New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-02-01
THE TELEGRAPH PROBLEM.
DIR. GREEN AGAINST GovERNMENT CONTROL
HIS ARGUMENT BEFORE SENATE COMMITTEE
MR.. HUBBARD TO REPLY.

HIS ARGUMENT BEFORE A SENATE COMMITTEE
MR. HUBBARD TO REILLY.
WARRINGTON. JAN 31.-The Senate COMMIT
fee ON Post Offices and poet'Roads to-day oesau n.
ing of arguments from Interested parties on INC "u
OF the proposed Governmental ownership OF con,roi Vi
the telegraph system. DIR. Noryn Green preSiue'o
the Western Union Company. addressed tho eoni.'ee
The Government systems OF Europe had Deeh es'aO'o
no so,d with the exception of that OF England, asa pro-
tection for the Governments, means OF earnng what
was going on and Of defeating consptaors Uhucr ns
Government no necessity existed for such course on
less there was something defective In the service thee
seemed 10 be no why the Government should take
hold OF the telegraph He maintained that this country
has Geographic facilities in larger proportion 10 pop
ulation, better service aud cheaper
service than in any country of Europe and he was pre-
pared TO substantiate that III any careful lvesto,
Dr. Green gave illustrations OF the Reductions IN i
which had followed the various consultations OF rlY
telegraph companies, and stated that IeaucIons enc
the rule. result Of consolidation Ihere was 9S , 1a
exception the consolidation with the Atiantc anu
previous to which competition had p;hea down S rot o
and they had necessarily been raised Even ihen cue
rates which had not been reduced ny "a
reduced to make them harmonic WIN those WHICH h'
THE CHEAPER RATES IN EUROPE.
He explained the apparently cheaper rates OF Europe
by saving that there message was counted once In every
country through which passed. while in this country IL
was counted only once. Press matter, moreover, was
dropped at many points in the United States ana oe'
cred as many messages while only the one copy nieu
was counted-thirty words being counted as message
Senator Hill asked further explanation. He Thought
the statement an extraordinary and referred 10 the
rates of France being only twenty cents for twenty words
within the limits Of that country and an average nan
cent a word in other European countries. He cted the
rates from France TO Mgiers-two thousand nies-"lch
were only twenty cents for twenty words.
Dr. Green replied that the Algers line was operated NJ
loss. The employees we're hired for much cheaper
rate and even then the service done at loss NO
company could send twenty words for twenty cents wt
out loss. In this country operators were paid higher
rates. material was expensive and all the cost OF
construction greater new tariff was in process Oh
preparation to go into effect on March L, giving
maximum rate of one dollar, for which sum a mes
sage could be 1900 miles, from Halifax TO WASH
ington Territory. Dr. Green referring to the press
contracts, said he would furnish the committee with
copy of the contract with the Associated Press III cor
tanned he said clause that no cheaper rates should ne
mnde with any other association without giving the As-
ISOLATED Press the advantage or the rcduolon some pa
pcrs had complained because the western ohlon epuu
not furnish them news at the same rates lhel negooIs
were receiving 1t from the Associated Press IL was man
ist that the PpeF cSa get fhJpe ompSnV could
not transmit press dispatches to single paper as low
Dsnstebes from Washington 10 New-Oreans, for ex-
ample dropped at sixteen different 0inis along INC
press association the Of which he could not recall
careful estimate Of the cost oil hG press so %Sed
an average 6le cents per 100 words
SOCIAL KILOGRAMS ABROAD.
Dr. Green SAID the Of social elegrams in Swlzer
land Belgium France and other countries 81 Europe was
due to fact that that WAS the play ground OF the world
Millions OF wealthy tourists there every year with
no other than to enjoy themselves and nothing
but social affairs 20 telegraph about.
Senator MaXcy asked what, III Mr. Green's opinion
would be the effect upon piyat9 companies II the
Government shOud enter into the telegraph business
without prOh 1itiug competition. Mr. Green 5d II WOuil
would be likely 10 establish losing ratc II had often
carried the Postal service al losing rate England
had transacted the Telegraph business At loss and ist
year there wou have been loss ndt for the payment of
$4,000 by the Government.
of employees under the Government II the rate Of Increase
remained rs at present with private companes Ar
service was difficult thing TO ascertaiH-of the $4,000
offices in the western Union connection OoOo were ran
and probably 5000 or 5000 Otner employees lhee were
about 5000 to 1ooQ1 Western Union GlerSoIs 30 Da
gress wouiI want every post ONCE district have
telegraph Office aud Within five years the Government
would ind itself with army OF 100000 employees for
RefclTnt TO the tax about accumulated wealth in the
hands OF individuals and OF corporations Dr. Green said
he had become satisfied that the srea power OF England
consisted in the wealth Of her citizens. Much OF th!s
capital was invested abroad, and about 1l6OOOOOOO
Of revenue derived from It, much Of 1t gong nom
this country.
RATES NOT AFFECTED by CAP1TAL1zATIoS.
with reference the capitalization OF the Western
Union Company he SAID II made no difference with the
rates II no profit was made it all the whether
the capital was small great. There had been capita
cation OF stock since 1866 without representation in
values In conclusion he asked that the Western Union
be heard before the committee through attorney, aud
that the committee fix a day wnen 1t would hear Mr.
Evarts.
Gardiner G. Hubbard stated 10 the committee
that he desired to heard and would attempt cOnrO
vert some Of the points made by Dr. Green. Dr. Green
had said that unless something was defective In the
vice. exists for Government interference. Hc
would undertake 10 show that there something defec
tive in the Western Union services that the
excessive; other words if it had rate not exceeding
sixty cents for the whole country II would make
money and give better service than at the present
rates. and that company could not serve the country
when allowed 10 capitalize as rapidly as 1t pleased
without reference to the value Of its property.
The Senate Committee on Post Offices and Post Roads
agreed to-day report fayOraby the resolution offered
on Tuesday last by Mr. Pat mstTuctng that committee
10 inquire into the relations OF the Western Union Telc
graph Company TO the elcgrapc spOndence OF the
United STATES and the transmission OF press news
WASHINGTON, Jan. 31.-n the Senate to-day the resOlu
ton offered yesterday by Mr. Plat taken up and
agreed to- directing investigation by the Senate Com
mttee on POsOfces and POst-roads into the cost OF
telegraph correspondence and how such has been
affected by contracts between the Western Union
other companies and by large stock dividends.