Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-03-15
RELATION Of TELEGRAPH
COMPANIES 70 PEOPLE.
THOMAS CLARK, VICE PRESIDENT
OF THE WESTERN UNION
BEFORE
THE INDUSTRIAL COMMISSION.
REASONS WHY HE DEEMS GOVERN.
MENT OWNERSHIP OF TELE-
GRAPH UNWISE.

4OANt ~ go
F. Clark, vice president of the West
ern Union Telegraph Company, testi-
fed before the Industrial Commission
to-day concerning the relations of tel
egraph to the public. He devoted
much of his time t the consideration
of the wisdom of government owner
ship of the telegraph. Those who bas-
ed their advocacy of the system upon
its working in Great Britain, Belgium
differences between the conditions in
those countries and in the United
States. In this country, Mr.. Clark
said. there are only 81 people to each
mile of wire, while there are in Great
Britain 1870 people to the mile, in
Switzerland 220 and in Belgium 321.
In the United States there are LIS
0S6 miles of wire and in all Europe
1885, 267 miles. All told, he said,
there are $4,000 places in the United
States reached by the telegraph com
panies, while in Great Britain there
are only 1886 places thus reached. In
this country almost so per cent of the
~postoffices have telegraph connections,
while in Great Britain only about one
quarter of them are thus equipped.
While admitting that rates on local
messages in Europe are lower than in
the United States. Mr.. Clark contend
ed that on through messages they are
incomparably higher.
Mr.. Clark said that the capitalization
of the Western Union Company
amounts to $703 per mile of poles, or
$141 per mile of wire. In Great Brit
ain the capitalization was about twice
as great.
Referring to the consolidation of the
various original lines into Western
Union system, he said it had been nee
essary in order to secure uniication of
rates and to facilitate through bust
ness. The result also had been a vast
reduction in rates Of transmissions,
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 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 profit
able 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 conditions. the
construction of buildings and under
ground ~conduits and the securing of
other terminal facilities. He estimates
that there had been spent upon the
Western Union system since 1866 not
less than fifty or sixty million dollars
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 govern
ment of about s22, 000, 900 on the tele-
graph system of that country. IL there
had been such a deficit there what, Mr..
Clark asked, could be expected in a
country like the United States, twenty
five times as large?
Mr.. Clark claimed hat the Western
Union rates were reasonable and the
result of very careful study and adj
justment. He thought any radical re-
duction would be followed by disaster
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
simply would be shifted from the
stockholders TO the people.
Didn't you meet the rates of the
Baltimore and Ohio telegraph line
when it was in operation was asked.
Yes the witness replied, "and stop
ped dividends"
Mr.. Clark said that in carrying the
government business between the
United States and Cuba, the Interna-
tional company, which is under control
of the Western Union. and which car
ries government business free of
charge, had carried 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 pur-
pose OF keeping the Postal company
out OF Cuba
NO, sir" was the reply, I'VE are
simply keeping our contract like nom
est men"
But it Is a fact that you are fight
ing the right OF the Postal company
to get a foothold in Cuba7"
Il beg pardon: they are fighting
our rights there"
rs anything being done to bring
about ! combination With the Postal
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