The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-05-03
POSTAL TELEGRAPHY.
DR.. NoRvIN GREEN BEFORE THE
HOUSE PoSToFFICE COMMITTEE.
He Presents Facts, From His Standpoint.
Upon the Present Teiegraphic sys-
.tem-The Postal System Monstrous
Wrong.

WASHINGTON, May DIR Norvn
Green, president OF the Western Union
Telegraph company, appeared before the
House committee on postonices TO present
some facts upon the telegraphic system of
the country. lie first addressed himself
to the Hopkins bill to establish postal
telegraph. Such an enactment would be,
he said, u monstrous wrong The rights
OF property were entirely ignored. The
act OF 1866 to aid in the construction and
maintenance OF telegraphs provided that
II the government should establish
postal telegraph system, it would take the
property OF the companies accepting the
provisions Of the act at valuation to be
ascertained by five persons. Under the
provision OF that act, four-fiths OF the tel
egraph properties Of the country had been
created and established believing and re-
lying on the good faith OF the govern
ment. Having accepted the act the tele-
graph companies had performed their part
of the compact faithfully and that per-
Torrance had saved the government more
than 81 ,000,0 rhe business OF the gov
eminent had been about $500, 900 q year,
and the rates established by the Post
master-General had been about half the
usual rates OF commercial messages. The
government business required instant
transmission at the busiest hours OF the
day TO tho detriment of tho CONNER
cial business. Therefore the most exact
ing service the Western Union company
was called upon to perform was done at q
loss. II the government had q right to
establish n telegraph, il il had right to
maintain commercial telegraph business
among the States, IL certainly had the
right, not by the power Of eminent domain
but by agreement To take the property
In all fairness, II the government CON
templatcd telegraph business, was there
any proper way TO do but TO take the cx-
isting property and pay for II? A vindc-
| tive impulse was about the last thing
which should govern deliberativc body,
yet the bill under consideration had the
appearance OF being dictated by vindic.
| tive impulse. The power OF the govern
mcnt and the right OF the government
were not the same. The government
might have the right 10 build teleqrnphs
and TO declare that any person doing a
telegraph business would ea violatorof the
law, but il bad right 10 do only what was
right. Was il right 10 confiscate all existing
properties, which had been built up under
| the provisions of the act OF 1866? When
| the telegraph business had become a grand
success, Ii was assumed that the govern
mcnt might build telegraph line, bcne-
fitting by the experiences OF the Western
Union company and build il ut low rate
and attach penalty for anybody else 10
| do telegraph business. That would be n
monstrous wrong. The government did
not need telegraph. 1t would not benefit
| the government. Ills remarks were not
made with a view TO selling the Western
Union 10 the government The Western
Union company did not want TO sell, but
its purchase was the only proper basis on
which the government could 90 into the
telegraph business. II should take all ex-
isting properties and do the business ex-
clusiycly. II the government built tcle-
graph In competition with existing tcle-
graphs lis deficits would he great. lie
stated that at the time the Baltimore &
Ohio Telegraph company was doing n
twenty word business between New York
and Chicago for 20 cents, the Western
Union company, charging 30 cents
for ten words was doing seven
eighths Of the business. Time was
OF more importance TO the customer, and
the saving OF few cents in the cost OF
a message. No that a government tele-
graph managed in the ordinary manner in
which 1t usually managed its business, run
in competition with existing tclegraphs.
no matter how low its rates, II il did the
business for nothing. would get very
small share OF the business. Sill II would
not be right Tor the government 10 do IL.
The government had unlimited capital and
could afford 30 do business at loss. II was
not right 10 compel the people who had
made Investments on the faith Of the gov
eminent 90 meet competition OF that char.
acter. The antagonism 10 the Western
Union was founded on the supposed mo.
nopoly OF that company. That company
had no exclusive privileges. The elc.
mentary patents in tolcuaphy had cx.
PRED. Anybody could 90 into the tclc.
graph business. They had done 10 and
were still doingso.
Dr. Green next turned his attention 20
the pending interstate telegraph bills,
and repeated the same criticisms upon
them which he had made before the Sen.
ate committee. lie was particularly bitter
In his reference 90 the drag net subpenas
which had compelled the production OF
great files Of messages. lie referred 10 the
action OF the United States Senate commit
tee investigating the Haycs-Tilden cleo.
ton, and declared that he hoped 10 never
live 20 see such another outrage. lilo
thought that Congress should pass law
upon the subject.
WHOLESALE JAIL DELIVERY.