New-York tribune., 1873-01-18

20 n tho determination Of tho Governmeht n that r,
spect ,ruv
r.,, n, lite unequal TO tho discussion OF the details
,ha Nh, OF Mr.. Hubbard. now speak OF tho bill a,
,.s, sa A. II the Committee have allowed any modil
catIons OF IL have not been apprsed OF them But tn
hill as Iast sr' IT, sa scheme for the Incorporation b
Congress Of Com pany authorized engage In the elC
graph business m ~ AZ ne states and IerrtiSries cond
this Company shall b. The rates named in the BILL whie
average rates. But tare Is provision IN the bill
authorizing priority messages at double rates. But
Mr. be tee & 1S fas pd1[y Toa % message
cate think, the force Of tho on learning the following
focts It now three years snce throughout the terri
at any telegraph Office at any time during the day for
transmission at the convenience OF the Company aud fol
delivery the following morning nj half the tariff rates
That provision has been in operation three years. IL
thoroughly we known to all people who have occasion
10 use tine telegraph; and although l from New
York Boston. Philadephia Baltimore aud Washu gton
to Texas Western Arkansas and Ranss s. 10 s3 50
for single message, with few hours difference OF time
ard without Inconvenience 10 the customer as TO the
fling Of the message az half these rates the fact that
the telegraph business done this provision Of
The Chairman-Is that arrangement made by all the
other companies rs well as yours
Mr. 0rtOn-Yes, Sir all of them Mr.. Thurston, Presi-
did not ile a eayeal is entitled 10 patent on that
scheme. think, If he entirely frank he would ad-
mil that he knew we were going 10 do it but he
did 1t first, because 1t took great while 70 work
up the details before putting operation and he
Started ID on his lines before we did on ours But IL has
been IN operation OH all the lines of all the companies
during the last Iree years IL did not at first include
any territory west OF the Mississippi River.
Mr. Thurson-i wish to discaim the credit of being
much smarter han the President OF the Western Union
Telegraph Company, and am happy to concede to him
the compliment OF having originated the proposition OF
sending these night dispatches at half rates It was the
principle on when our line first created that that
should form feature OF 1t when the line was sufficiently
extended to do 50 and we had it contemplation, 1t
seems, at the same time as the Western Union people,
without each other knowing IL.
The Cnairman-Is the fact that you have such ar
rangement so generally known to customers that
people or Is 1t true tnaJ "A considerable portion OF your
customers do not know OF existence OF that half
Mr. Orton--when We inaugurated this scheme we con-
sdered that the people who sent and received
to notify FIRST Inc lat rate message blank Is printed IN
rcd ink These blanks were distributed, other
blanks are distributed, freely among the customers
Of the telegraph small advertisement OF size SUIT
able to be nel0sed In the envelope in which messages
delivered to our Customers printed also In red was
printed to the extent o many millions and was supplied
10 the various offices OF the Company, and copy was
placed In the envelope with message delivered for
several months We argued that IN the course OF three
months il al advertisement went out with every mes
sage delivered, we should probably during that period.
reach the great majority OF those who patrOnze the
telegraph In addition that cards provided aud
directed TO be suspended in the telegraph offices The
Gently directed advertisement to be printed prom
iuenty the envelopes used for ncOsng messages TO
ne delivered We have taken the utmost pains to inform
the public OF the fact, and believe the public Is well
informed OF IT, Certainly that is the case among those
who are most IN the habit OF using the telegraph.
The Chalrman-Does this half fare arrangement apply
Mr. orton-Yes, Sir; to every Office east of the Mis-
souri, RIVER including Kansas Missouri, Arkansas, LOul-
siana, and Delrly all Of Texas.
The Chairman-Be here and New-York. aud be-
tween here and Boston, and between Boston and New
York;
Coast for the that the line long and the
difference in time - three hours. The great difficulty IN
maintaining that ne us liability 70 Interruptions ana
the certainty that day and night business would get
fused has induced us to withhold putting 1t into opera
ton on the Pacific Coast We intend, however IN lieu Of
that, TO reduce the rates between tho Atlantic aud
Pacific Coasts at all early day-tO still further reduce
them. They are only about one-haf now what they
were six years ago.
