Los Angeles daily herald., 1889-08-06
WANAMAKER'S LOGIC.
A Reply to DR.. Green's
Communication.
W. o. T.'S PROTEST ANSWERED.
What the Government Has Done
for the Telegraph Company
Other Notes.
Associated Press Dispatches to the HERALD

Associated Press Dispatches to the HERALD
WASHINGTON, August 5.-A letter was
made public today from Postmaster Gen.
eral Wanamaker to President Green, OF
the Western Union Telegraph Company,
in reply to the recent communication
from the latter regarding the Postmaster
Generals reduced rates for Government
messages. Referring to the statement
of DR.. Green that the privileges and
benefits derived by the Western Union
Company through acts of Congress are
purely imaginary, the Postmaster Gen
eral cites many facts in contradiction.
Under its Congressional grants, he
says, the Western Union Company has
claimed the right to use, without COM
pensation of any kind, as to right of way,
all the highways of the country, on the
ground OF their being postroads. 1t has
broadened this claim to the ex-
tent that the streets of cities
and towns are also postroads and
therefore. open and free to its occupancy
and use. The company. says the Post
master General, has thus been able to
occupy and use streets in large cities re-
gardless of the views of the local author.
tiles, and almost regardless of public
opinion. In other respects the company
has secured substantial benefits from the
Government and from the public, under
acts of Congress.
n. p1c p1o1;Gnd tot ay,t
that no corporations have received rate
equal to the proposed Government rate
of one mill word, the Postmaster Gen
eral says the statement that press asso-
Citations are not corporations is hardly
justified by the facts and is not material
10 the question. He does not criticise
the press rate. 1t would be better, in
his judgment, for the public press and
the telegraph companies if it were still
lower.
Regarding the statement that the
Government has the lowest rate
given to any single customer, one
cent word for day messages, and thrse-
fourths Of cent for night, the Postmas-
ter General calls attention to the fact,
unlike ordinary commercial messages
everything in the address and signature
of Government messages is counted, 80
that for ten words in a message and ten
words in an address and signature, the
rate is really two cents per word in day
time, and a cent and half at night. He
asks if it is not true that papers in large
cities have rate of half cent, day, and
quarter cent, night for their special
dispatches, or one-half lower than
Government.
els it not true also that this
patronage from the press is the most
valuable you have, and that it would
in fact give you more profit if made still
lower? Your own testimony before the
committees of Congress at various times
has been steadily to the effect that every
time your company has reduced prices
it has gained an increased income. l
believe the new rates proposed would
not materially alter the amount of cash
received by you, while the Government
would be enabled to greatly quicken and
vitalize the transaction of its business in
all departments. am satisfied the peo-
pie could and should have much lower
rates than now exist, and that neither
the people nor the Government should
suffer because specially low rates are
given to favored customers.
Gas to the statement that no message
can be carried and delivered by a tele-
graph company for less than twenty
cents without the service being done at q
loss, do you not include in the cost of
handling the large sums paid for the
rentals of leased lines, some of which
are not in the United States, but only
valuable to you in removing competition,
ard on other accounts, which are OBJ
viously chargeable to the capital account,
and not to operating expenses? Is it not
true that within few years, and for sew
eral years in succession, large volumes Of
business have been handled by your COM
pany and other companies at the mini
mum rate OF ten cents message, and
did not this rate continue until the West.
ern Union absorbed its competing lines
"The table of statistics given in your
memorial to the Senate Committee in
1888, shows that, during the period of
the ten cent rate, your company did not
lose money. but made large profit. II
this was possible then, and especially as
your business has grown largely in
volume since, it would seem that it
might be practicable now."
The Postmaster General then refers
W tuO oiBuht CCINtCo TcpOTb5J WHICH
make up very large proportion
of the Governments telegraph bust
ness. The schedule shows that for
eleven years the Government has been
paying about three cents word for each
circuit over which Government messages
are transmitted; no reduction has been
made in that rate since, but the public
rate has been reduced within that pc.
riod more than so per cent, while &C.
cordiDg to the Western Union figures the
cost of handling kilograms has been re-
duced from 43 14-100 cents to 23 2-1O
cents per message.
"TskiDg all hes rs cts into account be-
lieve the Government has been paving
for it's service more than any other COM
pany, giving you a like approximate
amount of business, and that within the
period named there has not been 80 great
a reduction in Government rates as to
the general public and press. Waving
entirely the question of benefit accruinc
to the telegraph companies under the act
of 1866, the Government ought to be put
upon as favorable basis as to tele-
graphic rates, as your most favored GUS
| toners.
1nasmuch as this discussion has
tax en- a wider range than anticipated, il
may be proper to add that you are right
in saying that the acceptance of the act
of 1866 by the telegraph companies
rendered it to all intents and purposes a
compact between the Government and
| the telepraph companies. But I do NOT