National Republican., 1883-09-01
JAY GOULD'S MAN.
DR.. Noryin Green Continues His Talk About
the Western Union.
soBao interesting Facts About the Great
TeIegrsphio Octopus.

NEW 1ORk3 aug Ol.--OeuhtOTa plHlt anu
George were the only members of the senate
subcommittee on labor and education at tho
continuance Of their investigation to-day
DR.. Green again took the stand In reply TO
q question as TO statement he made yester-
day that telegraph system in tho hands of
the government would be more expensive and
less efficient than under the control of cor
poration, witness said that under tho English
system appointments were not made from
partisan considerations as they were in this
country. France oven presented a stranger
instance as the system Of nonpartisan ap-
pointments extended TO the army and the
police. The postal telegraph might become
acceptable il such system could be adopted
in the United States.
Witness at this point, in reply to question,
spoke of the sanotity Of all messages which
came into their hands and which had been
preserved as far as possible with regard to all
parties in any way concerned. During the
Hayes canvass q complaint was made against
the operator at Tallahassee by prominent
democratic leaders. Witness immediately
suspended the manager in that district, but
upon investigation it was found that he was
not to blame and he was reinstated. The
company could not, he said afford to have any
person in their employ whose integrity could
Mt all be questioned. The sanctity of every
message given into their hands was as much
assured as communications made to o lawyer,
q priest, or a physician. None Of tho
officers of the company had access
to the messages There was a great
accumulation OF messages as a matter
of course, and they were destroyed at tho ex-
piration of every six months. In Pennsyl-
vania the time for keeping messages was
fixed by statute at three years. Witness
thought that this was done in the event of
litigations arising. The messages received in
the New York offices ranged from $4,000 to
$1,000 day.
In answer to a question by Senator Blair,
Dr. Green said that there were about 1900
stockholders and that the largest stockholder
held about $50, ,000, 900 of stock.
In answer to Senator George, witness said
that when the strike occurred 1t would have
been fatal to the interests of the company to
have yielded, as it would have been an ad-
mission that it would be in tho power of tho
operators to dictate terms.
The company would never consent to any
such conclusion.
Senator George then questioned the witness
rs to the sufiicicncy of the wages paid by the
company to telegraph operators. DIR. Green
replied that the relation between the COM
pany and their employees was regulated
strictly by the law of supply and demand
The salaries paid were equitable and Just, and
that was proven by the fact that no other
telegraph company who paid similar wages
ever made any money.
Senator George. Is it or is it not the policy
of the Western Union to break up combina-
tions of its employees organized for the pur-
pose of securing an advance of wsges2
Witness. We would not admit the right of
n few men to dictate to the many on what
conditions they should work. i have the
statement of several Of our employees that the
few, who constituted the so-called committee
of the brotherhood, had no right to speak for
them.
Question. Is it then tho object of the COM
pany to protect the free will of the employees?
Answer. Exactly-to the extent l have
mentioned.
@. Do you mean to say that there is no
ulterior object in your policy toward those
employees who belong to the brotherhood out
side the benevolent features of their organi-
cation?
A. The fact that there were over 300 appli-
cations in the Office for employment showed
that the rank and file had not entered will
ingly into the strike.
The subject was here changed, and in reply
to other questions witness said that they had
expended 800 600 600 in cash, and there was
an issue of $23,400000 in stock shortly after
1866. The total issue of stock was about
$39,000,0
In the course of further remarks on this
point DR.. Green said "If held the stock of
the Western Union, and had a guarantee
against any antagonistic legislation, would
not give it for Sl00,000,000 The net earn
ings of tho company are $S,000,000"
The witness was asked whether 1t was not
the policy Of the company to crush out all
rival organizations, and he replied that the
lines purchased by the Western Union were
worth moro to them than they were to the
companies who sold them.
O. Is it not the policy of the company to
al ha atb nf
A. We mean to cover the entire country
the telegraph business Of the country. Take,
for instance, tho Mutual Union, which was
earning 100000 month and spending it.
We could earn it and keep most of it, 1 think
there was some talk of buying up opposition
lines, but advised against buying up any
more. We had to buy the Mutual Union as
they were formidable competitors, and con-
trolled extensive railway lines The West
ern Union did not buy up lines to prevent
competition. When lines were purchased the
profit consisted in the ability of the Western
Union to do the work of both with
little more than the expenses of one.
The consolidation of telegraph companies
has not been followed by an increase
of rates except in cases where competition has
brought the rates down below cost, making an
increase of rates absolutely necessary Rates
have been reduced generally. All of the
$S0,000000 stock of tho company is distrib-
uted except about from $4,000 to S60,000
which is still the property of the company,
because in making the division it was not
possible to divide the fractions. Some rail
way companies have sold to the company the
exclusive right to build and operate telegraph
lines. Other companies had granted the
privilege, with the reservation that ii should
be only as far as they had the right to grant
such privilege. We have always had compe-
tition. We control the business because we
have the longest lines. There is rs per cont
advantage in having telegraph on line OF
railway. Rates are constantly being reduced
The twenty-five cent area is now extended,
and a message can now be sent 1000 miles foI
$1.56. There is no substantial consolidation
combination, or union Of the railroad and tele-
graph companies.
Witness in the further course of his testi-
mony. said that they had sometimes found il
necessary to secure legal services in the mat
ter of negotiations. He laughingly alluded
to his own experience with legislators, re-
marking that he had to take the legislator
down in the lunch room and open bottle OF
wine, so that he would wait long enough Ia
hear him. On the subject of free passes the
witness said: We have given out great
number of free telegraph passes TO Legislators
and various high executive officers. They
were merely of a complimentary character, as
there were many prominent men who desired
to let people know of their movements
and to send messages to their families OF
personal friends. Inasmuch as a number OF
these complimentary passes had been. re-