Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-07-30

DIR. Green's Standpoint - WHAT the
Service Costs and What 1t Brings In
Uncle Sam a Slow Payer, Anyhow.
NEW YORK, July S0-The following is
the substance of the protest of the Western
Union Telegraph company against the post
master generals great cut in the rates to be
paid for telegraph service in the transmits
sion and delivery of govern cent messages,
giving the history ami obi, cts of the act of
1866, and the action heretofore taken un-
der it:
What the Rates Have Been.
The rate in force for the past five years
has not been uniform rate of cent per
word as many papers have assumed, but in
creasing on scale Of distances above 600
miles, with a minimum Of - cents per mes
sage and a maximum of 215 cents per word
Postmaster General Not supreme
The telegraph companies hold, and are so
legally advised, that the language of the act
does not give the postmaster general abso-
lutte power to fix any rate he may deem fit.
That power is qualified by constitutional re-
strictions. In article ; Is the language: Nor
shall private private property be taken for
power depends, therefore, on the question,
l. one mill per word just compensation
History of the Rate Question.
After relating the circumstances leading
t. the enactment of the acts OF 1896 and 1872.
giving to the telegrah companies certain
franchises and privileges, and 10 the gov
ernment certain advantages and privileges,
Including priority of service at rates to be
annually fixed by the postmaster general,
the letter proceeds:
The fixing OF rates does not appear 10 have
been considered imperative duty Of the
postmaster general. for no action seems to
have been taken by that officer in the direc-
tion OF fiXins rates until July Of ISL. when
the necessity for II was alleged To have arisen
by reason Of the complicated character of the
service in transmitting the weather reports
The rates were then fixed satisfactorily to the
telegraph companies They were not annually
revised until some years later, and in almost
every instance the telegraph companies were
consulted a. Ia what they could afford To do
tn service for. In two instances Postmaster
tieueral Jewell and Postmaster General
James. at the instance OF the telegraph COM
panles. recalled and modified their orders.
after they had been officially proclaimed
An Interpretation Suggested
The language OF the act that messages be-
tween the several departments OF the govern
ment shall have priority over all other bust
hess at such rates a. the postmaster shall an
nually fix" may be construed a. Contemplat-
ing the fixing Of higher rate than i paid by
other patrons, because of such priority in
transmission over all other business. Ger
tainly it never contemplated comforting the
power to fix the rates below the actual cost Of
the Servi &c. Such action is nothing short OF
confs cation and appropriation Of the property
and service Of citizens to the use OF the
government without just compensation there
for.
Loss on the Government Business
Twenty cents for twenty words less for
distances of loo miles or less. and l cent for
each additional word. and lilo of a cent PER
| word for each additional 100 miles G fraction
thereof. is, for distances OF about loo miles
| IA between Washington City and New York,
and 1t. Louis or Chicago, scarcely one half
| the rate paid by the public on current mes
sases. For distances OF sD miles and un ier
| il il about three-fourths of the commercial
rates. The working expenses OF the company.
without any return for any of the cap
| ital employed. cost within fraction Of u
| per cent. of the total arnings. II, therefore
| the government rate averages less than IS per
cent. of the rate TO the public tas il undonbt-
| edly does then the government business is
now done at a loss
Cost to the Company.
| The average cost TO the company Of handling
messages Is Si.2 cents. per message II the
government business does not pay something
more than this average, then it must be done
| at loss, for the messages, in order to yield
| such an average must be considerably above
| the average length of business messages
| ,aoout seventeen words; ana II Is very
| exActinE service, having precedence over all
| other business. and requiring prompt and
| often long distance messenger deliveries. OF
| rewriting in some cases to deliver by special
| wire.
The Proposed New Rate.
| After stating that the above demonstrates
| that the present rate is an injustice to the
| company and imposes heavy burdens on the
other patrons of the same: that the govern
ment now saves probably $40, 900 per year
on the service; that the government is able
to pay, and that the rate should be increased,
the protest declares that the proposed rate
of mill per word would not reimburse the
company for the clerical service required
and then gives estimates to show the cost Of
handling messages andy the figures given
proves that the proposed rate is 50 alb
surily small as practically to be not worth
| considering.
Complaint and a Protest.
\ IT, a9~~''-''-.''- ,ha,, proceeds rs follows.
| We have been always ready to sew .l..
| government in the promptest and best manner
| in outline Of business, and have done a grea
deal for the government without charge Civ
| ing il the use Of wires special occasion.
and opening new stations AT considerable.
expense. for signal and astronomical observa
| tons. We have had our accounts tied up fo
| a considerable portion Of our service upoI
| technical rulings, upon which We have beef
| unable to procure trial aud decision of tn,
courts until the arrears have reached
the neigh hood OF SlS.J1. and
instructed by the executive committe,
OF the board Of directors ImoSt T, spectfull-
make this the protest Of the Western Unior
Telegraph company, and or the suborIinat,
| telegraph companies which IL controls. agains
| any further reduction below the rat in CD
GRAFTON during the last few years of tolls {,
| be paid by the government for the transmits
sion OF its messages, as a wrong and injustice
to this company. to its 3tsD stockholders, anC
to its million of other customers.
| have the honor to remain most respectful,
yours.
| lSignedl NoRvIS GREEN. President.
| The Gotham Type-stickers-
NEW YORK, July 31-The committe,
authorized by the typographical Union No
to settle the dispute between the compositor
and the newspaper proprietors submitted {
the managers OF the papers yesterday al
agreement making some slight concession
which was accepted, and the danger Of
strike seems TO be over
| An American Syndicate Now.
SAN FRANCISCO, July 30-A syndicate
beaded by the Cramps, is said to have BEEF
formed for the purchase of various ship
building yards including the British nav,
yard on Vancouver island, which is TO
| sale. The intention Is said to be to organic,