The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-02-16
DUTLER'S CHARGES
Mr.. Lowrey's Statement for the
Western Union.
PRESIDENT GREEN EXPLAINS.
Attempts to Run the Property Of Wd-
ows and Orphans.
WASHINGTON. Feb. Is. 1879.

made by the Western Union Telegraph COM
pany before the Senate Committee Railroads
against the Railroad Telegraph bill
Mr. GREEN-I cannot how it is possible for us
to give this subject reasonable consideration it
is now twenty-five minutes to eleven. propose my
self to make little preliminary statement but the
counsel of my company is present and prepared to
present this subject general and analytical
aspect.
The CHAIRMAN-We can hear your statement.
Mr.. GREEN-Notice has been given that this bill
will be called up the Senate tomorrow and there
fore If going be heard by the committee we
ought to be allowed to go on to-day.
Senator DoRsEY-I presume that under the circum-
stances charge of the bill will not call
it up tomorrow. Probably Senator Matthews has
charge of the bill.
Mr. GREEN am deeply impressed that the Senate.
as the House have done, acting hastily upon
very limited knowledge of the subject and upon
of the state of the facts and while
have the utmost confidence in the sense of justice
and equity this great Legislative body, yet in order
that they may thoroughly understand it. beg that
they will give full opportunity of presenting
the case them. We will attend at any time
and proceed rapidly as the committee may
require until the is disposed Of We do not
plead for delay-we only ask to be heard. / desire
to make few general comments on the subject In
my Judgment there is earthly need of this legis-
aimed at. If the aim be to establish rival
to the Western Union Telegraph Company this
bill accompshes little nothing in that direction.
There very few railroads that have any lines Of
tclegraphs and fewer still that have any poles 1
l presume that the Baltimore and Ohio Railroad Com
pany claim to have miles of telegraph line than
all the other railroads combined. I cannot count
half-adozen lines of railroads the United States
that have any poles Perhaps score mot more have
wires on our poles
ADVANTAGES TO RAILROADS.
Nineteen out of twenty the lines of the West
Union Telegraph Company and whether using
our lines or theirs in great majority of instances
their proportion OF the receipts for messages is
quite equal to the pro rata OF tolls which would
pertain to the distance over the lines of
railroad companies require more telegraph
stations for their railroad business than the tee-
graph company would require u matter OF COM
mercia interest. because at many of those stations
the amount of general business would not be suf-
ficent to warrant the employment of operator;
but the Western Union Company accommodate them
at these stations and in the majority of instances the
percentage OF tolls they get from that business is
quite equal the pro rata that would pertain the
distance over the lines of their roads, though
in very large majority of it carried the
wires that belong my company. l know it has
been believed that the Western Union Telegraph
Company leases lines from the railroad companies
suppose that tho ratio of railroad companies using
our wires to those companies whose wires used
New York Central has not foot of wire,
many of the long lines of railroad have
a foot of wire OF their and a less number
of them any poles. If they have wire it is
poles They operate lines under contract
and get a proportion of the receipts For instance,
we had a contract with the baltimore and Ohio
road. under which We operated for twenty
years but they suddenly abandoned it
Now. if they take a message n. n station their
lines for Batmor and transmit il over the wire the
tolls majority OF instances being only twenty
five cents they get half of IT, So, too. If they send
message tie San Francisco, they get half of it, which
amuch larger percentage for the distance than they
would be entitled to it operating connecting line.
These contracts have been sustained by the
hsin l.yaI an1f mot
and in the of the Baltimore and Ohio.
which lighting have entirely and
fully enjDined and restrained them from using
lines on some of their roads, as, for instance, be-
tween Marietta and Cincinnati while some of
Their Western roads they have built their lines
independently of any contract obligation to our COM
pany.
there violation of contract. and not becaise
you denied them the right building their tele-
graph lines:
WHAT OTHER COMPANIES MAY DO
Mr.. GprEN-Yes. sir Any telegraph company may
organize any day. file its acceptance of the provisions
OF 1906 referred In this bin az Revised
Statutes, Title L. y. w. and get all the benefits of this
bill The language OF that statute Is 'Shall have the
right to construct, maintain and operate lines of
telegraph through and over any portion OF the public
some degree as compact with the telegraph com
paiiies. The government did not then assume the
authority 10 Tx the rates. but the government
passed AN enactment awarding to all telegraph
panes accepting the conditions thereof certain rights
aud lrancliaes upon condition that the government
SHOULD! he entitled 10 fix the rates for Transmitting
the messages of the Post Once Department II has
been extended to all the departments OF the govern
IncIIt. though snch construction IL not strictly
warranted by the letter OF the and that the gov
eminent should have right to take possession Of
the telegraph lines AT any time Eat an appraised value,
to- be asceriained by tye competent. DISTINGUISHED
persons. two OF whom shall be selected by the
Postmaster General of the United States, two
by the company interested and by the four
previously selected. We accepted that statute. and
the government has the right to take possession of
our lines after snch appraisement II has the right
TO fix the rates at which shall do public business.
and IL has done and. although the statute does
not apply specially except 10 tine Post once Depart
Incnt, yet We have applied government raise
10 all government business in all parts of the
country. Now. alter have accepted the provisions
oi that act proposed by the government. after
extended line. into distant territories and to
distant points. we have built lines in Arizona and
Lower California, is it becoming in the government
TO fix rates making that investment yalueless.
PLEA Fon WIDOWS
! know that the company / reprcsent has been
alluded to az a mammoth monopoly / sdmi, that il
is very strong corporation, but strong corpora
tons have poor stockholders. ! represent between
hve aud six thousand stockhoders. d very large
number OF whom are widows and orphans. is ~ b.
coming in the government. after thus fixing its
of the bargain. making IL harder upon us?
The business is open 10 everybody who wants 70
build telegraph lines but experience has demou-
strated what ye simplest logic will teach-that one
telegraph company do the business at lower
rates than two or three can. because IL the cxpend
lures are duplicated and the revenues divided there
will certainly be less profit at lower rate.
The CHArHMAN-it can do II, but will itg
Mr.. GREEE--I assume that IL will and has. We had
q war of rates Tor two years in which broke
down an opposition backed by millions and capital
lists. They put down the rates a losing basis
and while the understanding between the com panies
resulted III the Advancement OF a few of these com
peting routes II resulted in the decrease of five
times as many. SO that an examination showed that
the average rate per message reduced larger
percentage In year than in any Of the pre-
cedng FIVE years.
senator DoRsEY-Would not that last statement
indicate that competition is good thing2
Mr.. GREES-1he senator does not understand me.
say that the rates were reduced large percentage
q year after the competition had terminated.
senator DoIsEY-That after they had pooled
their receipts
Mr. GfErN-Ycs, sir. During the last year the
average rate per was thirty eight and half
cents against forty-three cents the year preceding
aud during competition, and about 81 ~ some years
previously when the consolidation was first effected.
The reduction OF rates has been steadily going on.
II il not true that the Western Union Telegraph Com
many are rxpriitant in their rates. There is not a
company IN the universe in winch yon can SEM a
message cheaper than W. send from Portland, Me-,