Savannah morning news. [volume] (Savannah) 1868-1887, 1884-03-08
GOVERNMENT TELEGRAPH
WM. HENRY SMITH BEFORE
THE SENATE COMMITTEE.

! Henry Smith, General Manager of tbf
Associated Press, was examined bv the
| subcommittee of the Senate Committee
on Post Offices and Post Roads TODAY
This committee is considering the sub.
ject of governmental control of the teIe.
graphs, and statements have been made
| by various witnesses, heretofore exam.
ined, regarding the management of the
Associated Press and its alleged relations
with the telegraph companies, which Mr..
Smith to-day refuted. He made a formal
statement of the principles upon and the
| purposes for which the Associated Press
was organized. His examination lasted
several hours. Taking up the statement
of Gardiner q. Hubbard, that the Asso-
ciated Press and the Western Union
Telegraph Company constituted close
corporation, and that the Associated
Press Is monopoly.
Mr.. Smith said
The Associated Press is a private busi-
ness, conducted for the benefit of the
papers concerned. 1t has no exclusive
contracts and enjoys no privileges not
freely open to any newspaper or
association of newspapers. Its system
OF collecting and distributing news is the
Outgrowth of experience, and the known
wants of those who are served. 1t is
thorough and satisfactory to those asso-
Grated together, and should be To the pub
lie, as the news of the world is placed in
the hands OF every one who cares to read
1t every day at trifiing cost. But for
this company's operative system this
would be impossible.
NOT A MONOPOLY.
The Associated Press is not. therefore.
as has been repeatedly asserted. a monop-
oily. 1t does not own sources of news.
and 1t has never received a special privi-
lege from any authority. 1t is evident
that the use of the word monopoly is due
to misinfOrmatiOn. Many people suppose
that because the Associated Press uses
the wires of telegraph company freely
therefore there is amutualty of interests.
A merchant who conducts his business
largely by telegraphic correspondence
bears precisely the same relation as the
press to telegraph company. The lat
ter is a common carrier, and the businesses
conducted over the wires by both merchant
ana press are strictly private. The news
Is Tree to all, but while the sources of
news are free, skill and ability in giving
1t, uniform agencies employed in its dis
trlDutlon and the capital that makes all
available come under the head Of private
enterprise and private property. There is
no power to make these free without the
consent Of those who own and control
them. Traversing the testimony of an
other witness, Mr.. Smith said: In short,
the question is asked why should not the
press serve all papers at the same price
A GENEROUS SYSTEM.
To the credit OF the wealthy members of
the Associated Press, be it said. they
nave voluntarily taken upon themselves
the largest payments. They take what is
called the Western press report, which is
delivered to all of the principal cities IvIng
between the Alleghanies and the plains of
Kansas. The service is the same to all:
yet, except the cities of Cincinnati. ST.
Louis and Chicago, no two cities pay the
same. Their assessments are IN prOpOr-
ton to their population and ability to pay.
The same rule applies to cities taking con
denSed reports. In a number of these
places the money paid by the paper does
not equal the cost of delivering the re-
port, and nothing is received towards
paying the cost of the original collection.
handling and editing of the news. Under
no other system would this be possible,
The government charges the same rate of
postage to rich and poor alike. The AS
sOciated Press dlscriminates in favor of
the poor. The witness then referred to
Misrepresentation in the statement of a
preceding witness as to the rates In con-
tracts with the telegraph comDanv. II
had been stated that there was contract
rate for service at 61$ cents per hundred
words. There was no such contract rate.
If Senator Hill, the Chairman, would ex-
anime the contracts before him he would
see that there was no rate less than 50 80
per hundred words, exceDt in the new
and sparsely settled districts of Texas
and Colorado. In other sections the
Associated Press has to account
to the telegraph company at the rate men,
TONED, but 1t does not always collect from
papers receiving the report as much as it
pays the telegraph company for the SER
vice. illustrations were cited and eIabO-
rate explanations were given showing the
methods Of assessments.
LIBERAL POLICY.
The policy of the Associated Press had
been of the most liberal character. The
news reports had been supplied to all
cities large enough to support a daily
newspaper. While against the interest
of papers of the tirst-class cities. vet the
latter had acqulesced in it. The Associ-
ated Press has been an important
instrumentality i'll building up cities
IN the new States of the
West and in extending commerce.
10 make the rate uniform. as had been
suggested, would result in DESTROYING
nearly one half of the newspapers of the
united states. The witness was sure that
the senators would not regard such legis-
latlOn in the nature of encouraging the
press. The cooperative system. Which
gave to smaller dailies through the Asso-
clated Press a representative at the
capital and other important. centres, was
the only one by which a large portion of
the American press could live Referring
again TO the answer above, Mr.. Smith said:
How is it possible for a common carrier
TO discriminate as suggested? The rate
is on the service done. If the rate
is 81 30 per hundred words for
a service of 10000 words per dav. and the
owners choose to permit its use to half a
dozen papers, that is a matter that does
not concern the telegraph company. If
an individual newspaper published in the
same town asks the telegraph company
to transmit for it also 10000 words the
company must charge the same rate for
like service. The Associated Press eXer-
clses the right enjoyed by every other
private business in the land of choosing
its own partners. 1t does not interfere
with the formation Of other associations
or with individual enterprises.
GOVERNMENT INTERVENTION.
The result of government intervention
even if the Constitution warranted such
intervention-wOuld be to increase the
cost to weaker papers and to reduce the
cost to the stronger. as l have already
shown. At this point, Mr. Chairman, l
desire to disclaim any purpose to discuss
the question of a postal telegraph. 1t is
one on which good citizens NAV honestly
dltler. The Associated Press papers are
divided in opinion on this subject. You
are asked by complainant to interpose
the power of the government to compel a
company to discriminate
against the Associated Press and in favor
of the United Press. Fortunately a fun-
damental law, about which this c0mnlain-,
ant is in blissful ignorance, prevents this
and places all on an equal footing: but
this request opens up to view the
danger to the liberty of the press If
the handling of the reports were left to
officers and employees of political party.
The passions and interests of a party con. /
stitdte dangerous basis upon which to
rest the business Of the newspaper press
Of the republic. Any one familiar with
the difficulties in the way of tracing de- |
lays, blunders and omissions in the hand |
ling of press business will understand
how futile legal enactments would be to |
protect the press against partisan inter- |
ference. The frequent eXpediting of a re-
port to one, or delay to very important |
piece of news at critical hour by mag
netic disturbances or atmospberic inflI- |
ances to another, might prove fatal to an
TIME IN JOURNALISM.
The success OF newspapers -depends. in |
a measure, upon time, and in the case of |
news almost upon seconds Of time. Com |
plaint is made because members of the |
Associated Press choose their partners
and do not throw open their doors to every |
new conner. What private business is |
conducted on that principle? Does the !
dry goods merchant divide the orders of |