Evening star. [volume] (Washington, D.C.) 1854-1972, 1870-06-28

address. In the determinations OF this foreic,,
company, that which seems almost incred-
aence spoken Of by the memoralists ana
the editorial attacks which have appeared in
certain leading newspapers, Is this Tact, vii |:
elimination against the Cuba business, whereby
the New York, Newfoundland and London Tele-
graph Company at this date charges thirty-eight
cents in gold more, for every ten words from
London 20 Havana, than the International
Ocean Telegraph Company charges from Ha-
vsna TO London. Thus, Notwithstanding all this
outery against US FOR discrimination. they them
selves charge and Pocket thirty-eight cents
regular tariff 20 New York plOs the tariff FRO m
New York 10 Havana.
Having now fully shown by the statement OF
these various facts that the New York New
fouhdland and London Telegraph Company In
It's conduct towards the government and people
OF the United States, and towards the lnterna-
TO ask for the interference OF Congress in its
behalf, will now briefly set forth the origin
and reason for perststing in the discrimination
,h 81 .r0 ooIa per message OF ten words against
OF the nited states. First, as 20 its origin. A
negotiation between the Western Union Com
psny snd the International Ocean Telegraph
Comlany resulted In reduction OF the
tariff on business 20 all points in the
United states east of the Mississippi river, with
stipulation on the part OF the Western
apply TO European business. This reduction
therefore, OF necessity LEFT a discrimination
against the European business. Second, A. 20
the continuance Of the discrimination. The
oner on our part was made TO reduce on Euro
pean business, as we had reduced on United
states business, provided the other COMPANIES
In the line 70 Europe would take their fair share
IN the reduction. This offer WAS rejected.
The secret OF this war upon us is-that the
European business Of the International ocean
Telegraph Company, added 60 that soon 20 come
~ h.. Aa-N NWaN. a.
IL Is estimated, be sufficient 20 encourage the
laying and maintenance OF a third and IN iepen-
dent line between Europe and the United States
lhls thlrd lne, deriving q fair support from our
company and those acting In concert with us.
must compete, as best IL can, for the business OF
the United States, thus causing OF necesSity a
great reduction in the telegraph rates bstween
Europe and America, thereby enuring 90 the
direct benefit of the people OF the United States
and the patrons OF the International ocean
Ielegraph Company, at the same time giving 20
os lne Norking IN harmony with our own. IL
would, obNiC usly, be unfair to induce capital TO
embark in this third European line, unless every
proper step be taken by us TO secure 20 this line
all OF our European business. The most CERTAIN
method OF doing that, is TO maintain our present
tariff for existing lines, while making a mate
rial reduction in the tariff for the third com
pany. BY my latest giyices, agreements % this
effect were being prepared in London on the
18th day of June, $50. Congress may discover
from this, why the International Ocean Tele-
graph Company has been able to offer 20 Law
S5Co, 900 than any other telegraph company.
The memorial goes on to state, that the
usual charge OF four dollars in gold from Lake
City, In Florida, TO Cuba, for a message of ten
words, in which the address, date, and signature
are counted a. message. is In plain violation OF
the provisions of the statute which limits the
charge to $3.50 on a message of ten words"
The portion Of the act of Congress Of May s.
1896, bearing upon this subject, has already
been given in this paper. IL would seem q waste
oi words to call the attention OF Congress TO the
fact, that the line from Lake City, in Florida,
10 cuba, is the entire line of this company, en-
bracing over i've hundred miles OF land line, a
great portion Of which Is through swamps and
unbroken pine forests. The act Of Congress
gave the company the right 20 charge for a
message Of ten words over any of its sub
marine cables three dollars and nifty cents.
The charge made against il OF violating the con-
ditons Of this act, either in spirit or letter, j.
sages three dollars and fifty cents in any cur
rency, and is at this time charging one dollar
and seventy-hye cents. This charge is, OF
course, i'm gold, the business OF the company be-
ing with foreign country in which Y. ). cur
rency has no standard value. The Congress OF
the United States especially designed TO control
the rates over the cables without any intention
OF interfering with the tariff of land lines, which
formed no part of the line for which the sole
and exclusive privilege WAS given. THIS Is evi-
dent from the explicit wording Of the law, and
from the fact, that the articles of association,
under which the company was organized,
looked forward to the construction and main
tenance OF a line between the city of New York
and the city of Havana, in the island OF Cuba.
The act Of the Florida legislature. approved
January ?, lsG6, also authorized and empowered
the company TO erect, construct, maintain, and
operate telegraphic lines through the State OF
Florida. Both the articles and the act were
placed before the committees of Congress
which had charge OF the matter, and il is there
tended 10 interfar a., s.s..asr with The tarit,
over the land lines. Had the company ehosen
IL was entirely within its province, 30 far as the
r..aA snA 49,
mated its line at Key West, AZ il was also within
its province under the act, TO have continued il
to New York city or elsewhere. That il did not
60 10 New York city was, because IL would have
entered at once into opposition TO the West
ern Union Company, TO which line alone
II could look for the Transmission OF its mes
sages TO all points within the United States.
To have terminated its line at Key West, and
TO have invited some other company 70 come and
meet ii, would have been 10 have placed itself
and its patrons entirely at the mercy of such
company. IL was therefore determined % Law,
construct, and maintain a long and expensive
line from Key West TO Lake City. At that point
The western Union Company was not free from
the danger Of competition, and could not there
fore be exorbitant in its rates. It has been
stated that the land line above referred 10 was
mostly through swamps and an unhroken wild
erness- Testing stations and stations for re-
pairs OF the line, have TO be maintained al short
intervals, and horses and men at some of these
stations are absolutely furnished with supplies
purcnased AT the North. No one, therefore.
can possibly complain of a tariff on the
land line unless it should be EXCESSIVE
No tariff can be excessive which only makes a
moderate return on the capital OF the company
The net earnings of the company during the
hrst year OF its operation were under ten per
cent. During the second year the net earnings
were increased to q fraction over twelve per
cent. of the earnings Of these two wears
however, about one-half, together with over
$40 900 raised by sale of bonds, were devoted
TO the purchase and laying of the second cable
between Key West and Havana and the exten-
slons contemplated in the articles of associa-
ton, and which are at this moment being car
ried out in the West Indies.
III Is not possible from this exhibit, 20 sustain
against this company any charge of excessive
rates. 1t may be urged that lower rates might
bring increased receipts. That, however IL
disproved by the fact, that the tariff OF rates
was reduced on the LIST OF January, 1870, and
that while in the months OF January, February,
March, and April, 1s69, this company pad a
Government tax upon its gross receipts OF
s3,aO6.s2, during the corresponding months OF
lslO under its present tariff, that tax fell of TO
S2,Si.al. This reduction, therefore, financially
considered, was a mistake. Ii Is fair, however,
TO observe that this company expects a large in
crease OF business from It's West India and
South American extensions.
L will conclude by respectfully calling the at
tention OF Congress, to the extraordinary char
acter Of the memorial to which this is a reply.
That paper is simply a complaint of the New
York, Newfoundland and London Company ON