Omaha daily bee., 1889-08-06
WANAMAKER MAKES REPLY.
He Claims That the Government
Pays Too Much.
DEFENDS THE ONE MILL RATI
Claims That the Western Union Pays
More Attention TO Buying Up
Rivals Than to Reduo-
ing Tolls.
An Answer TO DIR. Green.

An Answer 20 DIR. Green.
WASHINGTON, August 5.--A letter is made
public to-day from Postmaster General
Wanamaker TO President Green OF the
Western Union Telegraph comp any, in reply
70 the recent communication from the latter
regarding the postmaster generals reduced
rate. Referring TO the statement of DIR.
Green that the privileges and benefits de-
rived by the Western Union company
through the acts Of congress are purely i'm
aginary, the postmaster general cites many
facts In contradiction. Under the congress
sional grants, he says, the Western Union
company has claimed the right to use with
out compensation Of any kind ali highways
Of the country, on the gronnd Of their being
postroads 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.
"1he company" says the postmaster gen
eral, "has thus been able to occupy and use
the streets in large cities regardless of the
views of the local authorities and almost re-
gardless of public opinion. In other respects
the company has secured substantial benefits
from the government ana from the public
under acts of congress-"
As to Dr. Green's qualified statement that
no corporations have received a rate equal to
the proposed government rate of / mill
word, the postmaster general says:
"The statement that the press associations
are not corporations IS hardly justified by the
facts.r
He does not criticize the press rate 1t
would be better, In his judgement for the
public press and telegraph companies if it
were still lower
Regarding the statement that the govern
ment has the lowest rate given to any single
customer, cent word for day messages
and three-fourths of cent for night mes
sages, the postmaster general calls attention
to the fact that unlike ordinary commercial
messages, everything, even the address and
signature in government business Is counted,
so that for ten words in u message and ten
words in the address and signature the rate
Is really cents word in the day time and
~ cent at night He asks IL it is not true
that the papers in large cities get a rate of
Il cent for day and 4 cent for night special
dispatches, or one-half lower than the
government rate. "Is it not true also that
this patronage from the press is the most
profitable you have and that it would in fact
give you more profit If made still lower!
Your own testimony. before congressional
committees at various times has been
steadily to the effect that every time your
company has reduced prices it has gained an
increase in income. 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. l am satisfied
the people could and should have much
lower rates than now exist, ana that neither
the people nor the government should suffer
because specially low rates are given TO ia
vored customers.
"As to the statement that no message can
be carried and delivered by telegraph com
pany for less than 20 cents without the SER
vice being done at q loss, do you not include
the cost of handling the large sums paid for
rentals of leased lines some of which are not
now in use, but only valuable to you in re-
moving competition, and on other accounts
which are obviously chargeable to capital
account and not to operating expensess
us 1t not true that within a few years and
Tor several years in succession large volumes
OF business have been handled by your CON-
pany and other companies at the minimum
rate of 10 cents Il message, and did not this
rate continue until the Western Union ab
sorbed the competing linesl The table of
statistics given in your memorial to the SEN
ate committee in 1888 shows that during that
period of 10 cent rates your company didn't
lose money. but made large profits. II this
was possible then, especially as your busi-
ness has grown largely in volume since, it
would seem that 1t might be practical noW.n
The postmaster general than refers to the
signal service reports, which make up very
large proportion of the governments tele-
graph business The schedule shows that
for eleven years the government has been
over which the government messages are
transmitted No reduction has been made
in that rate since 1877, but the public rate
has been reduced within that period moro
than 80 per cent, while according to the West
ern Union figures the cost of handling tele-
grams has been reduced during the same
period from 43 40 cents to % 2-10 cents per
message. taking all these facts into account,
believe the government has been paying for
its service more than any other company
giving you like or an approximate business
and that within the period named there has
not been Sc great reduction in the govern
ment rates as to the general public and the
press. Waiying entirely the question of
benefit accrulng to the telegraph companies
under the act Of 1866, the government ought
to be put upon as favorable basis as to tel
egraphic rates as your most favored custom
ers. InRsmnch as this discussion has taken
q wider range than ! anticipated it may be
proper to add that you are right in saying
that the acceptance OF the act Of
1868 by the telegraph companies
rendered it to all intents and purposes
a compact between the government and the
telegraph companies, but do not agree with
all Of your next succeeding statements. For
instance, the printed copy of your memorial
to the senate postoffice committee last year
misquotes the act of 1866, which should read:
PROVIDED. however, that the United
States may at any time purchase all the tele-
graph lines and the property and effects OF
any or all companies acting under the proyis-
The words "any'' and ''or' are omitted in
your memorial. The omission was of course
an error, but as your present correspondence
expresses the same meaning, mention the
matter merely to remark that your views in
that particular are not adopted BY this de-
pnrtment. The act of 1866 was, as You say, a
compromise measure in which the United
States for the time being waived its inherent
rights to a telegraphic service in conjunction
with the postoifice
The first telegraph line in this country
was built with government aid, and that the
government did not continue to exercise its
undonbted prerogative by extending and op.
Grating the telegraph as more speedy
means of communication than the post, was
purely an accident
SIN conclusion, beg to remind YOU that
in my letter of July 13 consented to your
request for conference on the subject be.
fore any official order fixing the rate to be
issued. 1 am yet quite willing to entert tain
any reasonable proposition, based upon
known facts"