Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-08-09

| all land-grant railroads-have substantially
violated an act of Congress by leasing their
telegraph lines TO the Western UDion Tele-
graph Company, which az Immigrant roads
| they have no right to do.
The report alec gives a history Of the ways
ic which the Western Union Company has
built up the monopoly which Is 70 injurious
to the public interss- and develops some
fac's not generally known. The following
extracts from the report are OF interest al
this time:
WHAT THE REPORT SET FORTH.
In 1866 application was made to Congress
TO Incorporate the National Telegraph
Company" with the intent of building aud
operating lines throughout the United States,
under one act of incorporation, and likewise
to secure certain rights OF way across the
public domain and along railroads and other
roads declared by Congress TO be post routes,
as well as across rivera and else within
territory Under the jurisdiction of Congress.
Pending action upon this bill it was
amended 30 as to make it a general law, APP
plicable 10 all telegraph companies, and is
the law referred TO in this bill IS having been
approved July "a, 1866, entitled "An act to
aid in the construction OF telegraph'lines and
TO secure 10 the government the use oil the
same for postal, military and other puI-
poses"
Ii was pleaded at that time that such in
reference on the part Of the government
looking to the incorporation of such a lele-
graph company as was proposed was the
nucleus of transferring the telegraph bust
ness Of the United States 10 the government,
and the Western Union Telegraph Company
claimed thai, having expended many mil
lions of dollars in the development Of their
system, so that at that time it practically
covered the whole Of The United States, thin
law, even though made general in its appli-
| cation, should not be put into operation at
once, but that the Western Union Telegraph
Company should have an opportunity of real
izing eoms benefit from their large invest
ment before extensive competition should be
built up either by the aid of Congress or by
the United States government itself, and the
Western Union Telegraph Company corssnt-
ed 10 accept the provisions of the act ABOVE
referred to if they were allowed 10 have full
control of their properly without interior
ence for five years from thu date Of the sp-
prevail of the above act.
THE WESTERN UNION MONOPOLY.
Such provision was made, and the induce
ment al that lime 10 invest a large sum of
money in The development OF a separate tel.
egraph system, under the conflicting laws Of
the several States, was Withdrawn by the
failure Of Congress TO grant this act Of ns-
tional incorporation. Since that time the
| nttttIu OulOn ICicSTdfu SNblpdUT ms
practically mouopolized the telegraph busi-
ness Of the country; for, although numerous
opposition lines have been commenced, con-
structed and operated up to a certain point,
30 many difficulties were met and foun d al
| most impossible to overcome that sooner or
later they were broken down and absorbed
by the larger company. This was particu-
lsrly the case in the history Of the PAciic
and Atlantic Telegraph Company, which, up
to 1873, had established a system OF lines
reaching from New York to New O.leans,
St. Louis and Chicago. and connecting with
the Great Western Telegraph Company,
which extended west, southwest and nor,h-
west from Chicago; aud also cotnec,ing,
through the Franklin Telegraph Company,
with the Southern and Atlantic Telegraph
Company, which extended from Washington
City to New Orleans.
The Psc fc and Atlantic telegraph Com
pany having been absorbed by the Western
Union Telegraph Company in 1873, the
| Southern and Atlantic followed in 1875.
The Atlantic and Pacific Telegraph Comps
ny was being developed in the meantime,
and up to 1877 had extended its lines from
New York to Omaha (where it connected
with the telegraph lines CT The Union and
Central Pacific Railroad Companies, which
gave il an outlet 10 the Pacific coasi). and
from New York to 81. Louis, New O,leans
and intermediate points, connecting at n "
York with the Ffsnklin Telegraph Compa-
ny, which had lines through the principal
por ions OF New England, ahd likewise from
New York TO Washington. These comps
MES we're practically absorbed by the West
ern UnIou Telegraph Company in The sum-
NOR OF 1877, and finally extiuguished bv an
attempted consolidation in January, 1881.
PRIVILEGE TO RAILROADS.
In 1879 Congress, by an amendment to the
srmy appropriation bill, approved June %,
1879, authorized the various railroads of the
| country to do a general telegraph business,
uoder which provision the American Union
Telegraph Company was developed. This
company had lines through New England
and from New York 10 Omaha (where il con-
nected through the Pacific railrosds with the
Pacific coss'), Kansas City, ST.. Louis, New
Orleans and intermediate p1ints, aud was
likewise absorbed by The Western Union
Telegraph Company, through an attempted
consolidation, IN January, 1881. The diff
Guilty which most If these telegraph com.
panies met with in developing a means for
cbeapeniDg telcgraphic communication
throughout the country was, that the West
ern Union Telegraph Company CO slsntiy
contested with them the rights intended 10 be
granted by Congress under the act approved
July "a, 1866, granting the right of way
along the railroad post-routes oil the United
Slater. There were numerous corfl citing
decisions as the Ionigrowth of these liiiga-
tions, although the United States cour's gem
orally decided against them.
In the year 1874 the Western Union Tele-
| graph Company desired 10 build a telegraph
line across the State OF Florida to connect
with the ipternational ocean telegraph cable
TO Cubs, owned by the Western Union Tele-
graph Company. The right to build and
operate telegraph Inns in florida was
claimed by a State organiza alton, which COM
pany attempted to prevent the Western
UHieD Telegraph Company from construct
ing their proposed line. This the Western
Union Telegraph Company contested, and
pleaded their rights under the act approved
July "a, 1865, which heretofore they had
always denied 10 other telegraph companies.
The Gaze finally reached the Supreme Court
of the United States, and a decision was rem.
dered by the Supreme Court in the October
term of 1875, which ia set forth at length 10
the United States Supreme Court Reports,
| volume IS, psgs l, where the court took the
broad ground that no Stale could legislate SO
as TO proven, interstate commerce, which tel
egrspnic communication was decided to be.
A FORMIDABLE
Another great obstacle to the successful de-
velopuent of cheap telegrAphy 10 this coun.
try lay in the fact that 10 1868 Congress
passed a bill, approved March 10, 1868, in
tended 10 confer an honorable recognition
upon Charles G.. Page for an alleged inveu-
iion known as his induction coil apparatus
and circuit breaker" which invention had
been recognized by the government OF France
SIS in one Of her own citizens. The Page
patent" so-called, was issued in such terms
az to make it possible to distort it from its
original intent under the act of Congress TO
a reyivsl of the claims under the Morse pat
ent, which latter, after an extension by Con-
gress. had finally expired in 1865.
In 1869 the Western Union Telegraph
Company saw its opportunity 10 secure coz
troll of the "Pdge patent" and had it reissued
October IL, 1871, go that in mole specific
terms it should revive the invention of Prof.
Morse, and under this claim the Western
| Union Telegraph Company has undertaken
since then TO monopoiize the telegraph busi-
ness by declaration and claim of right and
by annoying litigation sgainst all telegraph
companies and various railroad companies
using the ordinary telegraph instrument, in
case they should combine 20 constitute a tel
egraph company in opposition TO the Wes.-
| ern Union Telegraph Company.
The most active contest vas made by the
Western Union Telegraph Company against
the American Union Telegraph Company,
and the defense set up WIS 30 conclusive that
it was not pressed TO final decree, but was
| one of the agencies used to bring sbout The