New-York tribune., 1884-03-08
THE PARTNERSHIP IN NEWS
A PRESS ASSOCIATION NOT A MONOPOLY.
WILLIAM HENRY SMITH BEFORE THE SENATE POST
OFFICE COMMITTEE.

OFFICE COMMITTEE.
WASHINGTON, March 7.-William Henry
Smith, general tho Associated Pres was exam
incd by subcommittee of the Senate Committee on
Post Offices and Post Roads to-day. AftcransWering
number OF preliminary inquiries TO the title OF his
Office and tho nature and scope OF the organization
which he represented Mr.. Smith asked:
Q-IIave you contracts with all Of the local as5ocla
tlons to which you furnish newsi Ayes sir.
Q.-Havc you copies of contracts which have been
called for by this committee AYes but suggest, Mr..
Chairman II you please that before answering the ques
tons he permitted TO traverse some statements
before this committee that have been published ana dls
will clear the way for the questions that you will want
to ask Inc. suggest that az the most
OF Mr. Hubbard until I reached here last evening. Nor
had had time to examine the statement OF another VII
ness until arrived here. Hence made some notes has
ty last night of what would like to say in refutng
points gone oycr and with your Permission VIII speak
from these notes for few minutes ~
The Chairman-YOu may proceed, MI Smith
CORRECTING a NEUTRALITY-SUSPICIOUS..
Mr.. Smith, that Mr.. Hubbard In the interesting
argument which he recently made before this committee
used the following language: "The Western Union
Telegraph Company and the Associated Press make a
close corporation And the Chairman, in examining
another wiues- asked. II referring 10 the Associated
i, = ~ ~ ~, D., rto t,d pi,s, is a ,rivoto
established u not Ine Associated fi55 Is pIFae
business conducted for the benefit OF the papers con-
cerued IL has no exclusive contracts, and enjoys no
privileges not uccy open 10 any newspaper VI s aSsO
citation OF newspapers lt3 system or collecting
who are served 1t IS thorough and satisfactory to those
associated together and should be to the public the
Of the world is placed in tho hands OF every one
who To read, day, at triing cost But for
Associated Press s therefore has been repeatedly
asserted. monopoly The Associated Press does not
special privilege from any authority 1t is evident that
the use OF the word monopoly s due to msniornall1n
& pIgSs ee erafoTo there il ntuolty Of nterests
1t.ttfxt ln hIsu
graphic correspondence bears precisely the same relation
the press TO the telegraph company The Latter Is
carrier, and the business conducted over the
wires by both merchant and press are strictly private
! note that Senator Wilson asked the following ques-
ton to which he received Affirmative response: n
the free to all it would simply be question OF
There is confusion of ideas here. which is due to mis-
apprehension Of the character OF newspaper work.
beg the Senator'S pardon but he is not singular In this
The same misapprchension generally prevails and shall
not my fault clearer view does not obtain hereafter
Congress to-day open and free to all the world But
But while the sources Of news are free the skill and ab
fly in giving form the agencies employed in its dst
button and the capital that makes all available, come
under the head of private enterprise and private proper
ty There s no power to make these irec without the
consent Of those who own and control them.
The question is asked Why should not the Associated
Press serve all papers at the same price, To the credit
of the wealthy members Of the Associated Press be 1t
said they have voluntarily taken upon Themselves tho
largest payment. Thus Take what called the Western
Press report which delivered fourteen of the principal
OF Kansas. The service Is the same to all yet except
the cities of Cincinnati St Louis ana Chicago, no Two
to their population and ability 10 pay. The same rule
applies to cities taking condensed reports In number
ed edud GiS 6e cos Of I & Sy % the PoT AND noting is
received toward paying the cost OF the original coec-
tion, handling and editing of the news Under no other
system would this be possible. The Government charges
the same rate OF postage to rch and poor alike The
Associated Press discrminates In favor OF the poor.
