Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1884-02-01
FROM WASHINGTON.
THE TELEGRAPH HEARING.
DR.. Green Protests Against the Govern.
mept's Control of the Lines.

WASHINGTON, Jun. 81.
The Senate committee on postoffices and
postroads, today began their hearing of argu-
ments from interested parties on the subject
of the proposed governme ,tal ownership or
control of the telegraph sys EN-. DIR. Norvln
Green, president of the Western Union COM
pany, addressed the committee. He said he
should confine himself to the question OF pol
lev, As to whether il was worth while for the
government to undertake the telegraph ousi-
ness. The government systems of Europe
had been established with the exception of
that of England, as a protection for govern
ments and as means of learning what was
going on and of defeating conspirators. Under
this government no necessity existed for suct
q course. Unless there was something de-
fective in the service rendered, there seemed
to be no reason why the government should
take hold of the telegraph. He maintained
that we had telegraphic facilities in larger
proportion to the population, better and
cheaper service than any country of Europe,
ard he was prepared to substantiate that in
any ca-eful investigation.
Reductions were the rule as the result Of
consolidation. There was but one exception
the consolidation with the Atlantic and Pa
cific, previous to which competition had
D, shed down the rates.
He explained the apparently cheaper rates
of Europe by saying that there message
was counted once in every country through
which it passed, while in this country it was
counted but once. No company could send
twenty words for twenty cents without loss.
In this country operators 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 a maxi
mum rate of one dollar, for which sum a
message could be sent $500 miles-from Hal
flax to Washington Territory.
DR.. Green, referring to press contracts,
said he would furnish the committee with a
copy of the contract with the associated press.
1t contained, he SAID. the clause that no
cheaper rates should be made with any other
association without giving the associated
press the advantage of the reduction. A
careful estimate of the cost of the dress work
performed in the Western Union showed an
average of 81 cents per one hundred words.
The excess of social kilograms in SAitzer-
land, Belgian. 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 moth
ing but social affairs to telegraph about.
Win IcltTcHCt W TIE CdpitdtiZdtlOu VI tilc
Western Union company, he SAID it made no
difference with the rates; if no profit was
made it was all the same whether the capital
was small or great. There had been capital
ization of stock since 1866, without a repre-
sentstion in values. In conclusion, he asked
the Western Union be heard before the COM
mittee through an attorney, and that the COM
mittee fix a day when it would hear Mr..
Evarts.
Mr.. Gardner Hubbard. who was present,
stated to the committee that he deserved to
be heard, and would try to controvert some
of the points made by DR.. Green.
DR.. Green had said that unless something
was defective in the service, no reason existed
for government interference. He would I'M
detake to show that there was something de-
fectve in the Western union service-that
the rates were excessive; in other words, if
they had rate not exceeding 60 cents for the
whole country, they would make more money
and give better service than at present, and
that one company could not serve the coun-
try when it was allowed to capitalize as rap
idly as it pleased without reference to the
value of property.