Morning journal and courier., 1889-11-14
THE WESTERN UNION REBELS.

! THE WESTERN UNION REBELS.
| President Green shows Some Figures
! Relative TO the Government TeIe.
| graph Rates-The Company Will
| Not Accept as Final Payment the
| Rates as Now EssabIishea by POST
| master General Wanamaker.
| New YORK, Nov. 13.-The following cor
respondence was made public to-day:
New YORK, Nov. 12.
To Hon. John Wanamaker, Postmaster Gen.
| eral, Washington, D. O.:
Dear sir-I have your favor of October 80,
enclosing your official order of same date
purpoting to fix the rates for government
service for the fiscal year. The order has
had all the careful and deliberate considera-
ton that an official document from such
high source is entitled to receive, and after
such full consideration the executive COM
mittee of the board of directory has ex-
pressed itself unanimously in preamble and
resolutions, a copy of which enclose to you
herewith. From the rates fixed last year,
which were not remunsrative, your present
order makes an average reduction of frac-
ton over forty per cent. On messages trans
mitted less than four hundred miles, which
embrace the larger number of government
messages, the reduction is fifty per cent;
and on trans-continental messages the reduc-
ton is from 6fty..to twenty cents each on the
minimum message, or sixty per cent. On
the sigal service Of the war depart
ment, commonly known as the "weather
reports" the reduction is one-sixth,
or something over sixteen per cent
The fact that the Mutual Union
Telegraph company, small organization be-
longing to this company, did for time meet
the Baltimore and Ohio Telegraph company
in sending messages short distances, and be.
tween very few points at ten cents, is DO
evidence that no loss of money was involved.
If those companies had made, as you pro-
pose, a rate Of ten cents between all points
less than four hundred miles distant from
each other, the Baltimore and Ohio telegraph
system would have been sold out by the
Baltimore and Ohio railroad company
as bad Investment long before It
was sold; and that rate would have
reduced the earnings Of the Western Union
company below its actual expenses in that
important department Of our business. If
the entire message business OF this company
for the fiscal year just closed had been sent
at the rates named in your last circular, our
total receipts from that source would have
been about four millions of dollars less than
the actual cost to as of transacting that bust
ness. If the messages sent by the govern
ment were equal in number for the several
distances, the rate named in your circular
would average fifteen cents for the minimum
message of ten body words, estimating ten
words free for address and signature; but as
very much the greater number would be sent
distances under four hundred miles, and at
the lowest rate established, it is probable that
an average Of fifteen cents would allow for
two or three additional body words in each
message. If the whsle of the 81, los, 1926
messages sent during the last fiscal year had
paid us but an average of fifteen cents the
aggregate revenue for transmitting messages
would have been $8.116, 248.90. Our total
expenses were $14,5e5, 1921. After de-
Quoting from the expenses the amount
paid to other lines, the refunded and
uneellectsd items, the rental and operating
cost of our Atlantic and Cuba cables, the
cost of maintaining leased lines and the
rental for and expenses Of the gold and stock
and commercial news departments, there are
still left as expenditures strictly pertaining
to the handling Of messages $12, 118, 561.17,
which the entire reserve, at the rates you
name, would lack over four millions of
meeting. Even if the government messages
were much longer than I estimate and should
yisld-which is scarcely possible-an aver
age of twenty cents each, and all our BUSH
still be deficit of about tive millions in that
department. of our service.
The further course you suggest of board
of arbitration is within what we have always
profered. We have stood ready always to
supply to the incumbent of your Office the
lullcsb opportunity Luz 6chEC1lAS tuo
cost of telegraphic business, and to accept
freely his impartial judgment. If you prefer
to delegate that Judgment to board COM
posed as you suggest, leaving the rates for
this year to be governed by that result, we
shall be glad to meet 1t.
I have the honor to remain very respects
fully yours. NoRv1N GREEN,
President.
The following In the resolution of the exec
e A. To- al
graph company.
Whereas, on the Twenty ninth day of Jnne, 1889.
the postmaster general Of the United States of1ci
the provisions of the act of July "a, 1866, they
would be required to transmit the official messages
of the United States for compensation OF one mill
for each word without regard - distance. price
service; and
Whereas On the sOth Of October, 1889. the post
master general by public circular set FORTH as es-
tablished under the provisions Of said act Of July
"a, 1856, schedule Of rates for all telegraph COM
panies controlled by the provisions OF said act
which rates also materially below the necessary
the messages of the United States; and,
Whereas, this company Is obliged to consider the
enforcement OF said rates as confiscat1on OF its
property to that extent; and as advised that obvl
Gus injustice under said act is remarkable at law,
Resolved, That this company will transmit as
heretofore with due priority and diligence all
kilograms between the several departments of the
government and their officers ana agents, but this
company will not accept as final payment the rates
above established until its rights in that regard
have received such further consideration as it may
be able to secure; and the president of this COM
pany is hereby directed to file copy of this our
protest with the heads of the several executive de-
partments Of the United States.