The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-08-06

words are counted address and signature as
ven as the message and in all other
kilograms, the message only Is counted.
is II not true that this half
rate 70 such companies is at least as low as the
government rate and IN some instances lOwerf
For instance q government message from
washington 70 New York containing twenty
words III the message and ten works in the ad-
dress and signature would be charged at 50
cents which is nearly 80 per cent. more than
transportation companies would pay for the
noW and m9Ss5S 5S NOT ss a not baIs P9aSing
the free service you give to railroads for GER
tam service 20 you. These payments | under
stand 20 be for the rights of way, etc. More
Than that | ann informed your company in
many cases actually pays large sums Of money
20 the railroads for the rights of way, and it
does not seem unreasonable to sup
pose r,odd that it would not be OUT
to be expected to make compensation of some
KIND to the government for its much larger
concessions, which, in effect. have secured to
you Tue enjoyment, particularly in cities and
towns, OF much more valuable rights of way.
COST OF DELIVERY.
4. AS to your statement that no message can
be carried and delivered by telegraph com
pany for less than 20 cents without the service
being done at loss: The cost of the tele
graphic service appears 10 be a very difficult
Imug to ascertain definitely. Perhaps in estab-
hShlng the proper rate for the government to
pay, this subject may best be referred to a com
mission to ascertain the facts. In one OF your
letters you put the average cost of n message
to the company in receiving carrying aud de
lYerlng, at % @l0 cents In this cost, do you
not include Che large sum paid for rentals of
leased lines, some q which are not now in USE
but only valuable to you in removing competi.
ton, rights of ways on railroads, and on other
accounts which are obviously changable to
the capital account, and not to operating
expenses Is it not true that within few years.
and Tor several years in succession large vol
umes Of business, have been handled by your
company and other companies at n minimum
rate of 10 cents a message, and did not this rate
continue until the Western Union absorbed
competing linesH The table of statistics given
III your memorial to the Senate committee in
1888 SnOws that during tue period Of the 10 cent
made large profits. III this were possible then,
and especially as your business has grown very
largely in volume since, IL would seem that it
| might be practical now. | understand that
| signal service reports make up a very large
proportion of the eatire amount Of the govern
meut teeRraphic business. Your shedule shows
| That Tor eleven years the government has been
| paying about three cents a word for each cir
cult over which government messages are
transmitted. No reduction whatever
mas been made in the rate since
| lsf1, but within shat period you have
reduced the public rate from 6219 cents to 80
| cents per message, more than 50 per cent re-
ductlOn, and the cost of handling kilograms has
been reduced during the same period from
! 43 40 cents to % 2-i0 cents per message or
over a ~ per cent reduction. Within the past
live years the public rate has fallen Is per cent.
and the cost of tran smission about per cent but
within that period there has been no reduction
whatever In the government rates Taking all
these facts into account, | believe shat the gov
ernment has been paying for its telegraphic
service more than any other customer giving
you ike or approximate amount OF business,
and that within the period first named there has
not been SO great a reduction in government
rates as to the general public and the press.
| lIfaur rtpfr tfraNr f,
| accruiug to telegraphic Companies under the
| act of 1866 the government ought to be put
| upon as favorable basis to telegraphic
| rates as your most favored customers.
| THE ACT OF 1866.
Inasmuch as this discussion has taken wider
range than l anticipated it may DO proper to
| add, referring 20 your letter, that you are right
| in saying that the acceptance by the
ssgr9Rh companies Of ,Ssr. the act or9 Of
purposes compact between the government
| and telegraph companies" but | do not agree
with all of your next succeeding statements.
| For instance, the printed copy OF your
| memorial presented to the senate postofice com
mittee last year msquotes the act Of 1861, which
should read: Provided. however, that the
| United States may at any time purchase all
| telegraph lines, property and effects Of any
| all companies acting under the provisions
| Of the act Of July "a. 1867 The words any
and 'or' are omitted in your memorial. This
omission was, Of course, an error, but as your
II
| meaning, / mention the matter merely TO re-
mari, that your views in that particular are not
adopted by this department The act Of 1866
was, as you say, O compromise measure in
which the United States for the time being
| claimed its inherent right to the performance
| of Geographic service in conjunction with the
postoffice The first telegraph line in this
country was built with government aid and
that the government did not continue to oper-
ate its undOubted perrogatives by extending
and operating the telegraph as a more speedy
means Of communication than the post was, as
is wellnowu, purely an accident / have
given full and respectful consideration TO your
protest weighed your arguments and interro-
gated the subject for myself, through such
channels AS are open to me. desiring only to
protect the interests of the government. In
conclusion I beg to remind you that in my let
ter Of July 49, in answer to yours protesting
against reducing, consented TO your request for
a conference on the subject before any official
order to the Cepari ments fixing rates should be
issued, and / am yet quite willing to entertain
any reasonable proposition based upon known
facts l have the honor to remain. very re-
spectfully yours, JoHN WAsAMAKER,
Postmaster General