The Rock Island Argus., 1883-09-03
GREEN ON THE STAND.
EXPLAINING WESTERN UNION RULES,
The President of the Great Monopoly Tells
More of His Side of the Story, and
Holds tn, Company up as Mod
el Political Economists.
FURTHER EVIDENCE BY DIR. GREEN.

Labor and Education at the continuance of
their investigation Friday. DR.. Green again
took the stand. In reply to a question as
to statement he made yesterday that tel
egfaph system in the hands of the Goyeru-
ment would be more expensive and less eff
ficient than under the control of a corpora
ton, witness said that under the English
system appointments were not made from
partisan consideration, as they were in this
country. France even presented stronger
instance, as the. system of non-partisan
appointments extended to the army
and the police. The postal telegraph might
become acceptable if such a system could
be adopted in the United States. Witness.
at this point, in reply to question, spoke
of the sanctity of all messages which came
into their hands, and which had been pre-
served as far as possible, with regard to all
parties in any way concerned. During the
Hayes canvass complaint was made
against the operator at Tallahassee by
prominent Democratic leaders. Witness
Immediately suspended the manager
in that district; but, upon in
vestigatlon, 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 at all be questioned. The sanctity of
every message given into their hands was
as much assured as the communications
made to lawyer, a priest or physician.
None Of the officers of the company had ac-
10 fl,a
accumulation of messages, as a matter of
course, and they were destroyed at the eX-
piraton of every six months. In PennsyI-
vania the time for keeping messages was
fixed by istatute 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 81, 900
to S5, 900 day
In answer to question by Senator Blair,
Dr. Green said that there were about 2, 500
stockholders in the company, and that the
largest StOckhOlder held abot $50, 600 900 of
stock. In answer to Senator George, witness
said that when the strike occurred it would
have been fatal to the interests of the COM
pany to have yielded, as it would have been
an admission that it would be in the power
of the operators to dictate terms. The COM
| clusion.
Senator George then questioned the wit
ness as TO the Sufficiency of the wages paid
by the company to telegraph operators.
pr. Green replied that the relation be-
tween the company and its 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
n4h
| similar wages ever made any money.
| Senator GeOrge-Is it, or is it not, the
policy of the Western Union to break up
combinations OF employees organized for the
| purpose of securing an advance of wages?
Witness would not admit the right
of few men to dictate to the many on
what conditions they should work. have
| the statements of several of our employees
that the few who constituted the sO-called
committee of the Brotherhood had no right
TO speak for them.
QucStion-ls it, then, the object OF the
company to protect the free will of the en-
ployes?
Answer-Exactly; to the extent have
mentioned.
| QuestiOn-Do you mean to say that there
is no nlteri0r object In your policy toward
| those employees who belong to the brother
| hood outside the benevolent feature of their
organization?
AnSwer-The fact that there was over
800 applications inthe Office Unemployment
| showed that the rank and file had not en-
terGl willingly into the strike.
The subject waShere changed, and, in re-
ply TO other questions, witness said that
they had expended $40, 600, 900 in cash, and
there was an issue of S23, ,404, 900 in stock.
| Shortly after 1868 the total issue of stock
was about $50, ,000, ,000l
The witness was asked whether it 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 more to them than they were to
the companies who sold them.
Question-ls it not the policy of the com
pany TO absorb all the other lines of the
country?
AnSwer-We mean to cover the entire
country-the telegraph business of the c0un-
try Take, for instance, the Mutual Union
which was earning St00,000 month and
| spending it, We could earn it and keep the
| most of ii. / think there was some talk 0i
buying up opposition lines, but / advised
| against buying up any more. We haC
| to buy the Mutual Union, a:
they were formidable competitors, and con
trolled extensive railroad lines. The West
en Union Company did not buy up lines tG
prevent competition When the lines were
purchased, the profit consisted in the ability
of the Western Union to do the work o.
both with little more than the expense o.
one. The consolidation of telegraph com.
panies 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 $50, ,000, ,00C
stock of the company is distributed
except about $4,000, to 500, 600
which is still the property of the com
pany, because in making the division, it wa:
not possible to divide the fractions. SomC
railroad companies have sold TO the com
pany the exclusive right to build and Oper
ate telegraph lines. Other companies hat
granted the privilege, with the reservation
that it should be only as far as they had thu
right to grant such privileges. We have al
ways had competition. We control thu
} business, because we have the longest lines
There is five per cent advantage in havine
telegraph on q line of railroad. Rates arr
constantly being reduced. The 25-cent arei
} is now extended, and message can now b.
sent 4, 900 miles for S1.50. There isl sub
stantal consolidation, combination OF uniol
, of the railroad and telegraph companies.
} Witness, in the further course of his ties
7 timony, said that they had sometimes fount
l it necessary to secure legal services in tn
matter of negotiations. He laughingly al
+ luded To his experience with Legislatures
t remarking that he had to take the Legisla
ture down in the lunch-room and open
bottle Of wine so that they would wait Ion
enough to hear him on the subject of FIRE
passes. The witness said: eve have give
out large number of telegraph passes I
legislators and various high executive off
GERS. They were merely of a compliment
, AIRY character, as there were many prom
nent men who desired to let the peopl
know of their movements an
to send messages TO their families or per
sonal friends Inasmuch as a number o
these complimentary passes had been IT
. turned the company was not particula
= about issuing them unless they were Sc
S licited.
In regard to the relationship existing be
e tween the Western Union and the Asst