The New York herald., 1869-04-25
YHE WESTERN UNION TELEGRAPH COMPANY
AND THE CALIFORNIA PRESS.


AND THE CALIFORNIA PRESS.
~~>~~>~~~~~~~~~~~~~>~~~
In resistance to an effort to crush out single
newspaper ana to establish upon the Pacific coast
a most odious and oppressive monopoly, appeal "a
last resort to an enlightened public opinion, and
especially to the American press, upon whose sense
Of justice feel that can confidently rely.
HENRY GEORGE.
The following protest will explain ITSELF
ATLANTIC BUREAU SAN FRANCISCO HERALD,
NEW YORK, April q, 1869. }
TO tne EXECUTIVE BOARD WESTERN UNION iEIh-
GENrLKhEN-I have been notified by your vice
president that the arrangement under wnicn tne
San Francisco Herald ID now receiving news over
your wires Will be terminated on the LIST OF May and
that thereafter new rates Will be charged, which
tween your agent and four California papers. CON
stituting the newspaper association known as tne
ne eosl Of the % m
a single stroke, have been evidently framed and
urged upon you for the purpose Of crushing out that
paper and giving to the four favored papers virtual
monopoly OF Eastern telegraphc news.
This Is proceeding 80 repuisiye TO every idea OF
Justice and ialr ueang SO suDversive OF every prin-
sighted as regards your own interests 80 wanton as
regards the Interests Of Others that cannot bring
myself to believe that you are fully informed OF the
facts ia the case, and therefore request that, while
protesting against your contemplated action, may
be permitted TO lay the facts before you.
the relative position Of the California papers IN
terested in this matter. The Eastern news Is the
news of the world to California. 1t Is not possible
for first class paper to exist without receiving this
news SO long as It's rivals get It, and as you control
all the wires between the Atlantic and Pacl-
dc States it is not possible to obtain this news
except through you. during the exciting times OF
the war the San francisco Alta and Bulletin and the
Sacramento Union, which formed combination
upon the establishment OF your nrSt line IN 1861,
possessed virtual monopoly OF Eastern telegraphic
news, and as consequence throve exceedingly and
considerable agitation OF the matter, and
efforts to call to il the attention of Congress-
liberal policy was adopted Dy you, and taking advan
tage of this and OF the more liberal policy then
pursued by the Associated Press OF New York, the
san Francisco Times succeeded in obtaining news
dispatches of its own; and when every effort to pre-
vent this had failed 1t was taken into the cOmbna
ton, which now consists OF the Alta, Bulletin,
Union and times.
This combination have spared no effort to prevent
the Herald from getting Eastern news. They re-
fused to sell 1t news themselves and by their iniu-
upon the Eastern Associated Press their agent
III the East being the General Agent OF the New
York Association) prevailed upon that association
to also refuse sell news. Nevertheless the Herald
started on the 10th OF January last and in spite Of all
efforts to prevent 1t has hitherto published regular
dispatches, which, to say the least, nave been as
fun, late and reliable as those published by the
binatlOn. AS a last resort they nave directly IN
voked your aid to crush the Herald and establish
their monopoly and THIS aid your agents have agreed
to give.
Under the present arrangement the four papers
apiece, for the Transmission OF daily news report
OF ZOO words from Chicago to San FRANCISCO winch
Is % used by them in common; the Herata is paying
Francisco. used by it alone. Under the new
agreement which has been made between you
$500 words day, for which they are to pay you
49, 1858 month, while you agree with them to charge
the Herald 81 900 per month tor Its 500; in other
words, you agree with the combination to institute
the following schedule OF prices:-
FROM CHICAGO TO SAN FRANCISCO.
Gold, per Month.
800 WOrQS daily. 81. 900
900 words daliy. ], 500
$500 words daly ........................ 3,333
Which rates are to be charged irrespective of the
number OF papers to whom the report Is delivered,
be it one or many.
which basis the arrangement with the Herald was
made Is as ioiiOws:-
FROM CHICAGO TO SAN FRANCISCO.
Words. Paper. Papers P1pers
$50. ............... 5000 $500 $1,000
500. O................ 500 1,2J0 1000
1000. ............... 1000 l,S0O 2,4OO
In the present arrangement some little modifca-
on OF this took place. For the fodrth paper OF the
combination the Ttntes, you only added Sl00 to the
price Tor 1000 words of news and before the HERALD
started you agreed that the price to 1t should be
Chicago
Between the old schedule and the one which you
have promised the California combination to adopt
the first and most striking difference Is that the
recognizes the principle tnat single paper should
not De compelled TO pay as much as num-
Der or papers, which principle Is totally ignored
in the new schedule IL is only by a recognition OF
tGis principle tnat any competition in the news
paper business in California becomes possible. The
prices which the California papers pay for tee-
graphic tolls are SO enormous, as compared
1t Is not possible for single journal TO MAIN
tain opposition, II 1t Is compelled to pay as
much for its news as all the others combined; and
from being used to establish most e
odous and oppressive monopoly is either to charge
each paper certain price for its news, to adopt
sliding scale sucn as was adopted In your old
schedule, or 10 permit no exclusive combinations,
and While charging but one price for news, whether
delivered 70 many papers TO single one, TO make
it condition that any newspaper combination wnlch
SEEKS 10 take advantage Of tnl5 shall admit to a
share OF the news any other paper which is willing
anu able TO bearls proportion OF the joint expenses
The essential Justice or this last method Is nominay
recognized In your recent agreement with the Cali
Iorlla Association, as the justice or sliding scale
IS SUBSTANTIALLY recognized in your schedule of
1867. You have provided In your agreement
that the combination TO wnom you give virtual
monopoly oil Geographic news shall sell 500 words
per day To any paper which will pay them 81, 900
month for this. But tins provso merely adds insult
INJURY. 10 would be ''raIe old news" that the op-
position paper would get for its share even If 1t
snould consent to pay ITS rivals for 500 words OF
news more than they pay individually for five tunes
the amount Imagine tue New York World doing
out news TO the Herald, or the Tribune dependant
ON the Times for its telegraphc dispatches. As
every newspaper man knows, the five hundred words
Will never be called for, and the standing offer Is
only standing joke.
IL may be SAID tnat the HERALD, or any new paper
Is perfectly free to form partnerships with otner
papers not now receiving the news, and TO thus
enjoy the same advantages winch you give the pre-
Gent combination. rms Is as though a railroad
company should tell single passenger whom
1t refused TO carry that he stll had his In
aenable right to walk, or II he chose perfectly
free TO Join with others and build a new railroad
The fact IL (known 10 all who are conversant with
the suoJecD that the five papers VINO are
now receiving Eastern news are the only
papers In California which can afford to pay
the prices you charge for telegraphing Should you
adhere to your present policy new papers will start
as the development OF the country goes on. which
VIII be able, alter WHILE TO form new combina-
tions; but the new schedule If enforced, Will not
only crush out or existence the only opposition
paper now Published but elrectualy prohibit the
OF any others.
There is however. another difference between the
two schedules which is hardy less striking than the
one to which 4 nave alluded; and whicn alone ls
TO show thai the purpose for which you have
been induced to adopt the new schedule Is
TO give the four papers comprising the Cali
fornia Association an absolute monopoly OF
the business. And that Is the difference between
the prices fixed for nall number OF words as CON-
pared with the price charged for a larger number.
at fror