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It appears to me that
the time has arrived when the Government of the United States should
purchase, in the interest of the people, all the telegraph lines in
the country. There are many practical business reasons for such a course,
a few of which I will specify.
Glancing, in the first
place, at all the precedents, it must be remembered that all the telegraph
lines of the Old World belong to the governments of the countries in
which they are located. Communication by telegraph has become almost
as common, and quite as necessary, as communication by letter. Why should
not the two branches of what is really one service to the public be
brought together in this country, as in other countries, and placed
under one management? It would certainly be a great convenience to the
people if every telegraph office were a post-office, and every post-office
a telegraph office. As letters are sent to all parts of the United States
for two cents, and papers and magazines at one cent for every four ounces,
so, I think, a telegraph message should be sent to any part of the United
States at the lowest price at which experience has shown it possible
that the transmission can be effected. The Press, which sends long messages,
and these partly for the general information of the people, if partly
also for private business gain, should be charged half the usual rates.
In regard to the method
of conveying the property of the telegraph companies to the Government,
a law should, in my judgment, be passed by Congress, regulating all
the purchases in such a way that every company should be bound by a
principle. Each telegraph company should select an arbitrator, and the
Government should choose another. In case of disagreement between these
two, they should choose a third, who ought to be a man thoroughly experienced,
and regarded as an expert in the business. These arbitrators should
have power to examine all reports and accounts, so as to arrive at the
fact as to the actual net profits which the line or lines had earned
during any given year - say 1885, inasmuch as the transfer of the telegraph
property from private hands to the public should be made at once - the
sooner the better-if the public benefits to which I have pointed demand
it. The Government should then establish, as a principle, that the stock
of a company which had earned five per cent., clear profit, must be
rated at par in making the purchase, and rated in the same ratio if
earning either more or less. Thus, if five per cent. gave par, four
per cent. would give eighty; three per cent. sixty; and so on.
It will be asked, of
course, where the United States Government is to procure the money to
make the purchases. It can be done very easily and satisfactorily. Let
there be, for the purpose, an issue of three per cent. bonds. The Government
will thus be enabled to reap the profit on the investment, as between
three and five per cent., and also gain on the constantly increasing
business and by the great saving in rent of offices. This two per cent.
surplus would form a sinking fund for the redemption and payment of
the bonds. These bonds should have fifty years to run. No difficulty
would be experienced in raising the money, as individuals and estates
would be glad to invest in such securities. Under this arrangement,
the United States Government would, in much less than fifty years, own
all the telegraph lines in the country, and actually without cost to
the Government or people. This principle was adopted by the English
Government, and was found to be just to all.
It is imagined by some
persons that danger would arise from the ownership of the telegraph
lines by the United States, on account of our frequent changes in the
administration of the government. But I believe this apprehension is
entirely without foundation. The measure would be for the good of all
political parties, as well as of all the people. The Government telegraph
lines would be in no greater danger than the post-office. The overturn
or change in the Government does not destroy the administration of the
post-office, but often helps to improve it.
Is it asked, how long
a time would elapse before the people would enjoy the benefits of reduced
telegraph rates? No doubt exists in my mind that if the United States
Government should enter into the business, the reduction of expense
in running the telegraph lines would begin at once. There would be no
necessity for so many telegraph offices - often in the same building
- with their attendant expense for rent and attaches. The post-office
would also be the telegraph office. The reduction in cost alone would
be one of the means of enabling messages to be sent at a far lower price
than at the present time. It would therefore be only a short time before
the public would be reaping the advantages of the change in the system.
As I have already explained, the United States Government would have
possession and complete control over the telegraph systems of the country,
and actually without cost to the people.
It may be objected, however,
that not all telegraph companies are successful. Some of them do not
pay. But why? For the simple reason that the expenses are too great
in operating the lines. Often two or three offices belonging to different
companies are located in a small place. There is not business enough
for all of them to live upon. They contend with each other for business,
and, in the strife, rates are cut so as not to pay operating expenses,
in that district, for either of them. This result is of no permanent
benefit to the public at large, and the companies are unable to maintain
themselves during the conduct of the useless warfare.
And now the final question
arises: Would the telegraph companies agree to sell their lines to the
Government? As a practical answer to this question it may be sufficient
to say that the plan was found to be a good one in England, and that
it proved to be fair and acceptable to all parties.
CYRUS W.
FIELD.
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