By 1850 Germany's telegraph line ended in Aachen and the French-Belgian line ended in Brussels, but the two networks did not yet connect, leaving a 76-mile stretch that news and stock prices could only cross by mail coach or rail. That gap meant Paris and Berlin traders were working from prices already hours stale by the time they arrived, and whoever could close the delay first would have a decisive edge in reselling that information.

Reuter could not build a telegraph line himself, and waiting for the German and Belgian governments to finish connecting their networks meant losing the advantage to anyone who found a faster workaround first. He needed a way to move a small, high-value payload — prices, not bulk goods — across a fixed short distance faster than the existing transport could.

In April 1850, Reuter set up a carrier-pigeon relay between Aachen and Brussels, hiring pigeon-fancier Heinrich Geller to fly Paris stock prices strapped to birds' legs across the telegraph gap while the rest of each message's journey still ran over the completed wires on either side.

Bridged the gap with a carrier-pigeon relay, using birds to fly prices across the missing segment while the rest of the journey stayed on wires.

Pigeons need no track or cable, only a straight line.

The gap was narrow, so a simple relay sufficed.

Speed advantage translated into market edge.

The fix was temporary but profitable until wires connected.

When infrastructure has a finite gap, bridge it with the cheapest temporary fix, even if crude.

Reuter's pigeons carried Paris stock prices to Berlin in about two hours, six hours faster than the train. The pigeon service ran for a year until the telegraph line closed the gap directly in 1851, but the speed advantage it gave Reuter's price service supplied the capital and reputation he used to found the news agency that became Reuters.

FOLLOW THE EVIDENCE

The sources

  1. Paul Julius, baron von Reuter Encyclopaedia Britannica · britannica.com