Omaha daily bee., 1885-09-02
JAY eoUbDIsM OUT WEST.
Government Franchises Used for
Building Up Telegraph Mo-
nopoly.
New York Hereld, August 81.

nopoiy.
New York Hereld, August 81.
In an interview last evening President
Bates, of the Baltimore and Ohio Tele-
graph company, gave the folio wing iu-
formation concerning the monopoly which
has grown out of the telegraph franchises
included In the railway concessions re-
ceived By certian western roads from the
government:
"At this time," began Mr.. Bates,
"when 30 much has bsen said reg gardiHg
the control by one corporation of the en-
tire Telegraph business of the country, II
may be interesting to recall the fact that
the Western Union company claims to
exercise exclusive telegraph privileges
over the Union Pacific and other land
grant railroads west of the Missouri
river, Notwithstanding the charter aud
obligations Of those railroad companies
Judge John f. Dillon and Sidney Bart.
lett, counsel for the Union Pacific COM
pany, at the request of that company,
rendered an elaborate opinion on Feb
ruary 90, 1880. clearly showing the duty
of the railway company In this respect to
be the operation of its telegraph lines
free to all.
'Five years ago, when Mr.. Gould was
| in control Of the American Union Tele-
graph company aud his interests were
identical with the Union Pacific Railwey
company, he was apparently very anxious
that the Union Pacific should live up to
It's government obligations and operate its
telegraph lines free to ALL particularly
so the American Union Telegraph COM
pany. President Sidney Dillon, who was
also a director of the American Union
company, sent tht following notice to his
telegraph superintendent:
NEW YoRK, March 1, 1880.
j. j. DIcKEy, Onaha:-
Have just served formal notice upon the
Western Union Telegraph company (refersioe
to the Aforesaid letter of mine OF February n,
1880, to the Western Union Telegraph compa
ny. schedule A of answer), stating that the
| rsilwan company would itself operate aud ute
It's own telegraph lines, placing all companies
footing. giving equal rights to ell and exclu-
sive or favored privileges to none. You must
see that this Is carried out in letter and in
spirit. SIDNEY DILLON.
"The Western Union company, how
ever, obtained an ipjuuctlon from the
courts, and before decision WAS finally
rendered the American Union and the
Western Union companies were consoli-
dated. Since that time no demand has
been made upon the Union Pacific COM
pany until about year ago, when the
Baltimore and Ohio Telegraph company
opened up correspondence with President
Charles Francis Adams, beginning in
August. 1884, and ending In February,
1885, the intervening time apparently
having been occupied by Mr.. Adams in
what might be called skirmishing. In
February resolution by the United
States senate was passed calling upon the
secretary of the Interior to inform the
senate whether the Union Pacific Railway
and the other land grant rail.
roads had constructed and were main
tanning and operating their telegraph |
lines without determination, as provided |
In their charters. The then commits.
sioner of railroads, w. 81. Armstrong,
notified the Baltimore and Ohio and
Western Union companies, that he WAS
to hear arguments upon the
questions involved. and at the
appointed time, February ~, the
hearing took place. Judge Jere
Wilson appearing for the Union
Paci6cEcompany and Gen. Wagner
wayne representing the Western Union
contract with that company. AT this
learlpg the true inwardness of the rela.
ions between the Western Union Teis-
'raph company and the vsrious land grant
aiIroads was disclosed, and the entire
correspondence, including all the con
racts Ia question, the arguments of the
eversl companies pro and con was sub
nitted to the senate and printed as an
xecutive document (sse No. 2 Forty.
,inth congress, special sessions |!
ga reference to this document by those
Interested In the subject will throw a
rest deal of light upon the questions In ,
'olved. The time was too short for fus-
her action by congress during the session
hen about closing, but 1t is understood
hat the subject is being revived, and
hat when congress- meets In December
ne of the eaaliest matters to receive at.
ention will be the relations of the gov
rnment and the public to the telegraph
Ines west of the Missouri river along the
and grant railroads aud constructed with
ho money and the credit of the United
'tates government" III