The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-03-18
TELEGRAPH MONOPOLY.
A WESTERN UNION SUPERIN
TENDENT'S TESTIMONY.
Relations Between His Company
and the Raiiroads-The
Profits.

WARRINGTON, March 1.-THE Post
Office Committee OF the House to day
resumed IFS inquiry into the alleged
monopoly Of the telegraph facilities
Of the Pacific railroads.
j. ]. Dickey, superintendent of the
Union Pacific telegraph system AND also
a Western Union district superinten-
dent, was the first witness. He said
he was paid by both parties to the
contract. Although there was but
one superintendent, the Western
Union and Union Pacific held sepa-
rate telegraph property. The accounts
for public telegams at railway sta.
lions were kept by the railIoad COM
pany and reported every mouth, and
the proceeds Of the business equally
divided. In the larger cities the
Western Union had it's own cffice
separate olI the railroad Offices, and
the receipts went to the Western
Union. In those cities the railrosd
company maintained separate Offices
also but little public business was Of
fered. The railroad company paid all
of their expenses at their own sta
lions, except for blanks, batteries, etc.
The contract provided for limited
number of wires to be erected at joint
expense; either company could put
up wires at its own expense. There
was a clause in the contract that
bound the Union Pacific to give the
exclusive prefert nee in it's telegraph
business to the Western Union as far
as they could LEGALLY do 80. There WAS
some question about the railro ad CON-
pany's right to make an exclusive con-
tract, and that qualification had been
added. The Union Pacific regarded
the agreement as an economical BUSH
ness arrangement.
Mr.. Warner requested Dr. Green
to state the nature of the relation be-
tween the Western Union and Cen
trail Pacific. He replied that the
Western Union paid the Central Pa
cific $1,000 0 per annum and took all
the receipts along the line of the
road. The railroad company had also
free use of the Western Union lines
on the line of the road; that the ar
rangement embraced the Southern
Pacific from San Francisco to Ell
Paso.
Mr.. Dickey concluded his testimony
with the statement that the Union
Pacific Company was ready to take
anv business offered by the Baltimore
and Ohio or any other telegraph COM
panv, but that none had been offered.
DR.. Green then read a brief re-
capitulation of the points made by
himself in his testimony yesterday.
AS Mr. Peters had remarked upon the
high tariff to Kansas points, DR..
Green promised that they would be
reduced in that locality. Further he
said, he wished to explain the po-
sition of the Western Union in the
matter of news reports. 1t was the
only telegraph company that had alb
solutelv refused to make up news
reports with respect to the Presi-
dents message. He said it had han
died the message for years without
nrofit. 1t was supplied to anybody at
10 cents per 100 words, and to the
newspapers taking their reports from
the W estern Union at . cents per 100
words. The Western Union could
supplv it cheaper than any other com
many. 1t had supplied the Kansas
associated papers with the last mes
sage 100000 words without one cent
i'm compensation. The quota OF these
naners had been exceeded, but the
Western Union had not made any
bill for the extra service. The West
ern Union made contracts with the
various associated presses. With the
Kansas and Missouri Association 1t
had contracts until recently, when
the papers of that association had
made a contract with the Western As
ISOLATED Press to get their news.
Every opposition company had set up
news bureau.
Adjourned.