The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-06-27
TELEGRAPH EXTORTIOM
The President Of the Western Union Rcplie3
to General Schenck.
Particular Charges Explained and Pisa q
General Denial Put INA Deft AIlusion to
the Emma Mine-Mr. Orton's De-
fence, you're Another

EXECUTIVE OFFICE,
WESTERN UNION TELEGRAPH COMPANY,
NEW YORK, June II, 1873. y
Hon. HAMILTON FISH, Secretary OF State, washing<
ton, ID. c.
SIR have had the honor to receive your commuS
nication OF the 18th inst, replying TO mine OF tho
10th, concerning the letter OF General Robert c.
Schenck, United States Minister to England, pub
lished in the New YORK HERALD OF Sunday, June s.
inst, ana which you inform me is substantially
correct copy
1t appears, therefore that the Minister OF the
United States IN London has addressed an oficiaE
letter to the Department OF State in which grave
charges made Affecting the reputation for honor
able dealing OF certain citizens OF the United states.
copy OF these charges was, az you inform me-,
transmitted to the Post ONCE Department. and BY
the latter given to the press for publication IL
does not appear that any effort was made, either
by the State or Post ONCE Department., to ascer-
tain II the charges true and therefore 1t may
be fairly inferred that .hey were assumed to be-
true by the officials OF both departments, who ap-
pear to have also assumed that the correction OF
the abuses alleged would be secured by making
them public.
The charges made by General Schenck which,
concern the managers OF the Western Union Iele-
graph Company are these:-
/. That the Ango-American Telegraph Company,
which controls the submarine cables in operation
between Europe and America, ''have an arrange
ment with the Western Union Telegraph Company
through which systematic imposition is practsed
sbinds the Western Unionn to allow the cable
companies to retain zone OF what IS charged
for the transmission OF cable messages over the
land lines in the United States.
2. That, under this arrangement, the charges Tor
Beyond New York. are double the regular tar
prices charged on domestic messages, ian over
sre Dsr IL " to t and that he Western Union
pocket for their share much more than twice their
whole proper charge.n
8. That communications transmitted by ocean
cable government business are subject to tho
same oyercharges as are the messages OF fndi-
To these charges respectfully submit the follow
l. 1t is true tnat the Western Union Company
have made an arrangement with the companies
controlling the Atlantic cables for connection and
for the mutual exchange OF business, which, as
General schenck says, lis proper enough, and a
convenience to every one, us well as to the con-
tracing partesn
2. But it is not true that this arrangements
"binds the Western Union Company" to allow the
cable compan,es 10 retain , OF any other
cable messages over the land lines in the United
States, nor that the charges for such transmission
in excess OF the average charges for other tee
graphic messages.
The facts are these: The cable business is con-
troled by the cable companies. who fix the rates
to DE charged and make and modify the rules gov
erning its conduct. me Western Union Company
messages in the United States, whether received
from or transmitted to the cables, and to accept
ton Tor all services connected with the transmits
sion Of such messages, including the keeping
proper accounts ana cOllcCtlnB ana paying over
the moneys accruing thereirom.
There are more than 5000 telegraph stations in
the United States, and 1t being lmpracticable to
stations, this country s divided into TOUR districts,
for each OF which uniform rate IS established.
The cable rate OF one dollar per word between
England and New York includes eight cents word
payable to the Western Union Telegraph Company
for their part OF the service. The rates beyond New
For ali stations in New Jersey, Pennsylva-
MIA. Delaware, Maryland and District OF
u
For all other territory east Of the Missls-
sippi River, including the city Of n s.. u,
For ali other stations in the United States "'N'
west Of the Mississippi River 20 cents work.
slightly reduced since the date OF General schenck's
Under the rules OF the western Union Company
the message rate in the United States IS Tor
minimum or ten words, with a rate per word for
cable companies permit any number of words to
be sent AZ the word rate, ana the result Is that
majority or the cable messages contain less Than
ten words, those OF three, icur and five words
being common, and occasionally message Is
Union Company Charges Al ior ten words or less
between Chicago and New York. The majority OF
cable messages IRON Chicago contain less than
ten words, the average for an entire month having
been as low as SIX words.
In the case OF St. Louis and st. Paul the rate on
domestic messages to New York Is 81 50 Tor ten
words or less while the cable rate Is fifteen cent?
word. But between New YORK; New Orleans and
Mobile the local rate Is 81 for ten words or never
less and sometimes more tnan) twenty cents q
word, while the rate on cable messages Is only If
teen cents word. The result Is, That cable
messages the Western Union Company actually re-
celve only the average OF their local rates, while
they are obliged to transmit cable messages OF
three words from New Orleans and ST. LOUIS
New York Tor l0rty-Gve cents, or 1rom san Fran
cisco and Oregon for sixty cents. Such messages
are handled at considerable loss, and II charged by
Western Union rules would be treated as contain
ing ten words. Concerning the rates collected in
England other portions OF Europe, Tor messages
to stations In the United States the western Union
Company nave no voice, and in respect to many OF
them have had no knowledge until prompted to In
quire by the published charges made by General
Schenck.
specific services Tor fixed compensation, all OF
which they receive, and no part OF which ls in any
manner, divided, refunded or otherwise paid as
consideration for having the cable business given
exclusively to then. They are no more responsible
Tor the tolls charged on cable messages IN Europe
be for the freight charged at Liverpool on merchan-
disc destined Tor Chicago or san Francisco, which
should include the charges payable TO the railway
8. It is also untrue that communications trans
mitted by ocean cable on government business are
subjected TO the same 0vercharges as are the mes
sages Of Individuals or to any overcharges what
ment which can be verified by q reference to the
vouchers In the State Department.
The tarn on cable messages from London to
Washington, paid in London, Is four shilngs and
three pence Q word. When paid 10 washington
Tue Snarge 81 70 ,S pSs uneae IS
to transmit messages on government business"
at less rates than for individuals, such messages
are transmitted at half rates between London and
New York. Instead, therefore, OF the rate Of four
shlllings and three pence word, London to WASH
ington, the State Department pays only two shil
llngs and three pence, and from Washington to
London, hity-three cents word, instead oil 81 O3.
General Schenck 8 zeal and efficiency in exposing
systematic imposition" upon the public, as some
times practised by the promoters and managers OF
swindling corporations, are widely known and fully
appreciated, especially In England. But he could
not have been aware, when ne attached his ofilcal
signature to erroneous charges, which probably he
did not prepare, nor even carefully examine. that
his reputation and Office were being used by the
active and INSCRIPTIONS agents OF an opposition
cable scheme Yet such Is evidently the fact. ]
submit, however, whether 1t s part OF the oiciaI
duty OF the American Minister at London either To
seek to relieve the people OF England rom what he
is pleased to style the systematic imposition" Of
an English corporation, whose conduct Is satisac-
tory to the British public and government or to