Part 9
“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._