The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-06-26
GRIP OF MONOPOLY.


company has made, nor was the appro.
priatiOn Of current income to con.
struction account sufficient to prevent
the payment Of munificent cash divi-
dends to the share holders, who re-
ceived in that way from 1867 to 1883,
inclusive, $34, 200. 900, in addition to
stock dividends of $25,8l7, 1893.
1.-The exact excess Of the capitaliza-
tion Of the Western Union, beyod the
actual cost OF its lines, and beyond
what it would now cost to reproduce
similar lines, can not be a matter Of
doubt,and that it has been very great,
even il we admit, as Is claimed by the
Western Union, that the average rate
on the aggregate business has been re-
0uced. To the extent the pub
lie have been made to believe that
the nominal capital was a real one, it
has tended to cause an acQuiescence
In excessive charges, while the ex-
posture OF the actual nature of the
nominal capital does not diminish the
pressure of the motives which impel
the managers of the company to keep
up charges which are essential to the
maintenance OF the present dividends
upon the mass of watered stock"
A MONOPOLY OF THE MARKET QUOTA
TIONs.
The committee found that con-
tracts with press associations divided
the furnishing Of news into two di-
visions: Q) the business of collecting
and selling to newspapers, for publica-
ton, commercial news, and other re-
ports Of general character; (2) for
the Western Union-the business of
reporting, supplying, and selling tinan-
cial and commercial news, market
and other reports, and quotations of
a miscellaneous character, to individ-
uals, clubs, boards of trade, exchanges,
and other organizations. for their
own use and the use of members, but
not for newspaper publication. 1.-THE
situation gires to the Western Union prac-
teal monopoly control of commercial and
financial ne,Cs." says the report.
RUNNING AN INDEPENDENT NEWS
BUREAU.
Gardiner G.. Hubbard, of New York,
before the Investigating committee.
made the following statements among
others:
"A few years ago a man in Cincin.
natl had little news bureau. His
correspondent in New York collected
the news OF the market every morn
ing. forwarded it through the West
ern Union office, and it was sent over
the through line. The Western Union
afterward monopolized that business,
as they monopolize every thing that
they can put their hands on. They ask
ed him to sell out. He said, No, l am
making very good thing of this bust
ness. aud l prefer to keep it, The
Western Union slipped sending has mes
sages on the Through line and transmitted
them on q ,coy line. There acas no prior
ay for their messages. Oh, no! they only
sent them On, the through line, ,ciile the 9TH
ers arent on the aooy line. Those that ,cent
by the ,cay line Were longer IN getting
through, and ,Uhen received the customers OF
the Western Union had received the prices
aud acted upon them. No priority, only
the man ,cas ruined. He ecds obliged to
and they nO,U m0nOpOlize ii"
Stock Company, it collects the market
news every morning in London and
Paris, sends it to New York, whence
1t is distributed to every mart and
hamlet throughout the length and
breadth of this land. A fraction of a
penny on pound Of cotton is a for
tune to any man. They admit no
partnership In this part Of their bust
ness. They tolerate no rival, no con-
troll in the supply Of market reports
to every part OF this country. 1t is a
power too important, too vast, to be
| entrusted to any corporation, to any
set Of men. 1t is duty the Govern
ment owes to the people of this coun-
try to regulate this business
RAISING THE RATES ON NEwSpApEps
THAT FAVORED POSTAL TELE-
GRAPHS.
IA few years ago two papers in San
Francisco favored the postal teie-
graph. Their rates were raised. One
of them died because it could not pay
them. The other ceased to publish
attacks on the Western Union and
was restored to good fellowship.
IA few years ago there was criti-
ciSm upon some action of Mr.. Orion,
the president Of the Western Union.
The next day, or the next but one, the
rates Of that paper were doubled. 1t
ceased to receive any Geographic dis
patches because it could not pay for
them.
"The telegraph company can raise on re-
duce The rates. Its control OUer the press is
therefore absolute 1t has the po,cer of hte
md death. for the teleg,dphic ne,cs Is the
rital breath of the daily newspaper. Such
a poarer con not e1ist ,cithout its e1erting q
rernicious infuince upon public affairs,
and ere,y 0bse1va,.t public man has long
perceir d the demordhzing influence Of this
po,cevM but subtle agency'
BINDING THE RAILROADS.
DR.. Norvln Green. president of the
Western Union, testified to the cor
iectnc,s OF contract with the West
ern and Atlantic Railroad Company
OF Georgia, which contained this sec
ton:
THAT the party of the first part
shall have perpetual right of way to
erect and maintain telegraph lines
along said railroad Of as many wires
as may be necessary to its business,
and additional lines Of poles whenever
the said party Of the first party shall
so elect, and exclusive right of way so
far .as the said party of the second
part Chat is, the railroad com pany)
has the power to grant or secure the
same; and said party of the second
part, If it has the right and power to
refuse. ,ciu not transport poles, ,ci1es, o.,
other material for any other telegraph COM
pany at less hun FIJI rates of freight there
on, nor distribute on unload the same at oti-
or than the regular railroad stations of said
road: and should u competing line Of tcte-
graph be established on said railroad, then
the party of the first part shall be released
from It's stipulation to transmit free Of
charge anu business of said railroad off on
beyond its line of road.
Excepting the last clause" said
w 10 icin