St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-07-30
DR.. Norvin Green Says the New
Rate Is a Great In
justice.
The Old Rate Ought to Be In
creased Rather Than Di-
miniShed.
Now Is the Time for Uncle
Sam to Assert Him
self.

is the substance of the protest of the
Western Union Telegraph company
against the postmaster generals great
cut of the rates to be paid for telegraph
service in the transmission aud delivery
of government messages, giving the
history and objects of the act of 1866,
and the action heretofore taken under
it. The rate in force for the past FIVE
years has not been uniform rate of one
cent per word, as many papers have as
Sumed, but increasing on scale of dis
tanceS above 1000 miles, with mini
mum of 20 cents per message, and
maximum of two and half cents,
per word. The telegraph companies
hold, and are SO legally advised,
that the language of the act does not
give the postmaster general absolute
power to fix any rate he may deem fit.
That power is qualified by cOnstitu-
tional restrictions. In article Is the
language: Nor shall private property
be taken for public use without just
compensation" The power depends,
therefore, on the question, Is one mill
per word just compensation? After
relating the circumstances leading to
the enactment of the acts of 1856 and
1872, giving to the telegraph companies
certain franchises and privileges, and
to the government certain advantages
and privileges, including priority OF
service. at rates to be annually fixed by
the postmaster general, the letter pro-
ceeds: 1.-THE fixing of rates does not
appear to have been considered an inn
perative duty of the postmaster general,
for no action seems to have been taken
by that officer in the direction of fixing
rates until July l, 1871, when the neceS.
sity for it was
ALLEGED TO HAVE ARISEN
by reason of the complicated characterot
the service in transmitting the signal
weather reports. The rates were then
fixed satisfactorily to the telegraph COM
panies. They were not annually re-
vised until some years later. and in al
most every instance the telegraph COM
panies were consulted as to what they
could afford to do the service for. In
ell, and Postmaster General James, at
the instance of the telegraph compan-
les, recalled and modified their orders,
after they had been officially pro-
claimed. The language of the act that
messages between the several depart
ments of the government "Shall have
priority over all other business, at such
rates as the postmaster-general shall an
nuallv fix" may be construed as con-
templating the fixing of higher rate
than is paid by other patrons, because
of such priority in transmission over all
other business. Certainly it never con-
templated comforting the power to fix
the rates below the actual cost of this
service. Such action is nothing short
of confscation and appropriation of the
nd on nf RI
use of the government without just
compensation therefor. Twenty cents
for twenty words or less for distances
of 900 miles or less, and one cent for
each additional word, and One-tenth of
a cent per word for each additional 100
miles or fraction thereof, is for dis
tanceS of about 1000 miles (aS between
Washington and New York, and st.
Louis or Chicago scarcely One-half the
RATE PAID BY THE PUBLIC
on current messages. For distances of
800 miles and under it is about three
fourths the commercial rate. The work.
ing expenses of the company, without
any return for any part of tine capital
employed, cost within fraction of rs
per cent of the total earnings. If, there
fore, the government rate averages less
than rs per cent of the rate to the pub
lie las it undoubtedly does), then the
government business is now done alta
loss. The average cost to the company
of handling messages is % 2-10
cents per message. If the govern
ment business does not pay something
more than this average, then II
must be done at loss, for the messages,
in order to yield such an average, must
be considerably above the average
length of business messages (abOut sew
enteen words), and it is very exacting
service, having precedence over all
other business, and requiring prompt
and often long distance messenger de-
liveries, or rewriting in some cases to
deliver by special wires. These eXhib-
its demonstrate that the rate as fixed
for the past year is great injustice to
the telegraph companies, and not on
a fair business basis of living
profits, awarded to railroad companies
and other corporations, for services rem
dered. The rates ought, therefore, to
be increased rather than diminished.
For the present rate the government is
saving large sum, probabbly 100000
annually, by the reduced rate of its tel
egraph service below what other pat
rOns have to pay. and that saving is
necessarily made up from other custom
erS. In all
JUSTICE AND FAIR DEALING,
the existing rate should, therefore, be
increased. To do the government serv-
ice for nothing necessarily imposes
heavier burdens on the people who SuS-
tain the telegraph. The government is
able to pay, and every business consid-
Grafton demands that it shall pay a fair
and reasonable consideration for what
ever service it may require, AS to the
rate named for the ensuing fiscal year
in your official circular to the telegraph
companies Of June 20. which, you say,
sswill be one mill word, ire
spective of distance, for all messages
day or night" have only to say that it
would not reimburse what this COM
pany has to pay for the clerical service
i'm receiving, counting, checking, rout-
ing, numbering and booking the mes
sage before its transmission; that 1t
would not otreimburse what this company
has to pay for the time of any one of
from seven to eleven operators that
would be engaged in the transmission
of message from Washington to Port
land, Or; that message of the Ordi-
nary length would not reimburse what
we have to pay for its delivery by mes
senger after it has reached its destina-
tion, to say nothing of any
part of the cost of maintaining
the lines, battery supplies, stationery,
experimenting, office and other incl
dental expenses; and finally, 1t would
not reimburse the cost to this company
of gathering up business, making up
the accounts, and making the collec-