Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-03-01
resentatives of the different telegraph com

ing the merits and dement's of the Euro
peaD Governmental telegraph system. Ht
said that while in instances their charges
were lower than those in the United States
they were conducted at a loss. He pre-.
sented table showing that the domestic
companies had $4,000 stations and handled
over 10000, 900 messages annually against
53 eco stations and 1730 600 messages in
the rest Of the world. The Western Union
controlled ten-elevenths of this business in
the United States, and the stock was held
by 3, $50 persons in the United States.
DR.. Green believed that the United States
Government had no business with The
management of the telegraph. 1t could
not manage it as cheaply, it could not do il
better, and none of the senders Of kilograms
had asked it. 1t was proposed to make a
rate of one-half of the cost of sending mes
ssges, and the deficiency would have to be
made up by the 100000 people who did
not use the telegraph. The receipts of the
New YORK office of the Western Union
included 100000 annually from the pool
rooms and sporting places. A large class
| of telegraph users were stock brokers and
speculators Were those people who were
| to be protected Were those people in
whose interest people were TO be taxed ?
! If the Government wanted to 90 into the
telegraph business it should buy lines out
right. 1t should not seek to fx losing
rates for the existing companies. That
would not be fair to the 8 800 stockholders
of the Western Union.
The Government, he said, would need
| twice as many lines as were now h exist
ence TO do the business. Here wss
scheme presented to go to 447 postofiees
where there was free delivery, and where
were abundant telegraph facilities. This
was the way the Postmaster-Generalp pro-
posed to supply the needs of 5S,000,000 of
people. This was the entering wedge of
the movement to break down the present
companies and establish a complete Gov
ernment telegraph and against that be
protested. DR.. Green then made a coni-
parison between the American and Eng
lish systems. Our rates. he said, "are in
reality taking into account the free ad-
dresses and signatures, and the enormous
area of territory covered) much lower than
the English low rates, yet ii is proposed to
reduce these rates arbitrarily still lower. 1t
woeld require 81 ,S75 miles of wire to sup
ply single connection to the 467 places
comprised within the Postmaster Generals
plan, and to do the business practically il
would require at least 100000 miles of
wire. At press contracts the rental of this
wire would be s.. 600 900. Whoever under
system will do it at q loss.'
"In this country" continued the doctor,
there were more telegraph offices than
Postofices. In the older part of the coun-
try it was so per cent. greater, and yet
Great Britain owIed both telegraph and
Posioffices. Did that look as if the West
ern Union was not keeping abreast of the
times? In North Carolina the Western
Union had telegraph offices that did not
pay % cents in gross receipts. At the 447
places named in the Postmaster Generals |
plan as telegraph Offices, the Government
owned but 104 Postoffice buildings. 1t was
becoming q grave question as to whether
il now profted the Western Union to con-
tnue its contracts with the railroad COM
panies. Originally they were sources of
great revenue, but now the railroad busi
ness was increasing to such an extent that |
it was doubtful if the telegraph companies
which handled their business free did not |
lose by the agreement.
The Chairman asked how much of their
business the Western Union did in the free
delivery cities.
Dr. Green replied that about 30 per cent. |
would cover it. That the business was
more largely speculative than the remain
der of their business, as it would include
the gDeat money centers of the country.
to pay the operators out of the two-cent
charge for the postage stamp. He would
like to know what the operating cost was.
DR.. Green replied that a close estimate |
placed it at 3 cents per message. In cases
of long-distance messages it ran up to 8 |
cents. The average compensation of first
class operators was $75 per month.
The Chairman wished to know how the |
rates suggested by the Postmaster. General !
compared with the present rates.
DR.. Green replied that generally they |
were two-ffths lower. In cases of long |
distance messages they were one-half lower.
The average message was twenty-One |
words, including addresses and signatures. |
II was preferable to continue the system of
free addresses to insure accurate delivery |
than the English system, where the ad-
dresses were charged for. The addresses |
were eramped and messages frequently |
failed in delivery. To the broad question |
as TO how the PostmaSter-General's plan |
appeared to him as business proposition, |
DIR. Green said that of course il could be
carried out, but the business could not be
done by the Government or a corporation
at profit, and somebody would have TO
make up deficiency.
Representative Grain wished to know
why, if the bill was impracticable, DR..
NTESeu tue 1SSl VI iuc Usual
Company both appeared here to contend
against it.
DR.. Green replied that it was a serious
matter tor them. They did not wish TO be
placed in competition with the United
States Treasury. The Government could
afford to bear the loss.
Mr.. Crain-"But the bill now provides for
that
DR.. Green-'It will have to provide for
that You will be asked for an sppropri
alton within year."
Mr.. Grain remarked that if no company
would contract with the Government, the
bill could do them no harm.
The Chairman al this point intervened
to say that DR., Green did not appear at his
own instance, but at the request of the
committee, bat the doctor, continuing his
reply to Mr.. Grains query. said:
why is it that the British Government,
having had its telegraph system for twelve
or fifteen years. paying the operators half
the salary. with g system placed in an
open country, ia a small area thickly
populated, costing about one.quarter the
cost of our system to maintain-why is it
that the Government has resisted the at
tempts to lower the shilling rate? And
why has the Postmaster General, after re-
sisting the attempt for a year and half
nnalig agreed 10 only slgnt feuucuOD.
1t is because the receipts of the system
lacked 100000 of paying the interest on
the cost of the plant at per cent.
Mr. Anderson, referring to the Post
master.G Generals bill, said that it die not
contemplate the payment of large salaries
to officers.
DR.. Green dryly responded that if he
wanted to do telegraph business he would
have TO pay somebody to look after it and
pay them well, too. After all, what mat
tered it? A salary of $4,000 per annum
amounted to a charge OF about one-tenth
Of 8 cent per message IN the Western
Union business. If the Postmaster Cen
erals rates were adopted BY the Western
Union its receipts would fall Just three
million dollars below the expenditures
every year.
/ At this point the committee adjourned
to meet tomorrow when DR.. Green viii