Morning journal and courier., 1889-08-06
TELEGRAPH RATES.

TELEGRAPH RATES.
Postmaster General Wanamakel
Writes to President Green of thu
Western Onion Telegraph Company
His Argument In Favor of Lower
| Rates for the Government-Newspa
pers Beating Uncle Sam on Low
Rates.
WORCESTER, Aug. 5.-A letter dated at
Washington, August 2, from Postmaster
General Wanamaker to President Green OF
the Western Union Telegraph company, was
made public to-day.
Mr.. Wanamaker says: Referring to your
letters of July 18th, 18th and 9th, which
have been given to the public press through
channels other than this department and in
which you protest against any new rate for
government kilograms and offer various argu-
ments to prove that the old rate of one cent
word is as low as your company can afford
without loss, beg leave to say:
First-Your unqualified statement that
the privileges and benefits derived by your
company through the acts of Congress are
purely imaginary, "and the companion asso-
citation that your company has never taken
stone or stick of timber or appropriated a
foot of land belonging to the government"
under such acts, are not sustained by the
facts. 1t is an undeniable fact that the tele.
graph companies in accepting the act of 1886
and afterwards the supplementary acts
considered they were gaining special and
actual benefits which fully compensated them
for the low rates intended to be granted to
the government and the representatives of
the government likewise supposed that
they were securing some benefits for the val
liable concessions being made to the telegraph
companies not only accepted the acts, ex-
pecting the benefits would ensue, but in the
case of the Western Union telegraph COM
pany notably great and conspicuous benefits
have accured. Under these grants the com
pany has claimed the right to use without
compensation, any kind as to 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 cities and towns are also
post-roads and therefore open and free to its
occupancy and use. The courts have Gus
tanned it in this claim. You are necessarily
familiar with the Pensacola case, in which
the Supreme court Of the United States de-
cided that the Western Union Telegraph
company had rights which even the sover-
eign State of Florida could not annul. Thus,
under the benefits of this act, instead of not
occupying foot of public land, es you as
sert, you are in fact occupying many thou
sands of miles of post-roads, and privileged
to occupy all the highways in the United
States. You have thus been able to occupy
and use the streets in the large cities of Phil
adelphia and New York regardless of the
views of the local authorities and al
most regardless of public opinion.
Even the elevated RAILROADS in New
York city have been claimed IS post-rosds
and the claim sustained. In other respects
your company and other telegraph companies,
have secured substantial benefits from the
government and from the public under the
acts of congress, but these I have mentioned
are enough, think, to sustain my former
reference to the privileges and benefits given
to you by the government. the value OF
which, in my judgment, is beyond calcula-
ton. Comforting such great privileges and
benefits upon you, the government in my be-
lief expect and is entitled to receive moi
! simply your exceptionally low rates to others
| but even lower special rate.
Second-As to your question of the legal
power OF the postmas ter general to fix the
/ rate for government messages, I should say
| we may agree that the act of congress at least
/ imposes on the postmaster general the duty
1 to name the rate and maintain it until in {
court Of inquiry the rate has been shown te
| be unjust.
Third-As to your qualified statement thai
| no corporations have received rate equal tt
| the proposed government rate of one mill {
word your statement that the press associa
/ tons are not corporations is hardly justified
/ by the facts and is not material to the ques
| ton. They may not be corporations for gen
| eral business, but most if not all of them ar;
| Incorporated under the laws of some State
and their dealing with the telegraph compa.
| ny is as corporation, not as individuals
Gals has admitted to me that some of tn
press associations get their news reports for
| mill word to each newspaper, and In on
4 association the rate is even lower than that.
AS to the Associated Press, there is fore
/ in your statement that 1t is q wholesale rat
| as if it were for the same dispatch sent owe
the same wire st the same time to seyera
customers, but it is not true that the rate
given to some portions of the press effective
/ ly contradict your own statement "that 70
1 messages transmitted to q single address tn
l government is our only customer enjoyin
reduced rates." By this presume you mea
| that the government has the lowest rate give
| to any single customer, it's lowest rate bein
| one cent a word for day messages and three
fourths of cent for night messages, but thi
charge is made not only upon tn
message itself, but upon the addres
and signature es well, SO that 70
ten words in a message and ten words Il
the address and signature the above rate
in fact two cents per word IN the dayti
and one and half cents per word at night
Is it not true that the large papers of Ne1
| York, Chicago and other large cities have
half. cent rate for their special dispatches il
the daytime, and fourth of cent at night
or at rate one-hslf lower than the govern
ment has been granted Is is not true ais
that this patronage from the enterprisin
press is the most profitable that you hav
and that it would, in fact, give you still
more profit If made still lowers Reduces
rates bring increased business and enlarge
profit. Your own testimony before com
mittses of congress at various times has bee
steadily to the effect that every time you
company has reduced prices it has gained in
creased income.
| Fourth-As to your statement that n
| message can be carried and delivered by
telegraph company for less than twenty cent
! without the service being done at a loss: III
cost of telegraphio service appears to be
| very difficult thing to ascertain definitely
Perhaps in establishing the proper rate fo
the government to pay, this subJecs ma
best be referred to commission to ascertain
the facts.
Continuing Mr.. Wanamaker says that o.
signal service business no reduction whateYe
has been made in the government rates sine
1877, but within that period the Wester
Union has reduced the public rate fror
/ USIZ W ~ Ccuts pVl uSo5nSo. W -
past five years the public rate has fallen
per cent, but there has been no reductio
whatever in government rates.
he believes the government has been pay
ing for its Geographic service more than an
other customer giving like or approximat
amount of business, and waving entirely tn
question of benefits occurring to the Telegram
! companies under the act of 1866 the govern
ment, he thinks, ought to be put on as favo
able a basis with respect to rates as the
3 most favored customers. Mr.. Wanamakf
| closes his letter by saying that as he consen
. ed to a request for conference on the sui
3 ject before any official order fixing the rat'
9 should be issued, he is yet quite willing
, entertain any reasonable proposition base
j | upon the known facts.
GENERAL FOREIGN NEWS.
Passage of the Royal Grants Bill.
. LONDON, August 5.-The Royal Gran
q bill was passed by the House of Common
o this afternoon.
The Carnival at Halifax.
g HALIFAX, Aug. 5.-The week of carniv
8 was inangurated to day. The city is gal
Q decorated and crowded with visitors. T