dollars. - -About the 20th November the rates were advanced to forty cents, by -mutual agreement, and afterwards the lines and records of the new -company came into our possession. - - No. 1. - - _Statement showing number of Messages sent between Chicago and - Milwaukee for first twelve days in August, 1867, at a Tariff of sixty - cents, and same for 1868, at a Tariff of forty cents, together with - daily Receipts._ - - ┌─────────╥─────────────────────────────╥─────────────────────────────┐ - │ DATE. ║ August, 1867. ║ August, 1868. │ - │ ║ Tariff 60 and 4. ║ Tariff 40 and 3. │ - ├─────────╫─────────┬─────────┬─────────╫─────────┬─────────┬─────────┤ - │ ║ Sent. │Received.│Receipts.║ Sent. │Received.│Receipts.│ - ├─────────╫─────────┼─────────┼─────────╫─────────┼─────────┼─────────┤ - │August 1║ 41│ 48│ $67.40║ 49│ 37│ $39.64│ - │ „ 2║ 31│ 38│ 57.00║ 4│ 2│ 1.87│ - │ „ 3║ 36│ 25│ 49.63║ 53│ 42│ 58.25│ - │ „ 4║ 2│ 1│ 1.78║ 69│ 39│ 53.02│ - │ „ 5║ 41│ 34│ 55.98║ 46│ 41│ 43.36│ - │ „ 6║ 41│ 40│ 63.39║ 67│ 46│ 54.60│ - │ „ 7║ 42│ 49│ 73.77║ 51│ 39│ 42.44│ - │ „ 8║ 45│ 27│ 55.75║ 56│ 50│ 52.08│ - │ „ 9║ 39│ 38│ 61.68║ │ │ │ - │ „ 10║ 40│ 40│ 63.91║ 52│ 44│ 47.30│ - │ „ 11║ │ │ ║ 62│ 42│ 51.70│ - ├─────────╫─────────┼─────────┼─────────╫─────────┼─────────┼─────────┤ - │ Totals ║ 358│ 340│ $550.29║ 509│ 382│ $444.26│ - ├─────────╨─────────┴─────────┴─────────╨─────────┴─────────┼─────────┤ - │1867, Average, 69 Messages │ $55.00│ - │1868, Average, 89 Messages │ 44.42│ - └───────────────────────────────────────────────────────────┴─────────┘ - - No. 2. - - _Statement showing number of Messages transmitted between Chicago and - Milwaukee, over the Western Union Independent Telegraph Lines, from - August 12th to August 26th together with the daily Receipts._ - - ┌─────────╥───────────────────────────────────────────────────────────┐ - │ DATE. ║ Tariff 40 and 3. │ - ├─────────╫─────────────────────────────╥─────────────────────────────┤ - │ ║ W. U. and Independent. ║ Western Union. │ - │ ║ August, 1867. ║ August, 1868. │ - ├─────────╫─────────┬─────────┬─────────╫─────────┬─────────┬─────────┤ - │ ║ Sent.│Received.│Receipts.║ Sent.│Received.│Receipts.│ - ├─────────╫─────────┼─────────┼─────────╫─────────┼─────────┼─────────┤ - │August 12║ 33│ 47│ $52.96║ 44│ 42│ $47.82│ - │ „ 13║ 35│ 52│ 66.35║ 49│ 38│ 50.11│ - │ „ 14║ 35│ 50│ 59.00║ 54│ 42│ 53.35│ - │ „ 15║ 44│ 46│ 55.27║ 52│ 41│ 48.28│ - │ „ 16║ 34│ 45│ 53.61║ 1│ │ .52│ - │ „ 17║ 38│ 45│ 62.38║ 58│ 52│ 63.21│ - │ „ 18║ │ 2│ 2.02║ 45│ 33│ 45.69│ - │ „ 19║ 45│ 51│ 70.45║ 40│ 45│ 52.39│ - │ „ 20║ 41│ 50│ 68.51║ 47│ 44│ 64.77│ - │ „ 21║ 39│ 46│ 62.67║ 54│ 40│ 50.22│ - │ „ 22║ 37│ 39│ 49.42║ 48│ 38│ 46.77│ - │ „ 23║ 39│ 41│ 52.97║ 3│ 2│ 2.21│ - │ „ 24║ 30│ 33│ 56.15║ 43│ 45│ 59.57│ - │ „ 25║ 2│ │ 2.10║ 54│ 66│ 73.26│ - │ „ 26║ 63│ 41│ 55.31║ 48│ 57│ 62.89│ - ├─────────╫─────────┼─────────┼─────────╫─────────┼─────────┼─────────┤ - │ Totals ║ 515│ 588│ $769.17║ 640│ 585│ $721.06│ - ├─────────╨─────────┴─────────┴─────────╨─────────┴─────────┼─────────┤ - │1867, Average, 73 Messages │ $51.28│ - │1868, Average, 81 Messages │ 48.07│ - └───────────────────────────────────────────────────────────┴─────────┘ - -Statement No. 1 exhibits a comparison for the first ten days of August, -1867, before the opening of the rival line, and when the tariff was -sixty cents, with the same period in 1868 after the tariff had been -forty cents for nearly a year. Statement No. 2 makes a similar -comparison between the aggregate business of the Western Union and the -competing line for the first fifteen days after the latter opened in -1867, and the same period in 1868, when, although the rate was the same, -there was no competition. By Table No. 1 it appears that, at a tariff of -sixty cents, the number of messages per day last year was sixty-nine, -and the receipts therefor fifty-five dollars. That during the same -period this year, at a reduction of one third in the tariff, there was -an increase of about thirty-three and one third per cent in the number -of messages, but a loss in revenue of twenty per cent. In other words, -our work has been considerably increased, and our compensation therefor -sensibly diminished. Statement No. 2 shows that last year, under the -stimulus of active competition, and a reduction in rates of one third, -the average number of messages per day for fifteen days was but four -more than for the ten days next preceding. It also shows that, after the -reduced rate had been in operation a year, and, notwithstanding the fact -that the telegraph business in all sections of the country in the month -of August this year was somewhat larger than last, the average had been -increased but eight messages per day, and this increase was attended by -a loss of over three dollars per day in the revenue. - -From September 1 to November 3, 1868, the number of messages transmitted -per day between these places was one hundred four and a quarter, and the -average daily receipts $56.41. - -On the 4th of November another rival line was opened between Chicago and -Milwaukee, but no change in rates was introduced until the 24th of -November. The average number of messages transmitted per day by the -Western Union Telegraph Company between these places, from the 4th to -the 23d of November, inclusive, was seventy-eight, and the daily -receipts $43.27. - -On the 24th of November the rates were reduced to twenty cents per -message, with the following results: Average number of messages -transmitted per day between Chicago and Milwaukee by the Western Union -Telegraph Company, sixty-eight; average daily receipts, $24.59. - -It should be remembered that the business from which these exhibits are -derived is between two of the most important inland commercial cities in -the country. Both are largely interested in two important branches of -commerce,—grain and lumber; and probably no other points could be -selected from which more reliable results could be obtained. - -The reason why the Chicago and Milwaukee table is the only one given to -show the results of competition is, that such comparisons are only -valuable when they exhibit the effect upon the business of both -competitors. This is impossible in other cases, because our opponents -will not furnish us with their figures. We have written to every -Telegraph Company in the United States for such statistics for -publication, but none of them has responded to our request. - - - LONDON DISTRICT TELEGRAPH COMPANY. - -We copy the following official statement of the London District -Telegraph Company from the Telegraphic Journal, London, July 30, 1864. -The capital of the company is £60,000, and the average cost of telegrams -transmitted over its lines, for distances that cannot exceed ten miles, -was 6_d._, equal to eighteen cents in our currency, and yet the loss in -four and a half years’ business was £9,573 3_s._ 7_d._:— - - ┌──────────────┬─────────┬───────────────┬───────────────┬───────────────┐ - │ Half-year │Number of│ Receipts for │ Expenditures. │ Deficiency. │ - │ ending │Messages.│ Messages. │ │ │ - ├─────────┬────┼─────────┼─────┬────┬────┼─────┬────┬────┼─────┬────┬────┤ - │ │ │ │ £ │_s._│_d._│ £ │_s._│_d._│ £ │_s._│_d._│ - │June, │1860│ 26,155│ 550│ 19│ 11│2,282│ 10│ 7│1,326│ 2│ 4│ - │December,│1860│ 47,365│1,058│ 19│ 2│3,294│ 0│ 6│2,168│ 1│ 7│ - │June, │1861│ 64,785│2,137│ 1│ 7│4,394│ 12│ 3│2,177│ 11│ 4│ - │December,│1861│ 77,939│2,592│ 15│ 10│4,663│ 5│ 4│1,995│ 13│ 7│ - │June, │1862│ 123,280│3,956│ 4│ 8│5,077│ 17│ 11│1,077│ 15│ 4│ - │December,│1862│ 124,222│3,999│ 3│ 2│4,958│ 4│ 2│ 894│ 0│ 4│ - │June, │1863│ 129,710│4,216│ 6│ 11│4,721│ 1│ 3│ 440│ 9│ 4│ - │December,│1863│ 131,216│4,326│ 4│ 0│5,125│ 9│ 4│ 796│ 15│ 4│ - │June, │1864│ 152,795│4,802│ 10│ 0│4,863│ 17│ 10│ 60│ 12│ 0│ - └─────────┴────┴─────────┴─────┴────┴────┴─────┴────┴────┴─────┴────┴────┘ - -The Directors of the above company express much satisfaction in being -able to present to the shareholders so favorable a statement of its -business; but it strikes us that a system which entailed a net loss of -one sixth of the capital invested in a little over four years is not a -desirable one for imitation. - - - TELEGRAPHS UNDER GOVERNMENT AND PRIVATE CONTROL COMPARED. - -The assertion that the Telegraph facilities are better in those -countries where it is under governmental control than in those where it -is left to private enterprise is entirely erroneous, as the following -tables, compiled from official data, will show. - - _Statistics of Telegraphs constructed and operated under Government - Control_. - - ┌───────────┬────────┬──────┬───────┬──────────┬───────────┬───────────┐ - │ │ │Number│Number │ │ │Proportion │ - │ NAME OF │ Number │ of │ of │Number of │ │of Offices │ - │ COUNTRY. │ of │Miles │ Miles │ Messages │Population.│ to │ - │ │Offices.│ of │ of │ Sent. │ │Population.│ - │ │ │Line. │ Wire. │ │ │ │ - ├───────────┼────────┼──────┼───────┼──────────┼───────────┼───────────┤ - │Austria │ 851│24,618│ 73,854│ 2,507,472│ 39,411,309│ 1 to│ - │ │ │ │ │ │ │ 46,311│ - │Belgium │ 356│ 2,187│ 6,146│ 1,128,005│ 4,984,451│ 1 to│ - │ │ │ │ │ │ │ 14,000│ - │Bavaria │ │ 2,115│ 4,945│ │ 4,541,556│ │ - │Denmark │ 89│ │ 2,515│ 308,150│ 2,468,713│ 1 to│ - │ │ │ │ │ │ │ 27,000│ - │France │ 1,209│20,628│ 68,687│ 2,507,472│ 38,302,625│ 1 to│ - │ │ │ │ │ │ │ 31,600│ - │Italy │ 529│ 8,200│ 20,120│ 1,760,889│ 25,925,717│ 1 to│ - │ │ │ │ │ │ │ 49,000│ - │Norway │ 73│ │ │ 269,375│ 1,433,488│ 1 to│ - │ │ │ │ │ │ │ 19,000│ - │Prussia │ 538│18,386│ 55,149│ 1,964,003│ 17,739,913│ 1 to│ - │ │ │ │ │ │ │ 33,000│ - │Russia │ 308│12,013│ 22,214│ 838,653│ 68,224,832│ 1 to│ - │ │ │ │ │ │ │ 221,000│ - │Switzerland│ 252│ 1,858│ 3,717│ 668,916│ 2,510,494│ 1 to│ - │ │ │ │ │ │ │ 10,000│ - │Spain │ 142│ 8,871│ 17,743│ 533,376│ 16,302,625│ 1 to│ - │ │ │ │ │ │ │ 109,000│ - ├───────────┼────────┼──────┼───────┼──────────┼───────────┼───────────┤ - │ │ 4,347│98,876│275,090│12,486,311│ │ │ - └───────────┴────────┴──────┴───────┴──────────┴───────────┴───────────┘ - - _Statistics of Telegraphs constructed and operated under Private - Control_. - - ┌───────────┬────────┬──────┬───────┬──────────┬───────────┬───────────┐ - │ │ │Number│Number │ │ │Proportion │ - │ NAME OF │ Number │ of │ of │Number of │ │of Offices │ - │ COUNTRY. │ of │Miles │ Miles │ Messages │Population.│ to │ - │ │Offices.│ of │ of │ Sent. │ │Population.│ - │ │ │Line. │ Wire. │ │ │ │ - ├───────────┼────────┼──────┼───────┼──────────┼───────────┼───────────┤ - │Great │ │ │ │ │ │ │ - │Britain and│ 2,151│16,588│ 80,466│ 5,781,189│ 29,591,009│1 to 13,714│ - │Ireland │ │ │ │ │ │ │ - │Dominion of│ 382│ 6,747│ 8,935│ 573,219│ 3,976,224│1 to 10,400│ - │Canada │ │ │ │ │ │ │ - │United │ 4,126│62,782│125,564│12,386,952│ 31,148,047│1 to 7,549│ - │States │ │ │ │ │ │ │ - ├───────────┼────────┼──────┼───────┼──────────┼───────────┼───────────┤ - │ │ 6,659│86,117│214,965│18,741,360│ │ │ - └───────────┴────────┴──────┴───────┴──────────┴───────────┴───────────┘ - -Thus it will be seen that Continental Europe, where the telegraphs are -under government control, furnishes but 4,347 offices for a population -of over 250,000,000, while Great Britain, the Dominion of Canada, and -the United States, where telegraphy has been left to the control of the -people, untrammelled by governmental interference, monopoly, or -restriction, furnish 6,659 offices for a population of 64,000,000! The -number of telegrams transmitted per annum in Continental Europe is only -12,486,311, while there were sent by the people of the three countries -where it has hitherto been free from government repression, 18,741,360. -The tariff of charges in Continental Europe averages eighty-one cents -per message, while in the three countries where the people manage the -business it averages but fifty-one cents. - -Private enterprise alone laid the submarine cables through the Persian -Gulf and Mediterranean Sea, across the Gulf of St. Lawrence, the -Vineyard Sound, the Strait of Florida, the English Channel, the North -Sea, and the German and Atlantic Oceans. - - - THE TELEGRAPH AND THE PRESS. - -In nothing, perhaps, is the superiority of private enterprise over -governmental control more strongly marked than in the extraordinary -amount of news furnished to the press of the United States, as -contrasted by the meagre supply of the European journals. - -By a system of co-operation among the newspapers of the United States -and the Western Union Telegraph Company, the news of the world is daily -furnished to the people of every portion of this country at a price -within the reach of the poorest citizen. - -On page 8 we have shown that 294,503,630 words are annually furnished to -the newspapers of the United States, at an average cost of less than two -mills per word. This immense amount of matter is not transmitted to each -newspaper separately, but through a combination of wires only possible -to a vast system like that owned by the Western Union Telegraph Company, -it is sent to a large number of places simultaneously, with only one -transmission. - -The newspapers of the United States are associated together on the -co-operative system. There is a general association having its -headquarters in New York, which collects news from every part of the -world; and there are local associations in every section of the country, -which furnish their quota of intelligence to the general association, -and receive in return such news as they require. - -As an illustration of the manner in which this service is performed, we -will take the State press of New York for an example. The report is -compiled by the agent of the Association for the various editions of the -newspapers requiring it, and it is then handed to the telegrapher, who -with the manipulation of his magic key transmits it simultaneously to -Poughkeepsie, Hudson, Albany, Troy, Utica, Syracuse, Auburn, Elmira, -Binghamton, Owego, Rome, Oswego, Rochester, and Buffalo, New York, to -Rutland and Burlington, Vermont, and to Scranton, Pennsylvania. These -stations are not all on a single wire, nor on the same route, and the -question may be asked, How can they all receive the same information -from a single impulse? This is accomplished by a combination of circuits -through an instrument called a repeater, by which the intelligence can -be transmitted to a thousand offices as easily as to one. - -The news is sent to the Eastern press in a similar manner. The -manipulation of the key at New York transmits the report simultaneously -to Bridgeport, New Haven, Hartford, Waterbury, and Norwich, Conn., -Providence, R. I., and to Springfield, Worcester, Boston, Fall River and -New Bedford, Mass. - -The operator at each of these places receives the reports by the click -of the instruments,—reading by the sound of the armature,—and with an -agate pen copies them upon manifold paper, making as many impressions as -are necessary to furnish each paper with a duplicate copy. - -Direct wires carry and bring news from and to Chicago, Cincinnati, St. -Louis, Washington, New Orleans, Plaister Cove, and other important -points. Sixteen wires work out of New York every night to transmit or -receive news reports, and all over the United States the ubiquitous iron -threads are permeated by the subtile and invisible fluid during all the -silent hours of the night, conveying intelligence of passing events in -all sections of the civilized world for publication in the morning -journals throughout the country. - -It is a singular and suggestive fact, that the amount of news which we -furnish to the press of the United States, for an aggregate sum of -$521,509, is considerably greater than the entire telegraphic -correspondence of Continental Europe, for which the paternal governments -of those enlightened and enterprising peoples receive $11,597,632.71. - -The following table will serve to show the remarkable contrast, in this -respect, between the systems under government and private control. The -number of messages delivered to the press are obtained for this -comparison by dividing the total number of words furnished to the press -by 20, the European standard:— - - _Statement showing the Average Cost of Telegrams in Continental Europe - and the Average Cost of Press Telegrams in the United States, with - Total Amount of each per annum._ - - ┌─────────────────────┬──────────────┬─────────────────────┬──────────┐ - │Total number of │ │Total number of │ │ - │ messages │ │ messages furnished │ │ - │ transmitted in │ │ to the newspapers │ │ - │ Continental Europe │ │ of the United │ │ - │ for the year 1866, │ 12,902,538│ States for 1866, │14,725,181│ - │Gross receipts for │ │Gross receipts for │ │ - │ the above, │$11,597,632.71│ the above, │ $521,509│ - ├─────────────────────┼──────────────┼─────────────────────┼──────────┤ - │Average cost of │ │Average cost of press│ │ - │ telegrams in │ │ telegrams in the │ │ - │ Continental Europe,│ 81 cts.│ United States, │ 3½ cts.│ - └─────────────────────┴──────────────┴─────────────────────┴──────────┘ - -The above exhibit illustrates the difference between what can be -accomplished under a popular government which leaves the press and -telegraph free and untrammelled, and the results of the paternal system -which the governments of Continental Europe impose upon their subjects. -For these great benefits the people of this country are indebted to the -government for the one negative quality of letting the press and -telegraph alone. For the positive quality which actually provides them -they are solely indebted to the enterprise and public spirit of the -press, and the Western Union Telegraph Company, the latter furnishing -the reports at a price which barely covers the cost of service employed -in transmitting them, and leaving nothing to defray the expense of the -wear of the lines, or interest on the investments for their -construction. - -In no other country in the world is there such a system, and in none can -there ever be, until the policy of our government is imitated, and the -people left to manage their own private affairs, leaving the press and -the telegraph free and untrammelled by governmental control or -repression. What our government, with such an example already set, might -be able or disposed to do, in the event of its monopolizing the -telegraphs, it is impossible to say; but it is unquestionably true, that -no other government has ever made such a use of them to promote the -education and general well-being of its people. - -We believe it would prove a serious misfortune to the press and the -people, if the government were to destroy, by its interference, this -admirable co-operative system of obtaining telegraphic news at such low -rates. - -The tariff for special press reports is as follows: For the first one -hundred words, full rates; for the next four hundred words, a discount -of thirty-three and one third per cent; for the next five hundred words, -one half the ordinary tariff; and all over one thousand words, a -discount is made of sixty-six and two thirds per cent. - -Mr. Washburne’s bill provides for a general tariff of one cent per word -for telegrams, with an additional charge of three cents for postage, and -two cents for delivery, and stipulates that a reduction of not more than -fifty per cent shall be made for press reports. _This rate would -increase the average cost of news for the press of the United States -more than three hundred per cent, and thus the newspapers would be -compelled to pay an extra tax of a million dollars per annum for the -privileges they now enjoy._ - -If these facts show any results to warrant governmental assumption or -interference in the business of telegraphing, we fail to perceive them. - - - - - REVIEW - OF - MR. GARDINER G. HUBBARD’S LETTER TO THE POSTMASTER-GENERAL ON THE - EUROPEAN AND AMERICAN SYSTEMS OF TELEGRAPH. - - -We have recently received a pamphlet from Gardiner G. Hubbard, Esq., of -Boston, entitled a “Letter to the Postmaster-General on the European and -American Systems of Telegraph, with Remedy for the present High Rates,” -which we will briefly review. - -Mr. Hubbard commences by saying:— - - “The reasons that have induced the public to commit to the - government the transmission of the mails by rail have induced most - civilized nations to intrust it with the duty of transmitting - correspondence by telegraph. England and America are the only - important exceptions.” - -As England and America are the only “civilized nations” where the public -have any control of such matters, there need be no further discussion of -this proposition. - - - ERRONEOUS STATEMENTS RELATIVE TO BELGIAN TELEGRAPHS. - -Alluding to the Belgian telegraph, Mr. Hubbard says:— - - “In 1850 the private lines then in operation were purchased by the - government, and have since been under its management. The rates were - originally one franc and a half for a message of twenty words. At - these rates, the telegraph was little used for inland messages, and - its development was very slow. In January, 1863, they were reduced - to one franc, and December, 1865, to half a franc.” - -By referring to the official tables published by the Belgian government, -on page 94, it will be seen that the average cost per message on the -Belgian lines in 1851 and 1852 was over 6 francs; in 1853, 5.10 francs; -1854 and 1855, over 4 francs; in 1856 and 1857, 3.62 and 3.42 francs; -from 1858 to 1862, over 2 francs; and even in 1867 they averaged 0.85 -francs. - -We quote from Mr. Hubbard again:— - - In 1862, the inland messages, at 1½ francs, numbered 105,274 - In 1865, the inland messages, at 1 franc, numbered 332,718 - In 1867, the inland messages, at ½ franc, numbered 819,668 - - Total receipts in 1866, 961,112 francs. - Total expenses in 1866, 839,000 „ - - Estimated profits for 1866 on the entire business, if - no reduction had been made, 198,499 „ - Actual profits for 1866, under the reduced rates, 122,112 „ - ——————— - Actual loss by reducing the rates on inland messages - one half, 76,387 „ - -By an examination of Table H, page 96, it will be seen that the total -receipts of the Belgian telegraphs for 1866 were 962,213 francs; -expenditures, 1,217,496 francs; loss, 255,283 francs. Of the receipts -only 407,532 francs were for inland messages, of which there were -transmitted 692,536, while 553,580 francs were received for 435,469 -international and transit messages. As before stated, the expense of -service upon transit messages is merely nominal. They simply pass -through the kingdom, and require no labor in receiving, transmitting, or -delivery. The greater part of the expense, therefore, was incurred upon -the inland messages; and, had not the Belgian administration imposed a -tax upon neighboring nations of 553,580 francs for messages coming from -or going to other countries, there would have been a deficit of 809,964 -francs on the year’s business instead of 255,283 francs. - -We quote from Mr. Hubbard:— - - “A system of railroads is also owned and operated by the government, - and the telegraph is connected with both the railroad and the post. - A large proportion of the offices are at the railway stations, but - every post-office is an office of deposit, from which messages are - despatched at once, free of charge, to the nearest telegraph office, - when in the same district; otherwise, by the first messenger or by - special carrier, on payment of an extra rate for porterage. This - union of the telegraph with the post and railroad reduces the - expenses for operators, clerks, general management, rent and office - expenses, and brings the system into close connection with every - citizen. - - “The rates are prepaid by stamps, and are uniform and low. The rate - for all inland messages by telegraph, or by telegraph and post where - the place of deposit or delivery is not on the line of the - telegraph, is one half-franc [or thirteen and a half cents - currency].” - - - BELGIAN TELEGRAMS DELIVERED BY POST. - -In reply to this flattering picture of the Belgian system of telegraphy -we quote the following from a recent English publication:[15]— - -Footnote 15: - - Government and the Telegraphs. London, 1868. - - “The government of Belgium not only have a monopoly of the - telegraphs and post-office, but also of most of the railways of the - country. They work the system as a whole. In the case of ordinary - half-franc telegrams, the messages are not uniformly despatched by - messenger from the office at which they arrive, _but are sent to the - residence of the receiver by post_! - - “The administration of the Belgian telegraph in no respect holds - itself responsible for the delivery of a message, unless it is - specially insured and additionally paid for. They decline all - responsibility on account of delay in the transmission or - non-arrival of a half-franc telegram. _They will not even inquire - into the cause of delay of a half-franc telegram!