Omaha daily bee., 1901-03-15
FOR The WESTERN UNION
Vice President Clark MAKES Dsss,m Before
Industrial Commission.
GOVERNMENT OWNERSHIP IMPRACTICAL
Conditions Here Very Different from
Those In England, with More
Equipment Required for
Fewer People.


Clark, vice president OF the Western Union
Telegraph company, testified before the In
dustrial commission today concerning the
relations OF the telegraph TO the public.
He devoted much of mis- time to the con-
siderstion OF the wisdom of government
ownership Of the telegraph. Those who
based their advocacy Of the system on tts
working in Great Britain Belgium and
Switzerland. he said. ignored vital differ
enees between the conditions Of those
countries and the United states.
In this country, Mr.. Clark said there
are only sixty-seven people to each mile
OF wire, while there are in Great Britain
130 people to the mile. In Switzerland. 220.
and in Belgium. 32l. In the United states
there are i,llsOss miles OF wire and in
ell OF Europe 1.js5.267 miles.
All told. he said. there are 10000 places
In the United States reached by the tele-
graph companies, while In Great Britain
there are only .l05 places thus reached.
In this country almost so per cent OF the
postoffces have telegraph connections.
while in Great Britain only about one
fourth OF them are thus equipped.
While admitting that rates on local mes
sagcs in Europe we're lower than in the
United States. Mr.. Clark contended that
on through messages they are comparatively
higher.
Capitalization of the Company.
Mr.. Clark said that the capitalization OF
the Western Union company amounts TO
sos per mile Of poles, or si41 per mile OF
wire. In Great Britain the capitalization
was about twice as great.
Referring to the consolidation OF the
various original lines into the Western
Union system. he said 1t had been neces-
sary In order to secure unihcation OF rates
and TO facilitate through business. The re-
suit also had been vast reduction In
rates OF transmission, the present maximum
rates being In many cases not more than
one tenth OF the rates in 1866 Now the
rates are as reasonable, he said, as they
could be made, consistent with good bust.
ness management.
He said IL 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 right to expect something for good
will. etc. He also argued that the cost
OF construction OF telegraph system IA
not confined to the lines throughout the
rural district. but is due largely to city
conditions-the construction OF buildings
and underground conduts and the securing
OF other terminal facilities. He estimated
there had been spent upon the Western
Union system since 1866 not less than
s5OooO.OO0 or 100000, 900. entirely outside OF
construction.
He quoted the chancellor OF the ex-
chequer OF Great Britain as saying that
there had been a loss to the government
OF about s22 0o000 on the telegraph system
OF that country. II there had been such a
deficit there what. Mr.. Clark asked. could be
expected In country like the United
States. twenty-five times az large
stockhoIder. CouIdn't stand II.
Mr.. Clark claimed that the Western
Union rates were reasonable and the result
OF very careful study and adjustment. He
thought any radical reduction would be
followed by disaster to the stockholders
and would result in no benefit to the public
at large. There certainly would be a
dehcit, and in case OF government owner
ship, the burden simple would be shifted
from the stockholders to the people.
Didn't you meet the rates OF the Balti-
mere & Ohio Telegraph line when 1t was
IN operatlon?" was asked.
Yes" the witness replied. "and stopped
dividends"
Mr.. Clark said that In carrying the gov
ernment 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
moro messages for the Unites States in
one year then II had carried for Spain In
thirty years. This explanation led to the
inquiry whether the Western Union had
not been pursuing this course for the pur-
pose OF keeping the Postal company out OF
Cuba.
"No. sir" was the reply. I'VE are only
keeping our contract like honest men"
But II is a fact that you are fighting
the right Of the Postal company to get u
foothold In Cubs?"
II beg pardon; they are fighting our
rights there"
lis anything being done to bring about
o combination with the Postal company"
Not to my knowledge. I have seen such
q report In the newspapers, but | know
nothing about It,"
Mr.. Clark added in reply TO questions,
that there was an unders tanding as to rate.
between the two companies,
He closed his statement with another
reference TO government ownership saying
that unless there could be permanent civil
service. public ownership would result In
a serious deficit aud he believed that no
good would be served in the end.
Commercial College banquet.
A concert for the benefit of the Omaha
Commercial College band and orchestra
will he given the large hall In he col