The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1889-11-14
TELEGRAPH RATES.
N0rvin Green Most Completely
DemOliSheS the Case
OF THE POSTMASTER-GENER
Against the Western Union Telegraph Com
pany-Wanamaker the Good is Actu-
ally Accused of Being Vindictive.
NEW YORK, Nov. 13.-The following COR
respondence was made public to-day

NEW YORK, NOV. l3.-The following COR
respondence was made public to-day
NEW YORK Nov. ~, 1889.
Hon, JohnoA. W anamaker, Postmaster General,
Washington. d. G.
DEAR Sir have your favor of October so,
enclosing your official order of the same date
purporting TO dix the rates for governmental
telegraph service for the fiscal year. The order
bNS had all the careful delibaration
that an offcial document from such IA
nigh source is entitled to receive, and after
full consideration the executive committee of
the board OF directors has expressed itself unan-
tmOusly in i preamble and resolutions, a copy
of which enclose you herewith
From the rates liked last year, which were not
remuneratlye, your present order makes q re
Guction OF IL fraction over 10 per cent On
messages transmitted less than four hun
dred miles, which embrace the larger num-
Der OF government messages, the reduction
is 50 per cent, and on tranScOntlnental messages
the reduction Is from 50 cents to 20 cents each
the minimum messages, or 10 per cent. On the
signal service Of the war department, commonly
known as the weather reports the reduction is
one-sixth or something over 10 per cent
The statement upon which you presume that
questions can arise as to the fairness OF these
reductions, is that the "feduced laJes hereby
determined are practically the same as those
upon which one of the divisions or departments
OF your company, as well as one OF its principal
, competitors, transacted business for the public
generally for q consider bl time The fact that
the Mutual Union Telegraph company, small
organization belonging TO this company, did for
O time meet the Baltimore and ONO Telegraph
company in sen ling messages short distances
and between yey few points at 10 cents, IS no
eT dence t. at no loss of money was involved. II
those companies had ma lie, as you PROPOSE
rate OF 10 cents between all points less than four
hundred miles from each other, the Baltimore
and Ohio Telegraph system would have been sold
out by the Baltimore & Ohio railroad company
a Z bad investment long before 1t was sold, and
that rate would have reduced the earnings OF
the Western Union Telegraph company below
its actual expenses IN that important depart
msnJ OF our business. II the entire messages
IOr this county for the fiscal year past closed
had been sent ut the rates named
IN your circular, our receipts from that
E0urce would have been about four million dol
4 lars less than the actual cost to OF transactng
THAT business. If the messages sent by the gov
4 ernmert were equal in number for the several
Y distances therein named in your circular, they
would average IS cents for the minimum mes
sage Of Ten body words, estimating ten words
free Tor address and signature, but as
very much the greater number would be
sent distances under four hundred miles
and at the lowest rate established IL Is probable
that an average OF 10 cents would allow for two
or three additional body words in each message.
II the whole OF the 81, iOS, 20 messages sent the
last fiscal year had paid US but an average Of 10
cents, the aggregate revenue for transmitting
the messages would have been IS ll6,24SyO. Our
total expenses were Sl4,5iJ, I52.6l After deduct
ing from the expenses the amount paid other
lines, the refunded and uncollectsd Items, the
rental and operating OF our system of our
Atlantic and Cuba cables, the cost of main tanning
leased wires and the rental for aud expenses OF
the gold and stock commercial news depart
ment, there are still left as expenditures strictly
pertaining to the handling OF messages Si2,Ils
DOL A. which the revenue entire at the rates you
name would lack over four million dollars of
meeting.
Even II the government messages were much
larger than the estimate and should yield
which Is scarcely possible, an average OF -
cents each, and all our business were done ut
that rate, there would still DO a deficit OF
Se,U)lO)J in that department Of our service.
Commodore Vanderbilt once met the attack of
competing line Of steamers by establishing Il
passenger rate of 10 cents between New York
and Albany. Nobody supposed that 10 cents
but the move proved effective because ii enabled
the commodore to buy the competing line with
out paying i speculative price for it. Such q
course Is sometimes enLailed by circun-
stances upon this company. Competing com
pauics are often formed not for bust
ness profits. but to force US to buy
them ont or TO retire from the field.
Whel such competition occurs IL is q transient
and Isolated feature Of our message business.
TO sc.ze upon one such feature and so far as
49, Office may be able to control, to make that
@tls basis rate 10 be charged on government
y business, seems not TO be judicial but vindic-
1--we. 1t IS this view that you have taken that
We especially regret. We may seem TO deserve
apprehension but the statue under which you
are acting IS judicial and not penal
The order made annually by your predecessors
has sometime subjected us to an injustice, but
TecOuld ascri0e TO erroneous judgement the
fixing OF a rate designed TO remunerate US for
the service but in fact which imposed i loss
upon US We nave borne the loss IN such cases,
and even yielding 10 the wish of the department
to have the messages sent by them not con-
lined to the definition OF the statute, but to in
clUde all the official business. Upon the pres
ent occasion = course is pursued which gives
your nigh official sanction To an attitude to-
ws-ds us which We consider go unjust, SO well
calculated to operate prejudlcially TO
our general telegraph business that
we feel compelled to enter our
earnest protest against it. The further course
= you suggest OF board of arbitration IS what we
J. arnl 10 Oh rp. IL
always 10 supply TO the incumbent of your ONCE
the fullest opportunita Tor search into the case
of teegraphic business and to accept freely his
impartial Judgment. II you prefer to delegate
that judgment 70 u board composed as you Sug-
gest, leaving the rates for This year to be gov
erned by that result, We shall be glad 10 meet it,
Respecting the personal matter referred TO in
your letter, regret that there was misunder-
standing as 70 any positive engagement to sec
you again after our last conference. When We
SenaTuued yOl asked If you should see me again
answered that did not know OF any good that
could come OF further conference. but that If
found time in the forenoon OF the next day l
would make you short call. The next morning
had some business atOBr telegraph Office, and
on my returning 10 my hOtcl learned thai you
had called and expressed regret at my being out.
u then had had the least lntimation that you
Intended to call upon me, l should certainly have
q vaitcd your arrival
\ have the honor 10 remain. respectfully yours,
" NosvlT g GR n =
G, 1852.
Whereas On The 29th Of June, 1889 the post
uaStcr-gelcral Of the United States officially
announced 10 the telegraph companies that un-
der the provisions Of the act Of July "a 1886
they would be required 10 transmit the Official
messages OF the United states for the compen-
sati0n OF mill for each word without regard to
distances, "a price which could in no sense be
said to compensate for the services; and,
Whereas On the seth OF October, 1889 the
postmaster general, by public circular, set forth
the established rates under the provisions OF
said act which rates are also materially below
the uccessery cost 10 This company and to others
Of t'dnsmitting the messages of the United
States: and,
Whereas This company is obliged 10 consider
the enforcement OF said rates as u conliscation OF
Its property TO that extent and is advised that
the injustice under said act IS remedlable 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 and agents,
sput this company will not accept as inal pay
frent 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 company is hereby
directed to file q copy of this our protest with
the heads OF the several executive departments
OF the United States.
Engagement of Senator Allison