New-York tribune., 1872-03-30
THE TELEGRAPH AND THE GOJFRA NEWT
FURTHER ARGUMENTS BEFORE TIE HOUSE COM
MITTEE On NEUTRALITY-SUSPICIOUS. OF THE
CONTRACT BETWEEN THE WESTERN UNION
COMPANY AND THE OBSERVATION-DISCLOSURES

FURTHER ARGUMENTS BEFORE TIE HOUSE COM
MITTEE On NEUTRALITY-SUSPICIOUS. OF THE
CONTRACT BETWEEN THE WESTERN UNION
COMPANY AND THE OBSERVATION-DISCLOSURES
OF THE POSTMASTER GENERAL.
[BY TELEGRAPH TO THE TRIBUSE
WASHINGTON, Friday. March - 1872.
The House Committee on Appropriations de-
voted four hours to-day 20 the further hearing Of tho
Postmasereneral and the President and other officers
the Western Union Telegraph Company, in relation 10
the difficulty which has between the Company amt
the Post Office Department about the rates to be paid
for sending the signal Service messages. This dis
pute has assumed Unexpectedly important propor
tons, and now involves the whole question
OF the power OF the Government control all the tele
graph lines OF the country by virtue OF the provisions or
the act OF 1906 That act gave the telegraph companies
the right TO construct their lines along all post roads,
navigabe rivers. and through the public lands
the right to timber and quarry stone the public
lands and to take 40 acres for each telegraph station
not miles apart To avail themselves of its
provision, the law required the companies to file In the
Post Office Department their acceptance Of the follow
ing conditions:
First That they were o all work required by the
Government, and give !ts messages priority over any
others.
Second That they 20 accept as compensation for
the transmission of Government messages such rates ~
the POstIna ster- General should fiX.
Third They agreed TO sell their lnes to the Govern
any time within ok years, Tor price To De- de-
termined by referees.
All tie telegraph companies In the country have duly
fled their acceptance of these conditions When tho
nsmssiOn OF weather reports by the Signal Service
Corps commenced, tho Postmaster-ieneral, after
long negotiations with the Western Union Company got
them to fix the actual cost OF sending the dispatches.
determined upon the to be paid by adding 80
per this price. The Company did not ohiecG
to this The rate determined only about on.
third OF the current rates charged 10 business
The agreement became known 10 the
public, and there naturally followed many
protests from the commercial world against the
bitant charges business and private dspatehes It
was said that II the Telegraph Company makes 30 per
cent profit Government messages what an enormous
profit it reap the ssages OF citizens who
pay three times much per word as the Government
does The Company saw the bad position IL had
got into and sought ind way out OF it by declaring
that the Government rates did pay expenses. and
refusing continue to DO the work longer than till the
end OF the present fiscal year. unless allowed higher rate
The Postmaster-General refused TO pay any more.
and insisted his right. under the law. to fix
the rate. The Company hrst den.ed that the sigma
Service were Of the kind specified by the Act
OF 1876. But they have abandoned tins position and To-
day President OrtOn admitted the night VI the Govern
men to send what 1t peases. He fell back upon the
sas fher own % ,s property 5e IN took ABSOLUTE
possession OF their lines or hour three times each
amounted, he said. 20 practical contscaton OF their
property - during that time To this, this Mr. creswell
the idea that &c had not the power tn
compel the sending of lts grams when wished them
sent no matter what me Telegraph company might say
This power he said might De essential 10 the safety or
the country and would never 10 To allow an associa
ton OF citizens To delay interfere with the in
slant Transmission OF intelligence and orders from
the Government TO ali its officers 1t must have abso
Mr. Orton responded that this theory gave
the Government the right 70 seize at will the property
Of the company. The difference between the Govern
ment and the Company IL apparently irreconcilable.
The only apparent way out OF the difficulty, il both
parties insist upon their position Is FOR the Government
10 own and operate the telegraphs.