NEUTRALITY-SUSPICIOUS. CORRECTED.
The witness then referred to the Interpretations in
the statement OF preceding witness as to rates in the
contracts with the telegraph company. 1t had been
stated that there contract rate for service at six
and half cents per hundred words There no such
contract rate II Senator Hill would examine the
tracts before him. he would that there was rate
less than - 30 per hundred words except in the
and sparsely settled districts of Texas and Colorado
In other sections the Associated Press has to account to
the telegraph company at the rate mentioned but 1t docs
not always collect rom tne paleIs rUCc;G M reports ] aS
Illustrations cited. and elaborate explanations were
given showing the methods o assessments The policy OF
the Associated Press had been Of the most liberal char
actcr News reports had been supplied to all cities large
ny m lI in r. The Associated Prcgs has been nm
jpuortint fundamentally in building up cities in tho
new states of the West and In extending commerce. To
make thc rate uniform rs had been suggested, would
sut in destroying nearly 0ne-half OF the newspapers OF
the United otltes. The witness was sure senators would
not recari such egisation IN the OF encouraging
The tToss The cO-operave system which gave To the
smaller ddcs, through t9e Assoclated ffeSs repre-
sentative the capital and other important centres was
the only one by which large portion OF tho American
The is the service done II the rate is 50 50
hundred words service OF 10000 words per day,
and the owners choose to permit the use to har dozen
papers that a that does not concern the tce
graph company, II On individual newspaper published
in tine town asks the telegraph company to transmit
for it 1000 words, the company must charge the same
rate for line service. The Associated Pres, exercises
the right enjoyed by every other private business in the
land of choosing tts own partners interfere
with the formation Of other associations or with ind
on, II the Constitution warranted such interven
ton would he 10 increase the cost to the weaker papers
and to reduce the cost 10 the stronger as nave already
At this point. Mr. Chairman 1 desire TO dis
tai telegram. 1t is which good citizens hon
csiiy der The Associated Press paper. are divided in
planant to interposc the power Of the Government TO
compel the Telegraph company TO discriminate against
the Associated Press in favor OF the United Press.
Fortunately the fundamental law about which this com
panant is in bIsslul ignorance prevents TINS and places
all on an equal footing. But this request opens up to
yicw the Danger to the liberty OF the press II the hand
ling reports were left to the officers ana employees OF
political party. The passions and interests OF party con
titu,o dangerous basis upon which to rest tue bust
ness OF the ntWspapt pres u tIo I'l,,Ii' A5 @ o
familiar with tho difficulties Ia the way or tracing
DELAYS 6i1nde'1 & ana I1a0a' how H 'g t GS arlS e Ul
actmonts would be TO protect the press against
port 10 one the dola OF an mpOr1nt piece OF news
at critical hour by magnetic disturbances, or atm0s-
opponent The success OF newspapers depends In
measure upon time; in the case oi news, almost upon
seconds OF time.
TIE RIGHT TO CHOOSE PARTNERS IL BUSINESS
Complaint Is made because members OF the Associated
Press choose their parncr aud do not throw open the
door to every what private business Is
Quoted that prucpei Does the dry goods merchant
divide the orders of his commercial agents with his
ncghbcrsi Does the broker supply competing brokers
with his private dispatches And yet il has been gravey
here that this principle be applied TO the AssO
catod Press, business as distinctly private as the
others.
return now to the question of regulation. Whence
does Congress derive the pOwerl one OF
the most distinguished constitutional lawyers
that ever appeared before tho Supromo Court,
spoke follows Just sixty years ago, and reckOnt IL
sound argument to-day He said:
II is only under state laws that property can be ac
quired 10y Individuals. II is by State laws that the
private dealings and private business OF the czens must
be regulated The law OF contract the law OF descent,
the law OF conveyance, neither DO originated nor
modified by Congress 1t Is by these laws that private
rights in property are created and secured"
Now Mr. Chairman, the members and clients OF the AS