The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1883-09-06
Press kilograms.
LABOR AND EDUCATION.


ALI About the Telegraph Business.
NEW YORK, August 3l.-Before
the senate subcommittee on the labor
and education investigation to-day,
DR.. Green, referring to the statement
he made yesterday that a telegraph
system in the hands of the govern
ment would be more expensive and
less efficient than under the control of
corporations, said under the English
system the appointments were not
made from partisan consideration, as
in this country. France presented
even a stronger instance, as a nom
partisan system extended to the army
and police. Postal telegraphs might
become acceptable if such a system
could be adopted here. Witness spoke
of the sanctity of all messages which
come into their hands and which had
been preserved as far as possible with
regard to all parties in any way con-
cerned. The company could not afford
to have any person in their employ
whose integrity could at all be queS-
toned. The sanctity of every mes
sage given into their hands was as
much assured as Il communication
made to lawyer, priest or physician.
None Of the officers of the company
had access to messages. The largest
stakeholder held about $3,OO0,OO0 of
stocks. When the strike occurred it
would have been fatal to the interests
Of the company to have yielded, as it
would have been an admission that it
would be in the power of operators to
dictate terms. The company would
never consent to any such conclusion.
The relation between the company
and the employees was regulated strict
ly by the law of supply and demand.
The salaries paid were equitably just,
and that was proven by the
fact that no other telegraph company
who paid similar wages ever made
any money. The company had eX-
pended $20,000.O00 in cash, and there
was an issue Of $23, 100000 in stock
shortly after 1866. The total issue of
stock was about $39OO0OOO. If l held
stock of the Western Union and had
guarantee against any antagonistic
legislation L would not give it for
$2OO,OOOOOO.
Question-"Is it not the policy of the
company TO crush out all rival organ
izations?" The lines purchased by the
Western Union are worth more to it
than they were to the companies who
sold them,
Q.-"Is it not the policy of the COM
pany to absorb all other lines of the
country?" We mean to cover the en-
tire Countrywide telegraph business
of the country, Take, for instance,
the Mutual Union, which was earn
ing $4,000 month and spending it.
We could ca n it and keep most of it.
L think there was some talk of buying
up opposition lines, but L advised
against buying up any more. We
had to buy the Mutual Union, as they
were formidable competitors and con-
trolled extensive railroad lines.
The Western Union company 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.
Consolidation of companies has not
been followed by an increase of rates
except in cases when competition has
brought rates down below cost, MAX
Ing an increase of rates absolutely
necessary. Rates have been reduced
generally. All Of the $800OO,O0O
stock of the company is distributed,
except $4,000 to $4,000, which is still
the property of the company. because
in making the division it was not pos
sible to divide the fractions. Some
railroads have sold to the company
the exclusive right to build and ope-
rate telegraph lines. Others had
granted the privilege with the reser-
yation that it should be only so far as
they had the right to grant such priv
ileges. We have always had competi-
ton. We control the business be-
cause we have the largest lines.
There is so per cent advantage in hay
ing telegraph on a line of railroad.
Rates are constantly being reduced,
and the 20 cent area is now so ex-
tended that message can be sent 1000
miles for $1.56.
In regard to the relationship exist
ing between the Western Union and
associated press. It was purely of
purely business character, and as it
was an exceptional business. 1t re-
quired special contract. The asso-
ciated press claim the right of PROP
erty in the news, which they obtain,
as they have their avn methods of
getting it, Monday next DIR. Green
, viii be further examined.