Los Angeles daily herald., 1889-08-10

duty are umltSu ny the OCHbtitutlOu 10
| Just compensation for the service re-
| quired, and that just compensation
must cover the actual cost of service
with something added for the use of the
facilities necessary to perform it, and as
you say the Government is willing to
pay Just rates we have come quite near
to an agreement on the principle that
must govern the fixing of the rates to be
paid.
Third, l still insist that the Govern
ment is our most favored customer, and
that the rate for Government service
during the past five years, considering
the character of the service, is lower than
that given to any other patron. The
Government rate has been one cent per
word for thousand miles or less. You
may make up supposed message with
address and signature of unusual length
and twenty words in the body, sent short
distance under our balf-rate contract with
certain transportation companies, and
show that it is trihe less than the
Government rate; but the half rate is
generally higher; and you forget that
that half rate in money is not all we get.
To it must be added the value of what
those transportation companies do for ue.
When you apply even the shortest sup
posed case to a message between New
York and Chicago, or Washington and
St. Louis, you will find that the Govern
mept rate is the lowest.
There is no comparison between the
newspapers and the messages trans
mitted for the Government. A special
of 1900 words would make fifty Govern
ment messages of thirty words each,
each message requiring separate check
ing, booking, numbering, routing, en-
veloping and special delivery. We
often have a special news report Of 5000
words or more, equal to over l60
messages of thirty words each, while our
commercial and social messages average
| but about seventeen words, including
the address and signature.
In my former statement that for mes
ssges transmitted and delivered to q
single address, the Government was the
only customer that enjoyed reduced
rate, distinctly excepted in the context
the service for the newspapers. arrange
ments with railroad and transportation
companies and the distribution of COM
mercial news reports. 1t is not true that
this company gives the large papers of
New York, Chicago and other
large cities day rate of one
half cent per word, and night rate
of one-quarter cent per word. That rate
applies only between New York, Phila-
delphis and Washington nor is it true
that this company gives the large papers
of the large cities any lower rate than it
gives the small papers of small cities.
The press rate, which is based on our
commercial rate, is the same to
every paper in the same city
or town, great or small, whether
it does business to the extent of
dollar per year or 800 900. 1t is not
true that the patronage from the press is
the most profitable we have. There is
little or no money on the regular press
service. as a whole, and very little on
the special press service; and it would
not add to our profit ifthe rate was made
still lower; however, as it is based on
our commercial rate, it necessarily is re-
duced with it.
The question of our press rates has
been much discussed with the press as
sociations who, having many lines leased
which they operate themselves, are quite
familiar with the cost OF rendering it, as
they are with the cost Of like service in
other companies, and it was found and
| admitted that the press rate of this coun-
try, considering the distances, is the
lowest of any country in the world, and
the most liberal in it's application.
In the Signal Service report since 1872
the rate has been reduced, as in the case
of other Government service, by length
ening the circuits. Until about 1884
the charge for Signal Service messages
was three cents per word for each circuit
A compound circuit, requiring the use of
|repeaters, as from New York to Milwaukee
with drops. was charged and paid for as
two circuits, or at the rate of six cents
per word So also we're the circuits from
New York to Eastport, Maine, and from
Cincinnati to New Orleans, whilst the
circuit from Chicago to San Francisco
was rated as four circuits, or twelve cents
per word. San Francisco to San Diego,
and San Francisco to Olympia, W.
T., were each rated and paid for
as three circuits, or nine cents per word.
Now we are only paid three cents per
word for each of these circuits, 80 that
the rate for Signal Service reports has on
a number of circuits been reduced to
one-half and on others to one-third of
the amount previously paid. II we had
been paid last year for this Signal Serv-
ice on the same basis as in 1872. we
should have received nearly twice as
much as we did.
Whilst the rate on Government mes
sages, fixed 30 nearly at the cost of the
service at the start, has not been entitled
to, and could not be expected to have,
corresponding reduction with the rates to
the public from time to time, yet the
facts show that on a large class of Gov
ernment business the reduction has been
much greater than that made to the
pu olic.
Up to July, 1877, the Government rate
was one cent per word for 250 miles or
less, one cent per word for each addi-
tional $50 miles or fraction thereof, with
not less than 25 cents to be wanted. For
fraction less than one thousand miles,
therefore, the rate for 25-word message
was 81; for 1000 miles it was
$2, and for 5000 miles it was
SO; for 80 miles it was seventy-fve
cents, and for 500 miles it was fifty
cents, while for 250 miles, or less, it has
remained the same, except that the min
imum is twenty words instead Of twenty
five words. Since 1884 the rates on the
same message for 5000 miles would be
sixty-three cents, for 1000 miles
fifty cents, for 1000 miles and
all distances under that 25 cents. The
reduction, therefore, on the long dis
tances has been about 80 per cent. on
1000 miles, 70 per cent on 900 miles,