The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-11-14
GREEN A LETTER WRITER
ANOTHER LONG LETTER SENT TO
THE POSTMASTER GENERAL.

SAO AsAohSOA bAG SOuAbSs
New YORK, Nov. 13.-The following
letter was made public this afternoon:
EXECUTIVE OFFICE, W. U. TKLEGRAPH Co,
New XoRK, Nov. u, 1899 I
h9n. JohH Wdndmdker, Postmaster General
DEAR SIR-I have your favor OF Oct 80, en-
closing your official order of the same date
purporting to fix the rates for government
telegraph service for the fiscal year.
The order has had all the careful and deliber
ate consideration that an official document from
such high source is entitled to re-
ceiVe. and after such full consideration
the executive committee of the board of direct
ors has expressed itself unanim ously in pre-
amole and resolutions, q copy of which | en-
close to you herewith.
From the rates fixed last year. which were
not remuneratlve your present order makes an
average reduction of a fraction over 40 per
cent. On messages transmitted less than 400
miles, which embrace the larger number of
cent, and on transcontinental messages
the reduction is from so to 90
per cent. each. on minimum message
or % cents. On the signal service of the war
department, commonly known as weather re-
ports, the reduction is one sixth, or something
over 1t per cent. The statement upon which
you presume that no questions can arise as TO
the fairness OF these reductions" is that the
reduced rates hereby determined are prac-
ticelly the same as those upon which one Of the
divisions or departments Of your company, as
well as one of its principal competitors, trans
acted business for the public generally for q
considerable time -"
IT WAS ONLY A RATE WAR.
The fact that the Mutual Union Telegraph
Company, q small organization belonging to
This company, did, for time meet the Balti-
more and Ohio Telegraph Company in sending
messages short distances, aud between very few
points at 10 cents, Is no evidence that loss of
money was involved. II those companies had
Hiade as you propose a rate of 10 cents between
all points less than 400 miles distant from each
other, the Baltimore and Ohio telegraph system
would have been sold out by the Baltimore and
ONO Railroad Company as a bad investment
long before It was sold; and that rate would
have reduced the earnings of the Western
Union Telegraph Company, below its actual
expenses i'll that important department OF our
business
WOULD MEAN A LOSS
IL the entire message business OF this com
pany for the fiscal year just closed had been
sent at the rates named Ia your last circular,
our total receipts from that source would have
been about 81 4000,00 less than the actual cost
TO us OF transacting the business. II the mes
sages sent by the government were equal in
number for the several distances, the rate
named in your circular would average Is cents
Tor minimum message of ten body words, esti-
mating ten words free for the address and sig
nature; but as very much greater number
would be sent distances under 400 miles, aud at
the lowest rate established, it is probable that
an average of Is cents would allow for two or
three additional body words in each message.
FIGURING 1T OUT.
If the whole Of the 81, t0s, ,326 messages sent
during the last fiscal year had paid us but an
average OF Is cents, the aggregate revenue for
the transmitting of messages would have been
$6, 1l6,246 Our total expenses were $14,565, ,i52.
After deducting from the expenses the amount
paid other lines refunding and uncollected
items, the rental aud operating cost of our
Atlantic and Cuba cables, the cost of maintalns
ing leased wires and the rental for and ex
penses of the gold and stock and commercial
news department there are still left as ex-
penditures strictly pertaining to the handling
of messages $i2, ll8 SOL which the entire revenue
al the rates you name would lack over 81 000, 900
OF meeting
90 CENTS WOULDN'T PAY.
Even il government messages were much
longer than estimate and should yield (Which
is scarcely possibe an average Of 20 cents
each, and all our business were done at that
rate, there would still be a deficit of about
$2,00O.O0O In that department of our service.
Commodore Vanderbilt once met the attack
of a competing linz of steamers by establishing
passenger rate of 10 cents between New York
and Albany. Nobody supposed that 10 cents
was q reinunerative rate for so long
passage, but the move proved effective,
because it enabled the commodore to buy the
competing line without paying a speculative
price for It. Such course is sometimes en-
tailed by circumstances upon this company.
Competing companies are often formed, not for
business profits, but to force us to buy them
out or to retire from the field When such
competition occurs it is a transient and isolated
feature of our message business.
CHARACTERIZED AS vfNDICTTvE.
To seize upon one such feature and so far as
your Office as an umpire may control, to make
that the basis OF the rate to be charged on gov
ernment business, seems to us not judicial, but
vindictive. 1t s this view you have taken that
we especially regret. We may seem to deserve
reprehension, but the statute under which you
are acting is judicial, and not penal The
award made annually by your predecessors has
sometimes subjected us to injustice; but
could ascribe to erroneous Judgment the
fixing of a rate designed TO remunerate
us for our service, but which, in
fact imposed loss upon US We have
borne the loss In such cases without complaint.
even yielding 10 the wish OF the departments TO
have messages sent by them not confined to the
definition of the statute, but to include all their
official business. Upon the present occasion the
course Is pursued that gives you high official
sanction to an attitude toward us which we con-
slider unjust and so well calculated to operate
preiudically to our general telegraph business
that we feel compelled TO enter our protest
against IL.
WILLING TO ARBrTRATE
Further the course you suggest of board Of
arbitration Is within what we have always prof
fered. We have stood ready always to supply
the incumbent OF your Office the fullest oppoF-
tunity Of search into the cost OF the telegraphic
business and to accept freely his impartial
Judgment. II you prefer TO delegate that judg-
meOL TO q DOarQ composed as you Suggest,
leaving the rates for this year TO be governed
by that result we shall be glad 10 meet it.
Respecting the personal interviews referred
to in your letter, regret that there was q mis-
understanding as to any positive engagement
10 see you again after our last conference
When we separated you asked II you should see
me again. | answered that | did not know of
any good that could come of further
conference, but that IL / found time in
the forenoon of the next day, would make you
a short call. The next morning had some
ing to my hotel learned that you had called
and expressed regrets at my being out. II /
had had the least intimation that you intended
10 call on me, should certainly have awaited
your arrival. have the honor 10 remain, very
NoRyrN GREEN, President.
THE RESOLUTION.
Following is the resolution Of the execu-
tive committees:
WHEREAS, On June 90, 1889, the Postmaster
General OF the United States officially an
uounced 70 the telegraph companies that under
would be required to transmit official messages
Of the United States for the compensation of
/ mill for each word without regard to dis
tance, price which could In no sense be said
to compensate the service; and,
WHEREAS, On october 80, 1888, the Postmaster
General. by public circular, set forth as estab-
lished under the provisions of said act of July
"a 1866, schedule OF rates for all telegraph
com panies controlled by the provisions Of said
act, which rates also are materially below the
necessary cost to this company, and TO others,
OF transmitting messages of the United States;
and