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.