St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-01-21

w OS lic tcItSIdpu, HS uShCuf w
be an entering wedge to a gem
the government and to that parental adj
ministration of everybOdy's affairs
which is desired by certain class of
people. Infinitely better might the
government take the railroads, because
the railroads are the present channel of
carrying the millions. Infinitely better
might it undertake the work of the col
lieries; because there are forty times as
many people who use coal as a neceS-
Sity of life as there are who use the tel
egraph. But if the government must
take the telegraph, he insisted that it
should take the existing property.
Whatever the government does it should
do exclusively, no private enterprise
could run in competition to the United
States treasury. In conclusion Mr..
Greene said that there were some popu-
lar clamorS that had been proclaimed
until the people believed them, which
he wished to
TAKE OCCASION TO REFUTE.
As TO the value of the telegraph proper
ties, and especially of the Western
Union, the sum which had been
stated as that which would serve to du-
plicate the Western Union property
would be totally inadequate to purchase
even its 100000 miles of wire in the fac
tories, while poles, appurtenanceS, fix
lures, instruments, etc., had cost
three or four times as much.
The company had expended within
the last twenty years over S5S, SOC, 900,
and a large proportion 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. 1t did not
wish to sell. 1t wished to keep its
property. He was prepared to demon
Strate that the Western Union lines
could not be duplicated at their present
capitalization, talk as people might
about the water. In 1866, when the
companies first consolidated, there was
an Over-capitaliZatiOn, but for twenty
two years they had been squeezing the
water out of the stocks. No new stock
had been issued, except that represent
ing full value i'll property received;
while large amount of caSh-Over $780,
000,000-had been expended in the
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 con-
Struction. but went into expenses of re-
construction, and was charged as current
expenditures. 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 direct
OrS owned not more than three-eighths
of the stock, while the other fivc-eighthS
was owned in every state in the terri
tory of the Union by more than 10000
people. Did the government propose to
operate lines at a loss and destroy this
property? The ear of Russia would
not dare adopt such policy. If the
government undertook to
ESTABLISH A GENERAL SYSTEM
of telegraph it must tax 10000, 600 peo-
pie to pay for service enjoyed by less
than 100000. He was told that petit
lions bearing 100000 signatures were to
be sent to congress asking the estab-
existing companies. These petitions
were signed in accO rdance with an alb
Solute command emanated from head
quarters and predicated on animuS and
spite and bitterness towards one man
with whom Mr.. POwderly had quar-
relied about another matter altogether
Not one in a hundred of the Signers
ever used the telegraph, yet they were
asking to be taxed for the
benefit of rich brokers, bankers
merchants, commercial operators and
spectators. DR.. Green said he had
prepared a petition and TemOnStrance
to congress, which he had intended, by
the courtesy of some members, to get
before the senate. and house, and he
would not longer detain the attention of
the committee.
Gardner G. Hubbard addressed the
committee i'll favor of the postal tele-
graph system proposed in the bill intro
duced by Senator Dawes. This was, he
said, the plan which he had advocated
for many years before this committee.
He gave it as his opinion that of the
SS6,0O0,000 of capital stock of the West
ern Union company about 100000 or
S10,O00.00O had been paid in cash by the
stockholders, and probably as much
more by the stockholders of other tele-
graph companies which had become
bankrupt and had then been bought by
the Western Union. and that the rest of
it had been taken by the public in the
shape of telegraph tolls. 1t was true
(aS DR.. Green told the cOmmittee) that
the present value of the Western
Union property was very large. He
did not believe it would be possible to
duplicate its 100000 miles of wire for
less than 500 a mile, which would
amount to over 5000 900. Over and
above this value of the property
were large values. He had
always regarded its right of
way over the railroads of the
country as being nearly as valuable as
the other franchises of the company.
There was then this great monopoly
with capital stock of $50, 000, 900, nearly
three-eighths of which Tor about S27,-
000,000) was held, as DIR. Green had told
the committee, by the directors of the
company. The directors, therefore, had
virtually monopoly and controlled the
whole business, since it would be ut
terly impossible at any stockholders
meeting to obtain a 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 competition in telegraph
business and there could be none, for IL
was business which could be managed
much more easily and cheaply by one
company than number of companies.
But the question arose whether the GOV
eminent could not manage it much
more cheaply than the Western Union
Union company itself could not manage
it much more cheaply than it does. Er.
Hubbard thought the question SCI d
be answered in the affirmative e
then went on to give his well-kYf6wn
views on the subject of postal tele-
graph at considerable length.