New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-16
HAS not the capitalization of the company also

largely fncreaSedT asked the reporter
"The capitalization at $50, oO00 600 stock. replied
DR.. Green is q smaller increase on the actuai
value of the property of the company, property.
than that of the capitalization Of any railroad prop
erty know of in the market. The franchises OF
the company including its patents and secureu
rights under contracts. have a greater value anu
greater security from destruction or violation imam
those Of any railroad corporation. IL has Deeh
fashionable habit to denounce telegraph properly
as precarious and perlshable; but our perisnaple
poles last four times as long as ties OF railroauS'
and our wires last longer than even their steel ras
OF course both in time, require renewal anu WIS
work Of reconstruction Is constantly Ing on ana
always with the effect of making the lines ana wires
stronger and better than ever before the cost oeng
charged as current expenses. Our lines and property
every year In essentially Detter COMMUNION YUAN
they were the year before
How do you regard the future prospects OF the
telegraph businessV
THE telegraph" continued Dr. Green, " is essen
TALLY the adjunct of commerce and must naturally
grow with the increase OF trade. But 1t has
further continual growth in the adoption
of its by new branches of trade
that never uscd it before. Among the more
recent growths of this sort may mention the fish
and fruit trades, and there are variaus other
branches If new business The uSe of the telegraph
by any hOuse in n gwen line of traffic compes oil
the competitors If that house to II or be beaten
so it is very speedily adopted by the whole line Of
traffic The growth Of the telegraph business must
therefore continue to b. rapid until the telegraph
comes into universal use in business transactions
between disant points There Issti large percent
age of men of means who hav" never appreca ed the
adva tagrs of Geographic communication ana never
used { in their business transactions nave oo-
served that our increase of business Is uniformly
the business tlSfactorly Hence, have hclG that
our greatest competitor was time. and Just aSwe can
overcome time in the TRANSMISSION and delivery Oh
messages we can increase our business. A grea'
al has been done in that direction In the last year.
The business never was done so we'll as IL Is
being done now. and hence our handsome increase.
But we expect TO make further improvements IN
that direction and further greater increases as the
result. As the business is now more than three
fold greater than il was ten wears ago. expect TO
see II ten years hence IF live so long more than
three-fod greater than it is now. would ask
w Tecf T fr' Geson OF our sedures as
an investment has had its day There
is steady and increasing absorption OF our stock
by country capitalists for investment, and our
transfer books show that it has been thus taken off
the market during the last six or eight months, at
the rate of more than million ion dollars hHs a
part of our capitalization. because we nave
only five and a half milhons worth of
eight millions in value Of marketable securities in
the treasury at the present time. know of no
other corporation of the magnitude OF this company
with 80 small bonded dent d so small an interest
account to be provided for before dividends can be
PAID ~
grad aa diminutiOn, your last report states that
they will be used for the future purchase II patents
and for construction expenses = asked the reporter
"They would be moro thun ample" was the re-
pIv to provide for our cOnSt notions and Tor any
new patents likely 10 acquire during the
next ten years. But if they should be c'ntlnued to
be so applied. releasing net earnings for dividends.
the dividends would have TO be Increased or al an
necessarily large cash balance would accumulate IN
the treasury"
poscI 20 the dangers of compe ltlOn
THE compe tiUn does 1t threaten more than to
take part of tie increase or business" Ut. Greeh
answered.
Il, is thought by some that opposition companies
capitalized at low cost may moi only do that, hut,
through reductions in rates, take away part of the
regular business of the old company SAID the re-
porter. go,
DR. Green rejoned. we have had no competitor.
and have none now, that has not been and is not
now capitalized at more dollars per mile of line
and wire than this company. we have had no
competitor that ever for a single month made.
its expenses of operation. Therefore the
talk about reducing rates TO make profits on
smaller contradictions is absurd because the OppO-
sitiOns can't make any profits at ALL Their lines
are constructed at greater cost and on highway
routes expensive to MAINTAIN. ana lny"lXlng
fine maintenance OF a great number of small offices
for testing and repairing stations the receipts OF
which 10 not come near 10 paying expenses. ms
COMPANY has more tnan lE,UUO OlHctH, III every
State and Territory of the Union, and IN all
the Maritime Pre- vnces of Canada. with the adj
wanting of our railroad contracts. we nave TO pay
salary at less than onr-quarter OF all our offices.
More than 9. 600 of our stations maintained by
railroad operators. From al Of those stations we
receive remittance more Or less every month, ana
ia the aggregate very cOnSldeTaDio paIl Vi our
gross revenue" - -
"HaS the Western Union Ie.l the prcSeht oppose
tionW = A.. o.-. r
business done 10y the opposition by any effect IT has
had on OurhuSneSs Our business rom test Oihces
alone which report weekly by telegraph, has aver
aged more than 500 900 week during the ten
weeks since January l. 1t so happens that the
largest Percentage OF increase is shown al the OIL
tces " here our competitors have been open for
business Boston shows an increase of 20 per
cent over the corresponding weeks Of last We IT. al
though competing COMPANIES, one0f them controlled
in Boston, have been in full blast there for six
months past And at stations which have been
reached By the opposing lines larger percentage
of increase Is shown nan from 'he stations III tne
sition has reached. 1t is probable that our increase
might have been even larger had no opposition lines
sprung IN, bur am inclined 10 think most OF the
business they get is created by their exis ence."
q You spoke of the advantage TO the Western
Union derived from its railroad contracts; how
about their validity y inquired the reporter
"The tigatIOns with the Wabash and several
Pacific railroads. year before last" DIR. Green re-
piled before several United States Circuit Judges
and one Justice of the Supreme Court settled pretty
conclusively the validity and binding force OF our
railroad contracts. They were held 10 be binding
on the contracting TDdu5 III ali luelt pdIIS'
II was held that railroad company could not give
exclusive right of way against the power OF the
Stat 10 condemn, but their Undertaking to do 80
was binding the railroad companies as far as
they had power 20 fulfil anu that they had the
right 10 ave the exclusive occupancy OF their
structures Including bridges and ,"epotS and the
exclns We services of their employees. and were
bound to fulfil their undertaking to this extent"
Are not these contracts terminable ~
MANY of orr railroad contracts are perpetual
some OF them tor 80 years, larger number for
10 wears and very few of them for shorter term.
Large numbers have been renewed and extended
during The last year and the wire facilities We give
the roads are found essential and useful that we
have found no difficulty in renewing and extending
any contracts that were approaching their ternIna-