_ No matter how - long a message has taken in delivery, or whatever may be the errors - in it, the government will make no compensation to the sender or - receiver, except under very exceptional circumstances. Moreover, the - twenty words forwarded for half a franc includes addresses both of - sender and receiver, ‘all of which is free in this country.’” - -For further particulars relative to the Belgian telegraph service -reference is made to pages 5, 7, 8, 13, 16–24. - - - WANT OF UNIFORMITY IN RATES. - -We quote from Mr. Hubbard:— - - “There is no uniformity in the rates. They are often less to a - distant station than to an intermediate one on the same line. An - estimate of the average rates, and of the annual number of messages - transmitted has been made by ascertaining the rates to seventy-one - stations at different distances from Boston, and arranging them in - four different classes.” - -Mr. Hubbard groups his American distances into classes of 500, 1,000, -1,500, and 2,000 miles; while his English classes embrace those of 100 -and under, 200 and under; over 200, and to Ireland. - -The average rates he gives for America for - - Class A, 500 miles and under, $0.41 - Class B, over 500, and under 1,000, 1.43 - Class C, over 1,000, and under 1,500, 2.46 - Class D, over 1,500, and under 2,000, 3.36 - -The English rate for - - Class A, less than 100 miles, one - shilling, equal to $0.33 U. S. currency. - Class B, between 100 and 200 miles, one - shilling and sixpence, equal to 0.50 U. S. currency. - Class C, over 200 miles, two shillings, - equal to 0.66 U. S. currency. - Class D, to Ireland, three to four - shillings, equal to 1.00 to 1.33 U. S. currency. - -Mr. Hubbard says:— - - “As rates are higher in America, a greater proportion of messages - are sent to stations in class A than in England, and a smaller - proportion to class D. The average receipt per message, at these - rates, is $1.00. The gross receipts of the Western Union Company, - for the year ending the 30th of June, 1868, were $6,952,273.[16] - This sum, divided by the average receipts, gives the whole number of - messages transmitted, viz. 6,952,000. - -Footnote 16: - - This amount embraces the total revenue of the Western Union - Telegraph Company for that year, and includes the receipts for - telegrams, press reports, and from all other sources. - - “It may be objected that those estimates are incorrect, and - therefore the deductions are unreliable. If the Western Union - Telegraph Company furnish a statement of messages annually - transmitted, the required corrections will be made. If it is not - given, it will be because the estimates of the average rates are too - low, and the deductions too favorable to that company.”[17] - -Footnote 17: - - The statement on page 7, of the number of messages annually - transmitted by this company, shows that Mr. Hubbard’s estimate gives - less than 70 per cent of the number actually sent over the wires. The - average rate per message in the United States is fifty-seven cents. - -As the average of these English rates is a little over 75 cents, while -the greatest distance for the highest English class is less than for the -shortest American class, which he averages at 41 cents, we do not see -how he can assert that the American rates are higher than the English! - -In answer to the charge of want of uniformity in the tariffs, we would -call attention to the fact, that the lines under our control were -constructed by a great number of separate organizations, having tariffs -upon all bases, which had to be added together at all the termini of two -or more lines, so that a message going a few hundred miles would require -the payment sometimes of two or three rates. For instance, a few years -since there were five telegraph companies owning the lines connecting -Portland, Maine, with Cleveland, Ohio, and the tariff between these two -places was ascertained by the addition of the local rates from Portland -to Boston, Boston to Springfield, Springfield to Albany, Albany to -Buffalo, and from Buffalo to Cleveland. The same system prevailed -throughout the United States, until after the consolidation of the lines -made it possible to transmit messages between places thousands of miles -apart without the necessity of booking or rechecking at intermediate -points. This result necessitated a remodelling of the tariffs, and the -work has been going on uninterruptedly ever since; but when it is -considered that a complete revision of the system required a separate -tariff-sheet to be made out for over three thousand offices, changing -and equalizing the rates to more than three thousand other offices, the -immense labor and responsibility incurred in the undertaking may be -imagined. It was impossible to effect this revision at once with any -number of clerks, and for obvious reasons only a limited number could be -employed upon it, as they can only act under the instruction of the -executive officers, who are charged with all the other duties of an -extensive organization. - -Various plans have been suggested for simplifying and equalizing the -tariffs, but difficulties of a practical nature present themselves in -all of them. The existence of rival lines, built by speculators whose -profit is in the construction of them, and which essay to do business at -rates less than the cost of the service, necessitates the reduction of -our rates along certain routes disproportionately, and prevents the -adoption of a general rate strictly proportioned to distance. In the -course of the coming year, however, it is expected that the work of -revising our whole tariff system will be accomplished, to the -satisfaction of all. - - - ASSERTION THAT COMMERCIAL MESSAGES ARE TRANSMITTED AT A LOSS. - -Mr. Hubbard’s assertion that the lowest rate between any large cities in -America is 25 cents is incorrect. The tariff between Washington and -Baltimore is 10 cents; between New York and Providence, New Haven, -Hartford, &c., 20 cents. - -If it is true, as he states, that “at these rates, under the present -system, commercial messages are probably transmitted at a loss,” it may -be a matter of regret to the stockholders of the telegraph companies, -but affords no just ground for governmental interference. Besides, how -will his proposed corporation be able to make money by doing the -business at a still lower rate? - -Mr. Hubbard says:— - - “The history of the telegraph will explain the causes of these - different rates. Great competition, in 1852, caused a large - reduction in the rates. Soon after the validity of Mr. Morse’s - patent was confirmed by the courts many of the competing companies - were enjoined and compelled to wind up or sell out, and some failed. - In the Eastern and Southern States the American Telegraph Company, - in which Mr. Morse and his friends were largely interested, bought - out most of the old companies, and continued to occupy their - territory for many years without serious opposition. - - “The various companies in the West, South, and Northwest (forming - groups of feeble organization) were gradually merged into one - corporation, under the name of the Western Union Telegraph Company. - In 1864, the United States Telegraph Company was organized to oppose - this monopoly, and entered into a vigorous competition with the - Western Union; prices were reduced in consequence, and the business - increased with great rapidity. In 1866 the American Telegraph - Company, the United States Telegraph Company, and the Western Union - were united under the corporate name of the last corporation; the - prices were again raised, and this first caused a less ratio of - increase, and finally an actual decrease in the telegraphic business - of the country.” - -Mr. Hubbard’s pamphlet contains a statement of the rates between New -York and Boston in former years which is inaccurate. The following is a -correct table of the rates between those cities for the years 1849–52. - - In 1849 the rate was 30 cents. - In 1850 the rate was 20 cents. - In 1851 the rate was 20 cents. - In 1852 the rate was 10 cents. - - - CORRECTION OF ERRONEOUS STATEMENTS. - -The statement that “soon after the validity of the Morse patent was -confirmed by the courts in 1852 many of the competing companies were -enjoined and compelled to wind up or sell out” is incorrect, as is also -the assertion that “the American Telegraph Company bought out most of -the old companies, and continued to occupy their territory for many -years without serious opposition.” - -The validity of the Morse patent was never disputed. In 1849 the Morse -patentees commenced suits against the New York and New England [Bain] -Telegraph Company, and the New York and Boston [House printing] -Telegraph Company, for an infringement of the Morse patent. The case -against the company using the Bain patent never came to trial, while the -other was decided in favor of the defendant, by Judge Woodbury of the -United States Supreme Court, 1850.[18] - -Footnote 18: - - For an abstract of this decision see “Prescott’s History, Theory, and - Practice of the Electric Telegraph.” Boston: Fields, Osgood, & Co. - -The consolidations between competing lines, in 1852 and 1853, was caused -by the inability of the companies under separate organizations to meet -their working expenses. They were generally confined, however, to the -union of the Morse and Bain lines, and there still remained two -competing lines upon all the principal routes. There has never been but -a single year, since 1849, when there have not been at least two -competing lines between Boston and Washington. - -The American Telegraph Company was not organized until 1855, and it was -not consolidated with any opposition line until 1860. The next year -after the consolidation the Independent Company built a competing line -between New York and Portland, Maine. - -The assertion that “the United States Telegraph Company was organized to -oppose this monopoly, and entered into a vigorous competition with the -Western Union, and that prices were reduced in consequence,” is also -incorrect. The United States Telegraph Company never reduced the rates -at any point. On the contrary, it was not until after the United States’ -lines were put in operation that the rates were advanced. This was -rendered necessary by the great depreciation of our currency, and -consequent advance in the cost of labor and materials for working the -lines, and was done by agreement of all the companies. - - - TARIFFS NOT INCREASED BY CONSOLIDATION OF THE LINES. - -The statement that, after the consolidation of the American, United -States, and Western Union Telegraph Companies, in 1866, “the prices were -again raised, and this first caused a less ratio of increase, and -finally an actual decrease in the telegraphic business of the country,” -is without the least foundation in fact. In no instance has the tariff -been increased since the consolidation. On the contrary, there has been -a steady decrease, the rates to more than one thousand stations having -been lowered since the consolidation; and this course is still being -pursued as rapidly as a just regard to the rights of the stockholders -and the extremely complicated nature of adjustment to be made will -allow. - -The impression which Mr. Hubbard attempts to give, that the -consolidation of the companies forming the Western Union Telegraph -Company, included all the lines, and gave this company a monopoly of the -business, is also incorrect. The Franklin Company, between Boston and -New York, the Insulated Company, between Boston and Washington, the -Bankers and Brokers’, between New York and Washington, and others, were -then in active operation, and are still. - -Mr. Hubbard says:— - - “In other countries, the rates are reduced with the growth of - business, and are never raised. In this country, they are reduced by - competition, followed by consolidation of the competing companies, - and subsequent increase of rates, without regard to the growth of - the business.” - -The rates are unquestionably often reduced by competition, sometimes -below the cost of doing the business, and this will always be the case -as long as men will listen to the plausible schemes of speculative -enthusiasts, and invest their money in new lines in the hope of -realizing profits which are never earned. The assertion, however, that -consolidation is followed by an increase of rates, without regard to the -growth of the business, is not warranted by the facts. - - - ERRONEOUS ASSERTION THAT A LARGE PROPORTION OF THE OFFICES ARE AT - RAILROAD STATIONS. - -We quote from Mr. Hubbard again:— - - “The telegraph in this country is very generally connected with the - railroad system, and a large proportion of the offices are at - railroad stations.[19] These are seldom in the centre of the towns, - and are not resorted to as generally as the post-office. In the - large cities, the principal offices are near the business centres, - with a number of secondary offices, generally at hotels and railroad - stations. The rent of the main offices is very large, and the - expenses for operators, clerks, and managers are also necessarily - much more than when the telegraph is connected with the post.” - -Footnote 19: - - By a singular coincidence, Mr. Scudamore makes the same complaint - against the English companies, and in nearly the same words. See - Scudamore’s Letter to the Postmaster-General, London, 1868. - -It is true that many telegraph offices are connected with the railroad -system in this country, as well as abroad. Indeed, no railroad would be -considered complete without such a connection, but it is not true that a -large proportion of the offices are at the railroad stations. - -We have shown on page 8 that the telegraph system of Europe is not -specially connected with the Post-Office Department. In some countries -the telegraph, post-office, and railway systems are under one -department, but there is no particular connection between them. The -post-offices are merely offices of deposit for telegrams, and not for -transmission. But supposing they were united, why should the expenses of -operators, clerks, and managers be necessarily much less than when the -telegraph is worked separately? We presume he does not propose to -dispense with the operators, and put the telegrams in the mail-bag; or -does he propose that when the government gets control of the telegraph -that the salaries will be reduced? If this is his idea, we think he is -reckoning on a false hope, for if there was an attempt of this nature, -the operators would seek some other employment. - - - AMERICAN AND EUROPEAN TELEGRAPH TARIFFS COMPARED. - -Mr. Hubbard says:— - - “The lowest American rates are higher than the average foreign - rates, and the average rates several times higher than the foreign. - These high rates retard the development of the system, which was - more rapid in its early growth in this than in any other country. - What are the reasons assigned for these high rates? Are they well - founded, and if not, how can they be obviated?” - -These assertions are entirely erroneous, and the facts quite the -reverse. _The highest American rates are lower than the highest foreign -rates; the average American rates are lower than the average foreign -rates; and the lowest American rates are lower than the lowest foreign -rates._ The lowest rate given in Europe is half a franc, about equal to -14⅘ cents in currency, while our rate between Baltimore and Washington -is only 10 cents. In Paris the tariff on city messages is half a franc -(14⅘ cents), and in London, for city messages, 6_d._ sterling, equal to -18 cents in our currency; while the rates for New York, from the Battery -to Harlem River, are only 10 cents. - -In order that a fair comparison may be made between the American and -European systems of telegraphy, so far as the rate of charges is -concerned, we present a list of sixty of the principal stations in -Europe, and the same number in the United States, with the tariffs and -distances in air lines from London and New York respectively, together -with the rules and regulations of each system. - - - RULES OF THE EUROPEAN TELEGRAPHS. - -The minimum charge is for a message of twenty words, including the -address and signature, and half price is charged for each ten or -fraction of ten words above twenty. - -Words of seven or less syllables count as one word. In words containing -more than seven, the overplus counts as _one_ word; each word -_underlined_ counts as _three_ words. - -Messages containing the same subject-matter addressed to different -stations are charged as separate messages. - -Secret or cipher messages can be sent by government only. - -Replies at full rates can be prepaid; but should the reply contain more -than the number of words specified and paid for, the sender of the reply -must pay for the excess as a fresh message. - -Messages can be repeated by payment of double charge at the time they -are sent, the words “Repetition paid” being inserted after receiver’s -address, and charged for. - -All complaints respecting irregularity in the transmission or delivery -of messages must be made by THE SENDER, and in cases of delay or error -the complaint must invariably be accompanied by the RECEIVER’S COPY of -the message. Complaints from the receivers of messages will not be -entertained. - - - RULES OF THE WESTERN UNION TELEGRAPH COMPANY. - -The minimum tariff is for a message of ten words. No charge is made for -address, signature, or date. After the first ten words the rate is so -much per word, the amount being proportional to the rate for the first -ten. - -All words are counted as one which are found so written in the -dictionaries. No extra charge is made for messages written in cipher, -and no restrictions are placed upon their transmission. - -Replies can be prepaid if desired, and no charge is made for inserting -this information in the sender’s message. - -Messages can be repeated by the payment of one half the regular charge -in addition, and the company agrees to be responsible for any mistakes -which may occur in repeated messages, to the amount of fifty times the -sum received for sending the same. - -Correctness in the transmission of messages to any point on the lines of -this company can be INSURED by contract in writing, stating agreed -amount of risk, and payment of premium thereon at the following rates, -in addition to the usual charge for repeated messages, viz.: one per -cent for any distance not exceeding one thousand miles, and two per cent -for any greater distance. No employee of the company is authorized to -vary the foregoing. - - _Statement showing the Minimum Rate for Telegrams from London to - Principal Cities in Europe, and from New York to Principal Cities in - America._ - - ┌─────────────┬──────┬─────────────────┬───────────────┬──────┬───────┐ - │ From London │ Dis- │ Tariff. │ From New York │ Dis- │Tariff.│ - │ │tance │ │ │tance │ │ - │ │ in │ │ │ in │ │ - │ │ Eng. │ │ │ Eng. │ │ - │ │Miles.│ │ │Miles.│ │ - ├─────────────┼──────┼─┬────┬────┬─────┼───────────────┼──────┼───────┤ - │ │ │£│_s._│_d._│U.S. │ │ │ $ cts.│ - │ │ │ │ │ │Cur. │ │ │ │ - │To Cambridge │ 40│ │ 1│ 6│ =│To New Haven, │ 70│ 0.20│ - │ │ │ │ │ │$0.52│ Conn. │ │ │ - │ Dover │ 50│ │ 2│ 0│ =│ Hartford, │ 100│ 0.20│ - │ │ │ │ │ │ 0.70│ Conn. │ │ │ - │ Birmingham│ 100│ │ 1│ 0│ =│ Providence, │ 150│ 0.20│ - │ │ │ │ │ │ 0.35│ R. I. │ │ │ - │ Worcester │ 100│ │ 2│ 0│ =│ Springfield,│ 125│ 0.30│ - │ │ │ │ │ │ 0.70│ Mass. │ │ │ - │ Havre │ 125│ │ 3│ 6│ =│ Worcester, │ 155│ 0.30│ - │ │ │ │ │ │ 1.22│ Mass. │ │ │ - │ Liverpool │ 180│ │ 1│ 0│ =│ Boston, │ 190│ 0.30│ - │ │ │ │ │ │ 0.35│ Mass. │ │ │ - │ Caen │ 160│ │ 5│ 0│ =│ Portsmouth, │ 200│ 0.45│ - │ │ │ │ │ │ 1.75│ N. H. │ │ │ - │ Plymouth │ 190│ │ 2│ 6│ =│ Washington, │ 190│ 0.40│ - │ │ │ │ │ │ 0.87│ D. C. │ │ │ - │ Paris │ 200│ │ 5│ 0│ =│ Augusta, Me.│ 280│ 0.65│ - │ │ │ │ │ │ 1.75│ │ │ │ - │ Amsterdam │ 200│ │ 6│ 6│ =│ Oswego, N. │ 250│ 0.40│ - │ │ │ │ │ │ 2.27│ Y. │ │ │ - │ Rheims │ 250│ │ 5│ 0│ =│ Portland, │ 250│ 0.65│ - │ │ │ │ │ │ 1.75│ Me. │ │ │ - │ Aix-la- │ 265│ │ 5│ 0│ =│ Bath, Me. │ 275│ 0.65│ - │ Chapelle │ │ │ │ │ 1.75│ │ │ │ - │ Wakefield │ 300│ │ 5│ 0│ =│ Rochester, │ 280│ 0.50│ - │ │ │ │ │ │ 1.75│ N. Y. │ │ │ - │ Dublin │ 290│ │ 5│ 0│ =│ Pittsburg, │ 300│ 0.45│ - │ │ │ │ │ │ 1.75│ Pa. │ │ │ - │ Edinburgh │ 320│ │ 4│ 0│ =│ Camden, Me. │ 330│ 0.65│ - │ │ │ │ │ │ 1.40│ │ │ │ - │ Rochelle │ 350│ │ 7│ 3│ =│ Belfast, Me.│ 350│ 0.65│ - │ │ │ │ │ │ 2.53│ │ │ │ - │ Frankfort │ 380│ │ 7│ 6│ =│ Buffalo, N. │ 330│ 0.50│ - │ │ │ │ │ │ 2.62│ Y. │ │ │ - │ Hamburg │ 380│ │ 8│ 0│ =│ Erie, Pa. │ 360│ 1.00│ - │ │ │ │ │ │ 2.80│ │ │ │ - │ Strasburg │ 385│ │ 7│ 3│ =│ Bangor, Me. │ 340│ 0.65│ - │ │ │ │ │ │ 2.53│ │ │ │ - │ Hanover │ 400│ │ 8│ 0│ =│ Cleveland, │ 425│ 1.00│ - │ │ │ │ │ │ 2.80│ Ohio │ │ │ - │ Stuttgart │ 420│ │ 7│ 6│ =│ Toledo, Ohio│ 470│ 1.00│ - │ │ │ │ │ │ 2.62│ │ │ │ - │ Berne │ 450│ │ 7│ 3│ =│ Columbus, │ 475│ 0.95│ - │ │ │ │ │ │ 2.53│ Ohio │ │ │ - │ Bordeaux │ 455│ │ 7│ 3│ =│ Sandusky, │ 480│ 1.40│ - │ │ │ │ │ │ 2.53│ Ohio │ │ │ - │ Munich │ 540│ │ 8│ 6│ =│ Cincinnati, │ 550│ 1.00│ - │ │ │ │ │ │ 2.67│ Ohio │ │ │ - │ Turin │ 550│ │ 7│ 3│ =│ Lexington, │ 575│ 1.00│ - │ │ │ │ │ │ 3.53│ Ky. │ │ │ - │ Copenhagen│ 552│ │ 8│ 0│ =│ Dayton, │ 552│ 1.00│ - │ │ │ │ │ │ 2.80│ Ohio. │ │ │ - │ Berlin │ 560│ │ 10│ 0│ =│ Charleston, │ 590│ 2.00│ - │ │ │ │ │ │ 3.50│ S. C. │ │ │ - │ Milan │ 575│ │ 8│ 6│ =│ Fort Wayne, │ 580│ 1.70│ - │ │ │ │ │ │ 2.67│ Ind. │ │ │ - │ Marseilles│ 576│ │ 8│ 6│ =│ Lansing, │ 590│ 1.85│ - │ │ │ │ │ │ 2.67│ Mich. │ │ │ - │ Prague │ 600│ │ 9│ 9│ =│ Louisville, │ 625│ 1.00│ - │ │ │ │ │ │ 3.41│ Ky. │ │ │ - │ Modena │ 650│ │ 9│ 6│ =│ Indian- │ 650│ 1.90│ - │ │ │ │ │ │ 3.32│ apolis, Ind.