Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-11-14
GOVERNMENT RATEs OF TELEeRAPH.
LETTER from DR.. Green, President of the
Western Union Company.
ny taln1ranh % the Dlspatch.I

~
NEW York, November -. The following
letter was made public this afternoon:
EXECUTIVE OFFIcE,l
WESTERN UNI,S TELEGRAPH COMPANY,
NEW YORK, November -, 1859.
lion. ,John Wanamqksr, I0stmds'ef-"ehefd'
Washington. y. C.:
Dear str.-I have your favor Of October 3)th
enclosing your official order Of the same daie
puruorticgt to TX tho rates for the Government
telegraph service tor the fiscal year.
The order has haj all TIE careful and deIbe-
rate consideration tat an onlcial document
from such q high source ~ entitled 10 receive,
and after such fun consideration tho Executive
Committee OF the Board Of Directors mas OK
pressed itself unanimously In preamble and re-
solutions, copy Of which enclose to you nero
with.
From the rates fixed last year, which were not
reriunoratiye, your present order makes an ave-
rage reduction OF a fraction over ~ per cent Oh
IN easaCcs transmitted less tnan 800 miles, Hhlcn
embrace a large number OF Government moF-
-agc, ths reduction l. 90 pof cent. aua on trans
continental messages the red uciion II IRON 5D 10
20 cents each on q minimum nea5ige ol VI per
cent On the signal service OF the War Depart
ment commonly known ~ " weather reports,
tho reduction l. one sixth. or something over 10
per cent. The statement upon which yOl - pre-
sumo that no questions can are ~ 10 fairness
Of these reductiOBsn IL that be "roduce1 fato1
lereby determined are practically tho same as
those upon which one Of The divisions or deE ART
ments Of your company, As wen as one OF Us
principal competitors, transacted hufn@ss lOr
the public generally for q considerable time"
The fact that the Mutual Union Telegraph
Company. a small organization belonging 10 TINS
company, did for a time meet tho Baltimore ana
Ohio Telegraph Company In sondlne messages
short distances and between very few points at
ten ,ents IL no evidence that no loas OF money was
involved. II those companies mad made. as you
propose, a rate Of ten cents between all points
less than 400 miles distant from ca,h other the
Baltimore and ohio telegraph system Would
have been sold out by the Baltimore aud ono
Railroad Company a. a bad Investment long be-
fore lt was sold. and that rate would nave
reduced the earrings Of the Western Union
COMPANY below its actual expenses IN mat I'M
pOrtant department Of our business.
II the entire message business OF THIS compa-
ny for tho fiscal year just closed mad been sent
az the rates named in your last circular our To-
tal receipts from that source would have been
about A. 10000 less than the actual cost 10 Us OF
transacing that business II the messages cont
| by the Government We're equal In number Tor
tire several distances the rate named IN your cir-
! cular would average IS cents Tor minimum mos
/ cage OF ten body words. estimating ten WORDS
I free FOR address and signature; but a. very
much greater number would De sent dist 7hces
under 400 mites and a. lowest rate established, u
| Il probable that an average OF 10 cents would
| allow for or 3 additional rOdy words III eacn
I message. III the whole 81 the I,lJ>,3b messages
cent during the last fiscal year had paid us Dut
| an average OF IS cents, the aggregate revenue
| for transmitting he messages would have been
/ ss.ll6.Sf3 Our total expenses were Sl4ot3,i&.
! After decucting from expenses toe amount bali
/ other lines, rcfunding and uncolocted items,
rental and operating cost OF our AtlGntlc anu
/ Cuba cables, the cost OF maintaining leased
wires and the rental for and expenses OF the gold
| AMI stock and commercial news department
there are still left as expenditures strictly ap-
pertaining 10 the handling Of messages sl2.lls,-
/ SOL, which entire revenue at rates you name
/ would lack over A,00O,0OO Of meeting. Eyen II
/ the Government messages were much longer
/ than | estimate and should yield (Which Is
/ FfaNr ga al
each and all our business were done IL that rate
/ there would still DO deficit 81 about f2,JJJ,OVO
/ Ia that department OF our sery!ce.
Commodore Vanderbilt Once met me aitecA
| OF o competing line OF steamers by establishing
| passenger rate OF ten cents between Now ork
| aud Albany. Nobody supposed that ten cents
| was O remuneratiye rate for 80 long passage,
/ but the move proved elective, because II eha-
| bled the Commodore 20 buy competing line
! without paying u speculative price for II. Sucn
] a course Is sometimes entaliei ~ circumstances
/ upon this company. Competing companies are
! often formed, not for business profits, but 20
/ force US 70 buy them out or 10 retire from the
! field. When such competition occurs IL Is
! a transient and Isolated feature Of our
| message business. To seize upon one
| such feature and SO far as your ONCE a. an UNI
pire may control 10 make that basis OF rate 70 be
! charged on Government business, seems 10 US
not judicial. but yindlctiye. II Is this view you
1 have taken that we especially regret we may
seem 10 deserve apprehension, put the siSluls
| not penal The award made annually by your
| predecessors has sometimes subjected IA 70 IN
Justice, but We could ascriDe 70 erroneous lult-
| ment me fixing OF rate designed 70 renu-
| perato rs for the service, but which, in fact,
| imposed a loss upon US We have borne tho
| loss In such cases without complaint. even YIELD
ing 10 the wish OF the departments 10 have the
messages sent by them not confined TO tne uen-
| milton OF the statute, but 10 include all their
Official business. Upon the present occasion the
present course is pursued that gives your hign
| Official sanction 20 an attitude towards as Wnich
We consider 80 unjust and 30 wen ea.c1latea y
! operate periodically 20 our general teIesrapaft
| business that We feel compelled 70 enter ol'
| earnest protest against IL
Tho further course you suggest OF the Board o.
| Arbitration Is within what We have always prof.
| fered. We have stood ready always 10 supply
| TO the incum bent OF your Or1co the fullest olp
portunity for a search into the cost OF tue tele
| graphic business and 10 accept Freely DIS I'M
| partial jud gment IL you prefer 70 delegate ina
Judgment 10 a board composed as you suggest
leaving rates for this year 10 DO governed Dj
that result-we shall be glad TO meet IL
Respecting the personal interview referred
10 your letter, regret tha. there was nilsun !,
derstandinR - TO any positive engagenent v
see you again after our last conference hhei
We separated you asked II you should zee m'
again. 1 answered that did not know OF an.
good that could come Of further conteience
hui that n found time In tho forenoon Of TN
next day would MAKE you snort call h
next morning l had some business az our teae
| graph once, aud on returning 10 NY uotul
| learned hat you had called and expressed re
| grets az my being out II | had had the IeaS
intmation that you Intended 70 cali on mo
| shonld certainly have awaited your arrival
have the honor TO remain. very respecttull
yours, NoRvIS OE4ks, ffesioeh~
The following is the resolution OF tn
Executive Committee:
Whereas on the 2g,h day Of June, 'se n
| Postmaster-Generalo OF the United states onlcia
ly announced 10 the telegraph companies Una
under the proyisIons OF the at Of July y. 1903
thcY would be required 70 transmit official mes
sages OF the United states for compensation
one mill for each word without regard 70 as
lance. price whica could IN no seus
be said 10 compensate the service and
whereas ON the 30th Of October. ises, the fos'
masteg-6 enoral py public circular set forts
as established under the provisions Oh the sA'