Los Angeles daily herald., 1886-03-24
WESTERN UNION.
How it Coerced the News
papers.
A BLoATED MONOPOLY.
The Company Forced Kansas City
Papers to Use Its Line or
Lose News.

Special to the Herald bgthe Associated Press.
WAsHISeTeN, March 23.-The House
Committee on Post Offices and Post
Roads, conducting the telegraph inves-
tigation, to- day began its inquiry con-
cerning the alleged attempts of the
Western Union Telegraph Company to
eocrce newspapers in the Western States
into making exclusive contracts, etc. K.
G. Ayers appeared in behalf Of the
Kansas City Times and Kansas City
Journal. and submitted statement by
]. A. Mann, secretary and business man
ager of the Journal, together with let
ter from Morrison Mumford, proprietor
OF the Times, and several communica-
tions that had passed between the latter
and the Western Union managers, rela-
tive to the news contracts Of the Times.
Manns statement was read to the com,
mittee. Its principal parts are substan-
tally as follows: Through q course
OF years the newspapers Of Kansas City
have been at the mercy of the Westsvn
Union Telegraph Company. Wiz inc
consolidation of that company and the
American Union and the Mutual Union
Companies some five years since extreme
measures characteristic OF the Western
Union, have increased. Their form of
contract contained clause or clauses
binding the papers to use Western
Union lines and no other, under pen
atty and provisions designed to bind the
party Of the second part unalterably TO
the use of the Western Union. The
press of Kansas City either had to sue
cumb for want Of adequate facilities or
yield to the Western Union. 1t is be-
lieved with good reason by the writer
that not single rate agreement has
been made by any paper with this coA-
pany in four years except under protest
and that in every one of the contracts
tho publisher signed away his right to
fair composition. Spies in some in
stances were employed to follow my
messages TO learn the sources from which
the matter got to us. There were clauses
In sundry other contracts by which we
were held, provided all others failed.
The delivery Of even our regular press
report was threatened to be withheld by
the Western Union il we failed to give
the Western Union ell Of our special
business. This jeopardized the founda-
tion of our telegraphic service. We had
violated the repugnant contracts only
after long and weary efforts to first OBJ
tain fair measure OF relief at the hands
OF the Western Union Company. We
were threatened that unless we signed
these contracts we should be placed upon
a higher scale of special rate practically
ruinons notwithstanding the prohibit
ing clauses. OF course we signed
for we dared not risk our business. No
open contracts were ever allowed to be
made, and we were always confronted
with iron-clad fixtures binding us to
boycott all other lines The writer then
refers to the change in the special ar
rangements of his paper which necessi-
tated largely increased telegraphic serv-
ice, application to which end was made
to the Western Union Company, by
which the matter was delayed. endan-
gering the interests Of the paper. When
the company finally responded to the
the contract then in force specified, and
from that date the rate on all of our
specials were advanced so per cent.
We cannot legally claim that we have
not violated these contracts hut the
occasion demanded that we carry an in-
creased amount OF telegrapbic matter.
Asis the custom we expected to get bet
ter rates than for general service, but in
every case the Western Union have had
the service first offered them OF pre-
ferred rates and then they had always
stood on the letter of the bond. 1t is
manifest that some remedy is required
to restrain the rapacity of these consol-
idsted corporations and that the protect
ing power Of the government must step
in and perform the telegraphic service of
the country, just as it does the mail SER
vice.
Mr.. Ayers said that the purpose Of
the Kansas City newspapers was simply
to inform the committee Of their exist
ing relations with the Telegraph COM
pany, and ii it thought the matter Of
sufficient importance the proprietors
would come to Washington to verify
their statements. He requested that
the papers be returned, as they wonld
be used in q lawsuit to be instituted
against the Western Union Company.
Mr.. Somersiile, of New York, super
intendent Of the press department OF
the Western Union Company, replied
briefly to the statement made by Ayers.
He said that the Western Union had
two special rates.-one open to every
newspaper, and the other, 80 per cent.
lower, to papers that signed an
agreement to send all of their news
over the Western Union wires. Both
of the Kansas City papers had
signed that agreement voluntarily and
both had broken it. The Western
Union had simply notified them that the
contracts would be abrogated il they
persisted in breaking the agreement by
sending their news over other lines The
papers had signed an agreement to get
advantage of the reduced rates. The
Western Union does not contract news,
and is entirely distinct from and discon-
nected with the Associated Press or the
Western Associated Press. 1t was sim
ply the transmitter of news. In cases of
unusual occurrences, such as the death
of the President, the company sent bull
letins of public service without pay. In
general elections the Western Union
we're allowed to collect returns in places
where there was no regular press agent.