│ │ │ - │ Saragossa │ 652│ │ 9│ 6│ =│ New Albany, │ 660│ 1.75│ - │ │ │ │ │ │ 3.32│ Ind. │ │ │ - │ Chris- │ 700│ │ 17│ 6│ =│ La Fayette, │ 700│ 1.95│ - │ tiania │ │ │ │ │ 5.95│ Ind. │ │ │ - │ Trieste │ 720│ │ 11│ │ =│ Chicago, │ 730│ 1.75│ - │ │ │ │ │ │ 3.85│ Ill. │ │ │ - │ Vienna │ 780│ │ 11│ │ =│ Racine, Wis.│ 750│ 1.90│ - │ │ │ │ │ │ 3.85│ │ │ │ - │ Madrid │ 750│ │ 10│ 6│ =│ Milwaukee, │ 770│ 1.90│ - │ │ │ │ │ │ 3.67│ Wis. │ │ │ - │ Ancona │ 800│ │ 11│ │ =│ Peru, Ill. │ 800│ 2.25│ - │ │ │ │ │ │ 3.85│ │ │ │ - │ Rome │ 850│ │ 12│ │ =│ Madison, │ 850│ 2.40│ - │ │ │ │ │ │ 4.20│ Wis. │ │ │ - │ Stockholm │ 860│ │ 16│ 3│ =│ Montgomery, │ 860│ 3.05│ - │ │ │ │ │ │ 5.69│ Ala. │ │ │ - │ Warsaw │ 875│ │ 13│ 3│ =│ St. Louis, │ 880│ 2.00│ - │ │ │ │ │ │ 4.64│ Mo. │ │ │ - │ Pesth │ 880│ │ 12│ 3│ =│ Galena, Ill.│ 880│ 2.35│ - │ │ │ │ │ │ 4.29│ │ │ │ - │ Cagliari │ 925│ │ 14│ │ =│ Rock Island,│ 900│ 2.35│ - │ │ │ │ │ │ 4.90│ Ill. │ │ │ - │ Naples │ 950│ │ 11│ │ =│ Prairie du │ 950│ 2.65│ - │ │ │ │ │ │ 3.85│ Chien, Wis. │ │ │ - │ Lisbon │ 955│ │ 14│ │ =│ Quincy, Ill.│ 950│ 2.60│ - │ │ │ │ │ │ 4.90│ │ │ │ - │ Seville │ 980│ │ 13│ │ =│ Jefferson │ 975│ 2.70│ - │ │ │ │ │ │ 4.55│ City, Mo. │ │ │ - │ Cadiz │ 1,000│ │ 13│ │ =│ Mobile, Ala.│ 1,000│ 3.00│ - │ │ │ │ │ │ 4.55│ │ │ │ - │ Belgrade │ 1,005│ │ 13│ 6│ =│ Little Rock,│ 1,050│ 4.00│ - │ │ │ │ │ │ 4.72│ Ark. │ │ │ - │ Palermo │ 1,080│ │ 12│ │ =│ Des Moines, │ 1,080│ 2.70│ - │ │ │ │ │ │ 4.20│ Iowa. │ │ │ - │ St. │ 1,160│ │ 18│ 6│ =│ New Orleans,│ 1,100│ 3.25│ - │ Petersburg│ │ │ │ │ 6.47│ La. │ │ │ - │ Novgorod │ 1,275│ │ 18│ 6│ =│ Houston, La.│ 1,330│ 5.00│ - │ │ │ │ │ │ 6.47│ │ │ │ - │ Smolensk │ 1,280│ │ 18│ 6│ =│ Galveston, │ 1,340│ 3.95│ - │ │ │ │ │ │ 6.47│ Texas │ │ │ - │ Malta │ 1,250│ │ 16│ 9│ =│ Grand │ 1,350│ 4.60│ - │ │ │ │ │ │ 5.87│ Island, │ │ │ - │ │ │ │ │ │ │ Nebraska │ │ │ - │ Odessa │ 1,360│ │ 18│ 6│ =│ Fort │ 1,380│ 5.25│ - │ │ │ │ │ │ 6.47│ Kearney, │ │ │ - │ │ │ │ │ │ │ Nebraska │ │ │ - │ Athens │ 1,450│1│ 12│ │ =│ Austin, │ 1,460│ 5.50│ - │ │ │ │ │ │11.36│ Texas │ │ │ - │ Constan- │ 1,480│ │ 19│ 6│ =│ San Antonio,│ 1,550│ 5.50│ - │ tinople │ │ │ │ │ 7.00│ Texas │ │ │ - │ Smyrna │ 1,540│1│ 6│ 6│ =│ Fort │ 1,600│ 6.40│ - │ │ │ │ │ │ 9.43│ Laramie, │ │ │ - │ │ │ │ │ │ │ Nebraska │ │ │ - │ Nishni │ 1,700│1│ 2│ │ =│ Denver, │ 1,700│ 7.60│ - │ Novgorod │ │ │ │ │ 7.86│ Colorado │ │ │ - │ Moscow │ 1,485│ │ 19│ │ =│ Salt Lake │ 2,100│ 5.95│ - │ │ │ │ │ │ 6.65│ City, Utah │ │ │ - │ Taganrog │ 1,490│1│ 6│ │ =│ Sacramento, │ 2,500│ 6.75│ - │ │ │ │ │ │ 9.26│ California │ │ │ - │ Sjumen │ 1,500│1│ 8│ │ =│ Stockton, │ 2,500│ 6.75│ - │ │ │ │ │ │ 9.96│ California │ │ │ - │ Alexandria│ 1,867│2│ 6│ 9│ =│ San │ 2,600│ 6.75│ - │ │ │ │ │ │16.69│ Francisco, │ │ │ - │ │ │ │ │ │ │ California │ │ │ - └─────────────┴──────┴─┴────┴────┴─────┴───────────────┴──────┴───────┘ - - - MORE ERRONEOUS STATEMENTS. - -Mr. Hubbard’s assertion that, “where a message is repeated, the expense -is increased about seventy-five per cent, but on well-constructed lines, -in ordinary weather, messages between any two stations east of a line -from St. Paul to New Orleans require but one repetition,” hardly needs -refutation. East of the line named there are more than four thousand -telegraph offices, and at least 1,300 separate and distinct circuits. -How, then, can separate wires be maintained between every two stations -over this vast territory? Even confining the statement to one office at -the East,—say Boston, for example,—how is it possible to maintain -separate circuits that will enable that office to work direct with each -one of four thousand offices? It would be more practicable to travel -from every town in the United States to every other town, without change -of cars, than it would to establish _direct_ telegraphic connection -between each. - -The Western Union Telegraph Company maintains independent circuits, and -works direct between New York and Philadelphia, Washington, Boston, -Buffalo, Montreal, Chicago, Cincinnati, New Orleans, Portland, Plaister -Cove, and many other points; but to work with every office in the United -States without repetition would require more wires upon each pole than -the mythical Briareus had hands. - - - SINGULAR NOTIONS OF PRACTICAL TELEGRAPHY. - -It seems scarcely worth while to follow Mr. Hubbard in his statements -regarding the capital of the Western Union Telegraph Company, and the -cost of its lines. We have given a statement on pages 37 to 40 of the -organization of this company, the amount of its capital, length of -lines, and other matters of interest. - -Mr. Hubbard’s statement that the directors of the Western Union -Telegraph Company have steadfastly refused to reduce rates until forced -by competition, and then consolidated with the competing company, and -again raised the rates, is without the slightest foundation in fact. We -have previously stated that no increase in the rates has been made since -the consolidation with the United States and American companies, but, on -the contrary, they have been reduced to more than one thousand stations, -while the opposition have less than three hundred offices all told. - - - ABSURD THEORIES REGARDING THE WORKING CAPACITY OF TELEGRAPH LINES. - -Mr. Hubbard says:— - - “The capacities of the line of telegraph are very great. 2,000 words - an hour are easily transmitted by a good operator over a single - wire. At this rate there could be sent over fifty-one of the eighty - or ninety wires leading from the New York office of the Western - Union Telegraph Company 2,448,000 words, or 97,920 messages of - twenty-five words each, a day. This amount cannot be obtained. Forty - messages an hour are easily transmitted by a good operator over a - through line, and this number could be sent every hour by relays of - operators. This estimate gives 1,224,000 words, or 48,960 messages. - On through and local lines a deduction of one half for twelve hours - of the day, during which the local lines are open, must be - made,—918,000 words, or 36,720 messages, on through and local lines. - The average number actually transmitted on these fifty-one wires is - 184,378 words, or 7,375 messages. 733,622 more words, or 29,340 more - messages might daily be transmitted over these lines. If the present - business could be distributed over all the hours of the day, or if - there were sufficient business for all the wires the whole day, the - rates could be largely reduced. - - “Nearly eighteen hours of each day the wires are idle, yet a - considerable portion of the expenses of the line are no greater than - they would be if messages were transmitted the whole time. Interest, - depreciation, and repairs, office rent, salaries, and general - management are the same, whether much or little business is - transacted. These items constitute about one third of all the - expenses on the Western Union line. The other expenses will not be - increased in proportion to the increase of the time.” - -In reply to the above, we assert that 2,000 words an hour are not easily -transmitted by a good operator over a single wire. There are operators -who can send at this rate for a short time, but they are very few in -number, and none of them could maintain this rate of speed for any -length of time. It must be recollected that a message must be copied -with a pen as rapidly as it is sent. Now, we doubt if Mr. Hubbard even -can write 2,000 words legibly within an hour, with pen and ink. It is -well known that the celebrated horse Dexter has trotted a mile in the -unprecedented time of 2.17, but would it not be absurd to state, on that -account, that every good horse can easily trot twenty-six miles an hour? -Why, Dexter himself cannot keep up this rate of speed for even a quarter -of an hour. Because a celebrated pedestrian walked a hundred miles in -twenty-four hours, would it be just to say that every good walker can -easily walk 36,500 miles per annum? A man in California rode three -hundred miles in twenty-four hours; would it be honest, therefore, to -say that every good horseman can easily ride 9,000 miles a month? The -maximum speed of the best operators is 1,500 words per hour, but the -average speed of the best is very much below this. - -The amount of business done upon a wire in a given time is vastly -greater in this country than in any other. In Europe there are 355,218 -miles of wire, while in the United States there are less than one third -as many, and yet the wires in this country transmit more telegraphic -matter per annum than all the lines in Europe. This almost incredible -fact is explained by the superior character and ability of our operating -staff. In Europe they still use recording instruments, and slowly and -laboriously pick out their messages upon strips of paper. Here, on the -contrary, every operator—except in the small villages—reads by sound, -and does three times as much work upon a wire as the poorly paid and -inefficient European operator. Now, this being the case,—and the -statistics prove it,—it can hardly be pretended that our company gets -much less out of its wires than they can reasonably perform, and yet Mr. -Hubbard says we “could easily send on fifty-one wires 97,920 messages -per day, while in reality we only send 7,375.” Here is a difference -between theory and practice that beats even Dexter’s 2.17 as the rate of -speed which every horse in America can average. - - -IMPOSSIBILITY OF UTILIZING THE TELEGRAPH LINES BY NIGHT AS WELL AS DAY. - -Mr. Hubbard says, “If the present business could be distributed over all -the hours of the day, or if there were sufficient business for all the -wires the whole day, the rates could be largely reduced”; but neither of -these propositions can be realized. The telegraph is an errand-boy which -every one uses when the exigency requires it, and which no one will use -unnecessarily, even though it work for nothing. In order to utilize the -wires during those portions of the day and night when they are -comparatively idle, the Western Union Telegraph Company adopted the -following rates for night messages:— - -“This company will transmit messages between the principal cities on its -lines east of St. Louis and New Orleans, both inclusive, during the -night, and deliver the same the succeeding morning, on the following -terms: For a message of 20 words or less, the usual tolls on a ten-word -message will be charged. For a message of more than 20 words, and not -exceeding 60 words, twice the usual tolls on a ten-word message will be -charged. For a message of more than 60 words, and not exceeding 120 -words, three times the usual tolls on a ten-word message will be -charged. For each additional 100 words, or part thereof, in excess of -120 words, the usual tolls on a ten-word message will be charged in -addition. Such messages will be known as NIGHT MESSAGES. They will be -received for transmission at any time during the day or evening, and -will be sent during the succeeding night. _No additional charge will be -made for cipher messages._” - -The very moderate success of our night-message experiment, -notwithstanding the large inducements offered, proves that the use of -the telegraph is required not merely for communication, but for -emergency and despatch. It is also a fact worthy of notice, that very -little of this business is done between Boston, New York, Philadelphia, -Baltimore, and Washington, notwithstanding the low rates, whereby over a -hundred words can be transmitted for a dollar. It is done mainly between -remote places like Chicago, Milwaukee, St. Louis, Cincinnati, Memphis, -and New Orleans, communication between which by mail requires from two -to four days. - -In support of this theory we submit a statement of the night-message -business between New York City and all points on our lines for the -months of March, July, and October. These months represent fairly the -varying phases of our business in respect to trade in different sections -of the country at different seasons of the year. - -The total number of night messages sent and received between New York -City and all places on our lines for the three months named was 6,273, -divided as follows:— - - Between New York and Charleston, S. C. 276 - Between New York and Chicago, Ill. 904 - Between New York and Cincinnati, O. 326 - Between New York and St. Louis, Mo. 433 - Between New York and Milwaukee, Wis. 176 - Between New York and Memphis, Tenn. 316 - Between New York and Montgomery, Ala. 176 - Between New York and Mobile, Ala. 402 - Between New York and New Orleans, La. 1,195 - Between New York and All other places 2,069 - ————— - Total, 6,273 - -Our night-message experiment has proved that the telegraph will not be -used at night, at any tariff, except to a moderate extent and between -distant points. - -The absurdity of placing the telegraph and postal systems in the same -category has been fully shown on pages 43 and 44. Mr. Hubbard appears to -have read Mr. Scudamore’s charges against the English system, and -applied them literally to the telegraphs of this country. Unfortunately, -however, charges which may be true as applied to the companies operating -the telegraphs in the United Kingdom have no pertinency when reproduced -as the shortcomings of the American system. - - - PROPOSED INCORPORATION OF THE UNITED STATES POSTAL TELEGRAPH COMPANY. - -Mr. Hubbard says:— - - “It is not considered expedient either for the government to - purchase the existing lines, or to construct and operate lines. How, - then, can the desired results be best attained? The Post-Office - Department has no facilities of its own for the transmission of - correspondence either by rail or telegraph. It contracts with the - railroad companies for carrying the mail, and it is proposed that it - shall contract with a telegraph company for transmitting messages. - - “A bill was introduced at the last session of Congress, and referred - to the committee on Post Roads and Routes, to incorporate the - ‘United States Postal Telegraph Company, and to establish a postal - system.’ - - “The first, second, third, fourth, and fifth sections of the bill - incorporate the company, with power to construct lines on all the - post roads and routes of the country. - - “The sixth section authorizes the Postmaster-General to receive bids - from any telegraph company for the transmission by telegraph of - messages received and delivered through the post-office, to all - cities and villages of 5,000 inhabitants and over, and to towns on - the line of the telegraph, where stations may be established by - order of the Postmaster-General. - - “The seventh section authorizes the Postmaster-General to contract - for the transmission by telegraph of messages with the company that - will engage to transmit them for the least sum, provided such sum - does not exceed twenty-five cents, including five cents postage for - each message of twenty words, including date, address, and - signature, for each and every 500 miles or fractional part thereof - the message may be transmitted, with five cents for each added five - words. All messages to be prepaid by stamps, or written on stamped - paper. - - “Messages to be received at any and all post-offices, street-boxes, - or other receptacles for letters, and to be delivered by special - carrier without extra expense. - - “Messages requiring immediate despatch to have priority of - transmission on payment of extra rates. - - “The effect of the proposed reduction will be better appreciated by - comparing the present and proposed rates. - - ┌──────────────────────────────┬───────┬────────┬──────────┬──────────┐ - │ DISTANCES. │Present│Proposed│ │ Pro Rata │ - │ │Rates. │ Rates. │Reduction.│Reduction.│ - ├──────────────────────────────┼───────┼────────┼──────────┼──┬───────┤ - │To stations within 500 miles │ $0.41│ $0.30│ $0.11│26│per ct.│ - │To stations between 500 and │ │ │ │ │ │ - │ 1,000 miles │ 1.43│ 0.55│ 0.88│62│ „ │ - │To stations between 1,000 and │ │ │ │ │ │ - │ 1,500 miles │ 2.41│ 0.81│ 1.60│67│ „ │ - │To stations between 1,500 and │ │ │ │ │ │ - │ 2,000 miles │ 3.41│ 1.47│ 1.94│56│ „ │ - ├──────────────────────────────┼───────┼────────┼──────────┼──┼───────┤ - │Averages │ $1.00│ $0.47│ $0.53│53│ „ │ - └──────────────────────────────┴───────┴────────┴──────────┴──┴───────┘ - - - MESSAGES DELIVERED WITHIN A MILE OF THE OFFICE FREE. - -The rule was established coincident with the introduction of the -telegraph in the United States to deliver all messages in the town -within a mile of the receiving office free. Special and free delivery -should be the rule as far as practicable. And yet it is impossible, -without rendering the telegraph of no avail in important emergencies, to -establish free delivery everywhere. A message from an Eastern city to a -Western village announcing peril, disaster, or death is addressed to a -person two or three miles from the telegraph station. The charge for -transmitting this message is, say, fifty cents. Two modes of delivery -are presented,—one to drop it in the post-office, where it may lie until -the next day; the other, to hire a conveyance, and send a special -messenger with it to the person addressed. The cost of this special -service will vary from one dollar to two dollars. Our practice is to -deliver by special messenger, and charge therefor the actual cost of the -service. - - - EUROPEAN CHARGES FOR DELIVERING TELEGRAMS. - -A similar custom prevails in Europe, as will appear from the following -extracts from the rules and regulations applicable to stations in the -Austro-Germanic Telegraph Union, which comprises Austria, Prussia, -Hanover, Holland, Saxony, Wurtemburg, the German Duchies, also France -and the whole South of Europe: - - - CHARGES FOR POSTAGE, FOOT MESSENGER, AND ESTAFETTE. - -The instruction for forwarding despatches beyond Telegraph lines must be -inserted in messages immediately after receiver’s address and charged -for; messages with no instructions will be sent on from Terminal -Telegraph Station by post. - -_The sender is responsible for an insufficient address, and can only -rectify the same by sending and paying for a new despatch._ - - By Post (as Registered Letter) to all places in Europe, 0_s._ 10_d._ - By Post (as Registered Letter) to all other places, 2_s._ 0_d._ - -Messages addressed to “Poste Restante” are subjected to the above -charges for postage. - -By Express (Foot Messenger) within seven English miles, 2_s._ 6_d._ - -By Estafette (Mounted Messenger) a charge must be made at the rate of -2_s._ 6_d._ per three English miles for countries comprised in the -Austro-Germanic Union, but for other towns the charge is 1_s._ 6_d._ per -English mile. If, however, the distance is unknown, a sufficient deposit -must be taken. - -All charges to be prepaid by sender. - - - TELEGRAMS TO BE PLACED IN THE STREET BOXES. - -Mr. Hubbard’s proposition to put telegrams into street-boxes is simply -absurd. Telegrams are always of an important nature, and need despatch. -Imagine a message announcing sickness, death, or any other circumstance, -being dropped in the street box, to be taken out when the carrier -happens round! As for post-offices, how many are there in any of the -large cities even? Few have more than one, and this is closed when a -mail arrives,—a circumstance that seems to have rendered the closed -condition the normal one with many post-offices. - -To give an idea of the extent of present facilities in the principal -cities, the following statement, showing the number of telegraph offices -now open, is submitted:— - - New York, 100 offices. - Philadelphia, 35 „ - Baltimore, 19 „ - Washington, 16 „ - Boston, 24 „ - Chicago, 22 „ - Cincinnati, 21 „ - - - PRIVILEGED PERSONS TO HAVE PRIORITY IN THE USE OF THE WIRES. - -Mr. Hubbard’s plan of allowing “messages requiring immediate despatch to -have priority of transmission on payment of extra rates,” would abolish -the rule which has always been observed since the establishment of the -telegraph in this country, “first come first served,” and give -privileged persons the priority in the use of the wires. What an -excellent opportunity this would afford speculative combinations (like -that which locked up twenty millions of currency in Wall Street a short -time ago) to extend their operations all over the country, by -practically controlling the telegraph? - -This plan would not answer at all. No system of variation of rate is -feasible, consistently with public policy, but that which offers a lower -rate for business which will consent to be delayed until another day. - -In regard to the establishment of a money-order system by telegraph, we -would say that we have long done something in the way of transmitting -deposits and money orders by telegraph. We have made no effort to bring -it prominently before the public, with a view to extending this -department of our business, for the reason that as an established system -it would be comparatively easy for rogues to abuse it. It is only -resorted to in cases of great emergency, where money orders by post -cannot be delivered in time to meet the necessities of the case. It is -also confined mainly to the transmission of small sums. It involves -necessarily the sending of two messages. Large amounts required in -commercial transactions are daily transmitted or exchanged in this -manner by the regular banking houses in all the principal cities. - - - PROPOSITION TO OPERATE TELEGRAPHS AT A LOSS, AND MAKE MONEY BY IT. - -Mr. Hubbard proposes, by his new plan, to send telegrams at an average -reduction of 53 per cent from the present charges, which we have shown -to be 25 per cent less than the European rates. Now, the total receipts -of the Western Union Telegraph Company for the year ending June 30, -1867, were $6,568,925, and a reduction of 53 per cent would leave -$3,087,405. - - The working expenses for the year were $3,944,005 - Receipts with Mr. Hubbard’s proposed tariff, 3,087,405 - ————————— - Loss for the year $856,600 - -Mr. Hubbard acknowledges that neither the government nor any company can -transmit messages at the above rates without loss, but claims that “a -company with well-constructed lines, _built for cash_, can transmit -messages at these rates, in connection with the post-office, and realize -a large profit.” Precisely how this is to be done, or what the lines -“built for cash” have got to do about it, does not appear. Mr. Hubbard -says in his pamphlet that “the largest part of the lines of the Western -Union Company were constructed before the rise in prices, and on a gold -basis.” Now, if he means that lines built on a paper basis can be worked -cheaper than those constructed on a gold one, we would be glad to hear -his reasons for so singular a notion. - - - SPECULATIVE TELEGRAPH SCHEMES. - -We consider it our duty to say a word concerning the swarm of -adventurers who are canvassing the country for subscriptions to utterly -worthless telegraph stock, and who are besieging the halls of Congress -every year for some recognition or advantage which shall enable them the -more readily to impose upon the public. - -The National Telegraph Company is an example in point. This concern, -which claims to have organized two years ago under an act of Congress, -and which has filled the country with runners begging for subscriptions -to its stock, has never