The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1886-03-24
THE WESTERN UNION.
Investigation Before the
House Committee.
IT'S UNFAlRNESS SHOWN UP.
Accident to Secretary Manai"g-Tele-
Phone Troubles-Dynamitin
Chinaman
Alder lac WESTERN Union

| WASHINGTON, March 23.-The House
committee on postoffices and postroads,
conducting the telegraph investigation,
to-day began its inquiry concerning the
alleged attempts of the Western Union
Telegraph Company to coerce the news
papers in the Western States into max
ing exclusive contracts, etc. e. q.
Ayers appeared in behalf of the Kansas
City Times and Kansas City j onrnaL
and submitted statement by J. A
Mann, secretary and business manager
OF the Journal, together with a letter
from Morrison Munford, proprietor of
| the Times, and several communications
that had passed between the latter and
the Western Union managers relative to
the news contracts of the Times.
Mann's stateme-.t was read to the
committee. Its principal parts are SUBJ
stantially as follows: Through
course of years, the newspapers of
| Kansas City have been at the mercy of
the Western Union Telegraph COM
pany. With the consolidation of that
company and the American Union and
Mutual Union companies some five
| years since, the extreme measures
characteristic OF the Western Union
have increased. Their form of contract
had contained clause or clauses bind
ing the papers to use the Western
| Union lines and no others under pen
atty and provisions designed to bind
the party of the second part unalter-
ably to the use of the Western Union.
The press OF Kansas City either
had to succumb for the war;
of adequate facilities, or yield to the
| Western Union. 1t is believed, with
1
single rate OF agreement had been made
by ;iny paper with this company in I've
years, except under protest, and that in
every one of the contracts the publisher
signed away his right to a fair COM
petition. Spies in some instances were
employed to follow my messengers to
learn the sources from which the mat
ter got to us. There were clauses in
sundry and 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 if We failed to
give the Western Union all our special
business. This jeopardized the founda-
ton OF our Geographic service.
We had violated repugnant contracts
only after long and weary efforts to
first obtain fair measure of relief at
the hands of the Western Union Com
pany. We were threatened that unless
we signed these contracts we should be
placed on higher scale of special rate,
and practically ruin us, Notwithstanding
the prohibitory clauses in contracts. OF
course, we signed, for we dared not risk
our business. No open contracts were
even allowed to be made, and we were
always confronted with iron-clad fix
lures, binding us to boycott all other
lines. The writer then refers to the
change in the special arrangements of
| his paper, which necessitated largely
increased Geographic service, applica-
! ton to which end was made to the
| Western Union Company, by which the
matter was delayed, endangering the
interests of the paper. When the com
pany finally responded to the applica-
| ton, it was at higher rate than the
contract then in force specified, and
| from that date the rate on all our
specials was advanced 80 per cent. We
cannot legally claim that we have not
violated these contracts, but the occa-
sion demands that We carry an in
creased amount of Geographic matter.
as is the custom. We expect to get
But il every case the Western Union
have had the service first offered
to Them at preferred rates, and
they then had always stood con
the letter of the bond" 1t is
manifest that some remedy is
required to restrain the rapacity of
these consolidated corporations, and
that the protecting power of the gov
eminent must step in and perform the
Geographic service of the country, just
as it does the mail service.
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 CON-
pany. and if it was thought matter of
sufficient Importance, the proprietors
would come to Washington to verify
their statements. He requested that
the papers be returned, as they would /
be used in a lawsuit to be instituted
against the Western Union Company.
Mr.. SomergiIle, of New York, super
intendent of the Western Union Com.
pany, replied briefly to the statement
read 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 the agreements to send all 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 I'm
ion had simply notified them that the
contracts would be abrogated If they
persisted in breaking the agreement by
sending their news over the other lines.
The papers had signed agreements to get
advantages of reduced rates. The Yves
tern Union does not collect the news
and is entirely distinct and disconnected
with the Associated Press or the Western
Associated Press. 1t was simply trans
mitter of news. In cases OF unusual
occurrences. such as the death OF the
President, the company sent bulletins
as public services without pay. In
general elections the Western Union
managers were allowed to collect re-
turns in places where there was no
regular press agent.