The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1884-03-08

ciated Press dlscrimno,o.T y, ,,vor 0 - TIM the
poor. N'''a'es IN ia'oT vi TIC
witness then referred 70 the misrepre-
sensations In the statements ~ tbe nreced-
The ,o,o ~ 10 The rates In contracts with
Thor S."ph company. II had been stated
con,s ""s contract rate for service at 90
co,,,... a"uuteu words. There was no such
MI, 0n.iaot rae. IL Senator Hill, the chair
Ms, "ouiu examine the contracts before
En-, o.o "o.lu see there was no rate less
sian -ov cents hundred words except in
NV ahu sparsely-settled districts OF Texas
~ Svrorsuo' In other sections the Asso-
e'aVeu rress mas to account to the telegraph
Ooa'Pahy at the rate mentioned, but IL does
not always collect from the papers receiy-
ny Tue report as much as II pays the tele-
G'aph company for the service. Illustrations
MeIe ci,ed and elaborate explanations were
EVEN showing the methods OF assessments.
nc poncy OF the Associated Press had
oeen OF the most liberal character. News
reports had been supplied to all cities large
enough 10 support daily newspaper.
Wh'le against the interest OF papers OF first
class cities, yet the latter had acquiesced in
II. The Associated Press has been an i'm
portant fundamentally in building up
cities in new States Of the West and IN eX-
tending commerce. To make the rate uni
form. as has been suggested. would result
IN destroying nearly one bali OF the news
papers OF the United States.
Witness was sure senators would not re-
gard such legislation in the nature OF en-
couruging the press. The cooperative sys-
TEN, which gave news TO smaller dailies
through the Associated Press representa-
tive at the capital and other important
centres, was the only one by which large
portion OF the American press could live.
Referring again to the answer above, Mr..
Smith said: How is it possible for COM
mon carrier TO discriminate a. suggested?
The rate is on service done. II the rate is
81 per 100 words for a service OF 10000
words per day, and the owners choose to
permit ITS use 10 bali dozen papers, that
is matter that docs not concern the tee-
graph company. II an individual news
paper 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 exercises the right enjoyed by every
other private business in the land OF choOs-
ing its own partners. 1t docs not inter-
fere with the formation OF other aSsOcia-
tons or with individual enterprises. The
result OF Government intervention, even
il the Constitution warranted such inter-
vention, would be to increase the cost to
the weaker papers and to reduce the cost
to the stronger. as have already shown.
At this point, Mr. Chairman, desire to
disclaim any purpose to discuss the ques-
ton Of postal telegraph. 1t is one on
which good citizens may honestly differ.
The Associated Press papers are divided
in opinion on this subject. You are asked
by a complainant TO interpOse the power Of
the Government TO compel telegraph COM
plnies to discriminate against the Associ-
ated Press and in favor OF the United
Press. Fortunately, the fundamental law,
about which this complainant is in blissiul
ignorance. prevents this, and places all on
an equal footing. But this request opens
up TO view the danger 10 the liberty Of the
press il the handling Of reports we're left
to officers and employees of political par
ty. The passions and interests OF party
constitute q 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 delays,
blunders, and omissions in the handling
OF press business will understand how iu-
tile legal enactments would be TO protect
the press against partisan interference.
The frequent eXpediting OF report to one,
or the delay Of very important piece OF
news at critical hour by magnetic dis
turbances or atmospheric influences to an-
other, might prove fatal TO an opponent.
The success Of newspapers depends in a
measure upon time; in the case Of news,
almost upon seconds Of time. Complaint
is made because members Of the Associated
Press choose their partners and do not
throw open the doors to every new conner.
What private business is conducted on
that principle? Does the dry-goOds mer-
chant divide the orders Of his CONNER
cial agents with his neighbors Does the
broker supply competing brokers with his
private dispatches? And yet IL has been
gravely suggested here that this principle
beapplied to the Associated Press business,
as distinctly private as Others.
Mr.. Smith held that Congress had no
power to regulate the business OF the As
sociated Press nor any other private busi-
ness, and continued: Now, MIR. Chairman,
the members and clients OF the Associated
Press have valuable property, which has
been acquired through years OF industry
and expenditure OF many millions OF dol
lars. Are you going to sweep it away
But it is proposed to accomplish this
through legislation regulating the West
ern Union Telegraph Company. In
the business or affairs OF that company
the Associated Press has no interest, but
we have contracts, not very valuable, but
they are valid contracts. and under them
we have entered into written obligations
to other parties, which obligations we are
legally bound to fulfil. Has Congress the
right TO pass a law impairing the obliga-
ton of contracts? Where is power de-
rivedl Can Congress do indirectly what
it cannot do directly!
Witness next referred to the rates
charged in Great Britain. He said: II
applied to this country the vastnesS OF
territory would increase the cost beyond
what is now paid. The impression had
been left with the committee that news re-
ports may be had in England upon appli-
cation to the Government and paying the
rate OF four cents per hundred words.
This. however, is not the ease. News re-
ports are the property OF individuals, and
are sold or withheld at their option. There
are no associations of newspapers there.
The papers OF London act independently
OF each other, and they have their own
correspondents, as do papers in this coun-
try. -,
A long verbal examination OF MIR. Smith
by members Of the subcommittee followed
the conclusion OF his opening statement.
Senator Hill said he was assured that the
Associated Press had a large number OF
local contracts contracts with local asso-
ciatlons-and asked If they were not ex-
elusive in their character "YOu could
not" he queried, "giye their news to any
other association within their territory"
MIR. Smith said the Associated Press GER
tainly would not do so. These associa-
tons, he said, were all members OF the