set a pole. - -The losses which have occurred in the operation of competing lines are -enormous. The country is full of people who have lost money in these -schemes, which, after a brief existence, are wound up and their effects -disposed of by the sheriff. - -The present condition of all the opposition lines is very precarious. -The Franklin Company was made by a consolidation of the Insulated -Company, having four wires between Boston and Washington, and the old -Franklin Company, having two wires between Boston and New York. The -capital of the former was $1,250,000, and of the latter $500,000. The -new organization has been in operation about two years, during which -time its receipts have fallen so far below its expenses that it has -contracted a debt of $125,000; and its lines have deteriorated to such -an extent that a large sum would have to be expended to put them in -proper condition for business. The stock of such companies is valueless -as an investment, and, in respect to some of them, it is doubtful if -their property could be sold for a sum sufficient to pay their -indebtedness. - -The Atlantic and Pacific Company has a line from New York to Chicago, -_via_ Albany, Buffalo, Cleveland, and Sandusky, averaging about two -wires for each line. Its lines are built under a contract to take stock -in payment, at the rate of $1,666.66 per mile for a line of two wires. - -The operation of these separate and irresponsible lines, during the -brief period of their existence, retards the progress of legitimate -telegraphy, and impairs the general unity of the system. Any legislation -of Congress which is made to further such schemes has the direct effect -of aiding a class of speculators to fleece a credulous public, by -inducing them to invest their money in the construction of lines which -never have paid, and never can pay, the expenses of operating them, and -which are of no benefit to any persons but those who originate them, and -profit by their construction. - - - MORE STARTLING INVENTIONS FOR RAPID TELEGRAPHING. - -We quote from Mr. Hubbard:— - - “Instruments have been recently invented, and are in operation, - either in England or in this country, by which two great hindrances - to the efficiency of the telegraph are remedied. Mr. Stearns, - president of the Franklin Telegraph Company, has invented an - instrument by which messages are transmitted both ways at the same - time, on the same wire, thus doubling its capacity without any - increase of expense. Sir Charles Wheatstone, in England, has - invented an instrument by which double the number of words can be - transmitted and received on the same wire, at an increased expense - in the preparation of the message for transmission. Instruments are - also in operation in Great Britain, worked by boys, after - instruction of one or two days.” - -In regard to Mr. Stearns’s apparatus for working both ways over one wire -at the same time, we are compelled to say there is nothing new in the -idea. Doctor Gintl, of Germany, invented it many years ago, and it was -published in an Italian work,[20] with steel-plate illustration, issued -in 1861, translated into English by George B. Prescott, of Albany, and -published in the Telegraphic Journal, London, May, 1864. Moses G. -Farmer, Esq., of Boston, invented another apparatus for doing the same -thing, and worked it between Boston and Portland, in 1849. If there is -any practical value in this apparatus it is open—like the Morse -Telegraph—to the use of all. Sir Charles Wheatstone’s apparatus, by -which double the number of words can be received on the same wire, will -probably prove of the same practical value as many similar inventions, -which in theory can transmit intelligence with the greatest accuracy at -the astonishing rate of five or ten thousand words an hour, but in -practice have never proved of the slightest value. - -Footnote 20: - - Manuale di Telegrafia Elettrica, di Carlo Matteucci, Torino, 1861. - -It is suggestive, that, of more than a hundred inventions designed to -supersede the Morse telegraph, the latter instrument is used to-day on -more than 490,000 miles of wire out of the total of 500,000 in operation -in all parts of the world. Mr. Hubbard’s assertion, “that instruments -are in operation in Great Britain, worked by boys, after instruction of -one or two days,” may be true. From all accounts, the use of boys—and -charity boys at that—has been the great curse of telegraphy in England, -until the saying has become common there, when describing a remarkably -poor specimen of chirography, that “it is written as badly as a -telegraph despatch.” We hope the day is far distant when our messages -shall be transmitted by boys with one or two days’ instruction. - -We hardly need say that it is for our interest to adopt every -improvement whereby the despatch of business within a given time can be -materially increased. It is certainly cheaper for us to provide new -instruments, at almost any cost which will ever be charged therefor, -than to put up, keep in repair, and operate additional wires to produce -the same results. - - - ERRONEOUS TABLE OF EUROPEAN STATISTICS. - -We reproduce Mr. Hubbard’s statistical table for the purpose of pointing -out some very serious errors contained in it. - - In U. S. Gold. In U. S. - Gold.[21] - The Austrian florin is rated by Mr. Hubbard at $0.41 True value $0.48 - Franc is rated by Mr. Hubbard at .2 True value .19 - £ Sterling is rated by Mr. Hubbard at 4.84 True value 4.86 - Lira is rated by Mr. Hubbard at .18–6⁄10 True value .19 - Dollar of Norway is rated by Mr. Hubbard at .53 True value 1.09 - Rouble is rated by Mr. Hubbard at .21–3⁄7 True value .77½ - Dollar of Spain is rated by Mr. Hubbard at 1.00 True value 1.04½ - -Footnote 21: - - We are indebted for the estimation of the value of these foreign coins - in United States gold to E. B. Elliott, Esq., of Washington, D. C., - who has recently prepared a valuable work on the subject. - -These errors, in reducing foreign money into United States gold currency -caused the following discrepancies in gross receipts for the year:— - - Value in United States Gold, True Value in Difference. - according to Table. United States Gold - Austria, $674,344 $789,476.16 $115,132.16 - England, 2,481,500 2,491,756.02 10,256.02 - Italy, 766,750 782,859.09 16,109.09 - Norway, 182,131 374,573.15 192,442.15 - Russia, 372,309 1,451,310.72 1,079,001.72 - Spain, 554,475 576,654.00 22,179.00 - ————————————— - Discrepancy, $1,435,120.14 - - France, 1,541,518 1,464,442.10 77,075.90 - Belgium, 194,442 182,611.28 11,830.72 - Bavaria, 136,894 132,383.26 4,510.74 - ————————————— - Discrepancy, $93,417.36 - -Thus we find that in reproducing from their various currencies the gross -telegraphic receipts of six nations into United States gold, Mr. Hubbard -makes the amount $1,435,120.14 less than it should be, and in reducing -those of three other countries into our coin he makes the amount -$93,417.36 more than it should be. - -He has also failed to give the receipts of the three great Submarine -Telegraph Companies, which transact so important an amount of -continental telegraph business. - -Mr. Hubbard gives the number of stations in Switzerland at 333, while -the best English authority[22] gives it at 252. He also gives the number -of messages transmitted in England, in 1866, as 6,127,000, while Mr. -Scudamore, in his reply to the statement of the Electric and -International Telegraph Company, published in May, 1868,[23] points out -the fact that only 5,781,189 messages were transmitted throughout Great -Britain and Ireland during that year. - -Footnote 22: - - Government and the Telegraphs. London, 1868. - -Footnote 23: - - Return to an order of the Honorable the House of Commons for copy of - further correspondence between the Treasury and the Postmaster-General - relating to the Electric Telegraphs Bill. - -It will be observed that Mr. Hubbard has “estimated”—that is, guessed -at—the number of and receipts for telegrams in the Netherlands, Denmark, -Sweden, Turkey, and Greece. He estimates the average cost per message to -be 42 cents; but as we happen to know that the average cost in Denmark -was more than twice this amount, we are not willing to accept any of his -estimates. - - - ERRONEOUS TABLE OF EUROPEAN STATISTICS. - -From Mr. Hubbard’s pamphlet:— - - _Statistics of the Telegraph in Europe for the Year 1866._ - - ┌───────────┬────────┬──────┬──────────────┬──────────┐ - │ NAME OF │ Number │Miles │ │Number of │ - │ COUNTRY. │ of │ of │Rates in 1866.│Messages. │ - │ │Stations│Wire. │ │ │ - ├───────────┼────────┼──────┼──────────────┼──────────┤ - │England │ 2,151│80,466│1 shilling. │ 6,127,000│ - │France │ 1,209│68,687│½ and 1 franc.│ 2,842,554│ - │Austria │ 851│73,854│ │ 2,507,472│ - │Prussia │ 538│55,149│ │ 1,964,003│ - │Belgium │ 356│ 6,146│½ franc. │ 1,128,005│ - │Switzerland│ 333│ 3,717│½ franc. │ 668,916│ - │Bavaria │ │ 4,945│ │ │ - │Norway │ 73│ 2,710│ │ 269,375│ - │Russia │ 308│37,330│ │ 838,653│ - │Italy │ 529│22,214│ │ 1,760,889│ - │Spain │ │ │ │ 533,376│ - ├───────────┼────────┼──────┼──────────────┼──────────┤ - │Netherlands│ │ │ │ │ - │Denmark │ │ │ │ │ - │Sweden │ │ │ │ 1,500,000│ - │Turkey │ │ │ │ │ - │Greece │ │ │ │ │ - ├───────────┼────────┼──────┼──────────────┼──────────┤ - │Total │ │ │ │18,640,243│ - │Messages │ │ │ │ │ - ├───────────┴────────┴──────┴──────────────┴──────────┤ - │Average rate per message in Europe $0.42│ - └─────────────────────────────────────────────────────┘ - - ┌───────────┬────────────────────────────────────────────────┐ - │ NAME OF │ │ - │ COUNTRY. │ RECEIPTS. │ - │ │ │ - ├───────────┼────────────────────────────────────────────────┤ - │England │£ sterling 521,707 × $4.84 = $2,481,500.00│ - │France │Francs 7,707,590 × 0.20 = 1,541.518.00│ - │Austria │Florins 1,644,742 × 0.41 = 674,344.00│ - │Prussia │Thalers 1,275,785 × 0.72 = 918,565.00│ - │Belgium │Francs 961,112 × 0.20 = 194,442.00│ - │Switzerland│Francs 684,471 × 0.20 = 136,894.00│ - │Bavaria │Florins 322,876 × 0.41 = 132,383.00│ - │Norway │Rix Dolls. 343,645 × 0.53 = 182,131.00│ - │Russia │Roubles 1,872,659 × 0.21–3⁄7 = 372,309.00│ - │Italy │Lira 4,120,311 × 0.18–6⁄10 = 766,750.00│ - │Spain │Dollars 554,475 × 1.00 = 554,475.00│ - ├───────────┼────────────────────────────────────────────────┤ - │Netherlands│ │ - │Denmark │ │ - │Sweden │ × 0.42 = 630,000.00│ - │Turkey │ │ - │Greece │ │ - ├───────────┼────────────────────────────────────────────────┤ - │Total │ Total receipts $8,585,311.00│ - │Messages │ │ - ├───────────┴────────────────────────────────────────────────┤ - │Average rate per message in Europe $0.42│ - └────────────────────────────────────────────────────────────┘ - - - EUROPEAN TELEGRAMS COUNTED SEVERAL TIMES. - -An examination of Mr. Hubbard’s statement of the number of messages sent -in Europe, in 1866, will reveal the fact that he has included inland, -international, and transit messages to make up the grand total. In this -way he has counted the same message several times. For instance, -messages sent from England to France, or any two contiguous countries, -would be counted in each. Messages between France and Germany would be -counted in France and Germany as international messages, and in Belgium -and perhaps some other country as transit. The same would be the case -between all European countries whose territories do not border on each -other. A message going from France to Russia, or from England to Turkey, -might be counted a dozen times. - -In the United States each message is counted but once, although it may -traverse thousands of miles in reaching its place of destination. - -We have not the statistics to show what proportion the legitimate number -of messages sent bears to this fictitious number; but by referring to -the Belgian table it will be seen that 692,536 inland and 306,596 -international messages were sent in 1866, in a total of 1,128,005. -Taking this as a fair average for the whole of Europe, we shall find -that only 14,012,795 messages were sent in 1866, at an expense, in -United States currency, of $15,286,911.61, or about $1.09 each. - - - LABOR THE PRINCIPAL ELEMENT OF EXPENSE IN OPERATING TELEGRAPHS. - -The principal element of expense in our business is the cost of -labor.[24] If we can do our work as cheaply as another party, it is -clear that rates can never be reduced below the point at which receipts -and expenses are equal. Any material increase of business, no matter -what the rates may be, must be attended with increased expense. And when -the capacity of the wires provided for a particular service is -exhausted, a new question is presented by the necessity for providing -additional facilities. By the extension of our lines this year west of -Chicago, and by the moderate increase in the volume of our business in -that section of the country, it will probably become necessary during -next year to provide two additional wires between Chicago and the -Atlantic coast. The cost of these wires, if erected on poles now -standing, will be about $120,000. We shall also be obliged to put up an -additional wire between Washington and New Orleans, and between the -latter place and Louisville. The cost of maintaining the lines will be -somewhat increased by the addition of these wires, and the cost of -operating at each end, and looking after them at intermediate points, -must also be included. How is the additional capital necessary to -provide such increased facilities to be raised? By reducing rates, the -result of which is, that, even if gross receipts are not diminished, the -expenses are increased? Is it not by gradually increasing lines out of -current profits, and as gradually reducing rates after facilities for an -enlarged business have been provided? - -Footnote 24: - - The Western Union Telegraph Company expended $2,573,434.80 for labor - for the year ending June 30, 1867. See comparison of cost of labor in - Europe and the United States on page 26. - - - PREVAILING ERROR OF ALL THEORIZERS ON THE BUSINESS OF TELEGRAPHING. - -All theorizers upon the subject of the telegraph fall into the error -that the amount of business which may be done at any point (the rates -being low enough) is in the ratio of population. An investigation of the -subject will show this to be entirely erroneous. Three years ago, when -the subject of telegraphic communication between the Eastern and Western -continents was discussed by those most intimately connected with the -enterprise, no one estimated the number of messages which would pass -between the two continents, daily, at a rate of $50 gold for ten words, -below 500. But few placed the figures so low. Most of them estimated the -number at two or three times this minimum. - -In 1863 Mr. Cyrus W. Field made the following remarks before the Chamber -of Commerce of New York, in relation to the probable amount of business -that would be done between Europe and America when communication by -telegraph should be established: “To express my own opinion, from pretty -large experience on the subject, I do not believe that _ten_ cables -would begin to do the work which would, in a short time, be given to -it.” - -At the banquet given in London, in 1864, to inaugurate the renewed -attempt by the Atlantic Telegraph Company to unite Europe and America by -means of the Atlantic cable, Mr. Cromwell F. Varley made the following -remarks touching the amount of business that would be offered for -transmission over the cable: “I feel great confidence that, when once a -cable is successfully laid across the Atlantic, the demands upon it will -be so great that you will have to lay one or two per annum for the next -twenty years, or even more.” - -Their disappointment was, therefore, very great when, after the Atlantic -Cable was in operation, it was found that the daily average at the $100 -tariff was but 29 messages, and at the $50 tariff, which was in -operation thirteen months, it was but 64. At the $25 rate the average -advanced to 131; and although the rate has been still further reduced to -$16.85, the average is but 201. This illustration is sufficient to prove -the fallacy of all reasoning concerning telegraph business based merely -upon population. We venture the prediction that, at the rate of $5 -between Europe and America, the number of messages which would pass per -day would never equal the number exchanged daily between New York on one -hand, and Philadelphia and Boston on the other. The reason is simply -this: The number of messages which will pass within a given time between -two points depends, first, upon a reasonable charge for transmission,—a -charge conveniently within the means of those having occasion to -communicate; and secondly and mainly, upon the number of people at -either extreme having intimate business relations with those at the -other. The vast commerce of the Old World and the New is not exchanged -in detail, but in bulk. A few banking houses on each side make all the -exchanges for both continents, and the agricultural products and the -manufactures of both are also exchanged in substantially the same -manner. - -We have shown how fallacious is the claim that the increase of business -is dependent upon the tariff, by the statistics of our own and foreign -countries, by which it appears that business has sometimes largely -increased at an advanced rate. We do not desire to be understood, -however, as saying that low tariffs, under similar circumstances, will -not bring more business than high ones. But we do say that it is -susceptible of proof, that the minimum rate is undoubtedly much higher -than most of those who theorize upon this subject are willing to -believe. Take the case of the Atlantic Cable as an illustration. During -the three months at which the tariff was $100, and the daily average of -messages 29, the receipts per day were £505. During the thirteen months, -at the average of 64 messages daily, the receipts were £579. During the -nine months, at the average of 131 messages per day, the receipts were -£635. And for the two months since the rates were reduced to $16, the -daily average has been 201 messages, and the average receipts £596. - -Now it happens, fortunately for the Cable Company, that the present -volume of business is considerably less than the capacity of their -cables; so that the increase of that business has been attended with but -a very slight additional expense, the cost to operate being the same at -offices open day and night, whether operators are occupied all or only a -part of the time. But suppose, for illustration, that the limit of the -capacities of the cables will be reached when the average number of -messages per day is 250. To undertake to transmit any number beyond this -without further facilities would result in crowding and confusing the -business to an extent which would inevitably produce dissatisfaction. On -the other hand, to provide an additional cable would cost a sum of money -which it might be exceedingly difficult to raise. It seems proper, -therefore, that the profits from this business should always be -considerably more than enough to yield a proper return for the capital -invested, so that greater facilities may be provided out of surplus -profits; and, as facilities are increased, rates may be gradually -reduced, until, by judiciously pursuing this course, the charges for -telegraphing may be materially diminished, without endangering the -revenues to which owners of telegraph property are justly entitled. - - _Statistics of Traffic through the Atlantic Cables from July 28, 1866, - to November 1, 1868._ - - ┌────────┬─────────┬─────────────────────────────────────────┬───────┐ - │ Number │ Daily │ │Average│ - │ of │ Average │GROSS AMOUNT of RECEIPTS accruing to the │Amount │ - │Messages│ No. of │TWO ATLANTIC CABLES, between Valentia and│ per │ - │ per │Messages.