The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-03-08
A Denial of the Charge that the Former Is
in ANY True Sense of the Word,
MOnopoliStic Organization.
Possible Dangers of Government Con.
troll of the Press News Service.
An Argument Against Telegraph Regulation
by COngress-The Associated Press
and Its Relations to the Public.

WASHINGTON, March 7.-Wiam H. Smith
general manager of the Associated Press, was
examined by the subcommittee of the Senate
committee on postofices and post-roads to-day.
After answering a number of preliminary ques-
tiops as to the title of his Office, nature and
scope of the organization he represented, Mr..
Smith was asked, Have you contracts with
all local associations to which you furnish
news77
"Yes, sir"
Have you copies of the contracts which have
been called for by this committed"
Yes, but | suggest, Mr.. Chairman, if you
please, that before answering the question l
be permitted to traverse some statements made
before this committee that have been
published and distributed. u will take
you but twelve of fifteen minutes, and
will clear the way for questions that
you will want to ask me. 1 suggest that as the
most direct method. I had not seen the state
ment of Mr.. Hubbard until l reached here last
evening Nor had had time to examine the
statement of another witness until 1 arrived
here, hence made some notes hastily last night
of what would like to say in refutng the points
gone over, and, with your permission, will speak
from these notes for few moments.
The chairman-You may proceed Mr., Smith
Mr.. Smith, note that Mr.. Hubbard, in very
interesting argument which he recently made
before this committee, used the following
language "The Western Union Telegraph
Company and the Associated Press make close
corportion' and the chairman in examining
another witness, asked, at referring to the
Associated Press is about as complete monop-
oily now as could be established, is it notp The
Associated Press is a private business, 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 the news is the outgrowth of expe.
rience and the known wants of those who are
served 1t is thorough and satisfactory to those
associated together and should be so to the
public, as the news of tbs world is PLACID
in the hands of every one who cares
to read, every day, at trifing
cost But for this cooperative system
this would be impossible. The Associated Press
is not, therefore, has been repeatedly asserted,
a monopoly. Webster defines monopoly to mean
First, person who engrosses a commodity by
purchasing the whole of ar article in the market
for the sake of selling at advanced price or
second, one who buys a license or privilege
granted by authority for sale in buying or selling
any commodity. The Associated Press is not a
monopolizer in either of these senses. 1t does
ceiyed special privilege from any au-
thority 1t is evident the use of
the word monopoly is due to misin-
formation. Many people suppose that because
the Associated Press uses the wires of the tele
graph company freely, therefore there is mutu-
ality in their interests. A merchant who con
ducts his business largely by telegraphic CORE
spondence, bears precisely thes same relation
the press to the telegraph company. The latter
is Il common carrier and the business conducted
over the wires by both merchant and press are
strictly private. | note that Senator wilson
asked the following question to which he re-
ceived an Affirmative reply: IF news We're free
to all it would simply be question of competi-
tion between news associations, would it not?'
There is confusion of ideas here, which is due
to misapprehension of the character of
newspaper work. l beg the Senator's pardon,
but he is not singular in this. The same misap-
prehension generally prevails, and ii shallnot be
my fault if a clearer idea does not obtain here
after.
Senator Wilson, think Mr. Smith, without
desiring to interrupt you, that you have cut the
whole connection with the context
Answcr-l will quote. Senator, more fully
further | remark, then thatneNs is frecNo
all. Are not the transactions Of Congress to-day
open and free to all the world! But while
sources of news are free, skill and ability in Civ
ing it form, agencies employed in its distri
button, and capital that makes all available,
come under the head of private enterprises and
private property There is no power to make
these free without the consent Of those who own
ana contrOl tneln.
COMPETITION IN NEWS SERVICE.
Senator jackson asked the witness the follow
ing question relative to competition in the news
service; From your own consideration Of the
subject. what, in brief is the remedy you
you would snggest|" TO which the witness re-
piled in the following extraordinary language;
II think that the telegraph companies should
give rate similar to the rate given by the British
government; that is they should charge 50 much
for serving Il place. and if there is more than
one paper they should serve additional papers
and that the rate should be given whether three
points were served or ten; that it should he 50
nlueh and that the rates should be high enough
to pay them for dong the work.
Senator Wilson pushed the inquiry with the
following reftlt:
Q.-Snppose there should be regu alton by
an act of Congress to the effect that all news
transmitted for any association by the telegraph
company should be furnished at the same rates
to all papers at different points reached, what
effect, in your Judgment, would that have on
your of complaint Al think it would
give everybody chance to live and do business.
Q.-What would be your Judgment concerning
measure of that kind basing your opinion
upon your experience in connection with tele
graphing and news| Al think the effect
would be good 1t would put everybody
the same basis and newspapers then
would be inst the same as commercial
patrons to telegraph companies are now. In
short, 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 it said. they have vol
UNFAIRLY taken upon themselves the largest pay
ment. Thus, take what is called the Western
press report-which is delivered 10 fourteen
principal cities, lying between the Alleshenies
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
arc in nronortiou to their pG1mation