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 1849the rate was30 cents.
In 1850the rate was20 cents.
In 1851the rate was20 cents.
In 1852the rate was10 cents.