│ Heart’s Content. │ Day. │ - │ Month. │ │ │ │ - ├────────┼─────────┼─────────────────────────────────────────┼───────┤ - │ 1,104 }│ 29 │From July 28th 1866, under [25]£500 }│ £505│ - │ │ │to 31st Aug., £20 Tariff │ │ - │ 837 }│ │From Sept. 1st 1866, under 456 }│ │ - │ │ │to 30th £20 Tariff │ │ - │ 831 }│ │From Oct. 1st 1866, under 491 }│ │ - │ │ │to 31st £20 Tariff │ │ - ├────────┼─────────┼─────────────────────────────────────────┼───────┤ - │ 1,530 }│ 64 │From Nov. 1st 1866, under [26]502 }│ £579│ - │ │ │to 30th £10 Tariff │ │ - │ 1,582 }│ │From Dec. 1st 1866, under 493 }│ │ - │ │ │to 31st £10 Tariff │ │ - │ 1,686 }│ │From Jan. 1st 1867, under 466 }│ │ - │ │ │to 31st £10 Tariff │ │ - │ 1,764 }│ │From Feb. 1st 1867, under 549 }│ │ - │ │ │to 28th £10 Tariff │ │ - │ 2,147 }│ │From March 1st 1867, under 666 }│ │ - │ │ │to 31st £10 Tariff │ │ - │ 2,624 }│ │From April 1st 1867, under 722 }│ │ - │ │ │to 30th £10 Tariff │ │ - │ 2,262 }│ │From May 1st 1867, under 705 }│ │ - │ │ │to 31st £10 Tariff │ │ - │ 1,843 }│ │From June 1st 1867, under 597 }│ │ - │ │ │to 30th £10 Tariff │ │ - │ 1,432 }│ │From July 1st 1867, under 542 }│ │ - │ │ │to 27th £10 Tariff │ │ - │ 1,693 }│ │From July 18th 1867, under 401 }│ │ - │ │ │to 31st Aug., £10 Tariff │ │ - │ 1,860 }│ │From Sept. 1st 1867, under 515 }│ │ - │ │ │to 30th £10 Tariff │ │ - │ 2,505 }│ │From Oct. 1st 1867, under [27]715 }│ │ - │ │ │to 31st £10 Tariff │ │ - │ 2,292 }│ │From Nov. 1st 1867, under [27]661 }│ │ - │ │ │to 30th £10 Tariff │ │ - ├────────┼─────────┼─────────────────────────────────────────┼───────┤ - │ 3,901 }│ 131 │From Dec. 1st 1867, under [27]732 }│ £635│ - │ │ │to 31st £5.5 Tariff │ │ - │ 4,739 }│ │From Jan. 1st 1868, under [27]756 }│ │ - │ │ │to 31st £5.5 Tariff │ │ - │ 5,128 }│ │From Feb. 1st 1868, under [27]860 }│ │ - │ │ │to 29th £5.5 Tariff │ │ - │ 4,507 }│ │From March 1st 1868, under [27]707 }│ │ - │ │ │to 31st £5.5 Tariff │ │ - │ 4,320 }│ │From April 1st 1868, under [27]718 }│ │ - │ │ │to 30th £5.5 Tariff │ │ - │ 3,538 }│ │From May 1st 1868, under 550 }│ │ - │ │ │to 31st £5.5 Tariff │ │ - │ 2,884 }│ │From June 1st 1868, under 447 }│ │ - │ │ │to 30th £5.5 Tariff │ │ - │ 3,217 }│ │From July 1st 1868, under 490 }│ │ - │ │ │to 31st £5.5 Tariff │ │ - │ 3,740 }│ │From Aug. 1st 1868, under 558 }│ │ - │ │ │to 31st £5.5 Tariff │ │ - ├────────┼─────────┼─────────────────────────────────────────┼───────┤ - │ 5,053 }│ 201 │From Sept. 1st 1868, under 501 }│ £596│ - │ │ │to 30th £3.7.6. Tariff │ │ - │ 6,341 }│ │From Oct. 1st 1868, under 615 }│ │ - │ │ │to 31st £3.7.6. Tariff │ │ - │ 6,877 }│ │From Nov. 1st 1868, under 670 }│ │ - │ │ │to 30th £3.7.6. Tariff │ │ - └────────┴─────────┴─────────────────────────────────────────┴───────┘ - -Footnote 25: - - During this month over £100 per day were paid by the New York Herald - for news reports, and many persons sent messages as a novelty. - -Footnote 26: - - During this month the despatches sent by the United States government - averaged over £100 per day. - -Footnote 27: - - During these months there was extraordinary excitement in cotton. - -A single wire between New York and Plaister Cove, Cape Breton, the -eastern terminus of the Western Union Telegraph Company’s lines, not -only promptly transmits all the telegraphic business that is done -between Europe and America, but every message is telegraphed back for -comparison with the original, to insure correctness. - - - - - PROGRESS - OF THE - ELECTRIC TELEGRAPH IN AMERICA AND EUROPE. - - - THE UNITED STATES. - -The United States not only has the distinguished honor of being the -birthplace of the inventor of the universally-used electric telegraph, -but of having constructed the first line of practical telegraph, and of -being the foremost nation in the world, at the present time, in the -number of her telegraph stations, extent of her lines and wires, -cheapness of her rates, and amount of business done. - -The United States contains 4,126 telegraph offices; 62,782 miles of -line; 125,564 miles of wire; and transmits annually 12,904,777 -telegrams. - -She has nearly as many telegraph stations as, and sends a greater number -of telegrams annually than, all Continental Europe, and contains as many -miles of line as Belgium, Bavaria, France, Great Britain and Ireland, -Italy, Russia, Switzerland, and Spain combined. - - - PROPORTION OF TELEGRAMS TO LETTERS. - -The proportion of telegrams to letters in the United States is difficult -of determination, from the fact that our Post-Office Department -furnishes no statistics of the number of letters sent through the mails, -and has no means of ascertaining the number approximately, except by the -number of stamps sold annually. This mode of estimation is very -defective, because the stamps sold may not have been used, or if used, -may have covered the postage on books, parcels, and other matter. The -Postmaster-General states, in his report for 1867, that there were -283,762,300 three-cent stamps sold during the preceding year. Supposing -each of these stamps to represent a letter, we have the following -comparative result of the number of telegrams to letters in the various -countries where the telegraph is most extensively used:— - - Proportion of telegrams to letters in the United Kingdom, 1 to 121 - Proportion of telegrams to letters in Switzerland, 1 to 69 - Proportion of telegrams to letters in Belgium, 1 to 37 - Proportion of telegrams to letters in United States, 1 to 22 - - - EARLY HISTORY OF THE TELEGRAPH IN AMERICA. - -During the first few years after the introduction of the electric -telegraph its progress was very slow. Capitalists were afraid to invest -in an undertaking so novel and precarious, and as a natural consequence -there was great difficulty in raising funds for properly building the -lines, and they were constructed in a very unreliable manner, breaks and -interruptions being rather the normal condition of the wires than the -exception. - -At a very early period in the history of the electric telegraph in the -United States, a misunderstanding occurred between the Morse patentees -and a contractor under them, the result of which was that rival lines -were constructed throughout the country before the system had been -sufficiently developed to be remunerative, even without such -competition. - -The invention of the letter-printing telegraph by Mr. House, in 1846, -and the introduction of the electro-chemical telegraph of Mr. Bain into -this country, in 1849, greatly facilitated the construction of competing -lines. - -The first line operating under the House patent was completed in March, -1849, from Philadelphia to New York City. The Boston and New York -Telegraph Company, using the same patent, was completed in the autumn of -the same year, and was followed by one from New York to Buffalo, and -subsequently to St. Louis and Chicago. - -During the year 1849, which was very prolific in the production of -competing lines, the Bain patent was introduced upon lines extending -between New York and Buffalo, and New York and Washington, and, in the -succeeding year, upon lines extending between Boston and Montreal, and -Boston and Portland. - -In 1851 there were seven Bain lines in operation in the United States, -having over 2,000 miles of wire; eight House lines, having about 300 -miles of wire; and sixty-seven Morse lines, having 20,000 miles of wire. -In the autumn of this year, the Morse and Bain lines between New York -and Washington were consolidated; and in the succeeding spring the Morse -and Bain lines between New York and Boston were united under one -company. The union of these lines was followed by that of the New York -and Buffalo Morse and Bain lines, and subsequently by those of the House -lines between these points. - - - EVILS ARISING FROM SEPARATE ORGANIZATIONS. - -The consolidation of these lines was a step in the right direction, as -it increased the receipts and lessened the expenses of the companies, -while it enabled them to do the business better, by possessing greater -facilities. Still, the great number of separate organizations remaining -throughout the country prevented that unity and despatch in the conduct -of the business so essential to its success. Under these circumstances, -the public failed to realize the brilliant thought of instant -communication between distant points. - -A Boston house, doing business with Chicago, was obliged to be content -with responses received on the second or third day. On Boston despatches -for Chicago four tariffs were charged; and a message had to be copied -off and handed over to other companies for transmission at New York, -Buffalo, and Detroit, before it reached its destination. - -All this process required time, and yet the loss of time was the least -of the evils connected with such a state of things. The message, as it -left the writer’s hands in Boston, was not unfrequently a very different -document when it reached the Western parties, owing to errors caused by -its numerous retransmissions, and thus the necessity became urgent to -unite these separate companies into one living, vigorous organization, -by which not only repetition and error might be avoided, but the -messages followed to their destination under a single direction, and -undivided responsibility. - - - THE UNIFICATION OF THE TELEGRAPH ACCOMPLISHED. - -It was at this period, when segregated lines were feeling their -weakness, and their revenues were unequal to even a current vigorous -support, that a few clear-sighted men in the West conceived the project -of buying up the groups of feeble organizations, and making them direct -leaders between the large Western cities. The stock was comparatively -valueless, and easily and cheaply bought. The needs of commercial -intercourse were pressing. The project had in it the true elements of -success, and it was accomplished. - -For seven years thereafter the purchasers went on improving the lines -thus acquired, and rendering their connections more certain. During all -these years no dividends were paid. Time and money and all the earnings -of the line were devoted to that series of combinations which, from a -mass of weak and perishing organizations, culminated in the Western -Union Telegraph Company. - -This combination of lines saved the system from disgrace, and made it -available to commerce and to public wants. No increase of rates followed -any of these movements; and none would ever have been made, had not war -come to change values, and rendered it necessary. - -At the East, the American Telegraph Company, organized in 1855, followed -a similar course, and ultimately controlled lines extending throughout -the Atlantic seaboard and Mississippi Valley. These two companies, -working in connection and harmony, covered the entire area of the United -States, and performed the business of telegraphing better than it had -ever been done before. - -In 1863 the United States Telegraph Company was organized, and -constructed lines in the territories occupied by both the Western Union -and American companies; but in 1865, with 16,000 miles of wire,—all -newly built,—worked to their full capacity during the year they were -unable to meet their current expenses; but under the most vigorous -administration, with its expenses reduced within the closest limits, -found that it was conducting its business at an average net loss of -nearly $10,000 per month. - -In the spring of 1866 the Western Union, American, and United States -Telegraph Companies were consolidated, thus producing a complete -unification of the great telegraphic system of the United States, and -rendering it the most complete and extensive in the world. This -consolidation, however, gave the Western Union Telegraph Company no -monopoly of the business. The Morse patent having expired, and no -exclusive privileges being granted by either State or national -governments, the construction and operation of telegraph lines within -the jurisdiction of the United States remained freely open to all. - - - TELEGRAPH COMPANIES IN THE UNITED STATES. - -The following list of some of the more important telegraph companies now -doing business in the United States will convey an idea of the -importance of this interest: Bankers and Brokers’ Telegraph Company, -capital $1,050,000, lines extending from New York to Washington; Pacific -and Atlantic Telegraph Company, capital $3,000,000, lines completed from -Philadelphia to Pittsburg and Cincinnati, and extending; Franklin -Telegraph Company, capital $1,000,000, lines extending from Boston to -Washington; International Telegraph Company, capital $300,000, lines -completed from Boston to Bangor, Me., and will be extended farther east; -Keystone Telegraph Company, lines extending from Philadelphia to -Harrisburg and Pittsburg; International Ocean Telegraph Company, lines -extending from Lake City to Key West and Havana; Northern Telegraph -Company, capital $100,000, lines completed from Boston to Bristol, N. -H., and extending; Atlantic and Pacific Telegraph Company, capital -$5,000,000, lines completed from New York to Chicago and extending; -Great Western Telegraph Company, line completed between Chicago and -Milwaukee; Northwestern Telegraph Company, capital $1,150,000, lines -extending from Milwaukee through Wisconsin, Michigan, Iowa, and -Minnesota; Mississippi Valley Telegraph Company, lines extending between -St. Paul, Minn., and St. Louis, and from Dubuque to Chicago; Western -Union Telegraph Company, capital $40,347,700, lines extending from the -Gulf of Mexico to the Gulf of the St. Lawrence, and from the Atlantic to -the Pacific ocean. There are in addition to this list quite a large -number of companies, covering more or less territory, which, with all of -the above mentioned, are independent organizations, and nearly all of -them engaged in competition with each other. - -Private enterprise has with us, so far, achieved much greater results -than governmental management in Europe. As regards the tariff for -messages, they are less than the rates established in Europe. -Considerable reductions have been made within the past year, amounting, -in some cases, to as much as 50 per cent. The reductions have taken -place to the greatest extent in those sections of the country where -there are opposition lines, the rates over some of these routes being -less than the expense of doing the business, but the reductions are not -confined to these sections. - -The Western Union Telegraph Company has reduced its rates between -upwards of one thousand offices where there is no opposition; and it is -now preparing a new tariff of rates, based upon airline distances, -between all stations, irrespective of the circuitous routes that the -lines take to reach them, which will still farther simplify and cheapen -the system. - -It is the purpose of this company to do the telegraphing of the United -States as well, and at as low rates, as it can be done by any -organization which can be formed, and thus maintain its possession of -the first and most extensive system of telegraphy in the world. - - - DOMINION OF CANADA. - -In the Dominion of Canada as in the United States, the telegraph is free -and untrammelled by governmental interference, and, next to the United -States, is the best in the world. - - STATISTICS OF THE TELEGRAPH IN THE DOMINION OF - CANADA. - - Number of miles of pole line, 6,746 miles. - Number of miles of wire strung, 8,935 miles. - Number of offices, 382 miles. - Number of messages (in 1867), 573,219 miles. - Gross receipts from all sources, $258,000 - Gross expenses, 180,000 - Of which, accruing for labor, 105,000 - - - AUSTRIA. - -The telegraph is under the control and management of the State. - -At the end of 1866 the system comprised 851 stations, with an extent of -73,854 geographical miles of wire. - -The total number of persons employed by the telegraphic department is -1,884. - - - TABLE C. - - _Statement showing the Progress of Telegraphy in Austria._ - - ┌───────────────┬─────────────────┬─────────────────┬─────────────────┐ - │ │ Number of │Gross Receipts in│Average Cost per │ - │ DATE. │ Messages. │ Florins. │ Message in │ - │ │ │ │ Florins. │ - ├───────────────┼─────────────────┼─────────────────┼─────────────────┤ - │ 1851│ 44,911│ 128,736│ 2.86│ - │ 1852│ 62,716│ 209,547│ 3.34│ - │ 1853│ 109,347│ 308,159│ 2.81│ - │ 1854│ 190,522│ 549,697│ 2.88│ - │ 1855│ 204,221│ 607,745│ 2.97│ - │ 1856│ 251,948│ 778,294│ 3.08│ - │ 1857│ 381,720│ 888,905│ 2.32│ - │ 1858│ 419,449│ 760,811│ 1.81│ - │ 1859│ 692,379│ 951,240│ 1.37│ - │ 1860│ 700,795│ 991,275│ 1.41│ - │ 1861│ 846,953│ 1,226,404│ 1.44│ - │ 1862│ 946,675│ 1,267,966│ 1.33│ - │ 1863│ 1,130,625│ 1,290,447│ 1.14│ - │ 1864│ 1,610,663│ 1,322,948│ 0.82│ - │ 1865│ 1,786,955│ 1,435,478│ 0.80│ - │ 1866│ 2,507,472│ 1,644,742│ 0.65│ - └───────────────┴─────────────────┴─────────────────┴─────────────────┘ - -Austria transmitted 44,911 messages in 1851, and 381,720 in 1857, being -an increase of over 800 per cent without any average reduction in rates. -The increase in the number of messages from 1857 to 1866 was less than -700 per cent, notwithstanding the great reduction in the rates from 2.32 -to 0.65 florins. - - - BELGIUM. - -The statistics respecting the working of the telegraph in Belgium are -used by Mr. Washburne primarily to prove the superior advantages and -excellence of the Belgian telegraphic system and arrangement, but -chiefly to show that a cheapened rate has increased its use, and that to -secure that result in this country the telegraph must be placed under -governmental control. - -Scarcely any two nations could be named whose conditions are more -unlike. - -The area of Belgium is about one fourth that of the State of New York, -with nearly the same population. Its greatest length is 175 miles, its -width 105. - -The three chief cities of Belgium are not more than thirty miles apart, -while those of secondary rank are equally contiguous. All the railroads -in the kingdom belong to the government, and a large proportion of the -telegraph offices are at the railway stations, the post-offices being -merely offices of deposit, from which messages are despatched free of -charge to the nearest telegraph office, if in the same district; -otherwise by special messenger, on the payment of an extra fee. - -As the government of the United States owns no railroads, they could not -use the stations for offices, except by special arrangements, which can -as readily be effected by private companies. - - - TABLE D. - - _Statement showing the Progress of Telegraphy in Belgium._ - - ┌───────────────┬─────────────────┬─────────────────┬─────────────────┐ - │ │ Number of │Gross Receipts in│Average Cost per │ - │ DATE. │ Messages. │ Francs. │ Message in │ - │ │ │ │ Francs. │ - ├───────────────┼─────────────────┼─────────────────┼─────────────────┤ - │ 1851│ 14,025│ 88,674│ 6.32│ - │ 1852│ 27,217│ 165,973│ 6.07│ - │ 1853│ 52,050│ 265,536│ 5.10│ - │ 1854│ 60,415│ 280,845│ 4.65│ - │ 1855│ 61,443│ 265,939│ 4.33│ - │ 1856│ 99,273│ 359,579│ 3.62│ - │ 1857│ 119,050│ 407,011│ 3.42│ - │ 1858│ 145,726│ 413,926│ 2.83│ - │ 1859│ 196,240│ 506,006│ 2.57│ - │ 1860│ 225,819│ 527,743│ 2.34│ - │ 1861│ 268,968│ 588,532│ 2.19│ - │ 1862│ 291,787│ 605,044│ 2.07│ - │ 1863│ 416,113│ 612,313│ 1.47│ - │ 1864│ 564,497│ 789,399│ 1.44│ - │ 1865│ 674,034│ 865,640│ 1.28│ - │ 1866│ 1,128,005│ 962,213│ 0.85│ - │ 1867│ 1,293,770│ 1,074,214│ 0.85│ - └───────────────┴─────────────────┴─────────────────┴─────────────────┘ - - - TABLE E. - - _Statement showing the Lengths of Lines, &c._ - - ┌─────────────┬─────────────┬─────────────┬─────────────┬─────────────┐ - │ DATE. │ Lengths of │ Lengths of │ Number of │ Number of │ - │ │ Lines. │ Wires. │ Stations. │Instruments. │ - ├─────────────┼─────────────┼─────────────┼─────────────┼─────────────┤ - │ │ Miles. │ Miles. │ │ │ - ├─────────────┼─────────────┼─────────────┼─────────────┼─────────────┤ - │ 1862│ 1,174│ 2,983│ 196│ 290│ - │ 1863│ 1,644│ 3,875│ 252│ 365│ - │ 1864│ 1,856│ 4,421│ 280│ 420│ - │ 1865│ 2,000│ 5,400│ 307│ 460│ - │ 1866│ 2,187│ 6,146│ 356│ 556│ - │ 1867│ 2,232│ 7,161│ 374│ 574│ - └─────────────┴─────────────┴─────────────┴─────────────┴─────────────┘ - - - TABLE F. - - _Statement showing the Number of Messages._ - - ┌────────────┬─────────────┬──────────────┬─────────────┬─────────────┐ - │ DATE. │ Inland. │International.│ Transit. │ Total. │ - ├────────────┼─────────────┼──────────────┼─────────────┼─────────────┤ - │ 1851│ 6,652│ 6,054│ 1,319│ 14,025│ - │ 1852│ 9,807│ 10,103│ 7,307│ 27,217│ - │ 1853│ 14,159│ 20,656│ 17,539│ 52,050│ - │ 1854│ 16,719│ 29,492│ 14,204│ 60,415│ - │ 1855│ 17,279│ 34,725│ 9,429│ 61,443│ - │ 1856│ 32,862│ 45,375│ 21,036│ 99,273│ - │ 1857│ 41,434│ 48,367│ 29,249│ 119,050│ - │ 1858│ 47,673│ 58,094│ 39,959│ 145,726│ - │ 1859│ 65,465│ 83,780│ 46,995│ 196,240│ - │ 1860│ 80,216│ 95,499│ 50,404│ 225,819│ - │ 1861│ 97,945│ 115,121│ 55,902│ 268,968│ - │ 1862│ 105,274│ 129,935│ 56,578│ 291,787│ - │ 1863│ 188,825│ 162,178│ 65,110│ 416,113│ - │ 1864│ 252,301│ 197,547│ 96,649│ 546,497│ - │ 1865│ 332,721│ 252,133│ 89,183│ 674,037│ - │ 1866│ 692,536│ 306,596│ 128,873│ 1,128,005│ - │ 1867│ 819,668│ 359,652│ 114,550│ 1,293,870│ - └────────────┴─────────────┴──────────────┴─────────────┴─────────────┘ - - - TABLE G. - - _Statement showing the Gross Receipts._ - - ┌────────────┬─────────────┬──────────────┬─────────────┬─────────────┐ - │ DATE. │ Inland. │International.│ Transit. │ Total. │ - ├────────────┼─────────────┼──────────────┼─────────────┼─────────────┤ - │ │ Francs. │ Francs. │ Francs. │ Francs. │ - │ 1852│ │ │ │ 88,674│ - │ 1853│ │ │ │ 265,536│ - │ 1854│ │ │ │ 280,845│ - │ 1855│ │ │ │ 265,939│ - │ 1856│ │ │ │ 359,579│ - │ 1857│ │ │ │ 407,011│ - │ 1858│ │ │ │ 413,926│ - │ 1859│ │ │ │ 506,006│ - │ 1860│ 142,344│ 232,877│ 149,969│ 527,743│ - │ 1861│ 171,225│ 237,748│ 158,558│ 588,532│ - │ 1862│ 176,643│ 280,449│ 147,952│ 605,044│ - │ 1863│ 211,063│ 277,266│ 124,033│ 612,368│ - │ 1864│ 282,591│ 307,956│ 198,850│ 789,399│ - │ 1865│ 345,289│ 340,103│ 180,247│ 865,640│ - │ 1866│ 408,634│ 369,900│ 183,680│ 962,214│ - │ 1867│ 480,887│ 444,245│ 149,082│ 1,074,214│ - └────────────┴─────────────┴──────────────┴─────────────┴─────────────┘ - - - TABLE H. - - _Statement showing the Receipts and Expenditure of Telegraphs._ - - ┌────────────┬─────────────┬──────────────┬─────────────┬─────────────┐ - │ DATE. │ Receipts. │Expenditures. │ Loss. │ Profits. │ - ├────────────┼─────────────┼──────────────┼─────────────┼─────────────┤ - │ │ Francs. │ Francs. │ Francs. │ Francs. │ - │ 1851│ 88,674│ 309,116│ 220,431.39│ │ - │ 1852│ 165,973│ 102,947│ │ 63,025.88│ - │ 1853│ 265,536│ 170,735│ │ 94,800.85│ - │ 1854│ 280,845│ 139,795│ │ 141,050.61│ - │ 1855│ 265,939│ 161,500│ │ 104,439.67│ - │ 1856│ 359,579│ 202,599│ │ 156,980.11│ - │ 1857│ 407,011│ 283,171│ │ 123,840.23│ - │ 1858│ 413,926│ 293,891│ │ 120,035.19│ - │ 1859│ 506,006│ 375,343│ │ 130,662.75│ - │ 1860│ 527,743│ 403,500│ │ 124,243.73│ - │ 1861│ 588,532│ 408,261│ │ 180,271.33│ - │ 1862│ 605,044│ 515,800│ │ 89,241.86│ - │ 1863│ 612,363│ 653,280│ 41,417.19│ │ - │ 1864│ 789,399│ 670,424│ │ 118,974.83│ - │ 1865│ 865,640│ 948,516│ 22,876.20│ │ - │ 1866│ 962,214│ 1,217,496│ 255,282.00│ │ - │ 1867│ 1,074,214│ 1,128,703│ 54,489.00│ │ - └────────────┴─────────────┴──────────────┴─────────────┴─────────────┘ - - - TABLE I. - - _Statement showing the Average of Receipts, reduced to Dollars, - and the Average of Messages._ - - ┌─────┬────────────────┬─────────────────────────────┬───────────┐ - │ │ │ │ Number of │ - │ │ │ │Inhabitants│ - │DATE.│ Gross Receipts.│ Number of Messages. │ averaging │ - │ │ │ │ to each │ - │ │ │ │ Station. │ - ├─────┼───────┬────────┼──────────────┬──────────────┼───────────┤ - │ │Average│ │ │ │ │ - │ │ per │Average │ │ Average for │ │ - │ │Mile of│ per │ Average per │ each 1,000 │ │ - │ │ Line, │Station,│ Station. │ inhabitants. │ │ - │ │ in │in Gold.│ │ │ │ - │ │ Gold. │ │ │ │ │ - ├─────┼───────┼────────┼───────┬──────┼───────┬──────┼───────────┤ - │ │ │ │Inland.│Total.│Inland.│Total.