New-York tribune., 1880-02-29
NO NEW ACTION YESTERDAY.

Company has not been ended. Officers OF the Western
Union Company refused yesterday to say what action
that company intended take. 1t is improbable that
the present struggle continue long without de-
| cisive movement
Officers of the American Union Company. learning
| that considerable business had accumulated in the
Western Union Office at st. Louis, instructed the
panys agent there to offer TO send Western Union
sages to all points on the Kansas Pacific Railroad This
proposal, which made, 1t is claimed, to avoid delay
in doing the public business, refused Tie Western
Union manager at st. Louis, when afterward offered
business by the American UnioD ref receive
| business originating at points the Kansas Pacific
Road. The given for this refusal that those
lines had been stolen from the Western Union Company.
The St. Louis agent of the American Union Company
instructed to make formal demand upon the West
Union to take the dispatches Of the former company
He was ordered to keep record Of the facts and TO
bring separately for every failure of the Western
Union Company 70 accept dispatches. THIS action
based the State laws OF Missouri concerning tele-
| graph corporations The act approved May 81. 1879,
makes IL the duty OF every telegraph company In the
to receive dispatches from and for other lines and,
on payment OF the usual charges fixed by such
company TO transmit the dispatches with mpartiaty
and good faith The act imposes on every neglect or
refusal to comply with its provisions penalty OF 300
to be recovered with costs of su by civil action for
the benefit OF the person company desiring TO send
| such dispatch.
| THE RAILROAD AND THE TELEGRAPH LINES.
II is said that Western Union lines along the for
| mer Union Pacific Railroad from Omaha TO ogden have
not been dis surbed. The lines the Kansas Pacific
Road which is part of the Union Pacific Company,
between Kansas City and Denver and from Denver 10
Cheyenne been seized by the company These lines
were built by the Pacific Company, which claims
| TO own them still. A contract made in October,
1866 between the railroad company and the Western
Union Company, which practically gave the telegraph
company absolute control OF the lines. This contract
was made for twenty-five years, but it was expressly
provides b in tho contract that the railroad company
granted no rights beyond its corporate powers. The
Western Union Company has placed along the line one
additional wires. and under the contract ir 10
claimed that the railroad company has the right to take
this wire at its price This IT has doue and it has
rendered the Western Union Company the cost OF its
| wire along the road
| Between Omaha and Ogjen the Western Uuion lines
are on side of the railroad and the railroad COM
| pany's lines occupy the other side. The Western
| Union lines between those points have not been
| touched. It is said 10 be probable that
| the Courts will be called upon TO determine
the Of them. In 1869 the Union Pacific Com
pany turned its lines TO the Atlantic and Pacific
| Telegraph Company, for which II was allowed $4,000
shares of that company's stock In 1870 sidney Bart
lett OF Boston counsel OF the Union Pacific Company,
gave an opinion that the company had no right to make
such contract and he advised that the company should
take possession Of the lines This was nor then done.
but ON the recent application OF the American Tn on
telegraph Company to do business tho lines, Mr.
Bartlett reiterated his Oprion This was COZ hencd by
exIudge Dillon. who is also counsel for The company
One OF the counsel said yesterday that the ac OF ls62
| authorized the company to make compact with the
! Pacific Telegraph Company, the Overland telegraph
Company and the California State telegraph Company
TO- the operation CT telegraph lines along ats route The
arrangement never made uncer tie pt"YlioHs OF
this act The Western Union Company ah"rward
bought M these lines and that It succeeded TO all
] r.tlo 4fc * he
comp my has" he sltd for claiming g. own hc tele
graph Ines OF the Union Pacific"
Az OFFICIAL OPINION.
In regard to the claim o. the Atlantic and Pacific gele-
graph Company to the lines. unoer the contract
made in 1869 an ofcal opinion WAS given in January.
