Savannah morning news. [volume] (Savannah) 1868-1887, 1883-09-01
N0RVIN GREEN'S STORY.
WESTERN UNIONS POLICA IN
CONSULTATIONS.

How Gould Can Extend His Service as
Very Little Extra Expense-The Com
pany'S Relations to Its Employ eS-
Politics the Base of the Postal T0le-
graph Scheme.
NEW YORK, August 31.-Dr. Norsis
Green, President of the Western Union
Telegraph Company, continued his testi-
mOny before the Senate Labor Committee
to-day. He said that in his opinion the
telegraph system controlled and operated
by the government in this country would
be more expensive and less efficient than
if controlled by a corporation-this pFin-
cipally because partisan considerations
would govern appointments to service.
II this objection were removed the postal
telegraph might, he thought, he
come acceptable. There We're, he
said, in the Western Union Company
about twenty-siX hundred stockholders.
and the largest amount held by an indi-
vidual stOckhOlder was 10000, 600 The
SS0,000000 worth of stock of the company.
except from $4,000 to $500 had been
distributed. If the witness held the stock
Of Western Union, and a guarantee
against any antagOniStic legislation, he
would not sell it for 500, 0,000, 900. The net
annual earnings of the company, ne said
toned at length as TO the policy of the
Western Union Company towards rival
organizations.
He said that the lines purchased by
the Western Union were worth more to
that company than 70 the sellers,
and cited as instance the case of the Nu-
tual Union, which he said was earning
100000 month and spending It His
company he said could earn it. and keep
most of it. 1t was the policy of the Wes-
tern Union Company 10 cover the entire
telegraph business of the country. and il
controlled the business now because il
had the longest lines. The company had
been compelled to buy the Mutual Union
because it was a formidable competitor
and controlled extensive railroad lines.
The advantage in having a telegraph lima
on the line of railroad was equal
he SAID to - per cent
Some railroad companies had sold to the
Western Union Company the exclusive
right to build and operate telegraph lines.
Others had granted privileges with the
reservation that it SHOULD only go as far
as they had a right TO grant such priyi-
leges. There was no substantial C0nsOli-
datiOn, combination or union Of railroad
and telegraph companies. The Western
Union had always had competition, but
did not buy up lines to prevent such COM
petition. The profit in such purchases
arose from the ability Of the w estern
Union Company to do the work Of both
with little more than the expense Of one.
The consolidation of the lines had not
been followed by an increase Of rates ex-
cept where they had been reduced by
competition. Rates were being reduced
constantly, and messages could now be
sent 1900 miles for ST 80. The witness
said that the relations between the cOm-
pany and its employees We're governed BY
the laws of supply and demand. The sal
aries were equitable and Just and no
other company which paid such salaries
had ever made any money. On being
asked whether it was the policy of
the Western Union Telegraph Company to
break up combinations of its employees
he replied that the company
would not admit the right of few men to
dictate to the many on what conditions
they should work. The company aimed at
the protection of the free will Of its en-
plOyes to this extent. With reference to
the recent strike, he said that it woulo
have been fatal to the interests Of the
company to have yielded, as such action
would have been regarded as an adlnis-
sion that the operators had power 20 die
tate terms. Coming to another branch OF
the subject, he said that the company
had sometimes found it neces-
Sary to secure legal services
in the matter of negotiations,
and referring to his own experience with
the Legislators, he had found it necessary
to take a legislator down into the lunch
room and open bottle of wine, 50 that
he would wait long enough to hear him
The witness acknowledged that great
namber of telegraph passes had
been given out to legislators
and various high executive officers.
but they were merely of a complimentary
character. With respect to the relation
ship existing between the Western Union
and the Associated Press, DR.. Green said
that it was of a purely business cbarac--
ter. Under a special contract the ASso-
ciated Press claimed the right of property
in its news, having its Own methods OF
collecting it.