The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-02-27
THE WESTERN UNION.
Right of Congress to Inquire Into Its Busi-
ness Disputed.

Disputed.
WASHINGTON, Feb 26-When DR. Norvin
Green presidentof the Western Union Telegraph
Company appeared before the subcommittee of
the Senate committee postofices and post
roads, to-day, Senator Hill asked that all con-
tracts with the press associations be laid before
the committee. DR.. Green requested that the
question of furnishing the subcommittee with
copies of contracts with railroad companies cable
companies and press associations be referred to
the whole committee. He claimed that neither
the subcommittee, nor the whole committee, nor
the Senate, had the power to require witness to
produce said contracts Besides, copies of them
cannot be made without the consent of the
directors, nor could they be produced without
the consent of other parties to the con
tracts. DR.. Green declined to furnish in
formation concerning receipts from the
Gold and Stock Telegraph Company, from the
cable contracts, etc. He said there was nothing
III the contracts which he was not willing the
committee should know, but he declined to an
swer on the general principle that the inquiries
were inquistorial IN their nature.
Senator Hill said: 'You are public corpora
ton, are you notl Congress has the right to
legslate in the matter has it notl"
No, sir, not the least in the world" replied
Gwnn, counsel for DR.. Green.
Senator Hill-Do you deny the right of Con
gress to regulate your interstate businessl
Gwinn-No; but Congress has no right to in
terfere with the management of our private bust
ness
Senar Eill-I can not agree with you on
that consider the question pertinent.
Gwinn-Very well. We will try that with
you any day.
DR.. Green here said he had Just received a
telegram from Mr. VIM Henry Smith, general
manager of the New York and Western Asso
ciated Press associations in relation to what he
(Dr Green was reported to have said yesterday.
He asked if the committee would ask Mr.. Smith
to appear in person before the committee and
that would be better than to receive telegram.
The telegram from the general manager of the
Associated Press, which DR.. Green offered to the
committee, referred to the incorrect inference
drawn by the committee from the clauses in
the existing contract, continuing certain preccd-
ing contracts that there must be some exclusive
privileges reserved. and was designed to correct
this impression. Mr.. Smith said there was no
exclusive privilege, and that the reservations
were for the protection of small papers in Texas,
Colorado, and other sections in the West. The
extension of the rates of the new contract which
were based upon the business done in the thickly-
settled East, would have been q hardship to the
Southwest and West and it was agreed that
they should not be required to pay more than they
were paying in November, 1882. Mr.. Smith
expressed the hope that DR.. Green would explain
to the committee the modification that had been
sent, about twelve years ago. This original con
tract was the first written contract in the West.
1t was effort to systematic business that
had grown by degrees, as the wires were ex-
tended and newspapers became able enter
prising enough to take news report. 1t was
made when both telegraph and press business
were duh and undeveloped. The clause can
celed by mutual agreement required that the
press business should be done exclusively by
Western Union wires, and William Orton, presi-
dent of the telegraph company, made the propo-
siton, and it accepted, on behalf of the Asso-
ciated Press, by Richard Smith and
Horace White. Thus was abrogated
the only exclusive clause that was embraced in
the original contract. Since then there had been
no attempt to bind the press, and the latter has
enjoyed no privilege that is not open to other
papers.
Mr. Smith added that if the committee shall
consent to call anybody familiar with the his
tory, principles and workings of the Associated
Press they may get accurate information Here
tofore the witnesses had been conspicuous for
their lack of information and their prejudlces,
He suggested the names Of David NJ. Stone
president of the New York Associated Press;
Joseph Medili, president of the Western Asso-
ciated Press, and Richard Smith, Walter N
Haldeman, Charles A. Dana. Whitelaw Reid and
James Gordon Bennett, who are responsible for
the present management, as persons capable of
talking intelligently on the subject