Part 8

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:—