The morning news., 1890-05-21
RATES OVER THE WIRES.
DIR. GREEN AGAIN BEFORE THE
HOUSE COMMITTEE.

He Reiterates His Statement that the
Rates Fixed by the Postmaster Gem
eral Would Not Pay the Cost of the
service-Figures to Support His
Claim.
WASHINGTON, May 20.-Dr. Norvin
Green, president Of the Western Union
Telegraph Company, appeared to-day before
the Hou SO committee on postoffices and post
roads and was questioned respecting the
proposed government telegraph bill advo-
Gated by Postmaster General Wanamaker
The inquiry proceeded as follows:
Mr.. Bingham-<Dr. Green, would like to
ask you this question for my information:
"Can you give me in any form the differ
ence in your rates and the rates specified in
the bill which handed you this morning,
which I received yesterday from the post
office DEPARTMENT.
Mr.. Green-These rates would be about
90 per cent. Of ours for the first 800 miles.
For the next rate the difference would be
from 90 per cent. to so per cent Most of it
would be so per cent For transcontinental
distances part OF them would be 66 per
cent, as for instance our rate from
Chicago and St Louis and every
place west to the Pacific coast
for great part of II it would be 50 cents
against 81. For instance. our rate from
New York to San Francisco is
81 and the maximum rate in that
bill is so cents, so that the rate would
be 20 per cent. of our rate for short dis
tance and 60 to so per cent. for intermediate
distances, and 66 TO so for long distances
But the greater part of it is at 30 per cent.
THE COST OF DELIVERY.
J.
statement do you take into consideration
the fact that upon each message the govern
ment is to receive centss
Mr.. Green-That, / understand, comes I
out of these rates.
Mr.. Bingham-You have taken that into
consideration.
Mr.. Green--Yes, sir; that comes out OF
these rates and secures the delivery, which
costs US fraction over cents--about 296
cents-a message oil over the country.
IL costs my company all Of rs
per cent to do our business, and that de-
sire to demonstrate against the criticism
of Mr.. Hubbard. If the rates were reduced
20 GO per cent. the business would neces-
sarily be done at q loss.
Mr.. Bingham-Then the rates as set forth
In this bill, from your knowledge and your
experience, are rates upon their face which
will entail an absolute loss.
AN ABSOLUTE LOSS.
Mr.. Green-An absolute loss; and that
statement would be sustained by any prac-
tical telegraph man in the country. The
business would only be dore at loss, which
would have to be paid in some way.
Mr.. Bingham-Could your company bid
under the conditions of this biil
Mr.. Green-We could not accept the rates.
We would be doing business at q loss IL we
accepted these rates. There is no business
in the United State that know OF that
could stand such a reduction of rates.
Perhaps the most odious monopoly
in the country is the telephone. They have
q perfect monopoly. The Western Union
Telegraph Company is not a monopoly.
Anybody can build telegraph line and
anybody can operate it. But nobody can
build a telephone line unless they have a
license from the American Bell Telephone
Company. reduction of 40 per cent.
would close every telephone exchange in
are. there is not one Of
them, or at least very few,
OF them that would not have to close on a
reduction Of 25 per cent. There is not a
manufacturer and there Is not a business in
the country that know of that could stand
a reduction at that rate.
THE OTHER TELEGRAPH COMPANIES.
Mr.. Bingham-What other telegraph
companies are there than the Western
Uniona
Mr.. Green-The Postal Telegraph Com
pany is quite large concern.
They are pushing on to New Orleans
and to Texas. They viii be there.
very soon. They are already at Charleston
and Savannah. They are already at Min
neapolis, st. Paul and Duluth. They will
soon be ct Denver and Omaha. In addition
to that. Mr.. Mackey has separate system
which covers the Pacific coast states pretty
generally
Mr.. Bingham--Is that another company.
Mr.. Green-It is another company, but its
belongs to the same man.
Mr.. Bingham-How do their rates conn
pare with yoursa tF
Mr.. Green-They have agreed with us to
maintain rates. There is. however, nothing
extraordinary in that. The railroads have
TO do that to keep from going into bank
ruptcY. All the manufacturing companies in
the country consult their competitors about
maintaining rates and agree upon them.
All the rolling mills have agreed to rates.
and so have the carpet and other manu-
featuring companies 1t is an absolute
necessity to prevent destruction from waste
ful competition.
MORE COMPANIES IN EXISTENCE.
Mr.. Bingham-What other companies
are theres
Mr.. Green-There are great many more
companies. My friend Mr.. Painter has got
vania. There is an independent company
up in the Adirondacks. The great North
western Of Canada runs over into the
United States considerable distance down
to Whitehall, at the Southern end
Lake of Champiain, and through
that country. The Canadian Pacific Rail-
road Company has got line from Mon
treal through New England right up into
the maritime provinces of Canada There
are several independent companies out in
the west and two or three down south, all
local concerns, but together they exc ouu
our opposition, as we go everywhere. They
connect with the Postal and help them out,
and they cover the whole country with a
competing telegraph.
WESTERN UNION CAN'T BE BEATEN.
Mr.. Chandler's letter, which 1 wish every
member Of the committee would read, for
it is a very clear statement of the case,
shows that it cost his company an average
OF 26 cents message to handle its business.
1t costs US % 40 cents per message, and we
can handle business cheaper than dny other
company can handle small business, be-
cause we handle a great deal more in