New-York tribune., 1897-08-29

ASSISTANT POSTMASTER GENERAL HEATH TO RE-
PORT On THE WESTERN UNIONS CLAIMS
AGAINST TIE GOVERNMENT.
Washington Aug. 2s (SpecaD.-Firs, Assistant
Postmas;er-General Heath expects TO make his re-
port. referee in the calm OF the Western Union
Telegraph Company against the Postoitice Depart
ment. within a week ten days He has had a
force Of clerks working the report OF the last
two months and hopes 10 have it in shape in a
few days The case involves amount estimated
10 be from 10000 TO 100000 II grew out Of the
reduction by Mr.. Wanamaker. when he was Post
master-Genera. Of the rate OF toll paid the tele-
graph companies.
Mr.. Wanamaker enthusiastic advocate Of
the postal telegraph scheme. and he also wished to
reduce TO a minimum the amount paid by the Gov
ernment for its telegraph service Under the law
of 1866 the had at that time the
right to fix the amount paid for ielegraphic SER
vice by all the Departments Of the Government.
Mr. Wanamaker reduced the rate greatly from that
fixed by his predecessor Mr. Dickinson. and wished
to reduce II to about mill word. The service
had been worth $4,000 10 the Western Union UP TO
this time. The company entered a strong protest
against the reduction. and for about three years
refused 20 send i'm a bill II did. however transmit
The messages. but received them under protest.
When Mr.. Bssell became Postmaster-General. he
restored the rate fixed by Mr.. Dickinson and the
company began rendering its bills once more. II
then brought suit against the Government in the
United States Court of Claims for the money due
On the telecrsms during the last three years
Of the Wanamaker administration. and the Court
apuointeG TWO referees audit the account. one
was e O Shepherd. that time chief Of the
Salaries and Allowances Division of the Depart
pent who was chosen TO act for the Department.
The other William A. Brown. selected by the
attorney for the Western Union These two ref
ere.s began the work In rooms in G-st The tele-
grams amounted to more than million In number
and brought over from the Western Union
Office in boxes The auditing Of these required con-
siderable time. and the work dragged along for
several years. At length the Western Union be-
ca me- tired of the datory proceedings. NO appro-
praton having been available FOR the work. tho
COMPANY mad 20 advance the money. and after II
had expended about $500 II asked the Court 10 set
the referees 10 report Last November but they did
not DO so. They set up the claim mat they nad
not been paid by the Western Union Tor their
work .
When the present Administration came Into power
and Mr. Shepherd resigned the Department wished
10 substitute Mr. Heath. The Western Union agreed
"a accent him as soe referee and his appointment
TO the present time Mr. shepherd mas made
port In order 20 be certain of the correctness OF
the accounts Mr. Heath had them all re-examined.
and the work H. about completed. When the
report Is made IL III! 20 10 the Court and arsu-
rents will be heard In the case.
IL IS a grave question whether the Government
has the right to force upon a company for its SER
vices pay which the company deems grossly in
ade1ua 70 and would refuse from private customer.
bu.k OF the telegraph custom OF the Government,
was taken from the Postraster-G General and the
Secretary Of Agriculture WAS empowered 20 fix the