The Washington times., 1894-05-06
WESTERN UNION MONOPOLY
Gardiner G. Hubbard Says 1t Should
Be Under Government Control.
HON IT CHECKS OFF INVENTION
It Fought the Duplex System and Half-rate
Night Messages Until Forced to Adopt
Both-Benefts Which the Public Should
Obtain and Does Not.

Mr.. Gardiner G. Hubbard, OF this city, was
the chief speaker at the hearing on the ques-
ton of governmental control and ownership
of the telegraph at the hearing before the
Post Office Committee of the House yesterday.
In opening his argument in favor of the
proposition, Mr.. Hubbard declared that the
chief difference between the post office and the
telegraph company was that the one bene-
flied the people particularly, while the other
DEVOTED its energies first to its stockholders,
second to its patrons, and third, last, and
least to the public.
The property of the Western Union was
worth, according to Mr.. Hubbard's statement,
10000, 900 in 1869 and Sl15.000,000 at the
present time. This latter sum represented
first, capital in competing companies bought
out by the Western Union; second, profits
after payment of dividends; third, the money
borrowed for construction by mortgages Of
the company. All this difference. Mr.. Hub
bard claimed, represented the profits obtained
out of the public in the period mentioned.
Not one dollar of the in crease had been paid
for in cash.
business, Mr.. Hubbard stated that 46 per cent.
of the total was for speculative purposes, "a
per cent. for merchants. ~ per cent. for
newspapers, while the amount for purely
social messages was not more than per
cent In Belgium to-day under government
ownership the social messages aggregated 63
per cent The object OF these statistics was
to show that the cheap rates offered by
government ownership resulted in greater
use of the wires by the people. As we needed
the telegraph and telephone more than any
other people, it followed that we ought to
have better and cheaper facilities.
Continuing, Mr.. Hubbard said that in New
York city the average of kilograms was 5000
a day at the present time, and then discussing
the amount of money expended by the people
in communications, he stated that when he
was Mt college the annual amount expended in
this country per capita was % cents, while
now under 2-cent postage it was S1.10.
The telephone, according to Mr.. Hubbard
was greatly used by the people to-day be-
cause of the cheapness OF the messages. He
estimated that the net cost per message at
present is cents
Taking up in detail the number of telegrap.
messages, he stated that the number in Great
Britain was about the same as that in the
United States. Now, after twenty-four years
of government ownership in that country,
great per capita.
One reason, according to Mr.. Hubbard why
the telegraph could be conducted by the gov
ernment more cheaply than by private cor
poration was that the regular post Offices could
be used for the telegraph service and the mail
carriers deliver the messages as they would
letters on their regular routes. He claimed
that even under the general delivery the tele-
gram would reach its destination fully as
quickly as it would by the present methods of
the Western Union. For the reasons above,
the government saving rent and loss Of deliv-
ery, could undertake the service at much
lower rate. The greater the facilities the
greater the business. In England. where the
facilities had been increased by expenditure OF
80 per cent. the business done was fully 100 per
cent. more. 1t was not true that the cost of
doing the extra business increased in the
same proportion as the returns.
Mr. Hubbard then showed what reductions
the Western Union had made in rates under
what he termed the two periods of its history;
the first being the 0rton-Vanderbilt manage
ment and the latter the Green-Gould. In the
former administration the rate for messages.
on the average, had been reduced from G6
cents to 3S.5 cents; in the latter only from 3S.5
to 81 cents.
Taking up the practical question of con-
ducting and operating such a system by the
government. Mr.. Hubbard stated that the
cost oil CONSTRUCTION Wcull De OF course prtattr
now, owing TO the conduits required for
underground wires under city ordinances,
but that there was great improvement in the
elimination of drops" and relays, thus
avoiding the extra labor of repeating messages.
The telephone wire from New York to Chicago
cost II, 500. 900. He favored the government
making trial of the system by having a trunk
line telegraph system. say from Washington
10 Boston via Philadelphia and New York.
and another from Washington to Chicago via
Pittsburg. This would be a good system to
begin with.
As one of the greatest objections to the pri-
vate ownership of the telegraph Mr.. Hubbard
instanced the conduct of the Western Union
in checking inventions. No one could use an
invention unless this company would let it be
experimented with on their lines. They would
never do this unless they acquired the inven-
which enabled the transmission OF four mes
sages over one wire, which Mr.. Orton. the
president OF the company, had claimed was
impracticable. but which he bought within
twenty-four hours after the Post Office Com
mittee had seen it satisfactorily tested
The same was true of the night-message
system. which Mr.. Orton had claimed was i'm
practicable, but which was later put into
effect
In closing. Mr. Hubbard made an earnest
appeal for the proposition. and he expressed
his thanks to the committee for having
afforded him the opportunity OF expressing
his views.