The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1884-02-09
A GIGANTIC MONOPOLY.
6ouudly Scored Before the Committees
on Postofices.
Gardner Hubbar.. aeiis How the West.
ern Onion Gauges the Public
and Perpetuates its
Dangerous Power.

WASHINGTON, Feb. s. Mr.. Gardner
Hubbard before the Committee on Post
Offices in advocacy OF the establishment Of
ssystem Of Postal Telegraph, reviewed his
tfforts in behalf of Postal Telegraph since
1878. He de allied in an interesting man.
ner the progress Of electrical science dur.
Ing the past few days and explained its
bearing on the telegraph business gener.
ally. He quoted from the report of the
Western Union for 1878, showing reduce
tons in rates made while
the question Of Postal Telegraph
has been agitated. When the lines we're
leased, he said all information respecting
rates WAS withheld. Referring to the pur.
chase of the Atlantic and Pacific, he said
the stock OF that company was purchased
at S6O per share aud was without market
value. 1t was controlled by the Western
Union, and seller and buyer readily agreed
upon prce to suit themselves They sim
ply consulted their own interests. Did
they consult the interests OF
the public! He thought not.
The cables were OF but little value until
leased by the Western Union, and the
manager Of the Western Union wen. to the
Cable managers, and asked whether they
were will ng to pool the cable business, or
whether they should lay completi NJ lines.
The consequence was an agreement 10 pool
business. In this way the cable rates were
kept up at a high standard. Before the
combination was formed the rates were
pence per word. The policy OF the " est.
ern Union organization up to the present
time have been to absorb all com.
peting lines, and issue watered stock
Several com peting lines are now In ex.
stence, having lately been started, the
Baltimore & Ohio asserted that they could
not be bought out, but built lines before
and sold them out, and 1t was but natural
to suppose they would do so again. Mr..
Hubbard quoted CARROTS statement res
pecting the sale OF the American Union to
The Western Union and said
Inc Baltimore & Ohio Company
had built lines and made alliance with the
American Union, OF which company Gar
rett became director and although repre-.
'enting minority sold out property valued
At "a, 900, 900 for fifteen million.
Rife interrupted and said that In tho
transaction mentioned 1t had been admit.
ed that one man held q majority Of the
stock.
Resuming, MIR. Hubbard commended that
The Western Union held dangerous power
which was controlled by three or four men
who. sitting in their office, could supervise
not only political but commercial and every
description Of news transmitted through.
but the country. Is there anything like the
bower OF this corporation in this country
or In any olheri Through Its agency the
Gold Stock Company collects news
IN Europe aud forw wards 1t TO every point
N the United States and vice versa.
BY misrepresenting the market price of
my stock to fraction Of cent, fortunes
may be realized by those who know the
teal facts.
The Western Union admits OF no partner.
ihip and allows no rival to exist. Its man.
ayers control every quotation. "In saving
his, " Hubbard added, 81 do not make
sharges against the company. But think
IT'S power too large to be entrusted to any
set of men.
Rife again interrupted and said that n
The transaction mentioned Garrett didn't
allow the transfer of the B. and 0. to the
Western Union.
"Be that as 1t may" ontlnued Hub.
bard. 1.-THE consolidation was effected.n
Hubbard took the ground that the telegraph
business was bound to be
monopoly, whether transacted by private
corporations or by the government. He
thought that at the outside, the actual cost
Of the investment by the Western Union,
was less than $500, 000. Since the absorption
Of other lines the aggregate amount ex.
pended had probably reached s., 900 900.
tie thought the Government could do tele.
graphing nNlch cheaper than 1t can be done
by corporations. When asked how he
would protect innocent purchasers Of Yves.
tern Union stock In the event OF decision
to inaugurate the system of postal tele.
graphy, be answered that he did not know
Of way for their protection. He did not
think there were any innocent purchasers.
II there were they would have to suffer
alike with those not innocent. Asa the
question has been more or less agitated for
ID years he thought the stockholders were
fully acquainted with the facts Of the case.
Chairman Hill said he did not think the
question OF innocent stakeholder would
even be raised. He understood that there
were but about two hundred stockholders.
He referred Of the close contracts be.
tween the Western Union and the asso.
cisted press, and instanced several cases of
newspapers which criticized the reports
furnisheu by the associated press and
others, In which articles In support Of
postal telegraphy had appeared, had re.
ceived notice that unless they abandoned
such publications the news service would
be- discontinued.