The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-03-31
WESTERN UNION OUSTED.
Its Contract With the Union
Pacific. Is Declared to Be
Illegal.
The Railroad Must Own and
Operate It's Own Telegraph
Lines
ihe Question IL not Ono OF Policy but
OF Law-Dscision by Justice
The Question Is not Ono OF Policy hut
OF fLaw-Dscision by JustAce
Brewer.

WASHINGTON, March 30.--Justioe Brewer.
OF the supreme court. sitting as Judge Of
the circuit court of the district embracing
Nebraska, has rendered decision dsclar.
Ing illegal the contract undor which tho
telegraph lines of the Union Pacific rail.
road are operated by the Western Union.
The directors OF the road will harea ft.r
operate their own lines. This suit wns
DrouRns by the United States under the act
congress- passed in 1888 declaring that aII
ra1ifoads which received governments aid
anu were required under their charter to
maintain telegraph lines ahaIl henoefor-
ward maintain and exercise by themselves
alone al telegraph franchises conferred
upon them. Under this act the povern.
ment sought to have cancelled and an-
nulled the contract made July /. 1881. be-
tween the Western Union and Union Pacific
by which, as claimed. tho telepraphic fran
chIseB granted the railway compnnv ~
charter rights were not a mere rioht "
place telegraph wire along the railroad
Tor its own use. Telegraph wires are Al
much part Of railroad as depots ~
wreoking trains. What was meant was Z
telegraph line for public and commercial
uses, as independents and com plete in
ltself as though not built along railroad
flghe OF way. or used at all in connection
with 1ts operation. Ths contract betwean
the telegraph company and the railroads.
Justlcs Brewer says. operates to transfer
this telegraph franchise to the former. and
was intended to make it the exclusive bene-
ticiary thereof. The contract provision.
meant that telegraphic business should be
exercised by the Western Union alone.
ana that no other company, railway
Or O, telegraph, should touch Il.
lhe purpose as disclosed in every line Of
the contract was that public and CONNER
cial use Of the telegraph wires should b.
long to the Western Union, leaving to the
railway only such use Of them ss was necns
sary for its own business.
Justice Brewer said be had no doubt thia
transfer was beyond the authority conferred
by the granting acts Of 1862 and 1894 hnt
il there we're any doubt, it had been -
moved by the act Of 1883. passed in the
exercise nf the reserved power to alter 81
amend the charter, commanding tho rail
way TO exercise all the duties Of its tele-
graph franchise The Justice said he is
inclined to assume that the contentious of
counsel for the corporations, that the con
tract is pecuniarily beneficial to the
railway, and that public interesta
IN fact are subserved by placing
commercial telegraph business in the
- cAO sSickIAPu company, are EU8-
talnable but the court could not. by reason
or this fact, decline to enforce plain man
date of the government, which created the
corporation and gave it its powers II was
Tor congress, not the courts. to decide the
question of policy.
In accordance with its opinion the court
directed an order to be entered setting
aside the contract of 1881, putting an end
to the relations created by and subsistinp
under it, between the two companies. with
a mandatory injunction upon the railway
hereafter, by its own agents and employees.
not through the einstrumentality of the West.
ern Union, to exercise all its duties created
by it's teleeraphic franchises and directing
the Western Union to vaoate all Offices Of the
railway, with leave to the Western Union to
apply for and have stated account between
It and the railway as to the value Of its
property along the line and jointly used by
The two companies. and for such other relief
as equity and good conscience require.
Attorney General Miller expressed graft
hcatlon at the decision of Justice Brewer
favoring the government in the suit against
Tho Union Pacific and Western Union Tele.-
graph company. He said there are num-
Der of cases against other Pacific roads de-
pendent on the same principles. The case
Will likely be appealed to the supreme
court.