Telegram-herald., 1890-03-01
PRESIDENT GREEN
OF the Western Union Telegraph
Company, Says
SOMETHING OF POSTAL IELECRlPHY
some Psrtfasas FaeIs snd ftxures hsiA-
tive - the Csst sad the Profits Of
the Telegraph Business. ~
Oas W no kao~s.

POst-ofice Committee. this morning, 10
listen b Dr. Noryin Green, presrentof
the Western Union Telegraph Com
pany. Postmasts r-General Wanamaker,
with bis assistant, the AttOrney-General,
Gardner Hubbard and representatives
Of dtfereRt telegraph companies were
present.
Dr. Green began MS remarks by
discussion Of the merits and dement's
of the European Governmental tele-
graph systems. Tie said that while, in
Instances, their charges were lower than
those IN tie United states, they were
conducted at a loss. lie presented
table showing that the domestic CON-
panles had Il, 600 stations and handled
over $1,000 900 messages annually,
as against 53, 3,OOO stations and l73 ,0O0, 900
messages IN the rest of the world. They
had more than half the entire mileage
OF the world. The Western Union con-
TOlled ten-eleyenths OF this business.
Its stock was held by $500 persons IN
the United states, and ll4l OF them
were females. Or. Green believed that
the United States Government had no
business With the management of the
telegraph, 1t could not manage as
cheaply; Il could not do II better, and
none who were senders OF kilograms
had asked il. It was proposed TO make
rate OF half the cost OF sending mes
sages, and the deficiency would have TO
be made up by 81 ,0O0, 900 people who
didn't use the telegraph. The receipts
of the New York office of the Western
Union included 500, 900 annually from
pool rooms aud sporting places. A
large class OF telegraph users
We're stock brokers and spectators.
Were those the people who were 10 be
protected? Were those the people, IN
whose interest the people were TO be
taxed III the Government wanted TO
go INTO the telegraph business, il should
buy lines outright. lt should not seek
70 nix losing rates for existing COM
panies; that would not be fair 10 $500
stockholders of the Western Union.
The Government would need twice as
many lines as are now IN existence TO
do the business. Here was scheme
presented to go 20 AZ post-offices,
where there was free delivery, and
where there were abundant telegraph
facilities. This was the way the Post
master-General proposed to supply the
needs Of 5S,000,0OO people. This was
the entering wedge to movement 10
break down the present companies
and establish complete Government
telegraph, ana against that he protested.
Or. Green then made a comparison be-
tween the American and English tele-
graph system, and maintained that our
rates were IN reality, taking 'nto ac-
count free addresses and signatures and
the enormous area of territory covered,
much loser than the English low rates.
and yet Il wasprOposed TO reduce these
rates arbitrarily still lower. It would
require 2l $50 miles of wire to supply n
single connection to the All places COM
prised within.the POstmastcr-G
plan, and TO do business practically
would require at least los, 600 miles of
wire. At press contract rates the rental
OF this wire would Oe y 900 900. Who
ever undertook % DO telegraph busi-
ness over this system would do it at a
loss.
In this country there were more tele-
graph offices than pOst-Otfices; IN the
older part OF the country, II was 90
per cent. greater and yet Great Britain
owned both telegraph and post-Otfices.
Did that look as If the Western Union
was not keeping abreast of the times?
In North Carolina, the Western Union
had telegraph Offices tat did not pay
p cents day IN gross receipts. At
the Az places named IN the Post
master-renerais plan as telegraph
Offices. the Government owned but fO4
pOst-Otice buildings. 1t was becoming
q grave question as to whether It now
prOhted the Western Union to continue
its contracts with the railway COM
panles. Originally they were sources
OF great revenue, but now the railroad
business was increasing 10 such an ex-
tent that 10 was doubtful If the tele-
graph companies (which handled their
business free did not lose by the agree
ment. The chairman asked how much
of their business the Western Union
did in the free delivery cities. Or.
Green replied that about 30 per cent.
would cover 10. That business more
largely speculative than the re-
maiuder of their business. as Il
would include the great money -ccuters
OF the country. The chairman said
that o was proposed % pay the opera /
tors out of the 2-cent charge for the
postage stamp. be would Ike 60 know
what the operating cost was. Dr.
Green replied that close estimate
placed t az 3 cents per message. In
cases Of long distance messages. il ran
un TO cents. The average C0upensa-
ton Of frst-class operators was So per
month. The chairman " shed 20 know
how the rates suggested bv the Post
uaster-General compared with the
present rates. pr. Green replied that
generally they were two-ffths lower.
In the case Of long distance messages.
they we're one-half lower. The aver
age message vas u words. including a d
dresses aud signatures. TWAS preferable
toconbnue the system Of free addresses,
ant f0 insure accurate delivery I n
der the Fngi sh system. where the ad-
dress vas charged for. the addresses
were cramped and messages frequently
fa Ell in delivery. To tbe broad ones
ton ss "a how the Postmaster Generals
pIsr appeared to him as business
proposition. Dr. Green sad that Of
course it could be carried out. bat the
business could rot be done by the tr0v-
eminent or corporation at profit.
and somebody would have Co make up
q deficiency. Representative Crane
wished - know Why if the bill vas ina
practicable, Dr. Green and the pres.-
dent Of the Postal Telegraph Company
both Appeared here to contend against
t. DR.. Green replied that it was se-
r,cT1s matter fer tbem Thev lid not
wish tO be placed IN competition WITH
49,, T-s.sfef states T-nes1rr~ The F---