Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-08-06


ing letter from Postmaster General Wana-
maker to President Green, of the Western
Union Telegraph Company, was made pub
lie to-day:
PosToFFIcE DEPARTMENT.
OFFICE OF POSTMASTER GENERAL,
WASHINGTON. ID. c., August 2, 1883.
Mr.. Noryin Green. President Western Union
Telegraph Company, New YORK;
DEAR SIR-Referring to your letters of July
II, I6 and q, which have been given to the pub
lie press through channels other than this de-
partment and in which you protest against any
new rates for Government kilograms and offer
various arguments to prove that the old rate of
] cent a word is as low as your company can ac-
eept without loss. beg leave to say:
First-Your unqualified statement that "the
privileges and benefits derived by your COM
pany through the acts OF Congress are purely
imaginary" and the companion assertion thaS
your company has never taken O. stone or stick
OF timber, or appropriated foot of land be-
longing to the Government" under such acts,
are not sustained by the facts.
POSITIVE STATEMENT.
II is an undeniable fact that the telegraph
companies, in accepting the act of 1856, and
aftervard the supplementary acts. consid &red
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 tASt they were securing some benefits
for the valuable concessions being made to the
telegraph companies The telegraph companies
not only accepted the acts, expecting snbstan-
tial benefits would ensue but. IN the case OF the
Western Union Telegraph Company notably.
great and conspicuous dement's have already
accrued.
Under these grants the company has claimed
the right to use, without compensation OF 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 ex-
tent that the streets of cities and towns are
also post roads, and, therefore, open and free
TO its occupancy and use. The courts have sus-
tanned il In this claim. 1ou are necessarily
familiar with the Pensacola case, in which the
Supreme Court of the United States decided
that the Western Union Telegraph Company
had rights which even the sovereign State of
Florida could not annul.
Tbus. under the benefits of this act instead
of not occupying foot of public hand, as you
assert, you are, in fact, occupying many thou
sands of miles of post roads. and are priyi-
legged 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 Phfladel-
phia and New York, regardless of the views of
the local authorities and almost regardless OF
public opXaion.
EVERYTHING CLAIMED.
Even the elevated railroads in New York
City have been claimed as postroads, and the
claim sustained. The State of New York may
regulate ycu in the use, but is not able to de-
prive you of these great privileges secured to
telegraph c. companies, and maintained TO them
alone, by tn Congressional act of 1866. Be
yond this. the streets OF all other cities and
towns of the United States have been kept
open to your use. 1 am sure that, on redec-
tion you will hardly claim that such great ben
efits are 'pur ely imaginary
In other re spects your company and other
telegraph CON Ipanies have secured substantial
benefits frCp the Government and from the
public under cts of Congress, but these 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 ju dgment, is beyond calculation.
Conferring such great prIFheges ana dement's
pected an is en- titled to receive not simply
your exceptionally low rates TO others, but even
a lower special ra1e.
power of tn Post master General to fix the
rate for Governme ut message, would only re-
mark that such right appears to have been
understood by the previous Fostmasters Cen
eral as as an official duty, and their exercise OF
the right or perform ance of the duty has been
generally and consta utly
ACCEPTED AND RESPECTED
by the telegraph con Ipanies. In any event.
should say we may agr ee that the act of Con-
gress ut least imposes on the Postmaster Gen
eraI the duty to name he rate and maintain 1t
until in a court of ing uiry the rate has been
shown to be unjust.
After discussing tn e rate given TO the
press associations and newspapers, Mr..
Wanamaker continues:
Your own testimony efore committees of
Congress at various times has been steadily to
the effect that every tim e your company has
reduced pcices it has gain ed increased income.
This accords with my ow view that con-
stantly decreasing rate, VIII ere there are large
numbers of customers, will both better servo
tho public and better profit my business. be-
lieve that the new rate prop osed Tor the Gov
ernment would not materially alter the amount
of cash received by yoa. while, the Government
would be enabled to greatly quicken and vital
ize the transaction of its busin ess in all depart
ments.
1t is quite true, as you say. Il ist the Govern
ment is able 10 pay proper rates and i may add
that SO far as know is willingIo
PAY JUST RATE S,
and that it is fsrthest from my thought that
"the people should suffer by rease N of CLOSES
you claim that you are now making and
would still further make on Cove rnment busi-
ness am satisfied the people conld and
should have much lower rates thai now exist,
and that neither the people nor the Govern
menI should suffer because special y low rates
are given to favored customers.
While claiming that the GovernmG mt has re-
ceived the lowest single address rate, you not
only admit lower rate to the press, but also
plainly say that certain railroads or transpor-
rates" When it is considered that in Govern
ment messages all the words are coui oted, the
address and signature as well as the message,
and in all other kilograms the message only is
counted is it not true that this half rate to such
companies is at least as low as the Gtovern-
ment rate and in some instances lower?
More than that / am informed you COM
pany, in many cases, actually pays large snms
of money to railroads for rights of way, i1nd it
does not seem unreasonable to suppose t hat it
would net be out of place for the tele2 raph
companies to be expected to make compt snsa-
tion of some kind to the Government 10 e its
much larger concessions, which, in effect / ave
secured to you the enjoyment, particular IN
cities and towns, of much more valuable riA hts
of way.
ONE POINT SCORED.
Fourth-As to your statement that no m. es-
sage can be carried and delivered by a1ele e
graph company for less than 20 cents withoIlt
the service being done at loss: The cost of
telegraphic service appears to be very Diff
cult thing to ascertain definitely. Perhaps In
establishing the proper rate for the Govern
ment to pay, this subject may best be referred
20 a commission to ascertain Che facts. In one
of your letters you put the average cost of
message to the company in receiving, carrying
and delivering. at 2S 2-l0 cents.
In this cost do you not include large sums
paid for re tals Of leased lines some of which
are not now in use. but only valuable to you in
roads and on other accounts, which are obvi-
ously chargeable to capital account and not 20
operating expenses? Is 1t not true that within
D few years and for several years in succession
large volumes of business have been handled
by your company and other companies at a
not this rate continue until the Western Union
absorbed the competing linesf
Within the past i've years the public rate has
fallen Is per cent. and the cost of transmits