│ │ - ├─────┼───────┼────────┼───────┼──────┼───────┼──────┼───────────┤ - │ 1851│ │ │ │ │ │ │ │ - │ 1852│ │ │ │ │ │ │ │ - │ 1853│ │ │ │ │ │ │ │ - │ 1854│ │ │ │ │ │ │ │ - │ 1855│ │ │ │ │ │ │ │ - │ 1856│ │ │ │ │ │ │ │ - │ 1857│ │ │ │ │ │ │ │ - │ 1858│ │ │ │ │ 11│ 24│ │ - │ 1859│ │ │ │ │ 15│ 34│ │ - │ 1860│ │ │ │ │ 18│ 40│ │ - │ 1861│ │ │ │ │ 22│ 48│ │ - │ 1862│$103.08│ $616.37│ 537│ 1,488│ 23│ 52│ 23,980│ - │ 1863│ 74.50│ 586.00│ 749│ 1,651│ 41│ 78│ 17,857│ - │ 1864│ 85.06│ 563.85│ 901│ 1,951│ 56│ 100│ 16,071│ - │ 1865│ 86.56│ 563.94│ 1,084│ 2,195│ 74│ 130│ 14,658│ - │ 1866│ 87.89│ 540.00│ 1,945│ 3,168│ 150│ 217│ 12,690│ - │ 1867│ 91.70│ 666.40│ 2,191│ 3,450│ │ │ │ - └─────┴───────┴────────┴───────┴──────┴───────┴──────┴───────────┘ - -The telegrams of Belgium are of three distinct sorts,—internal, -international, and transit. The system differs essentially from that of -the United States, inasmuch as the principal business of the Belgian -telegraph is to transmit messages from one country to another, whilst -the principal business of the American telegraph is the conveyance of -internal messages. The only international messages transmitted on the -lines in the United States are those sent to Europe by the Atlantic -cable, to Cuba by the Cuban cable, and to the various stations in the -Dominion of Canada. - -One of the arguments used in favor of the assumption of telegraphs by -government is, that in its hands the telegraph is more largely -accessible to the people, and more freely used. The facts are as -follows, giving Belgium the benefit of the increase of messages shown by -the last reduction of her tariff. - - - BELGIUM. - -Population, 5,000,000; messages, 692,536. Ratio, one message to each -seventh person. - - - GREAT BRITAIN. - -Population, 29,500,000; messages, 5,781,189. Ratio, one message to each -fifth person. - - - UNITED STATES. - -Population, 31,148,047; messages, 12,904,770. Ratio, one message to -every two and one half persons. - -These facts prove a clear advantage in favor of private control. - - - BAVARIA. - -This country possesses 2,115 miles of lines, and 4,945 miles of wire. - -Gross receipts for 1866, 322,886 florins. Expenditures, 258,625 florins. - - - DENMARK. - -This country now contains 2,515 miles of wire, and eighty-nine -telegraphic stations open to the public. The Morse apparatus is the only -one employed. Of these eighty-nine stations, fifty-three belong to the -government, twenty-one to private telegraph companies, and fifteen to -railroads. - -The tariff is fixed at ninety cents for a local telegram of twenty words -between any points in the kingdom. In 1867 there were transmitted -308,150 telegrams, of which 174,560 were local and 133,590 foreign. All -the stations send written despatches in all languages, even in cipher, -the only conditions being legible writing in an alphabet transmissible -by the Morse apparatus. - -Money orders to the amount of 50 rix-dollars can be paid at all -post-offices by means of the telegraph. The sum being deposited at the -original office, an official telegram is sent to the place designated, -ordering payment. - -For this service the sender has only to pay the tariff on the official -telegram. Messages can be sent from points where there are no -telegraphic stations, by sending them by post or by any other mode of -transportation to the nearest telegraph station. These telegrams can be -paid by a postage-stamp affixed to a designated part of the form. These -forms are the same as the printed envelopes, and can be procured at all -post and telegraph offices. At the top of these forms is printed an -extract from the rules for the transmission of despatches. The stamps -are detached from the forms and sent to the Department of Finances at -the same time that the other reports are forwarded. It is proposed to -extend these privileges to the private and railroad telegraph stations. - -From 1863 to 1867 the telegraphic intercourse between the Scandinavian -countries has increased each year twenty-five per cent. - - - ENGLAND. - -England was among the first countries in Europe to adopt the electric -telegraph; and, next to the United States, is the foremost nation in the -world in the extent of her lines, the number of her offices, the -cheapness of her rates, and the number of messages annually transmitted. -With a population about three quarters as large as that of France, she -possesses nearly twice as many telegraph stations, and annually -transmits more than twice as many messages. - -There are in operation in Europe fifty-five submarine cables, varying in -length from three to 1,500 miles, and containing a total length of over -11,000 miles of insulated wire, nearly all of which were laid and are -owned by English capitalists. The success of the Atlantic cables, also -laid by English companies, is another illustration of what can be -accomplished by private enterprise untrammelled by governmental -interference; and affords a striking contrast to the fate of the Red Sea -cable laid by the British government, and which has proved one of the -greatest failures recorded in the annals of submarine telegraphy. This -cable, which was to connect Suez and Kurrachee, 3,500 miles in length, -was laid in five sections, but never worked a day through its entire -length. - -For some unexplained reason the British post-office department has been -determined to absorb the telegraph system of the United Kingdom, and -through the indefatigable efforts of Mr. Scudamore, one of the -secretaries of the department, the British government was finally -induced to purchase the property of all the telegraph companies in the -kingdom, and thus monopolize the business. The price to be paid for the -lines is twenty times the net earnings of the companies for the past -year. - -That the English government has made a serious mistake in assuming the -control of the telegraph we have no question; but its operation will be -better in its hands than it would be in that of our government, for the -reason that its employees are not removed with every change of -administration, as government officials are in the United States. - - _Statement showing the Progress of Telegraphy in Great Britain and - Ireland._ - - ┌─────────────┬─────────────┬─────────────┬─────────────┬─────────────┐ - │ YEAR. │ No. of │No. of Miles │No. of Miles │ No. of │ - │ │ Offices. │ of Line. │ of Wire. │ Messages. │ - ├─────────────┼─────────────┼─────────────┼─────────────┼─────────────┤ - │ 1860│ 1,032│ 10,854│ 51,556│ 1,863,839│ - │ 1861│ 1,391│ 11,538│ 55,004│ 2,123,589│ - │ 1862│ 1,616│ 12,711│ 57,879│ 2,676,352│ - │ 1863│ 1,755│ 13,944│ 65,726│ 3,186,724│ - │ 1864│ 1,831│ 14,981│ 72,374│ 3,924,855│ - │ 1865│ 2,040│ 16,066│ 77,440│ 4,662,687│ - │ 1866│ 2,151│ 16,588│ 80,466│ 5,781,189│ - └─────────────┴─────────────┴─────────────┴─────────────┴─────────────┘ - - - FRANCE. - -The French system of telegraphs comprised, in 1866, 20,628 miles of -route, 68,687 miles of wire, and 1,209 stations open to the public. The -number of messages amounted to 2,842,554. The gross receipts for the -year were 7,707,590, and the expenditures were 8,983,460, showing a loss -for the year of 1,275,870. - -The receipts are divided as follows:— - - 301 stations collect less than 200 francs each. - 179 stations collect from 200 to 500 francs each. - 185 stations collect from 500 to 1,000 francs each. - 354 stations collect from 1,000 to 5,000 francs each. - 84 stations collect from 5,000 to 10,000 francs each. - 63 stations collect from 10,000 to 30,000 francs each. - 17 stations collect from 30,000 to 50,000 francs each. - 12 stations collect from 50,000 to 100,000 francs each. - 6 stations collect from 100,000 to 200,000 francs each. - 4 stations collect from 200,000 to 300,000 francs each. - 2 stations collect from 300,000 to 400,000 francs each. - 1 stations collect 527,000 - 1 stations collect 620,000 - ————— - 1,209 total. - -These stations are situated in 89 departments, viz.:— - - 1. Départment de la Seine, collecting 2,822,367 francs. - 2. „ Bouches de Rhone, „ 747,228 „ - 3. „ Seine inférieure, „ 608,737 „ - 4. „ Rhone, „ 348,514 „ - 5. „ Nord, „ 265,705 „ - 6. „ Gironde, „ 260,615 „ - 7. „ Loire inférieure, „ 139,797 „ - 8. „ Haut Rhin, „ 135,483 „ - 9. „ Hèrault, „ 134,388 „ - 10. „ Alpes Maritimes, „ 101,183 „ - -Nine other departments collect annually between 90,000 down to 50,000 -francs, the remaining seventy from 49,000 down to 4,653 francs. - -Paris (Départment de la Seine) has forty-six stations within the -fortifications. The gross receipts amounted, in 1866, to 2,794,768.40 -francs, being more than one third of the total receipts of the whole -empire. - -The receipts in Paris are divided as follows:— - - Place de la Bourse, 527,906 francs. - Rue de la Grenelle, 283,972 „ - Grand Hotel, 271,880 „ - Rue Lafayette, 250,967 „ - Rue J. J. Rousseau, 198,465 „ - Rue St. Cécile, 139,916 „ - Aux Champs Elysées, 131,059 „ - -Six other stations collect from 85,000 to 50,000, six from 50,000 to -20,000; the remainder from 19,000 down to 2,123 francs. - -The telegraph system of France constitutes a distinct department of the -government service under Viscount A. de Vougy as Director-General. Under -him are five general inspectors, forming a kind of council, nine -division inspectors, seventy-five inspectors, thirty-eight -sub-inspectors, and one electrical engineer. There are altogether 3,708 -persons on the staff. - - - DECREES REGULATING THE USE OF THE TELEGRAPH IN FRANCE. - -The following is a digest of the decrees issued by the French government -regulating the use of the telegraph in the empire. - -_1st._ All persons whose identity is established are allowed to -correspond by the government electric telegraph. - -_2d._ Private correspondence is always subordinate to the necessity of -government service. - -_3d._ Despatches are to be written in _ordinary and intelligible -language_, dated and signed by the sender, and to be given to the -officer of the telegraph station, whose duty it is to _copy in full the -despatch_, with the address of the sender. - -_4th._ The director of a station may, on grounds of public order and -morality, _refuse to transmit a despatch_. In case of dispute, reference -is to be made, in Paris, to the minister of the interior; in the -provinces to the prefect, sub-prefect, or other constituted authority. -On the receipt of a despatch, the director of the station may _withhold -its delivery_ for like reasons. - -_5th._ Private correspondence may be suspended at any time by the -government. _The government will not assume any responsibility for -errors in the transmission of despatches._ - -_6th._ The director of the station must be satisfied as to the identity -of the sender’s signature. If the director refuses the transmission of a -message, he must state his reason in writing on the despatch. He must -indorse on it “political,” “offensive,” “not consistent with public -good,” etc. - -_7th._ No line of electric telegraph can be established or employed for -the transmission of correspondence except by the government, or on its -authority. _Any person transmitting, without authority, signals from one -place to another, whether by electric telegraph, or in any other way, is -liable to imprisonment from one month to a year, and a fine of 1,000 to -10,000 francs, and the government may order the destruction of the -apparatus and telegraph employed._ - -_8th._ Any one _accidentally_ interrupting the correspondence of the -electric telegraph, or injuring in any way the lines or apparatus, is -liable to a fine of from 16 to 3,000 francs. - -_9th._ Any one wilfully causing an interruption, by injuring the lines -or apparatus, is punishable by imprisonment from three months to two -years, and a fine of 100 to 1,000 francs. Any one who shall menace an -operator during periods of insurrectionary movements is subject to a -fine of 1,000 to 5,000 francs. - -_10th._ Written statements by telegraph officers to be received as -evidence in all complaints. - -_11th._ Reimbursements of charges on despatches, in consequence of -delays or errors in transmission, cannot be made except by the -administration. When a despatch is withdrawn by the forwarder before -transmission, the expense of delivery only can be refunded. - -The charge on despatches sent in the night will be double the usual -tariff for the day business (the exact opposite of the American rule). - - - PECULIAR CHARACTER OF THE FRENCH TELEGRAPH. - -The telegraph lines in France are nearly all owned and managed by the -government. The English Submarine Company, however, is a private -enterprise, and works from Paris through Calais to the United Kingdom. -There is also another company organized under permission of the imperial -government, for the extension of the lines into the French colonies of -Africa. This association is called the Mediterranean Electric Telegraph -Company, and it has constructed its line from Spezzia, in Sardinia, -across Corsica, Sardinia, and the Mediterranean, to Bóne, in Africa. - -The telegraph in France is regarded as one of the most important arms of -the government, and the wires are known as the _fingers of the police_. -The Emperor would no sooner relinquish their control than he would that -of his armies. By imperial decree, every operator is created a spy in -the service of the government. The wires from every part of France -centre in the imperial chamber, and not a message passes throughout the -empire which is not examined by government inspectors. - -Of the promptness, regularity, or correctness with which French -telegraphs are conducted no proof is given by which superior excellence -is established. There is nothing in the whole exhibit, or in the actual -working of the French telegraphs, which presents any reason for the -assumption that governments manage telegraphs better than the people. - - - TABLE J. - - _Statement showing the Progress of Telegraphy in France._ - - ┌───────────────┬─────────────────┬─────────────────┬─────────────────┐ - │ │ Number of │Gross Receipts in│Average Cost per │ - │ DATE. │ Messages. │ Francs. │ Message in │ - │ │ │ │ Francs. │ - ├───────────────┼─────────────────┼─────────────────┼─────────────────┤ - │ 1851│ 9,014│ 76,722│ 7.84│ - │ 1852│ 48,105│ 542,891│ 11.28│ - │ 1853│ 142,061│ 1,511,909│ 10.64│ - │ 1854│ 236,018│ 2,064,983│ 8.74│ - │ 1855│ 254,532│ 2,487,159│ 9.77│ - │ 1856│ 360,299│ 3,191,102│ 8.68│ - │ 1857│ 412,616│ 3,333,695│ 8.06│ - │ 1858│ 463,973│ 3,516,633│ 7.60│ - │ 1859│ 598,701│ 4,022,799│ 6.72│ - │ 1860│ 720,250│ 4,188,065│ 5.81│ - │ 1861│ 920,357│ 4,919,737│ 5.34│ - │ 1862│ 1,518,044│ 5,302,440│ 3.49│ - │ 1863│ 1,754,867│ 5,937,904│ 3.38│ - │ 1864│ 1,967,748│ 6,123,272│ 3.13│ - │ 1865│ 2,473,747│ 7,052,139│ 2.88│ - │ 1866│ 2,842,554│ 7,707,590│ 2.79│ - └───────────────┴─────────────────┴─────────────────┴─────────────────┘ - - - INCREASE IN TELEGRAMS NOT DUE TO LOW RATES. - -It will be observed, by an examination of the above table, that low -tariffs are not the only causes of the enlarged use of the telegraph. -The annual percentage of increase in messages, as tariffs were gradually -reduced, was vastly less than during those years when the rates remained -unchanged. During the year of 1851 only 9,014 telegrams were transmitted -through the French empire, the tariff averaging $1.60 per message. Five -years later, notwithstanding that the average cost per message had been -_increased_ to $1.73, the number of messages had increased to 360,299, -and in 1858 to 463,973,—more than fifty times the number sent in 1851, -or _an increase of more than five thousand per cent in eight years, -without any reduction in rates_. The increase in the number of messages -during the next eight years, from 1858 to 1866, was only six hundred per -cent, notwithstanding a reduction in the tariff from 7.60 to 2.79 -francs. - -This same peculiarity of increase, without regard to the cost, is also -observable in all other countries, as will be seen by a perusal of the -official tables. - - - TABLE K. - - _Statement showing the Progress of Telegraphy in France._ - - ┌─────┬────────────────────────────┐ - │DATE.│Number of Messages Annually.│ - │ │ │ - ├─────┼─────────┬────────┬─────────┤ - │ │ Home. │Foreign.│ Total. │ - ├─────┼─────────┼────────┼─────────┤ - │ │ │ │ │ - │ │ │ │ │ - │ │ │ │ │ - │ 1851│ │ │ 9,014│ - │ 1852│ │ │ 48,105│ - │ 1853│ │ │ 142,061│ - │ 1854│ │ │ 236,018│ - │ 1855│ │ │ 254,532│ - │ 1856│ │ │ 360,299│ - │ 1857│ │ │ 413,616│ - │ 1858│ 349,887│ 114,086│ 463,973│ - │ 1859│ 453,998│ 144,703│ 598,701│ - │ 1860│ 568,365│ 151,885│ 720,250│ - │ 1861│ 734,252│ 186,357│ 920,357│ - │ 1862│1,291,774│ 226,270│1,518,044│ - │ 1863│1,490,023│ 264,844│1,754,867│ - │ 1864│1,654,406│ 313,342│1,967,748│ - │ 1865│2,098,645│ 375,102│2,473,747│ - │ 1866│2,379,631│ 462,873│2,842,554│ - └─────┴─────────┴────────┴─────────┘ - - ┌─────┬──────────────────────────────────────┬─────────────────────┐ - │DATE.│ Gross Receipts per Annum in Francs. │ Average Cost per │ - │ │ │ Message. │ - ├─────┼────────────┬────────────┬────────────┼─────┬────────┬──────┤ - │ │ Home. │ Foreign. │ Total. │Home.│Foreign.│Total.│ - ├─────┼────────────┼────────────┼────────────┼─────┼────────┼──────┤ - │ │ Fr. ct. │ Fr. ct. │ Fr. ct. │ Fr. │Fr. ct. │ Fr. │ - │ │ │ │ │ ct. │ │ ct. │ - │ │ │ │ │ │ │ │ - │ 1851│ │ │ 76,722.60│ │ │ 7.84│ - │ 1852│ │ │ 542,891.58│ │ │ 11.28│ - │ 1853│ │ │1,511,909.57│ │ │ 10.64│ - │ 1854│ │ │2,064,983.71│ │ │ 8.84│ - │ 1855│ │ │2,487,159.21│ │ │ 9.77│ - │ 1856│ │ │3,191,102.04│ │ │ 8.68│ - │ 1857│ │ │3,333,695.74│ │ │ 8.06│ - │ 1858│1,749,913.35│1,721,715.35│3,516,633.70│ 5.13│ 15.09│ 7.60│ - │ 1859│2,072,314.15│1,950,485.63│4,022,799.78│ 4.57│ 13.48│ 6.72│ - │ 1860│2,358,525.21│1,829,540.05│4,188,065.26│ 4.15│ 12.05│ 5.81│ - │ 1861│2,840,445.84│2,079,292.12│4,919,737.86│ 3.82│ 11.16│ 5.34│ - │ 1862│2,984,490.21│2,317,950.34│5,302,440.55│ 2.31│ 10.24│ 3.49│ - │ 1863│3,305,993.85│2,631,911.08│5,937,904.93│ 2.22│ 9.94│ 3.38│ - │ 1864│3,565,933.68│2,557,338.38│6,123,272.06│ 2.15│ 8.16│ 3.13│ - │ 1865│4,159,445.45│2,892,694.34│7,052,139.79│ 1.98│ 7.71│ 2.88│ - │ 1866│4,513,095.32│3,194,495.29│7,707,590.61│ 1.90│ 6.90│ 2.79│ - └─────┴────────────┴────────────┴────────────┴─────┴────────┴──────┘ - - - GREECE. - -The Kingdom of Greece has twelve telegraph stations. All the messages -between the Greek and European lines pass through Turkey, and -consequently the rate is very high. It is proposed to establish a direct -line between Greece and Southern Italy by continuing the Corfu cable to -Pauras or Missolonghi, across the Ionian Islands. - - - PRUSSIA. - -In Prussia the number of messages transmitted in 1866, the last year of -which we have data, was 1,964,030, and the gross receipts were 1,275,785 -thalers, making the average cost per message seventy cents in our -currency. Prussia had in that year a population of 17,740,000, and the -area of her territory was somewhat less than the New England States and -New York. Distance being regarded, the Prussian rates were at that -period double our own. - - - TABLE L. - - _Statement showing the Progress of Telegraphy in Prussia._ - - ┌───────────────┬─────────────────┬─────────────────┬─────────────────┐ - │ │ Number of │Gross Receipts in│Average Cost per │ - │ DATE. │ Messages. │ Thalers. │ Message in │ - │ │ │ │ Thalers. │ - ├───────────────┼─────────────────┼─────────────────┼─────────────────┤ - │ 1852│ 48,751│ 114,539│ 2.350│ - │ 1853│ 85,161│ 209,944│ 2.460│ - │ 1854│ 116,313│ 328,506│ 2.820│ - │ 1855│ 152,820│ 434,122│ 2.840│ - │ 1856│ 221,411│ 591,038│ 2.670│ - │ 1857│ 241,545│ 726,517│ 3.010│ - │ 1858│ 247,202│ 730,584│ 2.950│ - │ 1859│ 349,997│ 808,521│ 2.310│ - │ 1860│ 384,335│ 791,101│ 2.060│ - │ 1861│ 459,002│ 875,783│ 1.988│ - │ 1862│ 660,501│ 954,550│ 1.450│ - │ 1863│ 877,583│ 1,039,961│ 1.180│ - │ 1864│ 1,259,590│ 1,150,008│ 0.913│ - │ 1865│ 1,527,455│ 1,242,489│ 0.812│ - │ 1866│ 1,964,030│ 1,275,785│ 0.656│ - └───────────────┴─────────────────┴─────────────────┴─────────────────┘ - -It will be observed that the number of messages transmitted in 1852 was -48,751, and in 1860, 384,335, being an increase in nine years of nearly -800 per cent, although there was no reduction in the average tariff -during this period. From 1860 to 1866 there was an increase of only 500 -per cent, notwithstanding a reduction in the rates from 2.06 to 0.656 -thalers per message. - -Prussia was among the earliest of Continental countries to adopt the -electric telegraph, and it is still far in advance of most of its -neighbors in the practical development of the enterprise; and yet, with -a population more than half as great as the United States, she only -transmits one sixth as many messages per annum. Were the system left to -private enterprise, as in this country, there can be no doubt that this -enlightened and thrifty people would greatly extend the system, and in -place of the meagre supply of 538 offices she would have upwards of -2,000, and in place of 1,964,030 messages per annum would transmit seven -or eight millions. - - - RUSSIA. - -European Russia, with a population considerably more than twice as great -as the United States, contains but 308 offices, or one to 230,000 of -people; and sends annually but 838,653 messages, or one to each 80,723 -of her population. - -Any person examining the telegraphic map of Russia will be satisfied -that the rose-colored descriptions of government telegraphs as -illustrated in Russia are overdrawn. The lines radiating from St. -Petersburg, and extending to Warsaw, Moscow, Odessa, Sebastopol, -Nichni-Novgorod, to the Persian frontier, and to Kiakhta in Siberia,—all -important military points,—and with scarcely any connecting interior -lines, suggest anything but a desire to afford ample telegraphic -facilities to the people. - - - SWITZERLAND. - -The situation of Switzerland, in the centre of Europe, and forming the -pathway between nations, places her in a peculiar position with -reference to the transmission of messages from one country to another. -Just as Belgium is situated in relation to intercourse between France -and Germany, so Switzerland is placed in regard to telegraphic -communication between France and Italy, and Italy and Germany. -Switzerland, from many circumstances, is a country in which telegraphic -communication is eminently useful. In the first place it is a -mountainous country, over which postal communication is necessarily -slow, and conducted at all seasons under disadvantages. Besides all -this, Switzerland, at certain seasons of the year, is a country full of -travellers and tourists from all parts of the world, who find great -advantage and convenience in being able to transmit short messages from -one place to another, respecting hotel accommodations, baggage -arrangements, lost packages, horses, places in the diligence, and -general matters relating to their route, as well as business and social -messages to their relatives, friends, and agents at home. - -Switzerland is in the same position with Belgium in respect to the means -of cheap telegraphic communication. The railways of the country all -belong to the state; so that every railway is available, without charge, -for the passage of wires along the line, and every railway official may -be employed for telegraphic service, at the pleasure of the government, -for nothing. It is scarcely necessary to point out how different must be -the working of such a system from that of the United States, where the -railways are in the hands of private companies, and with whom terms have -to be made for the right of way. - - - NO ANALOGY BETWEEN THE UNITED STATES AND SWITZERLAND. - -The analogy between the United States and Switzerland seems in every -sense imperfect. The telegraph stations in Switzerland only number 252, -or less than the number contained within a radius of fifty miles in and -around the city of New York. - -The total number of despatches transmitted annually in and through -Switzerland only amounted in 1866 to 668,916, whilst of these probably -more than half were either transit or international. These transit -telegrams, of which there are none in our country, involve a most -important difference. Belgium and Switzerland can make up the -deficiencies which arise from losses on internal communication by the -surplus derived from transit telegrams. - -In 1852 the average number of messages per day, for all Switzerland, was -less than ten. As the system became extended, and the people were -educated to its use, the number of messages increased, until in 1866 -they exceeded 2,000 per day, approximating, for the entire country, the -number sent and received daily by fifteen female operators in one of the -rooms of the Western Union Telegraph Company, in the city of New York. -Probably one half of these were transit messages passing through -Switzerland from stations in France, Belgium, and Italy, leaving about -1,000 messages per day of inland business, which, divided among 252 -offices, would leave an average of a little less than _four messages per -day for each office_! This is not a very magnificent result, and is not -over encouraging as a model system, which gives to its twenty-five -cantons ten offices, with an average revenue from each; for inland -business, of only three francs per day! And this, notwithstanding that -the government coaches convey, without any extra charge, messages, from -towns unsupplied with offices, to the nearest telegraph station. - - - TABLE M. - - _Statement showing the Progress of Telegraphy in Switzerland._ - - ┌───────────────┬─────────────────┬─────────────────┬─────────────────┐ - │ │ Number of │Gross Receipts in│Average Cost per │ - │ DATE. │ Messages. │ Francs. │ Message in │ - │ │ │ │ Francs. │ - ├───────────────┼─────────────────┼─────────────────┼─────────────────┤ - │ 1852│ 2,876│ 3,541.95│ │ - │ 1853│ 82,586│ 127,870.04│ 1.55│ - │ 1854│ 129,167│ 208,887.36│ 1.62│ - │ 1855│ 162,851│ 251,391.27│ 1.53│ - │ 1856│ 227,072│ 319,947.22│ 1.44│ - │ 1857│ 260,164│ 369,226.01│ 1.42│ - │ 1858│ 247,102│ 343,597.38│ 1.35│ - │ 1859│ 286,876│ 425,587.57│ 1.48│ - │ 1860│ 303,930│ 