National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-09

had associated themselves with the guilty;
The Western Union fifteen years ago had sal9
that neither tho capital stock nor the Donueu
debt should be increased, except by consenS
of two-thirds of the stockholders. Ihis was
pledge to tho country. They kept that
pledge for time, and rates were reduced.
They changed their policy in 1881. No one
would object to pay for this stock before these
consultations. Was 1t supposed these ''inno-
cent stockholders" didn't get their share OF
this watored stock? There were no innocent
stockholders. -,
Senator Hill remarked that no one would
venture TO assort that congress, in the inter-
est of the public, could not disregard these
stockholders and establish q telegraph system
for the convenience of the whole people.
There were only about 1900 stockholders OF
tho Western Union, and one man owned more
than half the stock.
MIR. Hubbard, continuing, said that only
about per cent. of the people of the United
States ever used the telegraph Why? Be-
cause the rates were too high. They were as
high In proportion to tho amount of business
and cost Of trsnsacting it to-day as they ever
were The business community were well
served but the people at large reaped no BEN
Gifts from the telegraph.
Mr.. Bvarts had said that the Western
Union forwarded messages in the order in
which they were received. This was only
theoretically true. If he (Mr. Hubbard)
wished to purchase a hundred barrels of oil
could he go to the oil exchange ana send his
oIder by the direct wires from that point?
No! He must go to the central office and pay
higher rate and his message would take its
place with the miscellaneous business A few
years ago man started u news bureau in
Cincinnati A correspondent in New York
filed the market reports each morning,
and tho Cincinnati gentleman sold the
information to customers. The West
ern Union asked him to sell out
to them and he refused. Thereupon his
messages were taken away from tho through,
wire and sent by 'way" wire. Tho diiler-
ence in time was an hour and the man was
ruined. He (Mr. HubbHrd) had occasion to
use the wires few years ago for half an hour
from little town in Massachusetts,, aud dur
ing that time he was interrupted several
times for railroad business. The railroad
company had here q prior right. But there
was something of more vital Importance than
anything yet presented. What were the re-
lations OF the Western Union TO the people Of
the country in their social and political in
terests.
The Western Union was controlled by three
or four gentlemen in New York. 1t con-
trolled the market prices. all the political
and general news sent over its wires-every
single important personal communication
sent in the country.
This company was controlled by no law
except the interests of its owners. No state
could pass law which should have any
effect on this corporation. Was there any
like power in the world 1t would handle
160,o00,000 of messages ten years hence.
Through it's agency it collected the market
news in London and Paris. fraction OF a
penny pound on cotton was fortune to
any man. They admitted no partnerships in
this business. He made no charges, but he
believed this was too large a power to intrust
to any man or company.
How is it with the press? Tho Western
Union Telegraph company and the Associated
Press made close corporation. He did not
mean to sny there was any fault to be found
in the present management. Some time ago
two papers in San Francisco discussed the
postal telegraph. The rates to these papers
were increased. One paper died in conse-
quence and the other ceased to discuss the
matter. A paper which once criticised Mr..
Orton's course found its rates doubled the
next day. This was the power which this
corporation held.
Referring to the Dawes bill, he said its
central principle was that the telegraph busi-
ness was antagonistic to the postal business.
As the postofhce department made contract
with the railroads to carry the mails, SO under
this bill 1t would contract with company
for handling the telegraph business. The
rates mentioned in the bill had been said to
pc TOO hlBn aiN inc proporuoh W eno koNoih.
sment too small. This might be true, but
these defects were remediable. DIR. Green
had said the Western Union would be glad tC
como in and bid for this service. He (Mr
Hhbbard) would favor the introduction of {
provision to permit this. Mr.. Evarts had
referred to the private contract between tht
sender Of message and the Western Union
company. What was that private contract
Why, simply if any error was made in trans
mission the company would refund the sun
paid for Notwithstanding else.o