The age-herald., 1901-03-15
TELEGRAPH RATES
 WERE DISCUSSED
Vice-PreSident of Western Un-
 ion Before Commission
THE RATES CANNOT BE CUT
Says the Companies Have To Get Some Profit If They Expect To Give the Public a Good
 Service.

Washington, March 14-Thomas F. Union Telegraph Company, testified be- fore the industrial commission today con- corning the relations of'the telegraph to the public. He devoted much of his time to the consideration of the government ownership of the telegraph. Those who based their advocacy of the system upon its working in Great Britain, Belgium and Switzerland, he said, ignored vital differences between the conditions of those countries and the United States. In this country, MT. Clark said, there are only 67 people to each mile of wire, while there are in Great Britain 130 people to the mile; in Switzerland, 22O, and in Bel gium, 321. In the United States there are 1,11S,S06 miles of wire and in all of Eu- rope 1,5S5, ,267 miles,
 All told he said there are 5000 places in the United States reached by the tel egraph companies, while in Great Britain there are only 10,1s6 places thus reached.
 In this country almost 50 per cent of the postoffices have telegraph connec- tions while in Great Britai only about one-quarter of them are thus equipped.
 While admitting that rates on loca messages in Europe are lower than in the United States, MT. Clark contended thai on through messages they are compara. lively higher.
 MT. Clark said the capitalization of the Western Union Company amounts to s70, per mile of poles or s141 per mile of wire In lGreat Britain the capitalization was about twice as great
 Referring to the consolidation of the various original lines into the Westerr TTpiOp ha caid had heap S- sary in order to secure unification oi rates and to facilitate through business The result also had been vast reduc- ton in rates of transmission, though the 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 business management.
 Expected Some Profit.
 He said 1t could not be expected thai the owners of telegraph lines would sel at the mere cost of prediction. They, like the owners of any profitable property had right to expect something for good will, etc. He also argued that the cos of construction of a telegraph system is not confined to the lines throughout the rural districts, but Is due largely to city conditions-the construction of buildings and underground conduits and the secur. ing of other terminal facilities. He esti- mated that there had been spent upor the Western Union system since 1866 moi less than $50000, ,000 or $60 000, 900 entirely outside of construction. He quoted the chancellor of the exchequer of Great Britain as saying that there had been 6 loss to the government of about 20 0o0,- 900 on the telegraph system of that gov ernment.
 Clairnad that the WaQf arr Union rates were reasonable and the re- suit of very careful study and adjust ment. He thought any radical reduction would be followed by disaster to the stockholders and would result in no bene- fit and in case of government ownership the burden simply would be shifted from the stockholders to the people.
 Did not you meet the rates of the Baltimore and Ohio telegraph lines when they were in operation?' was asked.
 Yes the witness replied, and stopped dividends"
 Competition in Cuba.
 MT. 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 gov ernment business free of charge, had car red more messages for the United States in one year than it 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 purpose of keeping the Postal Company out of Cuba.
 NO, sir" was the reply. we are sim ply keeping our contract like honest men,"
 But is 1t a fact that you are fighting the right of the Postal Company to get a foothold in Cuba?"
 q beg pardon-they are fighting oul rights there"
 "Is anything being done to bring about a combination with the Postal Com- pany?" ~
 Not to my knowledge. I have seen such a report in the newspapers, but know nothing about it."
 MT Clark said there was an under standing as to rates between the two companies. He thought that unless there could be a permanent civil service pub lie ownership would result in serious difficulty, and he believed that no good would be served in the end.