“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 1849 the rate was 30 cents.
In 1850 the rate was 20 cents.
In 1851 the rate was 20 cents.
In 1852 the rate was 10 cents.