The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-08-06
PosToFFICE DEPARTMENT,
OFFICE OF THE POSTMASTER GENERAL

4Hr. Noruln Green, President Of the Western
UntoR Telegraph Company, NelS York:
DEAR SIR-Referring to your letters Of July
IL, ID and ~ which have been given to the pub
lie press through channels other than this de-
partment and IN which you protest against any
nav rats for government kilograms, and offer
various arguments to prove that the old rate of
cent word is as low as your company can
aceeptfwithout loss, beg leave to say:
|. Your unqualified statement that "the
privileges and benefits derived by your oom-
pany through acts of congress are purely i'm
aSlnary, aud the companion assertion that
your company has never taken q stone or
suck OF timber, or appropriated a foot of laud
belonging to the government" under such acts,
are not sustained by the facts II is an unde. L
able fact that the telegraph companies. in ac-
cepting the act OF 1866 and afterward
supplementary acts, considered they were
gaining special and actual benefits which fully
compensated them fof the low rates intended to
De granted to the government, and the repre-
Sentatlves OF the government likewise supposed
that they were securing some benefits for the
valuable concessions beng made to the tee
graph companies. The telegraph companies
not only accepted the acts. expecting that sub
stantlal benefits would ensue, tut in the case Of
the Western Union Telegraph Company notably
great and conspicuous benefits have already
accrued. Under these grants the company has
claimed the right to use, without compensation
OF any kind as 10 right Of way, all the highways
OF the country, on the ground of their being
post roads. 1t has broadened this claim to the
extent that the streets of the cities and towns
to Its occupancy and use.
SUSTAINED ny THE COURTS.
The courts have sustained it in this claim
You are necessarily familiar with the Pensa-
cola case, in which the supreme court Of the
United Stetes decided that the Western Union
Telegraph Company had rights which even the
sovereign state OF Florida could not annul
Thus, under the benefits of this act, instead Of
not occupying foot OF public land as you as
sert, you are in fact occupying many thousands
privileged to occupy all the highways
in the United States. You have thus been
able to occupy all the highways and use tie
streets in the large cities of Philadelphia ana
New York, regardless Of the views of the local
authorities and almost regardless OF public
opinion. Even the elevated railroads of New
York city have been claimed as post roads and
the claim sustained. The state of New York
may regulate in use, but is not able to deprive
You of these great privileges secured to the
telegraph companies and maintained to them
alone by the congressional act Of
1865. Beyond this, the streets of
all the other cities and towns Of the
United States have been kept open TO your use.
l am sure that reflection you will hardly
claim thatsuch great benedts are purely imag-
mary" In other respects your company and
Otner telegraph companies have secured sub
stantial benefits from the government and
from the public under acts OF congress. but
these l.have mentioned are enough, think, to
sustain my former reference TO the privileges
and benefits given to you toy the government,
calculation. Conferring such great privileges
and benefits upon you, the government, in my
belief expected and is entitled to receive not
simply your exceptionally low rates to others
but even a lower special rate.
RIGHTS OF THE POSTMASTER GENERAL.
9. AS to your question Of the legal power OF
the Postmaster General to fix rate for govern
nent messages, would only remark that such
right appears to have been understood by pre-
vious Post masters General as an official duty
n pp 1ou pfa
of the duty has been generally and constantly
accepted and respected by the telegraph com
panies In any event, should say we may
agree that the act of congress at least imposes
on the Postmaster General the duty TO name
the rate and maintain it until by court Of in
quiry the rate has been shown to be unjust.
RATES TO CORPORATIONS.
8. AS to your qualified statement that no cor
porations have received a rate equal to the pro-
posed government rate OF one mill word
your statement that press associations are not
corporations is hardly justified by tire facts,
and is not material TO the question. They may
not be corporations for general business, but
most if not all of them are incorporated under
the laws of some state and their dealing with
the telegraph company is as a company or cor
poration and not as individuals. You will not
deny, indeed one of your officials has admitted
to me, that some OF the press associations
get their news reports for mill word TO
each newspaper and in one association
the rate is even lower. | do not criticize the
press rate. 1t is not too low, it would be better
in my judgment for public, press and tele-
graph companies il IL were still lower As to
the Associated Press there is force in your
statement that it is a wholesale rate as It were,
for the same dispatches sent over the same
wire at the same time to several customers, but
is it not true that the rates given TO some por-
tions of the press effectively contradict your
own statement that ''for messages transmitted
to a single address the government is our only
customer enjoying reduced ratesf"
TEE GOVERNMENTS RATE.
BY this presume you mean that the govern
ment has the lowest rate given to any 81 nge
customer its lowest rate being ! cent a word
for and day threequarters Of cent for night
messages But this charge Is made not only upon
the message itself but upon the address and
signature as well, so that for ten words in
the message and ten words in the address and
signature, the above rate is IN fact 2
cents per word in the day and IN cents par
word at night 1t is not true
that the large papers OF New York, Chicago
and other large cities have half cent rate for
their special dispatches in the day, and one
quarter of a cent at night or rate one-half
lower than the government has been granted
Is it not true, also, that this patronage from
the enterprising press is the most profitable
that YOU have and that 10 would, in fact, give
you still more profit if made still lower
EFFECTS OF Low RATBs.
The reduced rates bring increased business
and enlarged profit. Your own testimorT be-
fore committees Of Congress AT various I. es
has been steadily TO the effee Nqt every time
your company has reduced pr.N 1t has gained
an increased income This accvrds with my
own view that a constantly decreasing rate
where there are large numbers OF customers
will both better serve the public and better
profit any business.
believe that the new rate proposed for gov
ernment business would not materially alter
the amount Of cash received by your company,
while the government would be enabled 20
greatly quicken and vitaiize the transaction OF
It's business in all departments.
noAsfp WANT THE PEOPLE TO SUFFER,
It is quite true, as you say, that the govern:
ment is able to pay proper rates, and may ada
that 80 fa- as know it is willing to pay Just
rates, and that it IS farthest from my thoughts
that 'the people" should suffer by reason OF
losses you claim that you are now making and
would still further make on the government
business I am satisfied that the people could
and should have much lower rates than now
exist and that neither the people nor the gov
ernnent should suffer because specially low
rates are given TO favored customers.
Dos'r GET TIE LowEgr RATE.
While claiming thai the government has re.
ceived the lowest single address rate you not
only admit lower rate to press associations
and to the press. but also plainly say that GER
tain railroad or transportation companies are
given one half commercial rates When It Is