The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1908-12-17
TELEGRAPH MONOPOLY THE NEXT TO SWEAT
FEDERAL SUPERVISION CON-
ING AND PROBABLY PROSE.
CUTIoN As RESULT OF AS
FOUNDING FACTS GATHERED
! ~ INVESTIGATION NELL.

FOUNDING FACTS GATHERED
~ INVESTIGATOR NELL.
special Correspondence to The Prsss
WASHINGTON, d. c., Dec. IT,
That the time has come for tele-
graph companies to be brought un-
der government supervision and
= control is the conclusion reached in
q report soon to be sent to congress
AyLabor Commissioner Neill. AS
W whether the department of JUS
tice will nave against the COM
panies for violation of the Sherman
act has not yet been determined.
BY resolution passed last May
congress authorized the inquiry by
the bureau of corporations and the
department of labor into the tele-
graph companies. The resolution
suggested as subjects for investiga-
tion such questions as whether a
monopoly now prevails, due to a
combination between the Postal
and Western Union companies,
overcapitalization, excessive charg-
es and the oppressive treatment by
the companies of their employees.
The investigation has also extended
to such matters as the unfair dis
elimination resulting from whole
sale distribution of franks, special
contracts and rebates to press asso-
Citations and the extension of the
business of the companies to in
clude the sale of alleged sporting
and market news covered by their
charters.
The report has gone into the
question of the increase in rates
which both companies made about
a year ago, and which. It is claimed,
was the result of an agreement be-
tween the two supposedly compel
ing companies. This increase. 1t Is
said, amounting to more than 20
per cent of the gross receipts,
seems to have no other excuse than
, Q desire of the companies to recoup
through the public the losses in the
recent strike.
A considerable portion of the re-
port. it is understood. will deal with
the two subjects of over capitaliza-
ton and the wages paid to en-
ployes. Ample data shows that
wages paid to telegraph operators
are today practically what they
were 20 years ago. The profits Of
the men at the top are indicated by
q few statements like the follow
ing: ns
In 1858 the capital stock of the
Western Union Telegraph Co. was
$3S5,700. The stock dividends de-
clared between 1858 and 1866
amounted to SESSIONS. and the
stock issued for new lines was
$1.937.950. so that the capital stock
on July I, 1866. was $40. 1888 800. In
1856 new stock was created to the
amount of $40, 45O,500, SO that the
total capital of the Western Union
on the first Of July, 1867, was
$4O.56S,300.
These figures will give some idea
of the way the water was poured
into the capital stock in the early
years of the company's history.
but, in spite of water, the dividends
were enormous. Up, to 1874 the
smallest dividend declared by the
company was IA per cent. On one
occasion a stock dividend of &c.,
100000 was handed out. There was
period of seven years before 1874
when the dividends ON the average
capital were above 100 per cent.
But, In spite of stock dividends
and other mutations of capital, the
earnings piled up. until at one time
there was in the treasury $15,-
100000 cash reserve. 1t has been
gfiured out that the investment Of
thousand dollars In Western
Union stock in 1858 would have
earned up to 1890 dividends
amounting to $150,000, or 300 per
cent a year.
The Western Union plant mean
time could, 1t is estimated, today
be duplicated for less than $751;
100000 It's present capitalization
is somewhere between $87 1000. 900
and 500. 100000.
1t Is In the face of earnings like
these that the company officials are
now telling the public that dire ne.
cessity drives them to an increase
In the rates charged the general
public, and that they. never have
been able to pay more than the
starvation wages which they have
been paying or In 2 years to grant
any increase of pay to their EN-
ployes.,
The chapter OF this report which
deals with the franking privilege
ought to make interesting reading.
1t is matter Of common notoriety
that practically every United States
senator and member of the house
of representatives Is continuously
supplied with little book of
stamps which gives him free use of
the wires of both companies for
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