The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1889-11-14
WESTERN UNION PEOPLE
Protest Against the Government
Telegraph Rates Fixed by
THE POSTMASTER GENERAL
And AGree to the Proposition to Ar.
bitrate the DlHeFeRCe-PFosident
Norvin Green's Letter to Mr..
wanamaker About II.
NEw YORK, Nov, lS,-The following
correspondence ia made public to-day;
NRw YoRK, Nov. IL, 1889,


correspondence Ia made public to-day;
NRw YoRK, Nov. l2, 1889,
Hon, John WaHGmaker, PoslWGIter 6eEerul, RaL
iRgtOH, D, O.;
DEAR SIR'-I have your favor OF octo
Der 80, enclosing your official order o
the same date, purporting to fix the rate
Tor Government telegraph services for th,
fiscal year, The order has had all thI
careful and deliberate consideration tha
an official document from such q higL
source is entitled 10 receive, and aftel
such full consideration, the Executive
Committee Of the Board OF Directors hal
expressed itself unanimously In q pre-
amble and resolution, q copy OF which
! enclose to you herewith, From The
rates fixed last year, which were not re.
muneratiVe, your present order makes
an average reduction Of traction over
4Oper cent. On messages transmitted less
than four hundred miles, which en-.
braces the larger number OF Government
messages, the reduction Is so per cent,
and on ransContinental messages the
reduction is from fiLy TO twenty cents
each on the minimum message, or 80
per cent, On the signal service Of the
War Department, commonly known us
the "weather reports" the reduction is
one'sixth, or something over sixteen
per cent. ''-''-. ''.-'.
The statement upon which you "pre.
sume that no questions can arise as 10
the fairness OF these FeductionS,h 10 that
"the reduced rates hereby determined
are practically tue same as those upon
which one OF the divisions or depart.
menh OF your company, as well as one
Of its principal competitors, transacted
business for the public generally for q
considerable time"
The fact that the Mutual Union Tele.
graph Company (a small organization
belonging to this company did, Tor u
time, meet the Baltimore Il Ohio TeIe.
graph 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 those
companies had made, as you propose, q
rate of ten cents between all points less
than 400 miles distant from each other,
the Baltimore 4 Ohio telegraph system
would have been sold out BY the Balti.
more 4 Ohio Railroad Company US q
bad investment loug before It was sold,
and that rate would have reduced the
earnings OF the Western Union Com.
pany below It's actual expensts In the
important department Of our business.
COULD NOT APFoRD 1T.
II the entire message business oil the
company for the fiscal year Just closed
had been sent at the rates named in
your circular, our total receipts from
that source would have been about four
millions OF dollars less than the actual
cost to US of transaCting that business,
II the whole OF the 81, ,329 messages
sent during the last fiscal year had paid
us but an average of fifteen cents the
actual revenue for Transmitting mes.
sageS would have been $S,l16,24S 20.
Our total expenses were ST., ,666, ,l62 6I.
After deduCting from the expenses the
amount paid other lines, the refunded
and uncollected items, the rental and
operating cost OF our Atlantic and Cuba
cables, the maintaining OF leased wires
and the rental for aud expenses OF the
gold and stock and commercial news
departments, there are still left as OK.
pendilures strictly pertaining to the
handling OF messages, $l2,ll8,56l II,
which the entire revenue, Gt the rates
you name, would lack over four millions
Of meeting.
Commodore Vanderbilt once met the
attack Of competing line OF steamers
by establishing q passenger rate Of ten
cents between New York and Albany.
Nobody supposed that ten cents was a
remunerative rate for so long q passage,
but the move proved effective because II
enabled the Commodore TO buy the
competing line without paying u specu.
lative price for It. Such a course is
sometimes entailed by circumstances
upon this company. Competing com.
panies are often formed, not Tor business
profits, but 10 force us 10 buy them out
or TO retire from the field. When such
competition occurs II is a transient and
isolated feature oil our message business.
A REoRETABLE VIEW.
To seize upon one such feature, and 80
far as your office as an umpire may con.
troll, 10 make that the basis OF q rate to
he charged on Government business,
seems TO us not judicial but vindictiye.
1t Is this view that you have taken that
We especially regret, We may scem TO
deserve reptehGnsion, but the statute
under which you are acting ID judicial
and not penal. The award made annu.
ally by your predecessors has sometimes
subjected US to injnstice, but we could
aScrlbe 10 erroneous judgment the FIX.
ing OF a rate designed 10 remunerate US
for the service, but which in fact i'm.
poses loss upon us. We have borne
the loss In such Cases without complaint,
even yielding 10 the wish oil the depart.
mentS 10 have the messages Bent by
them not confined 10 the definition OF
the statute, but 10 include all their OF.
fcial business. Upon the present occa.
sion u course iB pursued which gives
your official sanction 10 an attitude
towards us which we consider 20 unjust
and 90 well calculated 10 operate preiu.
diCially 10 our general telegraph buSl.
ness, that we feel compelled 10 enter our
earnest protest against 1t.
The further course you suggest OF q
board Of arbitration IL within what we
have always pro1ered, We have stood
ready, always To supply 10 the incumbent
Of your office the fullest opportunity for
search into the cost oi telegraphic buBi.
mess, and to accept freely his impartial
Judgment. II you preiet 10 delegate
that judgment 70 a board composed %
you suggest, leaving the rates lor thlB
year 10 be governed by tue result, We
shall be glad 10 meet IL.
have the honor 10 remain,
Very respectfully yours,