National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-01
The President of tho Western Union Before tho
Senate Committee.
His Statement in Opposition to Govern
ment Control.
Gardner G. Hubbard Proposes TO Prove
DIR. Green's Figures FRiIsolous.

ern Union Telegraph company, auureSacu INC
senate committee on postofices and post
roads yesterday in opposition to the proposed
governmental control of the telegraph. He
said he should confne himself to the quos-
ton of policy as TO whether it was worth
while for the government to undertake tho
telegraph business.
The government systems of Europe had
been established, with the exception of that
of England, as protection for the govern
ments, as a means of learning what was going
on, and of defeating conspirators. Under
this government no necessity existed for
such q course. Unless there was Aeomothing
defective in the service rendered there
seemed to be no reason why the government
should take hold of tho telegraph. He main
tanned that We had telegraphic facilities in
larger proportion to population, better
service, and n cheaper service than in any
country of Europe, and no was prepared to
substantiato that in any careful ipvestiga-
ton.
DIR. Green gave many illustrations of the
reductions in rates which had followed the
various consultations of telegraph rival
companies, and stated that reductions were
tho rule as result of consolidation. There
was but one exception, the consolidation
with the Atlantic and Pacific. previous to
which competition had pushed down the
rates below the point where business could
be done with profit, and they had necessarily
been raised. Even then, he said, the rates
which had not been reduced by competition
were reduced to make them harmonize with
those which had.
He explained the apparently cheaper rates
of Europe by saying that there message was
counted once in every county through which it
passed, while in this country it was counted
but once
Press matter, moreover, was dropped at
many points in the United States and de-
NnFl,tl ANIwy tl,n
one copy filed was counted-thirty words
being counted as message.
sISenator Hill asked further explanation. He
thought the statement an extraordinary one
and referred to the rates of France being only
20 cents for twenty words within the limits
of that country, and an averge of a cent q
word in other European countries. He cited
the rates from France to Algiers, two thou
sand miles, which were only 20 cents for
twenty words
Dr. Green replied that tho Algiers line was
operated at q loss. Their employees were
hired for much cheaper rate, and even then
the service was done at a loss. No company
could send twenty words for 20 cents without
loss. In this country operatives were paid
higher rates, material was more expensive,
and all the cost of construction was greater.
A new tariff was in process of preparation to
go into effect on the first of March, giving
maximum rate of 81, for which sum Il mes
sage could be sent four thousand five hun
dred miles, from Halifax to Washington ter
ritory.
DIR. Green, referring to the press contracts,
said he would furnish the committee with q
copy of the contract with the associated press
1t contained, he said, a clause that no cheaper
rates should be made with any other associa-
tion without. giving the associated press the
advantage of the education. Some papers had
complained because the Western Union could
not furnish them news at the same rates their
nAinhhnrz ara rnnniuinu
ciated press. 1t was manifest that the papers
could get cheaper work done by association,
and that the Western Union company could
not transmit press dispatches to single paper
at as low o rate as it could carry the dis
patches of an association Dispatches from
Washington to New, Orleans, for example,
were dropped at sixteen different points along
the line. A contract had recently been made
with another press association, the name of
which he could not recall. He would send
the committee copies of both contracts. 4
careful estimate of the cost of press work
performed by the Western Union showed an
average of 81 cents per 100 words.
DIR. Green, said the excess of social tele-
gram in Switzerland, Belgium France and
other countries of Europe was due to the fact
that that was the playground of the world.
Millions of wealthy tourists were there every
year with no other business than to enjoy
themselves, and nothing but social affairs to
telegraph about.
Referring to the talk about accumulated
wealth In the hands of individuals and cor
porations, DIR. Green said he had become salts
fled that tho great power of England con-
sisted in the wealth of her citizens. Much of
this capital was invested abroad, and about
Gl60.0OO,OO0 of revenue was derived from it,
much of it going from this country. In his
early manhood there was not q man in this
country possessed of q million dollars. In
these days our own men of wealth were in
in and rtx
and the revenues therefrom were expended Mt
home. 1t would be better, to be sure if this
wealth was more evenly distributed. Every
body knew that the western railroads had
been built ten years in advance of their nee
essity by this excess of capital.
With reference to the capitalization of the
Western Union company, no said it m ado no
difference with the rates. If no profit was
made, it was all the same whether the CAPT
tai was small or great. There had been CAPT
talization Of stock since 1866 without u rep
resentation in values. In conclusion he
asked that the Western Union be heard be-
fore the committee through an attorney, and
that tho committee fix day whom it would
hear Mr. Evarts
Mr.. Gardner G. Hubbard, who was present,
stated TO the committee that he desired to be
heard, and would attempt to controveTt some
of the points made by DIR. Green.
DIR. Green had said that unless something
was defective in the service no reason ex-
listed for government interference. He would
undertake to show that there was something
defective in the Western Union service; that
their rates were eXcessve-in other words,
if they had q rate not exceeding go cents for
the whole country they would m axe more
money and give better service than ut their
present rates, and that one company could
not serve the country when it was allowed to
capitalize Us rapidly as it pleased without
reference to the value of their properly.
An Unknown Suicide