The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-09-01
LABOR COMMITTEE.
President Green's Testimony.
He States that the Net Annual Earnings
Of the Western Union is $S,000,O0O.

NEW YORK, Aug. 31-Dr Norvin Green
continued bis testimony before the Senate sub
committee on labor and education to-day. The
witness said that when the strike occurred it
would have been fatal to the interests of the
company to have yielded las it would have been
an admission that it would be In the power Of
the operators to dictate terms.
The relation between the company and their
employees was regarded strictly by the law of
supply and demand The salaries paid were
equitable and just, and that was proven by the
TACT that no other telegraph company who paid
similar wages ever made any money.
Senator George--Is IT not the policy of the
western Union to break up combinations Of its
employees organized for the purpose Of securing
an advance of wages?
y. Witness-We would not admit the right Of
few men TO dictate TO many on what condition
they should work l have the statements of
several OF our employees that the few who con-
stituted the so-called committee of the brother
hood had no right to speak for them
Q.-ls II then the object Of the company to
protea5 the free will OF its employees?
A. Exactly. To the extent l have mem
toned.
terror object in your policy toward these en-
ployes who belong TO the brotherhood?
A-The fact that there were over 200 appli-
cations in our office for employment showed
that the rank and file had not entesed willing
ly into the strike.
The subject was then changed, and In reply
to other questions the witness said they had
expended $40, ,000, 900 in cash, and there was an
issue OF $23 400 900 in stock shortly after 1866.
The total issue Of stock was about $50 9,00O,0 ,000.
In the course of further remarks on this point
DIR. Green said: d:-''If l held the stock OF the
Western Union and had guarantee against
any antagonistic legislation, would not sell II
for $l000O0,000 The net earnings of the COM
pany are S8,O00.000."
Witness was asked whether it was not the
noIi unf fha fr.n otsfa llrsw
ganizations, and he replied that the lines pur-
chased by the Western Union were worth more
TO them than they were to the companies who
sold them.
OILS il not the pylicy OF the company to
absorb all the other lines OF the country?
Awe mean to cover the entire country
the telegraph business of the country. Take for
instance the mutual Union which was earning
100000 month and spending it, We could
earn 1t and keep most Of 1t. l 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 a
formidable competitor and controlled extern
sive RAILROAD lines. The Western 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 ex-
pense OF one. The consolidation Of telegraph
companies has not been followed by an in
crease OF rates except in cases where compet-
tioD has brought the rates down below COST,
making an increase Of rates absolutely neces-
sary. Rates have been reduced generally All
OF the $50, 100000 stock Of the company is dis
tributed except about from $50, 900, which is
still the property OF the company, because in
making the division it was not possible to
divide fractions. -Four railroad companies
have sold 10 the company exclusive
right to build and operate telegraph
lines. and other companies had granted
the privilege with the reservation that it
should be only as far as they had right to
grant such privilege. We have always had
have the longest lines. There is 70 per cent
advantage in having telegraph on a line of
railroad. Rates are constantly being reduced
The 25-cent area is now extended and mes-
sage can now be sent 1000 miles for S1.50
There is no substantial consolidation, com bina-
ton or union Of the railroad and telegraph
companies" The witness in the further
course of his testimony said they had some
times found it necessary to secure legal SER
vices in the matter OF negotiations.
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 peo-
pie know of their movements and to send
messages TO their families personal
friends. Inasmuch as number of these COM
pimentary passes had been returned, the COM
pany was not particular about issuing them
unless they we're solicited. Ia regard to the
relationship existing between the Western
Union and the Associated Press, DR.. Green
said it was purely OF business character, and
as it was an exceptional business it required a
special contract. The Associated Press claims
the right of property in news which they OBJ
tain, as they have their own methods of getting
it, and they do all in their power to prevent
any one from counteractng them, as for in
instance 10 persons setting up all night to get
the earliest paper here in order to send spec
ials to California. The Committee adjourned
till Monday when DIR. Green will be further
examined.