The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-03-11
TELEGRAPH MONOPOLY.
THE DEMAND OF THE WEST FOR
COMPETITION.
Decrease in Western Union Receipts
What the New York
"POst" Says.

WASHINGTON, March 10-PIesident
Bates ( the Baltimore and Ohio Tile
graph Company to-day concluded his
argument before the House Commit
tee on Postofficea and POST Dads, en-
gagged in the investigation Of alleged
Telegraph monopoly. He stated the
average rate for kilograms charged by
the Western Union Telegraph Com
pany was % cents. This was low
average as compared with the rate in
England, and was attributable almost
completely to compention east Of the
Missouri river. The average rate eat
of the Missouri river was very much
less than that figure, because OF the
fact that west OF the Missouri river
the tariff OF the Western Union YVES
very considerably greater. II the laI d
grant railroads we're required to &C
cept business from the Baltimore and
Ohio Telegraph Company and other
companies, he believed that the bene-
fit OF competition in the reduction OF
rates which had accrued to the public
east Of the Missouri ri1 er would, as a
matter of course, accrue also to the
people west Of that river.
Mr.. j. @. Reiff OF New York was
then heard. He went il to a history
! OF the establ ishment Il ielegrsphic
Communication with the Pacific coast.
He said that the telegraph service oil
the wto'e country west OF the Missouri
river WAS absolutely under the control
of the Western Union, as far as the
pieces of paper called contracts could
put it. He believed that the Northern
Pa ,ific had actually undertaken to
build its telegraph line jointly with
the Western Union. Inc various
railroad commissioners of the govern
ment, who were appointed for the pur-
poee of seeing that the laws were exc
cuted respecting these land-grant rail
roads, had utterly failed either to ap'
prehend or perform their duty. A
late commissioner, when applied to
concerning a number OF shortcomings
on the part of several OF those raul
II ads, made answer, when any mat
ter is brought before my Office that
demands my opinion in formal way
/ will endeavor TO give II with
out fear, but / do not think
II is necessary for me to exercise
the functions Cf my Office in looking
for trouble" When the railroad com
panies acted in compliance with the
requirements OF the granting acts they
would have given facilities TO the new
telegraph companies which sprung ny
from time to time, but they vert
handicapped by their contracts with
the Western Union. 1t was time no
, only for plain speech, but for pos tivt
/, action. When Congress determined
, that the laws should be enforceC
against individuals and corporations
there would be fewer complaints abou
monopclies and fewer strikes through
out the country. The attempt OF cor
porations topay interest and dividend
: on bonds and stock that should neve
have been issued, constitutes cryini
event, and justified much of the com
= plant of the laboriDg men. Two
thirds Of the Wettsrn Unioa stool
was clear water without a spark o
:. dye in 1t. Let Congress say that tele
: graph companies should not combine
:, Let it state that no telegraph com
q psny should earn more than ten pc
y cent. on the actual cash valuation G
:, its existing capital. Let it cowpel To
y Pacific railroads to perform all c
Z. their duties according TO the lettel
' aud the spirit OF the law. After
q fair trial had been mads with sue
% laws, and no beneficial results 10
y lowed, Congress could consider Tia
i propriety OF taking control Of ia
= whole telegraph bus ness by the e
tahishmens OF postal telegraph sy
y y tenn. II Congress would enact sue
y laws as would prevent consolidation
- promote competition west Of the Mi
y souri,, and prevent the telegraph con
~ ~ panies from increasing the rates the
- had themselves established, Ii wou
" y accomplish vastly more for the publ
~ service than by any postal telegrap
20 system.
10 Representatives OF the Wester
~ Union will be heard on Tuesday mex