Now let to the Hubbard bill spoke OF one
OF the provisions OF that bill, being the authority to
charge double the rates named therein for messages
entitled to priority, and expressed the opinion that
every message priority message and appealed
fact that 50 per cent Of the business of the Western
Union Telegraph Company Is priority business, or what
would priority business under the provisions OF This
bill Therefore taking the present day rates aud night
rates and striking the average the priority rate under
Mr.. Hubbards bill is higher the average than the
present average rate. The bill, when last saw IT, pro-
other consideration than the vague expression for
penses OF organization 1t contained no stipulation, or
guarantee on the part of the corporaOrs that any single
fhinS promsed on the part OF corporation. be
created by the BILL should be performed 1t stnpen-
scheme 10 enable stock to be hoated one million dol
lars of which could be divided among the corporators
without the obligation to account for single dollar OF
H. When that has been done 1t is good enough thing
for ifs beneicares If they never erect pole string
mile OF wire; and predict that il that bill shall be-
come law the Company created by it Will never build
thousand miles OF telegraph line. Ana YET IL may pea
no good and do the GOyarnment no good on the con
traTy il this scheme should fail would not have DIS
cr.difed governmental connection with the telegraph
woud il not postpone the time f that time is ever TO
come) when the Government shall control the business
The Chairman-Pease to explain precisely what you
mean when you say that the cOrpOrators may MAKE
good thing of it without their erecting pole or building
Mt, Mt orton-when this bill becomes law. assume
that the first thing to be done under s to organize tue
corpordton the next thing inevitably IA 70 se some E
the stock until the proceeds OF the sale OF the stock
80 bVv lines that are already built or TO build
suppose they sell 81 100000 OF stock and no more-hey
have right to distribute that among the corporators
and are under obligation 20 account 20 anybody Ior
assume that no moral question IL involved IN cOnnec,
tion with taxing that which Congress freey gives.
certainly raise such question II Congress gives the
authority % twenty or thirty gentlemen % collect
81 900 from the public, aud 10 distribute IL among
themselves, that is about the highest right to
Them i'm return imposes obligation them then and
thereafter do anything But suppose they should get
81 100000 Of stock and divide the sOOOO ana then Iah
fully and judciOusly eXpend the other m0n and tne
scheme fails They have burrowed hole in the Post
Office nterfered with aud interrupted the postal ser
vice. vexed aud hariassed the customers OF the tee'
graph who have been times caught sending mes
IT, dsgisted the public, generally ana certainly IL
seems 10 that the people will not be IN very evan
with the telegraph with such specimen OF the results
before them
Suppose III goes on ana does DetleI Mhit tn'h !
The Goyernment has created monopoly Of which 1t eau
never rid except by purchase. There may oe no oD
cation on the part OF the Government 10 buy the exist
ING lines there certainly would be an obligation on the
part the Government TO buy that line submit ihae
every share OF stock subscribed to the corporation
created by this Act woud be subscribed on te in
ducements held out by the Government OF the United
States either that that Company Ia To make 10 per cent
on its capital, with added million for expenses OF or
ganizaton or falling in that, the United states Is 10
buy the property. . a., ,... %
Now read in the public prints that the secretary OF
the Treasury has recently been before cOnltee Oh
Congress asking for legislation 10 enable MN 10 pay
larger commission than Is allowed by law Ior tne
negotiation OF bonds OF the United states at rae
interest than IL paid the greater part Oh tue puoo
debt This bill Is scheme to enable private corpoIa
ton after its corp0ratOrs have made sOoOo 10 mke
10 per cent on all the balance of their Investment WOn
the a. 900 included What Is the prOpety OF such
partnership, with such quasi guarantee OF sueh rae
Of interest the part OF the when GER