The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-21
MANAGEMENT OF THE WIRES
Further Contributions to the Discussion
of One of the Issues of the Time.
DR.. Norvin Green Tells Why Government
Should Not ContrOl Telegraphs, and Mr.
Hubbard Presents the Opposite View.


called his committee to order at IL o'clock this
morning. and DR.. Norvin Green, president of
The Western Union Telegraph Company ad-
dressed the committee in opposition to the gov
ernnent telegraph bills. He devoted himself
first though briefly, to the constitutional ques-
tions to which the measures give rise. He
uuoted decision Of the Supreme Court, in eff
feet that the telegraph Is necessary to commerce
and that the telegraph business is In itself com
merce. Was the government, he asked, empow-
cred by the Constitution to enter into interstate
somnerce7 He touched upon this constitutions l
point he said. merely because he did not wish
Bhe committee to understand the company
waived 1t, but without attempting to elaborate
IL az lawyers would No people on earth, he
maintained enjoyed as perfect system of tele-
graph as Americans, as any person who had ex-
perience with telegraphs abroad would testify.
He read q letter from James Mclean, agent of
the Associated Press in London, to his employ
ers, which follows:
The Geographic communication between France and
England dsgracefuly bad II is actual fact that
London merchants send their messages to Havre by
way of New York. and they reach Havre quicker than
IL they were sent from London to Havre direct.
This fact, DR.. Green said, corroborated
By knowledge which came to the company
through the transaction of their own business.
He showed that the English rate OF IL cents for
twelve words, including date, address and sig
nature, would, in a large number of cases, if
applied to messages sent in the United States,
amount to more than the current 25-cent rate
charged by his company. The address and sig-
nature il English messages were much shorter,
rs rule. The British system had 20. 500 miles
of line carrying 173, 900 miles of wire and cable
covering an entire area in the United Kingdom
of l21, 600 square miles, and the most distant
offices were separated from each other
6,514 public telegraph Offices. The salaries of
operators and other employees averaged about one
does business of 80, 243, 639 messages per an
mum. Now. TO handle business of about g.
DOC. 900 messages in a year, the telegraph lines
in the United States have 176, 900 miles of line,
carrying $50 900 miles Of wire and cables. main
tanning 1900 Offices, and covering an area
twenty-five times as great as that of the British
system. As to long distance rates, there was no
part of the world where messages were handled
cheaply here. The maximum rate of ST.
for the maximum distance of from 4,500 to A.
500 miles, is cheaper than any other long dis
tance rate, except from France to Algiers, which
is over French government line.
It was insisted, he said, that the Western
Union telegraph Company a monopoly.
What, he asked. is . monopolyl The Western
Union had exclusive franchises or legislative
grants. The elementary patents to the tele-
Rraph had expired, and the field was open TO
anybody who might choose to enter it. The
Western Union was more a monopoly than
any great commercial business
1t bad come to be a maxim in commerce that
the aggregation of capital in large enterprises
cheapens production, and therefore tends to the
public welfare 1t was this aggregation which
had enabled the Western Union to reduce its
rates, as he would snow by tables which he
would submit, to less than one
half the average cost to the com
years ago. The old rates looked very absurd at
this day, but if one were to go to Europe and un-
dertake to send message across the continent,
he would find very much similar rates prevail
ing there at this time In 1867 the cost of hand
ling messages averaged 63 cents, and the rate
TO the public was 81 047. The public rates had |
been reduced until in 1882, the rates the pub |
lie ware 80 cents. while the cost TO the com |
pany was 1873, and last year the rates to the
public were 80 cents, while the cost to the |
company % cents Now, it might be asked,
would that rate not be- increased during the
present yesr2 To this he answered, unhesitat-
ingly, no. the rate would be reduced to the pub
lie during the present year. great deal had
been said about increase of rates. The Western
Union had increased its rates in only
two or three instances. The rate of the Mutual
Union had been increased, and the Baltimore e.
Ohio rates had been abolished wnen that COM
pany was taken over. The Baltimore 81 Ohio
had begun its competition by war of rates. It
could be we'll established that that company was
projected and built to be sold to the Western |
Union speculation. That was expected to |
be accomplished the basis of the damage it |
could do to the Western Union, and not on the |
basis of actual value Competition in any bust |
ness, by of rates. he said, runous to the |
weaker parties. Not wishing to allow it's bust |
ness to be influenced or its rates dictated
one-tenth the business, the Western |
Union had not reduced its rates. but |
had reduced the rates of the Mutual Union to |
meet those of the Baltimore 81 Ohio The mat
ter of rates, he maintained, of far less |
consequence 10 the public than the question of |
time. The Baltimore & Ohio with it's low rates, |
had done q business last year of ST. ,326, 900, |
against over SIS. 600, 900 done by the Western |
Union, notwithstanding the higher rates of the |
latter, the Baltimore 81 Ohio covering nearly all
the paying territory of the country. The histo- |
ry of government teegraphs was noted only for |
tardy and laundering service. and especially |
were government systems indifferent to prompt |
The French commencement of tele- |
graphs once said to his Dr. Green's) |
predecessor: "You make grand mistake; |
you links re teleSraphe is made for re people |
We links people is made for re telegraphe." |
1t was not reasonable to hope or expect that the
gvernment would be more watchful vigaur |
in keeping every employe down to his work |
than men who were Immediately interested in
the profits of the company. The doctrine of the |
Western Union was that it's greatest competitor |
liz time, and just as far it could overcome
time, could it increase it's revenues. 1t was
this which had compelled it to build "a, 600 |
miles of line last year. not including the pur-
chase of the Baltimore & Ohio.
Would the government observe any greater
degree of secrecy than q private corporation.
especially messages involving the heads of
the government, who were the immediate en-
2ioyers of the suoordnates who handle the
messages! No government administration |
would of course, demand the betrayal OF the
secrets OF the telegraph, but he presumed that
most government administrations would fail to
punish such betrayal adequately, if il resulted
IN great service to Itself. There had been, per-
haps, In the history of the telegraph a half
dozen instances when operators had sold or
given away. commercial or news reports The
penalty with the Western Union was prompt
aud immediate dismissal. What could be
the responsibility of the government
for delaysl The Western Union
was held TO a rigid responsibility by the courts
ard its payments on that account amounted TO
between $780, 900 aud 5000 900 year. The gov
ernment certainly could do n cheaper service if
IL chose to foot the expenses. In the compact
system of Great Britain. covering less than one
twenty fifth of the covered by the Ameri-
can telegraph lines, there was deficit of So 349-
meut undertake the work in this country. he
argued that the number of Offices would be very
much increased, and the deficit would be very
much greater. He could not conceive how IL