The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-11-14
MILLIONAIRE GOULD DECLARES WAR.
The Western Union Will Not Accent
the Government Rates,
But Does Not Refuse to Transmit
Uncle Sans Messages.
The Decision Accompanied by a Let
ter from Or. Green.
NEW YORK, November 13.-The follow
ing correspondence was made public today /:

NEW YORK, November 13.-The 1oll0W-
ing correspondence was made public today
NEW YORK, November II.
To Hon. John W1nanaker, Postmaster GEN
erdt, Washington, ID. c.
Dear Sir-l have your favor of October 30th,
enc osing your official order Of the same date pur-
porting 70 fix the rates for government telegraph
the careful and deliberate consideration that an
official document from such high source Is en-
titled to receive, aud after such full consideration
the executive committee Of the board Of directors
has expressed itself unanimously In preamble
and resolutions, copy OF which enclose to you
herewith: From the rates fixed last year, which
were not remuneratiye, your present order makes
an average reduction of fraction over forty per
cent. On messages transmitted less than four
hundred miles, which embrace the larger number
G government me 3sages, the reduction Is nifty per
cent; and on transcontlnental messages the re-
duction Is from fifty to twenty cents each on the
minimum message, or sixty per cent On the sig
nal service of the War Department, commonly
know as the weather report" the reduction is
0ne-sixth, or something over sixteen per cent.
The statement upon which you "presume that
no questions can arise as to the fairness OF these
reductions is that "the reduced rates hereby de-
termlned are practically the same as those upon
which one Of the divisions or departments of your
company as well as one Of its principal competi-
tors transacted business s for & 5ae pqpc t generally
tual Union Telegraph Company. small organiZa-
tion belonging to this company old, for time,
meet the Baltimore g. Ohio Telegraph Company
in sending messages short distances and between
very few points at ten cents, Is no evidence that
no loss of money was involved. II these compan-
between all points less than four hundred miles
distant from each other. the Baltimore & Ohio tel
egraph system would have been sold out by the
Baltimore & Ohio Railroad Company as bad in
vestment long before it was sold, and that rate
would have reduced the earnings OF the Western
Union Company below les actual expenses 10 that
II the entire message business Of
this company for the fiscal year
lac Qfr m frOn
source would have been about four millions Of
dollars less than the actual cost to OF transact
ing that business. II the messages sent by the
government were equal In number for the several
distances, the rate named In your circular would
average 15 cents for the minimum message OF 10
and signature; but as very much the greater num-
Der would be sent distances under 400 miles and
at the lowest rate established, II Is probable that
three additional body words In each message. II
the whole Of the 81, 1926 messages sent dur
ing The last fiscal year had paid us but an average
OF 10 cents the aggregate revenue for trans
miting messageslwOuld have been So g, ,245. 80.
Our total expenses were S14 1866, 1921. After
other lines, the refunded and uncoliected items,
the rental and operating cost OF our Atlantic and
Cuba cables the cost OF maintaining leased
wires and the rental for and expenses of the
gold and stock and commercial news departments
there are still left as expenditures strictly per-
tanning to the handling OF messages, s12,
name would lack over four millions OF meeting.
Even IL the government messages were much
longer than estimate, and should yield (Which is
scarcely p0ssible) an average OF twenty cents
each, and all our business were done at that rate
there would still be deficit Of about two millions
in that department OF our service. Commodore
Vanderbilt once met tine attack Of a competing
line OF steamers by establishing passenger rate
Of ten cents between New York and Albany No
body supposed that ten cents was remuneraiive
rate for so long passage, but the move proved
effective because It enabled the Commodore to
buy the competing line without paving q specula-
tive price for 1t. Such a course Is sometimes en-
tailed by circumstances upon this company. Com
peting companies are often formed,n not for bust
or to retire from the field. When such.
competition occurs, 1t Is a transient and isolated
feature Of our message business. To seize upon
umpire may control, to make that the basis of a
rate to be charged ON government business seems
to US not judicial but vindictiye. 1t is this view
may seem to deserve apprehension, but the
statute:under which you are acting in judicial and
not penal. The award made annually by your
predecessors has sometimes subjected us to In
Justice but we could ascrbe erroneous judgment
the service, but which in fact imposed loss
upon us. We have born the loss In such cases
without complaint, even yielding to the wish of
them not confiAed to the definition OF the statute
but to include all their 0fficial business. Upon
p the present s occasion course is pursued which
which we consider so unjust and so well calculated
to operate prejudicially 10 our general telegraph
business that we are compelled to enter our
The further course you suggest of board of ar
bitraton Is within what we have always proffered.
We have stood ready always TO supply to the in
cumbent Of your office the fullest opportunity for
search into the cost OF telegraphic business, and
to accept freely his impartial judgment If you
prefer 10 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
70 mat neae
was misunderstanding as to any positive en-
gagement to see you again after our last confer
should see me again. Fans answered that did not not
know of any good that could come of further con-
ference, but that If found time In the forenoon
of the next day would make you a short call.
The next morning / had some business at our tele-
graph office. and on returning to my hotel learn
ed that you had called and expressed regret at
my being out. IL had had the least intimation
that you Intended to call on me, should certainly
have awaited your arrival.
1 have the honor to remain,
[Slgnedl NoRvIN GREEN, President.
The following is the resolution of the ex-
ecutive committee Of the Western Union
Telegraph Company:
whereas-on the goth day OF June, 1889, the
Postmaster General OF the United States official
ly announced 10 telegraph companies that, ulder
provisions of the act of July "a. 1866, they woud
be required to transmit the official messages OF
The United States for compensation Of one mill
for each word without regard to distance, price
which could In no sense be said to compensate the
service and
Whereas-On the 3Oth of October. 1889, the
Postmaster General by pnblic circular set forth
as established under provisions Of said act OF Ju-
ly "a, 1866 schedule Of rates for all telegraph
companies controlled by the provisions of said act
which rates also are materially below the necessa-
ry cost to this comprny and to others transmitting
the messages Of the United Utates and
Whereas. This company Is obliged 70 consider
the en- orcement of said rates as a coDfiscation of
its property to that extent and Is advised that OBJ
vious injustice under said act Is remediable by
law.
Resolved, That this company will transmit as
heretofore with due priority and diligence all the
kilograms between the several departments Of the
government and their officers aud agents, but
this company will not accept as final payment the
rates above established until its rights in that re-
gard have received such further consideration as
1t may be able to secure, and the president OF this
comp any is hereby directed to file copy OF this,
our protest, with the heads OF the several execu
tive depaItments of the United States.