1872 by the Treasury Department at Washington. This
| opinion was given by the Second Controller of tho
Treasury in letter the QuarteriDasterG Toe
question arose the presentation OF clam of $40 90
| by the telegraph company for sending Government
messages In his letter the Controller says;
There is no dspu;e about the facts in tac c'sa the
| liability Of the United atcS 20 make pa neal Tao
issue is. u whoa shall the amount be lad and upon
what principle shall the computation be made. -.
The facts appear Follows On Tue l1,n ~ H3YeEi-
ber. 1871, the COMPANY, thrnuSn tnlg S't ~! aud
treasurer. A. Nelson aemanded pa mcnt o .' 'irS.-
cihc Railroad Company. alleging lh"' ~ St2irmoer.
1869. the telegraph lines be,0hsS to tiS ltte eoa-
| many were hOuiht by the Atlantic AID ] ct.- ieie-
ssrarh Company There is no evidence on p sLo yRs
The nature and extent of the sale and 'aa'ie ana the
cl aoter OF tie telegraph company As not So iorih,
WHETHER corpoyal5n cxsing by jigtGc o. s;aic laws
an cxam,naon Of Tie acts Of Coner,ss rc.atrg TO
| the Union Pacific Railroad. as well - those making
land grants and comforting Important Unsi.,, upon
aIIr6afs aud telegraph companies fans to SHOW auy
legislation in spect OF the Atlantic AID PdciE' tee-
As the Union Pacific Railroad COMPANY is coraora-
ton owing IT'S existence to the leGislaii ~ tongrcs'
enjoys the privilege Of right 0f way through 'he pao-
lie lands l. the grantee OF public land, Tue ps0 rry 0i
the United aud has loan OF many millions "
dollars from the Government. II IS very eN - ihak
this company c0ut only make grant OF any unuchne
possessed by It's II when authorized by 'N- "islme
act of its Incorporation or by suDs'qcn Nt" l'h OF
| Congress. ~ ,.,
I6s 2gd Tt S@gnph S@ COMPANY as t a ade
pendrnt OF the Ulion Pacific Railroad Company -; on
| the "rairoad aud telegraph line" IL th'cuglcat Ae
whole statute regarded as ono corporation sars qacnt
IeDs,tion has not modified the character hCiCnueiOre
described OF the Union Pacific RI rOad a1 - ,ra9h
Company" Oae corporation on,' hAS iie5"f S'."r ~
separate itself into two more dl tnc carr r ions
statute the various prOvls.O.s and eonG"us 0i ihs
act OF incorporation, sh9w tE's ~ res l"' 10 ons
by it.
Congress issued bond, AID granted land 20 tLll con-
pany ana in return required tic pa uca ~ ~ bcEis
~ maturity with aunua. terst The raiirod ui tee
graoh line kept III repair ani usc ne iaG rers-
thc telegraph line the carriage Of troops aaH munitions
OF war; IN short al services ,roier AMI ust ioc
rnilroaa an! telegraph 10 rcr.Cru. hc trq Iha
whole cOmpensa ion for ihese services @@s - he 3p-
subsequent icSs'a o. 0nl Ohe.lall y. cII;t.,t-sn
for services rendered 10 thc H9F'ihH'pt ty
rSy@ent IagSe o! tie bonds ssned by toe tyuet "a Id
81 he construction OF said roads ltIs ge'ftyidens
prcposition that the whole Of tho apcNc anoaat.
II Oh 69 he pad, the Union Pacific ici, garh
Compopv" nut 10 the Atlantic aid Pacific lasraph
ComIpany"-au Organzati0a not recognized ~ authog-
ity Oi COngressthe essential condition 81 tie 1ant 10
the former company will b. violated.
Not only must mOety OF the compensation fr ser
vices be deducted and applied the payment 81 tho
boncs IN accordance with the requirements Of ine
statute of Congress- but the ment Of the OahCe can
ONLY be ma 10 the Union Pacific Rllroaa COMPANY.
or It's agent or assignee
the recent action of the American Union Telegraph
Company In taking possession the lines oi tic Union
Pacific Railway and It's branches, WAS In harmony With
the advice which the counsel OF the UnOo Pacific Rail-