408,429.04│ 1.34│ - │ 1861│ 331,933│ 448,056.05│ 1.35│ - │ 1862│ 373,452│ 530,417.50│ 1.42│ - │ 1863│ 456,871│ 630,748.26│ 1.38│ - │ 1864│ 514,952│ 615,317.00│ 1.20│ - │ 1865│ 591,214│ 726,564.16│ 1.23│ - │ 1866│ 668,916│ 684,319.89│ 1.03│ - │ 1867│ 708,974│ 775,024.00│ 1.09│ - └───────────────┴─────────────────┴─────────────────┴─────────────────┘ - -It will be observed that the increase in the number of messages -transmitted in Switzerland was from 2,876 in 1852 to 668,916 in 1866, or -more than 230,000 per cent in fourteen years, although the tariff had -only been reduced 33 per cent. - - - SPAIN. - -Spain, with a population of over 16,000,000 souls, and possessing the -advantages of forming the pathway between France and her African -possessions, as well as between Portugal and the rest of Europe, -transmits a less number of telegrams per annum than the Dominion of -Canada, with her 3,000,000 inhabitants. That this insignificant amount -of business for so great a country is owing to government control is -evident from the following royal decree, issued in conformity with the -request of the Minister of State, who says: “The petitions presented to -your Majesty from different towns, companies, and private individuals -are so numerous and repeated, praying that the advantages of telegraphic -communications should be granted to them, that the minister who now -humbly addresses your Majesty has lamented more than once that the care -of the government has not extended that satisfaction to legitimate -wishes so deserving of attention.” - - - ROYAL DECREE RELATING TO TELEGRAPHS IN SPAIN. - -In conformity with what the Minister of State for Home Affairs has -proposed to me, for the concession of telegraph lines and stations. - -_I have decreed as follows:_— - -The districts, towns, and public establishments, who wish to form new -lines or stations, _can solicit them from the government_, which will -inquire into the influence of the establishment of the said lines or -stations upon the state telegraphic system. - -_The necessary cost of the lines and service must be paid by the -petitioners, and they must also give sufficient guaranty for the cost of -repairs and service._ - -The petitioners will be obliged to pay to the state the difference that -may result between the annual income and the cost of the service. - -If at the expiration of five years the expenses exceed the returns, the -line or station will be considered as property of the state. No line or -station can be formed without the consent of the ministers in council. - -Service in all kinds of stations and lines can only be performed by a -staff from the government telegraph corps. - -All despatches passing through Spain (including the Balearic Islands) -and France (including Corsica) will pay the rate of five francs per -message of 20 words, no matter from what telegraph office they proceed -or to what station they are addressed. Each ten words or part of ten -words, beyond 20, will pay half the amount of a single message. - -The cost of a single message transmitted from France to Algeria, or -_vice versa_, passing through the Spanish or submarine lines, as also of -the messages between Spain and Algeria, transmitted either by land or -French cables, will always be eight francs. The messages received or -forwarded to Tunis will pay two francs more. - -The messages exceeding 20 words will pay an extra charge, in accordance -with the rule already established. - -_No despatch whatever will be delivered out of the radius of the -locality wherein the station addressed to is situated, through any other -means than by post._ - -Telegrams addressed to localities where there is no station will be -delivered by the last telegraphic office to the post, which will -undertake to convey them to their destination as certified parcels. - -When one despatch is addressed to several persons in the same locality, -as many telegrams will be charged for as there are individuals to -receive it. - -The acknowledgment of the receipt of a telegram will be charged for as a -new despatch. - -_Prepayment of despatches can be made, but if no answer is returned, or -if it should contain less words than those paid for, no return of any -kind will be made._ If the answer contains more words than paid for, the -station which sends it will charge the difference between the amount -paid and the corresponding one to this new despatch. - -The claims for delay or irregularity of telegrams will only give -occasion for future inquiry into the causes which have produced the -irregularity in the service, for the knowledge of the interested party, -and to punish the functionary who should prove to be culpable. - - Given at Aranjuez, on the 22d May, 1864. - -If there is any special benefit accruing to the people of Spain by -having the telegraph under government control, we fail to discover it. - - - TURKEY. - -Turkey contains twenty-eight telegraph stations, of which twelve are -open for night service, nine during the whole of the day, and seven for -a part only. Constantinople has two stations open for international -correspondence,—one at Stamboul, the other at Pera; the first is -principally confined to the transmission of messages for the Ottoman -government, and the second for that of ambassadors and private persons. -In the case of an interruption of the cable which crosses the -Hellespont, the Dardanelles station is removed to Kaled-Bahas, and the -despatches are subjected to an additional rate of 90 cents for their -conveyance, by boat, from Kaled-Bahas to the Dardanelles. The tariff, -upon messages between Paris to any Turkish station, varies from $2.80 to -$6.00, according to the distance. - -The construction of lines in Turkey is of the most defective -description, and the materials used very inferior. The lines pass over -the steepest and most inaccessible hills; and this state of things is -made worse by a very inadequate inspection, by men who are both too few -in number, wretchedly paid, and generally incompetent. Repairers are -compelled to provide and keep a horse out of their pay of 300 piastres -($13.04) per month. The chiefs of stations, and all other employees, are -Turks, whose lazy habits and incompetency cannot be wondered at, when -the smallness of their pay is considered. Added to these difficulties, -the service has to endure very frequent and arbitrary occupation of the -wires by the government, interrupting, on many occasions, business of -the most pressing nature, for the transmission of some trivial -communication, which would lose nothing by a short delay. It may be -imagined that as the service is in the hands of government, much depends -upon the director-general of the department. Unfortunately, this -official is in the unenviable position of holding office on such a poor -tenure that it may be said he has a daily apprehension of being turned -out, and replaced by one of those numerous intriguers who swarm about -the cabinets of the ministers, or work through the more effectual -influence of the harem,—the great bane of the country. It has been -proposed to the Turkish government to employ a large staff of English -inspectors and operators, but the natural jealousy of employing -foreigners stands in the way. The Turks insist upon having all messages -sent through in Turkish, so that frequently, when retranslated, they -bear very slight resemblance to the original. - -All the important telegraphic intercourse between Europe and India -passes through the Turkish dominions. The effect of the control of the -Turkish government over the telegraph is most disastrous, and renders -this important connection with India almost worthless. - -Repeated efforts have been made by the English telegraph companies, who -have so great an interest in the successful operation of these lines, to -induce the Turkish government to relinquish its management of them, but -thus far without success. - - - - - REASONS - WHY - GOVERNMENT SHOULD NOT ENTER INTO COMPETITION WITH THE PEOPLE IN THE - OPERATION OF THE TELEGRAPH. - - -The foregoing presentation of facts has shown that there are no -sufficient grounds for destroying the value of the investments of the -people in existing telegraph companies by governmental competition, the -telegraph system of this country being unrivalled in its extent, -unequalled in its administration, and unparalleled for the low rates -which it has always maintained. - -In this country the people have not been accustomed to rely upon the -government to provide those things for them which they are able to -secure by their own exertions. If this principle is right in regard to -one enterprise, it is also in relation to all others; and if infringed -upon in the case of the telegraph companies, what pursuit will be safe -from governmental interference? - -It is undoubtedly true that, were tariffs designed simply to provide a -revenue to support the lines, they are capable of reduction, provided -present arrangements with railroad companies and others could be -maintained, by which the labor of the one is utilized in the service of -the other. But for this the country makes no demand. It recognizes the -telegraph as a legitimate enterprise for the investment of the capital -and labor of its citizens. If false counsels guide its development, -public reprobation is ready with its remedy. Its absorption by -government would not only be a public calamity, but a breach of the -theory and spirit of our institutions, and would soon result in its -necessary return to individual control. - - - POLITICAL REASONS WHY GOVERNMENT SHOULD NOT CONTROL THE TELEGRAPH. - -One of the most serious objections to the government of the United -States assuming the control of the telegraph is the political one. In -monarchical countries, where the sovereignty is a patrimony of a -particular family, and where no change is made except by revolution, -everything which tends towards the permanence of the reigning dynasty is -looked upon as in the interest of law and order, and for these reasons -the absorption of the telegraphs by the government is regarded as a -proper and legitimate act, and consistent with the public weal; but in a -republic, where the rulers are changed periodically, and where the -purity of the elections is of the first importance, the placing of so -great a power in the hands of the government would be a public calamity. -It might be supposed that rulers could be elected who would not take -advantage of the control of the telegraph for selfish purposes, but the -temptation to do so would be great, and, even if not yielded to, the -suspicions of the people would be constantly aroused, and confidence in -its impartial administration would be destroyed. In every election the -whole army of postmasters and the machinery of the department is -enlisted in the service of the party in power. Shall we give it the -telegraph also? What would be the influence on election returns? - -The censorship of telegraphic correspondence, always a subject of public -disapprobation, is generally exercised by all governments which have its -management. In France the control of the telegraph by government is -loudly complained of, in consequence of notorious abuses which result -from it. Amongst other things, it is well known that the authorities of -the Bourse, in Paris, have opportunities of seeing every telegram which -reaches or leaves that city on matters relating to the stock exchange -operations. - - - THE POST-OFFICE DEPARTMENT NOT COMPETENT TO MANAGE THE TELEGRAPHS. - -If it should ever appear to be for the public good that this agency, so -capable of use as a political power, should pass into the hands of -government, it seems proper to await such a demonstration of the -self-sustaining capacity of the department under whose control it is -proposed to be placed, and such efficiency in that service, as will -furnish reasonable assurance of ability for the united control without -burden to the state, or lessened convenience to the people. A department -which is still confessedly imperfect, which cannot even tell the number -of letters which it transmits per annum, whose receipts are unequal to -the cost of service by over $6,000,000,[28] which could not secure -skilled labor in this new field except by foraging from existing -enterprises, and which could not avoid heavy losses at the rates -proposed, is not at present a fit recipient of so important a trust. - -Footnote 28: - - The postal revenue for the year ending June 30th, 1868, was - $16,292,600.80, and the expenditures during the same period - $22,730,592.65, showing an excess of expenditures of $6,337,991.85. - From the report of the Postmaster-General. - -The Post-Office Department, which already has more duties than it is -able to perform, instead of seeking to absorb the telegraphs, had better -apply itself to its proper task of developing the correspondence of the -country, and endeavor to make itself financially profitable to the -nation, instead of a serious burden. - -That the post-office undertakes more than it can perform is shown by the -delays and irregularities of the service, and the enormous and -constantly increasing number of its dead letters, which amounted, in -1867, to over 4,500,000! Were the telegraph companies to deal with the -messages committed to them for transmission as the post-office deals -with the letters committed to its care, there would be good grounds for -governmental interference; but there are very few complaints of -non-delivery of telegrams. - -It should be borne in mind that electric telegraphy is a science, and -its successful operation requires a thorough knowledge of electricity, -skill in manipulating the apparatus, and many years of constant training -in the practical duties of the business. Many of the employees of this -company have been constantly in the service for more than a score of -years, and still consider themselves students in this new field of -practical science: without wishing to be invidious in our comparisons, -we may fairly say that the intelligence and skill which are ample for -the duties of filling a bag with letters and despatching them by horse -or steam power, would not be competent to the duties of successfully -transmitting an important despatch through the invisible agency of the -electric current. - - - GOVERNMENT ASSUMES NO RESPONSIBILITY. - -Another serious drawback to the value of the telegraph under government -management is its failure to make reparation to private individuals for -losses caused by the errors or imperfection of its service. In no -country where the telegraph exists under government control is there any -assumption of accountability for errors or delays in the transmission of -messages. In some countries they will not even inquire into the cause of -delay or errors, and in others, as in Spain, they will only do so for -the purpose of punishing the delinquent employee, but in no case to -reimburse the patron of the telegraph for his loss. This failure to -assume any responsibility in the matter is of great importance to the -public. The amount paid by the Western Union Telegraph Company per -annum, on account of these unavoidable errors and delays, is very -considerable. The public would be reluctant to leave the correct -transmission and delivery of their important messages to the chances of -a government system which is notoriously defective, and which would in -no case reimburse them for losses occasioned by errors in the -transmission of their telegrams, or failure to send them at all. The -scheme proposed by Mr. Hubbard, owing to the divided responsibility of -the service, would be even worse than the absorption of the lines by the -government. Public opinion could not reach the contractor, because he is -the servant of the government, and not of the public, and it would fail -to influence the Post-Office Department, as it does not itself perform -the service, and, because being a department, it is practically -irresponsible. How much influence, for example, has public opinion on -the collectors of internal revenue or customs, or even the postmasters -of this country? - -If despatches were left at the post-offices, or dropped in the street -boxes, as provided for in Mr. Hubbard’s bill, they would have to take -their chances of transmission and delivery, with no recourse, in case of -failure, for redress from any source. If a despatch should fail to reach -its destination, and complaint was made to the postmaster, he would -reply that he was not responsible for its transmission, and would refer -the aggrieved person to the telegraph contractor; while the latter would -answer that he was a servant of the government, and not responsible to -the public for the imperfections of his service. And the result would -be, that while the sender of the despatch obtained no redress, he would -not have even the satisfaction of knowing which service was at fault, -the post-office or the telegraph. - - - THE PROPOSITION TO ERECT COMPETITIVE GOVERNMENTAL TELEGRAPHS UNFOUNDED - IN PUBLIC NECESSITY, UNJUST AND DELUSIVE. - -The proposition to erect a competitive governmental telegraph line -between Washington and New York, as described in the paper of Mr. -Washburne, and the bill designed to authorize it, is a scheme founded -upon no public necessity, unjust and delusive. - -It is easily demonstrable that the tariff proposed by the bill, if -adopted by the government, could only be maintained by large drafts upon -the national treasury. It is well known that the active hours of -telegraph service are about five, and the ordinary average of -transmission not over fifty messages per hour, the general allowance -being forty. Thus each of the four wires proposed to be erected under -the bill would be capable of earning, at the maximum, five dollars per -hour, or a total daily income of one hundred dollars, an amount unequal -to the provision of the most ordinary indoor service, to say nothing of -the cost of management, repairs of lines, battery power, stationery, and -many other necessary expenses. The annual cost to our company of repairs -and inspection on this route alone is $20,000. - -This company denies the exorbitance of the rates it has adopted, and -which it is now actively engaged in modifying so as to secure the -fairest correspondence to other branches of labor, and the utmost -development of the system. It therefore deprecates as illusory, as well -as unjust, the proposal to establish rates lower than those which in -Belgium have caused a loss of one third of the tariff on each message -sent, and which, under the management of a department now showing an -enormous annual deficit, cannot fail to prove perplexing and disastrous. -It deprecates also, as utterly illusory, the idea that under such -tariffs a product would be realized that would provide for the extension -of the government lines to other regions. This delusion, which makes it -possible for an intelligent public man to predicate so absurd a result, -has for a basis that which is ever used to allure men into schemes of -promised wealth. The insane speculation which, thirty years ago, ruined -tens of thousands of our people, by counting the leaves of the _Morus -multicaulis_ as the products of veritable mulberry-trees, on which -delighted caterpillars would feed, and enrich their owners with untold -webs of native silk, was not more illusory than that which to-day, by -showing the possibilities of each hour by day and night, crams the wires -with possible messages which will never be sent, and estimates balances -which cannot be earned. - -This scheme would be unjust to government, by undermining and perilling -a business which pays $300,000 per annum to its revenues, besides -casting upon a nation, great because of the energy which has -characterized its private enterprises, the odium of initiating -competition with one of the most useful products of the national brain, -before time has been given to complete the design of those who direct -it, and to fully illustrate its capacity. - -The policy and practice of the Western Union Telegraph Company favor a -reduction of the rates on despatches as rapidly as the necessary -expenses of the service will admit; _and if the government will abolish -its tax on the receipts for transmitting telegrams, this company will -immediately lower its rates until the reduction upon the gross amount of -business done shall be twice as much as the tax remitted_. - -This would lessen the rates for telegraphing nearly ten per cent, and -would be a far better plan for furnishing cheaper telegraphic facilities -to the people than the construction and operation of government lines at -the expense of the national treasury. - - - THE TELEGRAPH BILL PROPOSED TO BE ENACTED BY CONGRESS WITHOUT NATIONAL - EXAMPLE. - -It must be borne in mind that the remunerativeness of telegraph lines -depends largely upon the revenues of a few important cities, without -which the enterprise would not have an income sufficient to support it. -To take away the receipts of New York, Philadelphia, Baltimore, and -Washington, with Boston, Chicago, Cincinnati, St. Louis, and a few -others of like importance, would make it impossible for any company to -maintain itself, far less to meet the constant demand of an enlarging -population and new settlements for the extension of its lines. This is -not peculiar to America. In Great Britain, where there are 2,151 -stations, seventy-six per cent of the entire receipts are received at 18 -stations, fifteen per cent at 81 stations, and only nine per cent at the -residue. Even of the seventy-six per cent received at the 18 stations, -one half of that whole percentage was received in London, and one -quarter from two other cities. - -In France, three departments collect 4,178,332, out of a total of -7,707,590 francs per annum; and of this amount, Paris (Départment de la -Seine) collects 2,794,768.40 francs, being more than one third of the -total receipts of the whole empire. - -The Western Union Telegraph Company’s revenues come to it in a similar -manner. From its 3,331 offices it derives its receipts as follows:— - - From 136 offices, 75 per cent. - „ 3195 „ 25 per cent. - -Of these 136 offices, a large proportion of their receipts is derived -from twelve chief cities, of which four are on the route proposed by -this bill. - -Government, by thus operating lines of telegraph over the choicest and -most productive route, at rates below the cost of the service, and which -could only be maintained by large drafts upon the national treasury, -would assume an attitude towards private telegraph enterprises of the -most unjust and unexampled hostility. - -Such a partial experiment as that proposed by Mr. Washburne, or even by -Mr. Hubbard, would destroy the unitary character of the service which -the Western Union Telegraph Company has done so much to secure, and -would be a most decidedly reactionary measure. - -Mr. Hubbard’s bill to incorporate the United States Postal Telegraph -Company, and to establish a postal-telegraph system, provides for the -establishment of telegraph lines to all cities and villages of five -thousand inhabitants and over in the United States. Were this scheme to -be adopted, and the government thus enter into a partnership with the -new company in the telegraph business, in accordance with the terms of -this bill, what is to become of the smaller towns? According to the -census of 1860 there are only three hundred and thirteen cities and -villages in the United States having the five thousand inhabitants -necessary to entitle them to an office under this postal system. Who, -then, is to maintain telegraphic facilities at the remaining three -thousand eight hundred and thirteen small towns now having offices? - -Private companies, if driven out of the field by the establishment of -this semi-government competing line, could not do it, and, as this -scheme makes no provision for them, they must necessarily be deprived of -the facilities they now enjoy. Under this bill Arkansas, Florida, and -Oregon would not be entitled to an office; Minnesota, Mississippi, and -South Carolina to but one; North Carolina, Texas, and Vermont to but two -each; Delaware and Tennessee to but three; Connecticut, Georgia, -Kentucky, and Michigan to but four; and Indiana, Kansas, Louisiana, -Maine, Missouri, New Hampshire, Rhode Island, Virginia, and Wisconsin -would be entitled to less than ten each, while those provided for the -whole United States would be less in number than the branch offices -furnished for the convenience of the public by the Western Union -Telegraph Company at the hotels, docks, piers, and other places in the -large towns alone.