New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-06
A REPLY TO NORvIN GREEN.
THE PoSTMASTER-GENERAL STATES THE
GOVERNMENT POSITION ON TELE-
GRAPH RATES.
GREAT CONCESSIONS TO TELEGRAPH COMPANIES
WHICH SHOULD MAKE THE GOVERNMENT
AFAvoRED CUsToMER-RATEs ENJOYED
By coRPoRATIoNs-A COMMISSION
TO ASCERTAIN THE FACTS
SUGGESTED.

SUGGESTED.
Washington, Aug. 5.-The following letter from
Postmaster-Genera Wanamaker to President
Green, of the Western Union Telegraph Company,
was made public to-day:
Postolce Department,
0fhec Of the Postmas,cr-G General,
Washington. d. c.. Aug o $780,
Mr.. Norvin Green. President Western Union Telegraph
Company. NewYork.
Dear Sir: Referring 10 your letters Of July H. 16.
and 81. which have been given to the public press
through channels other than this Department and in
which you protest against any for GOvosn-
ment kilograms and OFFER various arguments to prove
that the old rate of cent word is low as SOurI
company accept without loss l beg leave say
Frst-Your unqualified statement (hat "the priv
iieses and benefits derived by your company through
the OF Congress are purely imaginary" and the
companion assertion that your company has taken
stone stick Of timber. appropriated foot bf
land belonging the Government under such acts"
sustained by the facts 1t is undeniable
fact that the telegraph companies accepting the act
OF 1866 and aferward the supplementary acts. consid
cred they were gaining special and actual benefits
which fully compensated them for the low rates in-
tended TO be granted 10 the Cove and the repre-
scntstves of the Government kwise supposed tina; they
securing benefits for the valuable concessions
being made the telegraph companies. The telegraph
companies only accepted acts. expecting sub
stantial benefits would ensue, but the OF the
Western Union Telegraph Company notably great and
conspicuous benefits have already accrued Under these
grants the company has claimed right use with
out compensation of kind right Of all the
highways Of the country the ground OF their being
pos-roads. II has broadened claim the extent
that the streets Of cities and towns also potoads
ana therefore open and free 10 lts
occupancy and The courts have sustained
In this claim Thus under the benefits Of this act.
instead Of not occupying foot OF public land you
assert are, in fact occupying many thousands Of
miles of post-roads and privileged occupy all the
highways in the United States. You have thus been able
% use I'm
delphis and New-YoIk regardless OF the views Of the
local authorities and almost regardless Of public opinion
Even the elevated roads in New-YOrk City have been
claimed post-roads and the claim sustained. The
State Of New-YoIk may regulate the use, but is not
able to deprive you OF these great privileges secured TO
telegraph companies and maintained to them alone by the
Congressional act Of 1866 Beyond this. the streets OF
all other cities and towns Of the United States have been
kept open your 1 am sure that, on reflection
you will hardly claim that such great benefits as these
purely imaginary"
Conferng such great privileges and benefits upon YOU
the Government, in my belief. expected and is entitled
receive, simply your exceptionally low rates TO
others. but even lower special rate
Second-As TO your question Of the legal power OF the
PosmasterGenera ~ fix the rate for Comment messages
i would only remark that such right appears to have
understood by the previous POstmaserGeneras as
an Official duty, and their exercise Of the right or per-
Torrance the duty has been generally and constantly
accepted and respected by the telegraph companies In
any event / should may agree that the act OF
Congress least imposes the Postmaser-Genera he
duty to and maintain it. until in court
Of inquiry has been shown to be unjust
Third-As your qualified statement that no corpora
lions have received rate equal to the proposed "oNe
rent rate OF one mill word Your statement that the press
associations are corporations is hardly justified by the
facts and II material to the question Most II not all OIL
them are incorporated under the laws of some state ana
their dealing with the telegraph company is as COM
pany or corporation not as individuals You will not
deny-ndeed OF your officials has admitted to me
that associations get their news reports
for mill each newspaper, and In one ASSOCIATION
the rate lower than that 90 not cfluelSe the
press rate; IL is low. 1t would be better In my
judgment for the public, the press and the telegraph COM
panies II it were still lower AS to the Associated Press
there is your statement that IT Is wholesale Iae
as IL were the dispatch is sent over the same
wire at the time to several customers, but 1t not
true the given TO some portions OF the press
effectively contradict your own statement that Tor message
transmitted single address the Government Is our only
customer enioying reduced rates r BY this 1 presume
you mean that Government has the lowest rate gwen
70 any single customer, its lowest rate being one cent
word for day messages Of cent for night
messages But this charge is made not only upon the
message itself but upon the address and signature as
we'll 50 that words in message ana ten words IN The
address signature the above rate Is in TACT TWO cents
per word in the day time and and onehalf cent per
word at night that the large papers OF
New.Yok Chicago other large cities have halfcent
rate for their special dispatches liz day time and fourth OF
cent at night onehalf lower than the Govern
ment has grsntedl Is 1t not true also that this
patronage from tho enteprsng press is the most profit
able that you have and that it would in fact give you
still more profit II made still ower3 Reduced rates bring
increased and enlarged profit Your own esti-
mony before committees OF Congress- at various u mas
been steadily TO the that every time your company
has reduced prices it has gained increased income De-
eye rate Icsed for the government WOuu
not materially the amount Of cash received by YOU
while Government would be enabled greatly to quicken
and yaze the transaction OF It's business in all depart
ments.
IL is quite true you say that the Government Is able
aar that far |
is willing 10 pay just rates am satisfied the people
could and should much lower rates than now exist
ana that the people the Government should sur
FEY because specially low given To favored Gus
toners.
While claiming that the Government has received the
lowest single address rate, you only admit lower
rate to the press but also plainly say that certain rail-
roads or transportation companies are given half com
mercial rates" When 1t is considered that in Govern
snt all words counted the address and Sig
nature well the and In all other kilograms
the message only counted is II not true that this half
rate companies is at least as low az the Government
,ate and I'm some instances lower speaking
OF service give 10 railroads for certain free
service to YOU These payments understand 10 be for
rights of way. More than that am Informed that
your company, in many cases, actually pays large sums
Of money tn railroads rights OF way and 1t does
seem unreasonable suppose that It would not out Of
place the telegraph companies be expected % make
Of some kind TO the Government for its much
larger concessions.
Fourth-As TO your statement that message can be
carried and delivered by telegraph company for less than
twenty cents without the service being done at loss The
eos Of elegraphic service 10 be dcut thing
10 ascertain definitely Perhaps in establishing the proper
rate for the Government TO this subject may best be
referred ~ commission TO ascertain the facts. In
OF your letters you put the cost Of
the company in receiving carrying and delivering, ~
and twOtCnths cents In this cost do
not include paid for rentals Of leased lines
some Of which use but only valuable you
removing competition, rights Of way on railroads and
on other accounts which obviously charscabe capt.
account and not TO operating expenses Is u not true
few years ana for several In succession
Of business have been handled by
pany and other companies minimum rate Of Den
message and did this rate continue until the Western
Union absorbed the competing lines The table Of statistics
fiven your memorial 10 the Senate Committee in 1858
shows during the period OF the cent rate your