The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1884-02-09
THE OTHER SIDE.
William Gardner Hubbard on the
Western Union Monopoly.
lie Declares that the Company Has
Too Much Power Robert Gar
rett Criticised Pooling
With the Cables.

zee Oh poStpilicSs, IN advocacy or the eStab-
hshment of Of system Of postal telegraph
reviewed the the efforts in behalf Of postal
telegraphy since 1873, detailed in an inter
esting manner the progress of electrical sci.
ence for the past few years, explained the
bearing Of the telegraph on business gener-
ally; quoted from the report of
the Western Union in 1873, showing
reduction in rates made while the question
OF postal telegraph is agitated; when it
ceased, he said that information respect.
ing rates was withheld. Referring to the
purchase of the Atlantic & Pacific, he said
the stock Of that company was purchased
at $50 per share and was without market
value 1t was controlled by the Western
Union, and seller and buyer readily agreed
upon price to suit thenlselves-simply
consulted their own interests Did they
consult the interest Of the public? He
thought not The cable were of little value
until leased by the Western Union
The manager Of the Western Union went to
the cable managers and asked whether they
were willing to pool the cable business, OF
whether the Western Union should Law com
peting lines. The consequence was an agree
ment TO pool the business. In this way cable
rates were kept up TO high standard Be
fore the combination was formed tho rates
were pence per word. The policy OF the
Western Union organization up to
the present time has been to alb
sorb competing lines and issue watered stock.
Several competing lines now in existence
had lately been started-the Baltimore &
Ohio, Bankers & Merchants and Postal
g. had TOD .I,t l.
bought out He had built lines before, and
sold them out 1t was but natural to suppose
that he would do so again Hubbard quoted
CARROTS statement respecting the sale of the
Union to the Western Union, and
said that the Baltimore s Ohio company
built the lines and made an alliance with the
American Union, which company Garrett
became director Of, and although
a minority, sold out the prop
erty, valued at 81, 00O, 600, for SIS, 0o0, 900.
senator interrupted, and said that the
transaction mentioned by Garrett didn't
allow the transfer Of the Baltimore & Ohio
to the Western U..ioa
be that as it may continued Hubbard, the
was effected Hubbard took the
ground that the business was bound to be a
monopoly, whether transacted by private
corporations or the government He thought
at the outside the actual investment Of the
Western Union company was less than $500
300. Since the ASSERTION of the other lines
the aggregate amount expanded probably
reached S., 000, 000 lie thought the govern
,nent could do tie telegraph business much
cheaper than it can he done by the corpora- !
tons. When askel how he would prote,t
kiY1,l
stock in the event ~ a Ioc:-;,,, =, t
uaugurate a system OF nos,al teIeoraob he
that he knew If no way OF rl,otec /
ton He did NOT tt,;l. t,,a, -,
,ent purchasers if :, tbo,- ,,,,,ri h,,-1 =,
,uffer like those not inn cent. As the opes-
ion had been more or LIS ,,5;t.,.,.l for vaarS
ne thought the stockhoiisrs fu}Iy oco,,airt,j /
With the facts of the cas,.. /
Chairman Hill iGter.apse! and sail he
didn't think the QUESTION Of ionac,,,t sto.L
lolders would ever b. raised He nn1ar.
TODD there were but ahont oO0 etoclybol5or-,
t had been admitted that one man held
ma oraty OF the stock.
heSuming, Hubbard said that the West
IN Union was a dangeroaspowe controlled
~ three or four men, which could supervise
'ot only political, but the commercial inter
SITS OF every description by news trans
nitted throughout the country. rs there
hytnlng. IKE the powor OF this cor
>, @1,oi -. 'nis country or any other.
-.Inusn ''s asehcs tne gold and stock
- Pa, s soi,ee@ 1he news OF Europe
"a aos aus :. 70 every POI point OF the United
80, - ~ 1oi 81 ne "eSteIh Union
: Tha -. el.e, sIia, '-.io"s no rlVal 10 e&
~, - u $50 0eln, Soii'ioi every quota
,ata cbsrrsS a:-". 10 MOI
~ 60 'He company
.rge to be entrusted to snv ss+ p pc r,,a 20
sferred to the close contracts hatTao, ~
Western Union and tho Assooiot.1 D
nd ibstanced savara1 ,osas -, IS
ers which critie;zad tho ra,,,.-t, e.r.;litf",
y tho As,o,io.o4 D.. fN- A"i 4Asneu
\ No. 800 -ess' anu e'hers winch
lphy, received notice that unle,s tbeT a aS
oned such publications the news service
ould be discontinued.
A Jury Censured.
MEMPHIS, Tenn. Feb a9-Iast Fura pa,
aley was detected bv his fatba, in ,,ilfa,,;,,o
e was given IS bv his fatbar and tnld - aet
s dinner and never again anteI, tbo 49,
hen his dinner was bro,tob+ 70 hi,,, ~.
lsxaDder Dunl an a negro 81 ,,oare "a .
employ of hisfather he arcnSe1 II hin; inn 81 ~
using his disgrace and r,lnnred
rye carving knife into the Ola nac,ro,s {
east killing him i,s+on+I,r -
alev fed. lint vos cantn,.oa eIt
onths later and bron~b+ hacL ~. 49, ~
tx weeks ago he was convicted If romr 10,
the f,,s, ,acrroe h VI llii .'e,
new trial on technical grounds. His
cond trial began Monday, and the jury
ought In a verdict of not guilty. The
torneys Tor the defense would willingly !
We accepted sentence OF twenty years in
penltentlary for the client. The jury
ter rendering their verdict were severely
insured by Judge Greer. The verdict is
lanlLnonsly condemned, as the killing was
More Lines Purchased I