Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1888-01-26
He Fears heavy Deficits would Result
From Such a Government System.
Hubbard FaVOrs Government Control
and hits Green Some hard Blows.
POSTAL TELEGRAPHY.
The Pending Bill Discussed Pro and Con Be-
fore Ir. Sawyer's Committee

The Pending Bill Discussed Pro and Con Be
fore Mr. Sawyer's Committee.
WASHINGTON, Jan. 2O.-The senate com
mittee on pOstOffices and pOst-roads met
this morning and listened to DIR. Norvin
Green, president of the Western Union
Telegraph company, in opposition to the
bills for the establishment OF a postal
telegraph system by the government,
The doctor began by questioning the
constitutionaIity of the proposed bill.
No country, he said, was so favored in
its telegraph system as this, It was
asserted that the Western Union was
a monopoly. It had no exclusive
franchises; the field was open to
everybody; 1t was no more of mo-
nopoly than any great commercial bust
ness. He showed how the success of the
Western Union had permitted it to re-
duce the cost of messages ito the public
from an avearge rate of $105 in 1867 to
30L cents in 1887. He said that the rate
would be further reduced the present
year.
Touching the question of war of rates,
he said that the Baltimore 81 Ohio began
it. That company had been built to be
SOLD TO the Western Union; this was ex-
the damage it could do. DR.. Green said
that the history of government telegraph
service showed tardy service, bad delivery
and "bulled" messages. Woald the gov
ernment be responsible for errors and
delays, he asked; no government system
ever was. The Western Union had TO pay
from 100000 to 100000 year for its
mistakes. He believed that the deficit of
a government system as suggested in
the Cullom bill would be from $5,000,000
to $10,000,000 year. If the government
did run 8 telegraph system it must take
existing lines. No private enterprise
could run against the national treasury,
setting out to do business for nothing. He
wished to say concerning the Western
Union that its value as stated by the
press would not buy the wire at the fac
tory and the cOmpany's other equipment
amounted to three or four times the val
ne of the wire. The property of the
Western Union could not possibly be du-
plicated to-day for capitalization.
There was popular belief that the COM
pany was owned by one man. The COM
pany's directorate of thirty men repre-
senting the millionaires of the country,
held les ithan three eighths of the
stock. It's stock was held by
5000 people throughout the country.
Over 10000 people in all were interested
In the property. 81 am told, the doctor
continued, "that a petition bearing
$4,000 signatures is to be sent to this
committee in favor of the government
system. They will come by a command
originating from spite against one man
with whom Mr.. Powderly had quarrel
on another subject, and not one out of
100 Of the men who will sign it have ever
sent q telegraph message" DR.. Green
said he had prepared a petition which he
hoped a member of the committee would
lay before the senate and ask to have
printed.
GARDINER G.. HUBBARD ADDRESSED THE COM
MITTEE
In favor of the postal telegraph system
proposed in the bill introduced by Sen.
Dawes. He gave it as his opinion that of
the eighty-six million dollars Of capital
stock of the Western Union company,
about eight or ten millions had been paid
In cash by the stock holders and probably
as much more by the stock holders of
other telegraph companies which had be-
come bankrupt and been bought up by
the Western Union; and that the rest of
1T had been taken from the public in the
shape of telegraph tolls. It was true
that the present value of property was
very large. He did not believe it pos
sible TO duplicate its six hundred thous-
and miles of wire for less than sixty mil
lion dollars. Over and above this value
of property were large values.
He had always regarded its right of way
over the railroads of the country as be-
ing nearly as valuable as the other fran
chises of the company. There was this
great monopoly with capital of eighty
six millions, nearly three-eighths of
which was held by the directors of the
company. They therefore had virtually
monopoly, since it would be utterly i'm
possible at any stockholders meeting to
obtain a controlling vote of the stock
held by the directors themselves.
DR.. Green corrected this statement and
said at the stockholders meetings three
fourths of the capital stock frequently
represented.
Mr.. Hibbard said in this country there
was practically no competition in the
telegraph business, and there could be
none, for it was a business which could be
managed more easily and cheaply by one
company than by q number. But the
question arose whether the government
could not manage il more cheaply than
the Western Union and as a competitor
the Western Union could not manage it
more cheaply than it does. This question
should be answered in the affirmative.
Hubbard then gave his well known views
on the subject of postal telegraph at
great length. The committee adjourned
indefinitely at the conclusion of Mr.. Hub
bard's remarks.