[29] - -Footnote 29: - - The Postmaster-General is permitted to establish postal-telegraph - stations at any city or village through which the lines of the - contracting party may be extended, though said city or village contain - less than five thousand inhabitants; but as the proposed company makes - no provision for the payment of the operators or any of the expenses - of such offices, while it secures to itself the receipts for - telegrams, it is hardly to be expected that the Postmaster-General - would feel disposed to open many stations under such circumstances. - -The proposal presented to Congress is one which the governments of -Europe, from which it professes to draw its inspiration, have never -entertained. No government there has ever yet attempted to engage in any -public work by the destruction of the property of its people, except -after just compensation. The recent example of Great Britain in -acquiring the British lines of telegraph is eminently illustrative of -this national justice. Neither cavilling with the nature or condition of -their structure, cheapening the value of their property, nor defaming -the officers of any company, the British Parliament doubles the -valuation of its owners, and pays a price therefor which satisfies the -most exacting. In striking contrast to this is the enterprise proposed -to the American Congress by the Washburne bill, which begins by -attacking the integrity of the official management of the existing -system, depreciating the value of its property, and proposing the -competitive use of a grand invention which it refused to purchase, and -now proposes, without consideration, to possess. In such a project there -is no national example which would give it sanction or respectability, -even though, in times of great national peril, and amid the necessities -of despotic governments, monarchs have at times seized and made their -own the profitable traffic and pursuits of the people. - - - - - APPENDIX. - - - THE TELEGRAPH AND THE GOVERNMENT.[30] - -Footnote 30: - - From the Cincinnati Gazette. - -The building of telegraph lines in the United States, from the date of -their inauguration down to the present time, has been overdone. There -are now too many wires for the business, at the prices that are charged; -consequently there are few, if any, lines that pay a fair interest on -the cost of their construction. So great is the cost of maintaining and -operating lines, too, that it is a question whether sufficient business -could be done, as it is conducted at very low rates, to pay expenses. In -business hours, for example, there is a great rush of messages,—say from -9 A. M. to 3 P. M.—that is, between commercial centres. After 3 o’clock -there is comparatively little business, except what is furnished by the -newspapers. Consequently, in the after part of the day, and during the -night, many wires and operators are idle. In order to make business for -this portion of the twenty-four hours, the telegraph companies adopted a -low schedule of rates for night messages, but this has been attended -with poor success. The lines are mainly used, it is found, by business -men and newspapers. Business messages require immediate delivery, and -are not valuable except when transmitted and delivered during business -hours. Hence the reduced rates for night messages has not created much -new business. Neither would low rates for day messages create new -business, unless the despatches could be promptly forwarded and -delivered. Low rates for day messages, prompt delivery being insured, -would undoubtedly largely increase the business, but this would require -more wires and more men. The question then is, would the income at low -rates be sufficient to pay for the increased expenditures? Telegraph -managers have decided this question in the negative. There is, it must -be borne in mind, a limit to the capacity of telegraph wires for -conveying news. Herein this system differs from the postal system. There -is, practically, no limit to the capacity of the railroad companies for -carrying the mails, and, of course, the profits of the postal department -are in proportion to the amount of business they transact. These -preliminary remarks are made in order that the public may the better -understand the proposition which has been made, and is being agitated, -looking to the purchase of the telegraph lines by the government, and -their operation in connection with the postal system. The pretext is, -that the government could afford to reduce the tariff to a low point, -say one cent per word for five hundred miles or less, and two cents for -over five hundred up to one thousand, &c. This would make the tariff -between Cincinnati and New York three cents, whereas it is now ten -cents, for private messages. This is the pretext, but the real secret of -the movement is this. There are two parties who favor the proposition. -One of these has been quietly buying up telegraph stock at thirty or -forty cents on the dollar. They propose to have Congress pass a law -authorizing the President to appoint three commissioners to value the -telegraph lines of the United States and providing for their purchase at -such valuation. Here is a fine chance for speculation. It would afford -an admirable opening for the gentlemen who practise in the lobby. The -second party favoring the purchase is composed of members of Congress -who are anxious to have the franking privilege extended to the telegraph -lines. What a splendid thing it would be if members of Congress could -use the telegraph lines free, as they use the mails. But the people -would have to pay for the free business on the telegraph lines,—pay -dearly, too, as they pay for the uses and abuses of the postal franking -privilege. Besides, the government, in connection with the postal -system, is mainly conspicuous for its mismanagement. It does not compete -successfully with private enterprise, and never can so long as the -abominable system of filling and vacating offices is continued. The -telegraph business is decidedly complicated. It requires skilful men to -operate it. How would it be if telegraph offices were to be filled as -post-offices and revenue offices are filled? We need not stop to answer -this question. Besides, secrecy is an important feature of the telegraph -business. It is not as carefully enforced as it should be; but what a -political machine the telegraph would become if partisan politicians -should get hold of it! Imagine the telegraph during an exciting -presidential campaign, with one party controlling the wires and reading -all the private despatches that passed over the lines! There would be no -secrecy about it; neither would it be reliable, and in the end it would -cost the people more than those using it would save. Not one man in -twenty would use the telegraph if rates were even lower than is -proposed; and consequently nineteen men would be taxed for the benefit -of one. The whole thing would be a tax upon the people, without -compensating advantages. If private enterprise, with sharp competition, -cannot carry messages between New York and Cincinnati, at ten cents per -word, and make money, the government could not do it at three cents, or -at any price up to ten. Nothing more certain than that. Besides, the -corruption connected with office-holding and office-getting, in this -country, is sufficient to cause the people to shudder at the mere -proposition to add fifty thousand offices to the already enormous -federal patronage. The government is staggering now under the tremendous -load of corruption consequent upon the federal patronage and the mode of -distributing it, and the people must soon choose between a reform in -this or a revolution. Let it be first demonstrated, therefore, that the -government can successfully, honestly, and economically manage the -business intrusted to it before it undertakes to assume exclusive -control of other branches of private enterprise. But, as already stated, -the present movement is merely a scheme to saddle upon the government -the non-paying telegraph lines of the United States, at three or four -times their value. The result would be amazing corruption in the -management of the lines, the violation of private confidence for -personal or political purposes, and a cost to the people for -telegraphing greater than is now borne by those who use the wires. - - - POSTAL TELEGRAPH.—EXTENSION OF THE INTERFERENCE THEORY.[31] - -Footnote 31: - - From the Chicago Evening Post. - -We beg the advocates of the Postal Telegraph scheme not to stop. The -justification of what they propose to do, if in accordance with their -theories of government, will cover many other things necessary to be -done. After having taken possession of the telegraph lines, and -increased the number of officers necessary to insure the harmonious -working of their plan, let them turn their attention to the Express -business of the country, in which there is room for great reform. This, -we are told, is practically a monopoly, by the greed of which the -transmission of merchandise and valuables from one part of the country -to another is often slow, and always expensive. If it is the province of -the government to take charge of the telegraphic correspondence of the -people, surely there is no abuse of authority in undertaking to carry, -and in making a monopoly of carrying, their express packages; and the -reasons which commend this telegraph scheme cover and justify the -extension of governmental interference with the small freight that the -express lines usually convey. We state these reasons _seriatim_, just as -the advocates of governmental telegraphing rehearse them. They are, -first, cheapness; second, certainty; third, celerity; fourth, promotion -of intercourse and traffic between different sections of the country; -and consequently, fifth, the wider dissemination of intelligence. If -these are sufficient,—and no promoter of the telegraph scheme can doubt -that they are,—they admit of still wider application. Most of the -telegraphic correspondence of the country is of a business character, -and so most of the service rendered by the express is of the same sort. -The telegraph and the express are the adjuncts of our great commercial -transactions by which people are fed, warmed, clothed, and supplied with -the implements and raw material of labor. There is, then, no reason why -the railroads, which are only larger instruments of the same kind, -should be omitted in the list of things that the government may manage -and monopolize. It is surely of as much moment that a train-load of -flour or butter should be carried with cheapness, certainty, and -celerity from Chicago to New York, as that the despatch announcing its -shipment or arrival should be sent in the same way; and if we cannot -manage the latter to our satisfaction, how shall we expect to manage the -former? As it will never do to have a competitor in this carrying trade, -the government must also take possession of all the canals. Of course -these recommendations will, if adopted, largely increase the salaried -officers of the country, and make our political contests tenfold more -corrupt, acrimonious, and dangerous than now; but as the Pennsylvania -editor said about protection—“If protection is a good thing, we cannot -have too much of it!”—so say we of officials, the more the better. - -But we see still larger fields that the government may occupy, this -interference theory being established as the rule of its relation to the -people. As the growing of wheat and the production of meats, to supply -the prime necessity of our nature for food, are of far more importance -than the correspondence which occurs in getting the wheat and beef to -the consumer or than the method of their transit; as the people must die -if they have nothing to eat; as farming, as now done, is a careless, -haphazard business, pursued without the aid of adequate machinery or the -proper division of labor; as the cost of farm produce might, by the -universal adoption of improved methods, be greatly cheapened, thus -promoting the increase of the race, and adding immensely to the general -happiness, the government ought, first of all, to take the agriculture -of the country into its keeping. Then how easy, if it should be imposed -upon by the men who make agricultural implements, to turn manufacturer -at some hundred convenient places and make all the tools it might need. -Just think of the immense advantage of being able to go to a government -warehouse and get a barrel of flour for half what it now costs, or of -stepping into government shambles from which, of course, the people will -be fed, and getting a rib-roast or tenderloin steak at a figure that -would make our city butchers ashamed. Of course, every farmer would be a -government officer, sure of his pay, and without the most powerful -stimulus to exertion; but if each man who handles a letter or sends or -delivers a despatch is to have the livery of public service on his back, -why not? Finally, as food is useless unless cooked, we see the -necessity—still reasoning on premises which the telegraph men furnish—of -having the cooking and management of the kitchens of the country turned -over to such officers as the government shall select. For doing this, -just as soon as the plan of governmental telegraphing is put into -operation, the reasons will be entirely conclusive. What, we ask, can be -of more importance than that our food should be of good quality, -healthfully prepared, quickly and neatly served, and peacefully eaten. -Put the National Telegraph by the side of the National Dinner, and see -how it is dwarfed by the comparison. Contrast the annoyance of a -telegram overcharged, missent, or delayed, with the unutterable horrors -of indigestion. Look at our hotels, restaurants, and private houses, and -see how cruelly the people suffer; then think how perfect, how quick, -and how cheap the relief that the government might extend. We well know -that, had government cooking always been the rule of the nation, the -great rebellion would not have occurred. The war was the result of the -bad food and worse kitchens of our brethren of the South. It had its -origin in hot bread and hog, which ruined the stomachs, perverted the -morals, and inflamed the worst passions of the South. As we have already -sacrificed half a million of lives, and ten thousand millions of -treasure to repair the consequences of government carelessness in -suffering national cookshops to remain unestablished, we cannot make too -much haste in opening them now. - -But we have adduced examples enough to show the absurd conclusions to -which the reasoning of these telegraphic schemers logically leads. Our -government, good as it is, has objectionable features enough now. The -disparities in the condition of the people are due more to the operation -of unjust law than to differences in natural gifts; and the great source -of mischief is in the usurpation by government of functions it ought -never to exercise. We do most assuredly need reform; but we shall not -find it in enlarging the sphere within which the government may act, nor -in curtailing or circumscribing the liberty of the individual. Let us go -in the other direction; and instead of making the paternal rule of -Continental monarchies the object of imitation, let us extend the -application of the American idea. Instead of clothing government with -new powers, let us take from what it has. Instead of creating an army of -new officers, let us dismiss half we have got. Instead of increasing the -patronage of the executive and the causes of political contention, let -us give greater simplicity to our system and greater security to the -citizen and the state. Instead of training the people more and more to -rely upon the government to supply their business, social, and -educational wants, let us give greater scope to their individuality, so -that they may more and more rely upon themselves. Our government differs -from all other governments in the world in nothing so much as in its -capacity of letting the people alone in their houses, their business, -their religion, and their pleasure. Our people differ from all other -peoples in nothing so much as in the fact that, comparatively, they are -let alone. All that the country is, it owes to the partial freedom of -its citizens to go where they please, do what they please, and think and -speak their own thoughts; which freedom, by cultivating strength, -self-reliance, enterprise, intelligence, and patriotism, has wrought the -work we see before us. This freedom is to be still more extended over -ground which inherited abuses now occupy, and the consequences will -astonish the world! - -No, no! Our government is not a wet-nurse for all the schemes which the -ingenuity of men may invent, or which incomplete and half-seen -considerations of public convenience may recommend. It is primarily an -organization for the protection of person and property, and the -punishment of crime. And to keep it within its sphere, and to -disassociate it, as far as possible, from the usual business of the -citizen, is to insure its life. Leave to the people all that individual -or corporate effort may do, and they will do it well. Leave to the -government the preservation of order and the punishment of crime, and -the governed will have no reason to complain. - - - TELEGRAPHING BY GOVERNMENT.[32] - -Footnote 32: - - From the New York Tribune. - -We use the telegraph very extensively and pay it a good deal of money; -so that there are few whose personal advantage from cheapening its use -would be greater than our own; yet we do not regard with favor any of -the bills looking to the establishment of a Government Telegraph. Here -are some of our reasons:— - -I. The prevalent tendency in our day is toward a further restriction -rather than an enlargement of the sphere of government. We have (for -instance) a good many public markets in this city, which are, for the -most part, public nuisances. Had the city left this whole business of -purveying free to private enterprise, only overseeing it in the interest -of public health, few can doubt that our supply of food would have been -better and cheaper than it is. The same is the case with many other -attempts to serve or save the citizen through the agency of government. -Most certainly, we would not limit the sphere of government to the mere -prevention of breaking heads and picking pockets; but we should ponder -long before enlarging it. - -II. A Government Telegraph is usually proposed as an adjunct of the -post-office. Our government already claims and enforces a monopoly of -the business of carrying letters, charges its own prices, collects some -$15,000,000 a year from the people for letter-carrying, and then loses -some $6,000,000 a year by the business. We submit that it should show a -better balance-sheet on this account before extending its sphere of -operations. - -III. We never owned any telegraph stock, and expect to own none; we are -a daily and heavy customer to telegraphs, and expect to live and die -such. We presume that a Government Telegraph would somewhat cheapen the -cost of messages; but the money invested in establishing it would never -be returned to the treasury. The clamor for a reduction of charges (as -now with letters) would steadily overbear any hope of profit. Can it be -right, we ask, to tax the whole people for the benefit of that small -minority who send messages by telegraph? Would it not be better to start -government establishments for potato-growing on a gigantic scale, so as -to supply the poor cheaply with wholesome and nourishing food? Where one -wants cheap messages, many would be benefited by having a sure and ample -supply of cheap potatoes. - -IV. Government, in this and other free countries, is and must be largely -an affair of party. The government of this country has been, is, and -must be, to a great extent, the rule of the dominant party. Would it be -well to have the telegraph under the absolute control of either party in -an excited Presidential election? Could the outs safely use it? Could -the people implicitly trust it? Remember how the mails were rifled under -Jackson, with the tacit approval of Postmaster-General Kendall, on the -assumption that it was right to take and burn Abolition documents if -circulated in Slave States. Consider General Jackson’s and Governor -Marcy’s official recommendations that the circulation of such documents -be prohibited by law. We should not like to have the telegraph -controlled, throughout the ensuing Presidential canvasses, by our -political adversaries, nor yet by our political friends. - -V. The government is heavily in debt, and its finances are not in good -condition; yet it is bored and importuned for subsidies on this side and -on that,—all of them on the pretence of public advantage, many of them -with just grounds for such assumption. If the Northern and Southern -Pacific Railroads could both be built within the next five years, we -believe they would add five hundred millions of dollars to our national -wealth within the twenty years succeeding. We demur to their present -construction by government aid, simply that the state of our finances -forbids it. But if our government is able to build telegraphs where they -are not wanted, why not railroads where they are the very first -necessity of settlement and civilization? - -We might go on for an hour longer, but let the above suffice for the -present. We think the government should let the telegraph business -alone. - ------------------------------------------------------------------------- - - - - - TRANSCRIBER’S NOTES - - - 1. Silently corrected typographical errors and variations in spelling. - 2. Archaic, non-standard, and uncertain spellings retained as printed. - 3. 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