The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-21

be totally inadequate to purchase even its 6oo,-
600 miles of wire in the factories. while the poles.
appurtenances, fixtures, instruments etc, had
cost three or four times as much The COM
pany bad expended within the last twenty years
over $685. 100000 and a large part of its expendi-
lures had been under exceptionally favorable
circumstances. such as free transportation by
RAILROADS. he did not mean by this that the
company wished to sell to the government.
liz did not wish to SELL it wished to keep it's
property. He was prepared to demonstrate that
the western Union lines could not be duplicated
at their present capitalization, talk as people
might about the water In 1866, when the COM
panies first consolidated, there was an overcapl.
talzation. but for twenty-five years they had been
squeezing the water out of the stock No new
stock had been issued except that representing
equai value IN property received. while large
amount OF cash-over $50. 000, 000-had been ex-
pended In actual construction of lines. In re-
building lines where but four wires were needed
poles capable of carrying twenty-four wires had
been erected. Yet that was never charged to
construction, but went into expenses OF recon
struction, and was charged as current expenses
The next popular error which he wished to
speak of was the assumption that the western
Union was owned by one man personally. never
In its history had this been the case The entire
board OF thirty directors owned not more IMAM
three-eighths of the stock. while the other fye-
was owned In every State and Territory or the
Union by more than twenty thousand people.
Did the government propose to operate
lines at loss and destroy this propertyf The
Car OF Russia would not dare TO adopt such q
policy. If the government undertook to estao-
hsh general system of telegraph. it must tax
sixty million people to pay for the service en-
that petition bearing 500, 900 signatures was
to be sent to Congress asking the es-
tablishmenr OF lines in opposition to
existing companies. These petitions were
signed in accordance with absolute COM
rnand. emanating from headquarters, and
predlcated On anlmus. and spite, ana
bitterness toward man with whom Mr..
Powderly had quarreled about another matter
altogether. Not one in hundred of the sieners
ever used the telegraph. yet they were asking
to be taxed for the benefit of rich brokers'
bankers, merchants. commercial operators and
spectators DIR. Green said he had prepared
petition and remonstrance to Congress, which
he had intended, by the courtesy of some mem
Der. to get before the Senate and House, and he
would not longer detain the attention OF the
committee.
Mr. Gardiner G. Hubbard addressed the COM
mittee in favor of the postal telegraph system
proposed in the bill introduced by Senator
Dawes. This was. he said, the plan which he
had advocated for many years before this com
mttee He gave it as his opinion that of the
$50 000 900 of capital stock of the Western Union
company about $8000,000 $1,000 600 had
been paid in cash by the stockholders. and prob
ably much more by stockholders of other
telegraph companies, which had become bank
rupt and had then been bought up by the Western
Union; and that the rest of it had been
taken from the public in the shape of telegraph
tolls. 1t was true, as DIR. Green had told the
committee, that the present value of the West
tern Union property was very large He did not
900 miles of wire for less than 500 mile, which
would amount to $50, 900, 600. Over and above
this value of the property we're other large
values. He had always regarded its right OF
way over the railroads of the country being
nearly valuable the other franchises of the
company. There was. then, this great monop-
oily, with capital Of $50, 100000 nearly three
eghths of which Tor about 1927, 900, 000 was held,
as Dr. Green had told the committee, by the
directors of the company. The directors there
fore, had virtually monopoly and controlled
the whole business, since it would be utterly
impossible at any stockholders meeting to OBJ
tain n controlling vote over the stock held by
the directors themselves
DIR. Green corrected the statement and said
that frequently at stockholders meetings three
fourths of the capital stock was represented.
Mr.. Hubbard, continuing, said that in this
country there was practically speaking. no COM
petition in telegraph business, and there could
be none. for it business that could be
managed much moro easily and cheaply by one
company than by a number Of companies But
the question arose whether the government
could not manage it much more cheaply than
the Western Union could, and whether the
Western Union itself could not manage it much
more cheaply than it does.
Mr.. Hubbard thought the question should be
answered in the affirmative. He then went
to give his well-known views upon the subject
of postal telegraph at considerable length.