The New York herald., 1879-02-15
FROM OUR REGULAR CORRESPONDENT.

WASHINGTON. Feb. IA, 1879.
FREE ACKNOWLEDGEMENTS OF J. G. REIFF
OF THE AMERICAN AUTOMATIC TELEGnAPH
COMPANY, BEFORE THE SENATE RAILROAD
COMMITTEE IN FAVOR OF THE JONES BILL.
The Committee on Railroads Of the Senate held 9,
meeting this morning to hear arguments In refer
ence to the bill now pending before that body.
authorizing railroad companies to construct and
maintain telegraph lines for commercial purposes
MIR. J. C. Reif, in answer to inquiry. stated he
represented the American Automatic Telegraph Com
psny. who have an interest in having the pending
Sbill known as the Jones bill. or some other bill
passed. and then said:-
Mr.. CHArRMAS-The pending legislation needs
neither apology defence. Senate bill 1903 simply
provides for such extension OF existing law that
railroad companies throughout the country. owning
and controlling in the aggregate great system OF
telegraph lines outside OF the one great telegraph
company, may be- unequivocaly authorized TO utilize
their lines for their and the public benefit with
out unnecessary annoyance or litigation.
1t will be remembered that the act Of Congress,
approved July "a. 1866 entitled can act to aid in the
construction of telegraph lines &c. was originally
intended to cover special charter to the National
by the Senate 1t converted into q general law;
hence the special advantages and rights be con-
1erred by the act were of general application far
telegraph companies were concerned. the in
centive TO investment in the National Telegraph
Company taken away. Had the act of
1866 been originally framed general law it can
not be doubted that inquiry would have been made
into the status Of railroads and their necessary tee
graph system. so that whatever public advantage
might have been served by making the law appIi-
cable to all OF telegraphsines instead Of linn
iting it to telegraph companies. would certainly and
naturally have been provided tor In other words,
the technical omission of railroad companies in
the oct originally was inadvertence. and
title 65 OF the Revised Statutes, by simply ncor-
porating the words railroads, to read any
would make the statute aonsrnows Thereforc the
Iropriety OF corrective bill like Senate bill 1903.
The United states supreme Court in the Pensacola
Telegraph case reported in u Otto, page 1, having
broadly affirmed the cons' .utonality OF the act of
July "a ls66. further insists that the telegraph
such All important instrument of Interstate CON-
erce. Us to place 1t peculiarly under the exclusive
jurisdiction of Congress, &C.. aud says;--
lit is not only the right but duty Of Congress to
to it that intercourse among the States and the
transmission of intelligence are not obstructed."
Their decision rendered In a case raised by the
Western Union Telegraph Company seeking the shei.
ter of the very act which 1t has persisently opposed
when urged in favor of other telegraphic compsnies
although the Western Union Company does respect
Its provisions by filing the necessary papers with the
Secretary of the Interior.
The general public protest 10 is monopoly which at
tempts to prevent active competitive enterprise. All
here perfectly agreed TO the value and
sity of Geographic intercourse. and all equally
agreed the dcsrnbity Of increasing and cheap
suit viii be aided by the passage Of Senate bill ios.
At least IL will be said by Congress to the
railroad companies of the country. IL you
want to your telegrsphc facilities
for the public You do so freely. Certainly
this will not tend TO increase the tariff Of charges
either 20 the press the public II any Of the rsil-
road companies do not choose avail Of the law
harm will cnsue by this Legislation 10 the govern
ment or the people. In that the present statue
will merely be preserved
For the first time in the history Of tho country In
the vast elegraphc intercourse of tho country prac
tcally. IL not absolutely. under the control OF
company. and that company practically controlled by
one man.
On January 27. 1872, the Hon. James b. Beck, of
kentucky. In very able and exhaustive argument in
fhe House of Representatives against the postal tee-
graphic system, proposed TO be owned controlled
aud managed by the government, urged that some
legislation might be necessary the part Of Con-
gross to prevent the Western Union Telegraph Com.
1any IRON becoming an absolute monopoly by alb
sorpton of all competing companies; but he urged
that the government postal system proposed not
the best means of preventing that result, IA the
Immense teegraphc system necessarily connected
with the railroad system would still be tree aud be-
Lyond the control Of Congress.
believe the present bill furnishes plan for q
sound healthy and vigorous competition which will
mot be absorbed broken down or controlled by the
Western Union Telegraph Company.
This bill will avoid the evils which Senator Bcck
anticipated IL may avoid the necessity for this gov
controlling the tcleeraphs by purchase
and thus avoid tho still greater objection which Sen
Ieck advanced against government tclegraphit
system namely, the increase OF patronage by max
yiDg telegrnphic employees government appointoes.
That is All have TO say CONCERNING this ball. But