Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-03-15
RATES FOR IEtEeRAMs
TESTIMONY BEFORE THE INDUS
TRIAL COMMISSION.
Views of Vice President Clark of the
Western Union Gompany-Op-
poses Government Control.

the western Union Telegraph Company, In
his testimony before the Industrial commits
sion yesterday afternoon, said that the
capitalization of the Western Union Com
pany amounts to sos a mile of poles, or
Sal per mile Of wire. In Great Britain
the capitalization was about twice as
great.
Referring to the consolidation of the va
rious original lines into the Western Union
system, he said 1t had been necessary in
order to secure unification of rates and to
facilitate through business. The result also
had been a vast reduction in rates of trans
mission. the present maximum rates being
in many cases not more than one-tenth of
the rates in 1856. Now the rates are as
reasonable. he said, as they could be made
consistent with good business management
All efforts to reduce these rates had ended
in failure "N
He said it could not be expected that the
owners of telegraph lines would sell at the
mere cost of production. They, like the
owners of any profitable property, had a
right to expect something for good will
etc. He also argued that the cost OF
construction of a telegraph system Is not
confined to the lines throughout the rural
districts, but is due largely to city condt-
tions, the construction of buildings and
underground conduits and the securing of
other terminal facilities. He estimated that
there had been spent upon the Western
or sixty million dollars entirely outside Of
construction.
Mr.. Clark said that the net earnings of
the Western Union Company for last year
had amounted to So, 165, 1854. The expenses
for the year had amounted to $1S593, 205.
There were, he said, about $4,000 persons
employed by the Western Union. The
wages were higher than in Europe and he
thought they We're generally satisfactory.
Reduction In Rates.
Mr.. Clark gave his attention to the ques-
ton of the reduction of rates, claiming
that the Western Union rates were the 1e-
suit of very careful study and adjust
ment.. He thought any radical reduction
would be followed by disaster to the stock
holders, and would result in no benefit to
the public at large. There certainly would
be deficit, and in case of government
ownership, the burden simply would be
shifted from the stockholders to the peo-
pie.
Didn't you meet the rates of the Balti-
more and Ohio telegraph line when it was
i'll operation?' was asked.
Yes" the witness replied, land stopped
dividends
Mr.. Clark said that in carrying the gov
eminent business between the United
States and Cuba, the International COM
pany, which is under the control of the
Western Union, and which carries govern
ment business free of charge, had carried
more messages for the United States in one
year than it had carried for Spain i'll thirty
years. This explanation led to the inquiry
as to whether the Western Union had not
been pursuing this course for the purpose
of keeping the Postal company out of
Cuba. ..--rFf
mo, sir was the reply. I'VE are sim
ply keeping our contract like honest men"
But it is fact that You are fighting the
right of the Postal company to get foot
hold in Cuba?' a. .
Il beg pardon; they are fighting our
rights there" -. 3.
rs anything being done to bring about
combination witt the Postal company"
Not to my knowledge / have seen such
report in the newspapers, but l know
nothing about it. ~ .-ss..-r
Mr.. Clark added, in reply to questions
that there an understanding as to
rates between the TWO companies.
Discussing Government Ownership.
Mr.. CLARK devoted much of his time to
the consideration of the wisdom of govern
ment ownership of the telegraph He he
lieved that those who advocate government
control base their advocacy upon the fact
that the governments of Great Britain,
Belgium and Switzerland control the teIa-
graph lines in those countries, but he
gued that the conditions geographic, So
cial, administrative, etc.-are so entirely
different as to render useless in this coun-
try deductions drawn from conditions in
those countries
He compared the geographic areas, show
ing that where there are only 81 people in
the United States to each mile of wire
there are in Great Britain 100 people to
the mile, in Switzerland go and in Belgium
321. He said that in the United States
there are 1,11S,0S6 miles of wire and 1,5S5-
267 miles in all of Europe.
While admitting that rates on local mes
sages in Europe are lower than in the
United States, Mr.. Clark contended that
on through messages they are incompara-
bly, higher. An ordinary message covering
ten words of text would cost about s2.41 II
sent from London to st. Petersburg, dis
lance Of LIZA miles, While a message sent
from New York to Galveston, about the
same distance would cost only rs cents.
He quoted the chancellor of the ex-
chequer of Great Britain as saying that
there had been a loss to the government OF
about 500, 600 600 on the telegraph system of
that country. If there had been such
deficit there what, Mr.. Clark asked, could
be expected in q country like the United
States, twenty-five times as large? He
closed his statement with saying that I'M
less there could be a permanent civil ser
vice public ownership would result in Sc
rious deficit. and he believed that no good
could be served in the end.
cnEGR ATII,ATING THEMSELVES