New-York tribune., 1873-01-18
wires are kept virtually at the service Of the Signal OF


The charman-In what wayi
Mr.. Thurston-The circuits arc purely arbitrary sna
| are not circuits Of the Company The signal servod
whether superintendent makes II so or not and w
send have S to be- doUpsa 1y an and % FOR dops Ss
get compensation For instance. we send regular
commercial message from Cincinnati 10 NewOrleaDs,
and we receive 81 So the signal Service sends 10
messages between the same points and we receive for ID
vile vile, Nashville, and Memphis There are one, two,
three, four messages delivered for 80 cents But th9
the wire 1t is heard at eaen once once as ~ passes
through; IL goes through those Oilces any way an9
the dropping Of II ~ no extra expense 70 the CONE
pany" II that message, which from Cincinnati t9
New-Orleans, was sent primarily from Cipcinnau Il
at the rate OF cents the manipulation In sending f
from Cincinnati would be the same and the labor Of req
ceying IL Louisville would be precisely the same
But the signal Service says that no trouble 70 haye
has 10 hand there and has 70 through the same
nanpulatons in receiving shat dropped message AZ u ~
I@niSyie' The result s that a signal service
sent from Cincinnati to NewOreans employs four of
fees and requires the same services TO be peTormeds
four commercial messages would require and yet the
Signal Service pays for only one message ana pays ior
that only 20 per cent OF that whch eoueicai mes
The Chairman-The operators would be at the inter
Mr. Tb1rstoa@They might not be- IL is not likely that
OF them would be at their Offices az R0eiOeEa az
| night IL would not be necessary.
The Charman-What do you estimate the present
Mr.. Th1rston~We estimate their present value COM
merciay. We have gone through six years hard WORK,
sSoc s anu ocsuraS }sse. and sustaining the establish
ment of our line against the Western Union Telegraph
holders have been without any income all this time :.
they have established business at loss, or at the osy
as any other business man would to repay them IN
the future. When business has been estaDlishedEs IN
| OF it is not precisely what its owner has paid
future means and profit Therefore, when
we estimate what our lines are worth, we do not est
mate them at what they may have cost us, but a. to
what they are worth IN the future means OF earning
money for the stockhoders what they would be worth
sell to anybody else tomorrow man VINO nad spent
some time In establishing large InanuiactOIy mghi
say: "Ths only cost 100000 but really Il is worth
s70OOOO and do not want 10 sell 1t for less That !. the
view take. While we only spent S2OOOOo on our line.
do not feel disposed to dispose Of property al
differentiation. We consider our line worth s5,OOOOo
Mr. Hae-Is your stock in the market
Mr.. Thurston-No, SIR il is notn the general market
The Chairman-Wha would you say is the cost 10
Company per word for doing Associated Press work
Mr. Thurson-I am not prepared to answer th@t ques'
The Charman-Ts it your opinion that you are doing
| that work for less than cOsti
Mr.. Thurston-I do not presume we are
the work the Signal Service at less than cost.
clearly from nv letters on file at the signal ONCE
| The Chairman-How does the rate which the ne Sisnal
Service pays you compare with the rate which the Asso
| clated Press pays youf ,
Mr.. Thurston-I cannot compare the rates, az because
ner and in a different form. We send grea deal of
specials Associated Press business is not Ike the
Associated Press business of the Western Union Com
pay Tye Cbarman-what are those ratesf suppose your
rates were the basis as the Western Union COM
p1WIy MI Thurstonyery nearly on the same basis The
! understanding between the Western Union Telegraph
Company and ourselves Is that neither Company snsn
make change OF rates without the concurrence Of tue
other COmpanythat is, in regard TO our regular Dus-
ness in regard TO these press rates we may change
The Chairman~Cany you remember readily what those
Mr. Tnurston-Not readily A short time ago-a week
or proposition before me for sending dis
patches from Washington City 10 CINCINNATI, ana, L
think Chicago and Al and cents word was the prce
| to he paid. That was for specials
The Charman-How many drops were included IN
Mr. Thurston-One at Pittsburg Oh and one Cincinnati.
| The Charman-Il you can furnish us statement on
those points TO the rates charged the
by your rae pei o dpspTe tue sSod be-
very glad you would do the object being TO ascertain
and make fair comparison between press work and
| signal service work.
Mr. Thurston-I am going back to Pittsburgh to-mor-
and will transmit the Information IN letter
Mr. Palmer-What press associations do you work for
Mr. Thurston-We transmit tor the American Presa
Mr. Pamer-where does it collect it's newsi
Mr. Thnrston-In New-York City, and Cincinnati and
Mr. Palmer-where does it make its headquartersi
Mr. Thurston-The President of it resides IN Phlade-
phia.
REMARKS OF MR. BROWN.
Mr. James W. Brown, President Of the Franklin Tees
gra ph Company, stated that the managers and sOck@
holders of that Company regarded the Hubbard bill WITH
great disavor They thought that of its proyis
IONS striking at the life of the Franklin Tee
graph Company. That Company was organized about
six years ago. During that six years 1t had been running
in sharp competition with the Western Union telegraph
| Company, over what he believed we'll known st
"the worst burned district" the United States. ID
other words, the tariff had been lower In proportion u
length of wires than IN other part OF the country
For six years they had been losing OF at leas
not making any money, and had accumulated quite
debt. Last year the first year that the Frankhn
Last year the Company had saved from ITS earnings
$1,000 and % year Sat 70 sre sTe Sa a
slightest probability OF Congress passing the HubDard
The Company fel5 that the profitable business which
i mad been doing last year and this year was
was owing Of business through its exen-
sion of wires and opening OF new lines which bad be-
come feeders TO the Franklin line The Franklin Com.
pany had gradually built up its business, land now fe9
a great deal lof concern IN seeing that any stePs
had been gradually educating the public up to the tee
graph business, and that, II the Hubbard oil should
therefore came here in the name Of the Franklin Iee
graph Company's stockholders, to protest, II ne could
the word against any corporation being organiEed
to enter into competition with existing telegraph Cons
Hubbard bill. On looking that bill he discoyeret
that the tariff rates would not be materially reduced
| now charging For instance. the rate between New
York and Boston would be rs cents under the HuoDard
bill, and the Franklin Telegraph Company was now
| charging only 80 cents That was clrcGe
T Snaef ft the HSbbsTS bill would be 40 cents and he
Franklin Telegraph Company was doing that sery ee-
from Boston to washingtOn-for 50 cents; therefore
there not much difference between the rates while,
on the other hand the company to De organized under
nent with Office room, stationery clerks, and messen-
gers, and to import It's material free of duty and
for all those adv anages would only pay 10 the United
states the OF five cents every telegram transmit
/ ted. IL cost the Franklin Telegraph Company six
cents message delivering It's messages IN Boston
| and New-York where owing 20 the large amount OF
business DONE the work done cheaper small
er stations that, IL tue Government should only
ceive each message delivered. IL would be
| giving a bonus TO the company.
Mr.. PalmerWhat do you mean when you speak of do
| lvering and receiving olerksi
Mr.. BrowD-When message comes in to the counter
there 10 receive 1t, who is called the receiving