The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-03-15
DEFICIT WOULD RESULT
FROM GOVERNMENT OWNERSHIP OF
THE TELEGRAPH LINES.
Opinion of Vice President Clark, of
the western characterization of
Rates-Situation in Cuba.

WASHINGTON, March A.-Thomas f.
Clark, vice president of the Western Union
Telegraph Company, testified before the in
dustrial commission to-day concerning the
relations of the telegraph TO the public. lie
devoted much of his time to the considera-
ton of the wisdom of government owner
ship of the telegraph. Those who based
their advocacy of the system upon its
working in Great Britain, Belgium and
Switzerland, he said. ignored vital differ
ences between the conditions of those coun-
tries and the United States. In this coun-
try, Mr.. Clark said, there are only sixty
seven people to each mile of wire, while
there are in Great Britain $50 people to the
mile, in Switzerland 200 and in Belgium 81.
In the United States there are 1.11S,O miles
of wire and in all of Europe 1882 61 miles.
All told. he said, there are $4,000 places in
the United States reached by the telegraph
companies, while in Great Britain there are
only 10, 1856 places thus reached. In this
country almost 50 per cent. of the post
offices have telegraph connections, while in
Great Britain only about one-quarter OF
them are thus equipped.
while admitting that rates on local mes
sages in Europe are lower than in the
United States. Mr.. Clark commended that on
through messages they are considerably
higher. Mr.. Clark said that the capitaliza-
ton of the Western Union Company
amounts to $703 per mile of poles, or Sl4l per
mile of wire. In Great Britain the capital
ization was about twice as great.
Referring TO the consolidation of the vari-
Gus original lines into the Western Union
| system, he said 1t had been necessary in or
der to secure unifcation 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 1866. Now the rates are as rea-
sonable, he said, as they could be made
consistent with good business management
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 con-
struction of a telegraph system is not con-
fined to the lines throughout the rural dis
tricts, but is due largely to city conditions
the construction of buildings and under
ground conduits and the securing OF other
terminal facilities. He estimated that there
had been spent on the Western Union sys-
en-, since 1868, not less than $5O,OO,OO or
$50. OO0,0 entirely outside of construction.
He quoted the chancellor of the ex-
cheQuer of Great Britain as saying there
had been a loss to the government of about
SD, 0O0, 600 on the telegraph system of that
country. If there had been such a dehcit
there, what, Mr.. Clark asked, could be eX-
pected in a country like the United States,
twenty-five times as large? 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 dis
aster to the stockholders and would result
in no benefit to the public at large. There
certainly would be a deficit, and. in case
of government ownership. the burden sim
ply would be shifted from the stockholders
to the people.
Didn't you meet the rates of the Balti-
more q Ohio telegraph lines when they
were in 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 Company,
which is under the control of the Western
Union. and which carries government bust
sages 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. I'VE are simply
keeping our contract Ike honest men"
but it is a fact that you are fighting the
right of the Postal Company to get a foot
hold in cuba?
Il beg pardon; they are fighting our
rights there"
us anything being done to bring about a
combination with the Postal Company"
Not to my knowledge. | have seen such
a report in the newspapers. but L know
nothing about it,"
Mr.. Clark added. In reply to questions.
that there was an understanding as TO
rates between the two companies.