The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-03-08

VI
the poor.
The witness then referred to the misapprehen-
sion in the statements of a proceeding witness
as to the rate in contracts with the telegraph
company. 1t had been stated there a con-
tract rate for service at six and half cents
per 100 words. There was no such contract
rate If Senator Hill would examine the con
tracts before him he would see there was no rate
less than So 80 per hundred words except in
new and sparsely settled districts in Texas and
Colorado. In other sections the Associated
Press has to account to the telegraph company
at the rate mentioned, but it does not always
collect from papers receiving reports as much as
1t pays TO the telegraph company for service.
illustrations were cited and elaborate eXplana-
tlons given showing the methods OF assessment.
The policy of the Associated Press had been of
the most liberal character News reports
have been supplied to all cities large
enough to support u daily newspaper,
while against the interest of papers of firstclass
cities, yet the latter had acquiesced in it. The
Associated Press has been an important instru-
mentality in building up cities in the new States
IN the West and in extending commerce. 10
make the rate uniform, as has been suggested,
would result in destroying nearly one-half of the
newspapers of the United States. The witness
was sure the senators would not regard such
legislation in the nature of encouraging the
press The cooperative system which gave to
smaller dailies through the Associated Press
representative at the capital and other impor-
tant centers the only one by which large
portion of the American press could live.
THE CHARGE OF DISCRIMINATION.
Referring again to the answer above to Sena-
tor Jacksons question, Mr.. Smith said "How
is it possible for common carrier to discrimi-
nate as suggested! The rate is on the ervice
done If the rate is 50 80 per hundred words
for service of 10000 words per day and the
owners choose to permit its use to halfdozen
papers, that is a matter that does not concern
the telegraph company. If an individual news
paper published in the same town asks the tele-
paJh 10 tpan for
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 choosing its
own partners. 1t does not interfere with the
formation Of other associations or with individ-
ual enterprises Thus the result of government
intervention, even if the Constitution warranted
such intervention, would be to increase the cost
to the weaker papers and reduce the cost to the
stronger, as have already shown.
''At this point, Mr.. Chairman desire to dis
claim any purpose to discuss the question of pos
tai telegraph. 1t is one on which good citizens
may honestly differ The Associated Press pa
pers are divided in opinion that subject.
You are asked by the complainant
government to compel the telegraph companies
to discriminate against the Associated Press and
in favor of the United Press Fortunately the
fundamental law, about which this complainant
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.
and employees of political party the passions
and interests of the party would constitute
dangerous basis upon which to rest the business
of the newspaper press OF the republic. ANY one
familiar with the difnculties in the way of trac
ing delays, blunders and omissions i'll handling
press business will understand how futile
legal enactments would be to project
the press against partisan interference. The
frequent expediting of reports to one or delay to
very important news, at critical hour by mag
netie disturbances or atmospheric influences to
another might prove fatal to an opponent The
success of newspapers depends IN measure
upon time. In ease Of news, almost upon sec
onds of time Complaint is made because mem
bers of the Associated Press choose their part
ners, and do not throw open the doors to every
new conner. What private business IS conducted
on that principel Does a dry goods
merchant divide orders from his com
nercial agents with his neghbors!
Does that broker supply competing brokers with
his private dispatches! And yet it has been
gravely suggested here that this principle be APP
piled to the Associated Press, a business as dis
tinctly private the others.
THE QUESTION OF REGULATION.
Il return now to the question of regulation.
Whence does Congress derive the power! One
of the most distinguished constitutional lawyers
that ever appeared before the Supreme Court
smoke as follows, Just sixty years ago, and L
reckon it is a sound argument to-day. He said:
1t Is only under State laws that property can be
State laws that the private dealings
and the private business of citizens
mast he regulated. The law of contract law of
descent. law of conveyance, can neither be origi
uated nor modified by Congress It is by these
laws that private rights in property are created
and secured Now Mr.. Chrnlan the memoirs
and Clients of the Associated Press have % valu
- able property which has been acquired through
years Of industry and expenditure of many mill
ions Of dollars. Are you going te sweep it away!
But it Is proposed to accomplish this through
Legislation regulating the Western Union Tele-
graph Company In the business, the affairs
# that company the Associated Press has no in
terest. But we have contracts not very valuable,
nut they valid contracts. and under them we
have entered into written obligations to other
parties. which Obligations we are legally bound
TO fulfill. Has Congress the right to pass law
:mpai1ing the obligation of contracts! Whence
is its power derived! Can Congress do indirectly
what it cannot do directly! Chief Justice Mar
shall says. in Osborn VS. The Bank of the United
States that Congress cannot create a corporation
10 conduct private business. If Congress may
not create a private business can it regulate
private businessl On this point [ must beg
pardon of the legal gentlemen who are here. for
having trespassed upon their exclusive grounds"
The witness next referred to the rates charged !
IL Great Britain He said if applied to this
country the Vastness of the territory would |
increase the cost beyond what is now paid. The |
impression has been left with the committee that
news reports may be had in England upon appl
cation to the government and paying cents per |
hundred words. This, however is not the case. |
The news reports are property of individuals |
and are sold or withheld at their option. There |
are no associations of newspapers there.
The papers in London act Independently of
each other. and they have their own |
correspondents. as do papers in this country 1t is
related that a London paper paid seyera! thou |
sand pounds on occasion for Il description of
battle in the East. 1t was not possible for any
other paper to obtain this report by application
10 the government. Thus it viii be seen th3t |
private rights-that the common LAWS respect |
cd yet in old England.
long verbal examination of Mr.. Smith by |
members of the subcommittee, followed the |
conclusion of his opening statement