The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-12-15
SUBSIDIZED RAILWAYS.
They Are Under Oblig ations Co Construct and
Operate Telegraph Lines.

They Are Under Oblig cations Co Construct and
Operate Telegraph Lines.
WASHINGTON Dec. 14-The entire morning
session of the House committee on postoffices
and post-roads was occupied in the reading of
the report of Representative A. j. Warner, of
Ohio. on the obligations of the subsidized rail-
way telegraph lines The report is a very long
document, and begins with a summary of the
several acts providing for the construction of the
Pacific railroad aud telegraph lines for which
grants OF land and bonds have been made. After
an exhaustive argument the conclusions of the
subcommittee on the several points at issue are
stated as follows
First-That the obligation to construct main
tain and operate a telegraph line is the same as
the obligation to construct, maintain and operate
q line of railroad.
Second-That a railroad company cannot re-
ieve itself of this obligation and cannot transfer
it to any other company.
Third-That as public aid can be granted only
for public purposes, such telegraph lines, as
well as railroad lines, must be operated for the
equal benefit of all persons, companies or corpor-
atoms without discrimination in favor OF or
against any one.
Fourth-In order that all may enjoy equal
facilities, privileges and of such telegraph
lines it is necessary that the same facilities and
messages should be extended telegraph
line that are granted to another-that in this
matter there should be no discrimination. 1t is,
the report says, not question of vested right,
and it is not proposed to change the condition of
the charter or disturb vested rights, but it is
simply question of requiring the railroads-the
benefciaries of the several grants-to carry out
the obligations assumed by them in accepting
the grants. Conceding that subsidized rail
road is under an obligation to maintain and op-
al nh for 0f all fol
lows that it is bound to accept telegraph matter
at terminus of its lin es from all telegraph
companies.
Fifth-The committee find, from the evidence
before it. that the railroads are not maintaining
and operating, by themselves and for the public
use, telegraph lines. as required by the several
acts OF Congress under which they were author
lied to build their lines. 1t is held that the
contracts entered into between the railroad
companies and the Western Union telegraph
Company, by which the rights and privileges of
the railroad companies were transferred to the
Western Union are beyond the scope of the law.
These positions are maintained By many refer
ences to the granting acts and the decision OF
the United States Supreme Court
Sixth-The right of the Western Union, or
any other telegraph company, to construct and
operate lines of its own to the Pacific coast is
not questioned. but it is held that the construc-
ton of such lines cannot relieve the railroad
companies from the obligations to maintain lines
themselves as required by the several acts.
Upon the subject OF remedial legislation, the
subcommittee says it recognizes the right of
persons or corporations TO pursue their remedy
in the courts. but it suggests that. inasmuch as
these companies owe their existence to the acts
| of Congress-, and have been the recipients OF
public aid by grants of land and bonds, in ac
cepting which they have assumed certain oblga-
tons, it therefore becomes the duty of the gov
eminent to see that the agreements and oblga-
tons entered into by the companies are fairly
carried cut Therefore, the sub committee pro
poses a bill in lieu of the several measures
referred to- which extends to telegraph lines the
provisions of the act of June 20, 1874, relating
TO railroads, and makes it the duty of the At
torney-general to institute proceedings in the
federal courts to adjndicate all rights of parties
alleged to hold contracts or to have rights under
any agreement entered into with railroad com
panies. and to annul and set aside the contracts
| unlawfuy made by which the railroads have
sought to relieve themselves of their just obi
! cations to maintain and operate Independent