The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-06-27
Tho Atlantic Cable and Western Union
Telegraph Mon0pOiics-NSr. Orton's
Statement.

to "Hon. Hamilton Fish, Secretary OF
State" which we publish this morning, will
be found the reply of the Western Union
Telegraph Company to the indictment, charges
and specifications brought against said COM
pany, IN connection with the Anglo-American
Atlantic cable monopoly, by General Schenck,
our Minister at London. The Indictment of
companies there is an agreement Through
which systematic imposition" upon the
public s'is practised, which ought to be
exposed J" and his charges substantially are
that this arrangement binds the Western Union
to allow the cable company to retain one-third
of what is charged for the transmission Of
cable messages over the land lines in the
United States that the land charges under
this compact for cable messages over our land
lines are double the regular tariff of prices on
domestic messages that upon cable dispatches
the Western Union company for it's share
pockets more than twice its whole proper
charges, and that the government is subjected
to these extortions in the same manner as are
individuals.
And what is the answer of the Western
Union against these accusations? Mr.. Orion
pleads that the cable business is controlled by
the cable companies, and that the Western
Union, upon certain fixed rates of compensa-
ton, has agreed to apply tho rates and rules
of said companies to cable messages in the
United States It has agreed to apply
these rates. This is o plea of equity to
General Schenck's charge Of an agreement.
But it appears from the statement of Mr.. Orion
that son cable messages the Western Union
Company actually receives only the average Of
its local rates" and that messages destined
for the cable, coming from remote points of
the Union to New York, ''are handled at con-
siderable loss" Mr.. Orion next pleads, in
defence of the Western Union, that it performs
this service for the cable company at fixed
compensation, no part of which is refunded or
divided; and next, that it is untrue that 'com-
municatons transmitted by ocean cable on
government business are submitted to the
some overcharges as are the messages of indi-
viduals."
Such, in its substance, is the response of the
Schenck touching the alleged systematic i'm
position" practised upon the public and the
government through this aforesaid agreement.
In his details of the working of this contract
General Schenck has apparently made some
mistakes but upon the essential point, the
agreement or arrangement itself, Mr.. Orion
pleads guilty. He admits that the Western
Union has agreed to apply the rules and rates
to cable messages in the United States adopted
by the cable companies on the other side Of the
Atlantic; or, to simplify this confession, he
admits that in reference to cable messages the
Western Union holds the position of o mere
lackey of the Anglo-American company, and
that Mr.. Orion cheerfully consents to do this
servie work at considerable loss'' to the
Western Union. To use familiar expression
of incredulity, this special pleading is stoo
thin )" and we still remain to be convinced
that this arrangement between these telegraph
companies on cable messages by sea and land is
not ga systematic imposition" upon the public.
Having, however, with his facts and figures,
to his own satisfaction, no doubt, disposed of
the charges of Genaral Schenck, Mr.. Orion
arraigns him in his turn before the Secretary
of State as overstepping the line of official
propriety in this business. Mr.. Orion says
that General Schenck S zeal and efficiency in
exposing systematic imposition upon the
public, as sometimes practised by the pro-
moters and managers of swindling corpora
tons, are widely known and fully appreci-
I'D ,a11x ~, nd Wa loI -
hear it. We are also gratifed to assure the
General that in calling the attention Of his
government to an arrangement which he
holds to be 90 systematic imposition" his
zeal and efficiency are destined to great re-
ward. But it appears that in this matter his
active and INSCRIPTIONS agents of an opposi-
sion cable scheme" Can such things be? If
so, there is then hope that at least for brief
season, between the 'active and unscrupu-
lous agents of two rival cable companies,
the public will escape the extortions Of "a
systematic imposition"
We agree that it is no part Of the official
duty of the American Minister at London to
seek to relieve the people of England from the
alleged systematic imposition" of an English
corporation, under which they appear to be
happy; and that he is wide of his high calling
in thoughtlessly arraigning citizens of the
United States before their government upon
charges concerning the conduct of their pri-
vate business; but this is begging and blinking
the main question. The rights of the public,
the people, and the interests of the govern
ment are paramount, and upon these high
considerations General Schenck is doubtless in
full accord with the Secretary of State in refer
ence to these telegraph monopolies and COM
binations and their INSCRIPTIONS extortions.
In the opinion that companies whose capital
and enterprise have connected the United