The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-06-27
TIE Pos1ETs BIG vICToBY.
supt. Ketss Statement of the Agreement
With the Pennsylvania Railroad


Mr.. w. J. Crews, Manager of the Pos
tai Telegraph Company in this city, has
received from Superintendent J. w.
Hates, Richmond, Va, the following
statement concerning the recent agree
ment between that company and the
Pennsylvania Railroad:
"An agreement has been consummated
between the Postal Telegraph Company
and the Pennsylvania Railroad Company.
under which the telegraph company ac-
quires the exclusive right to transact
commercial telegraph business on the
lines belonging to the railroad system
east of Pittsburg and Erie, Pennsylvania,
and to string wires on the railroad CONF
pany's poles and rights of ways. The
agreement is expected to take effect
July 1st and transfer of offices to the
Postal system will be made as rapidly
as possible after that date 1t is under
stood that similar agreements covering
the remainder of the railroad company
system will be put in form as soon as
the existing contracts with the Western
Union Company expire. The agreement
just consummated will take away from
the Western Union system and add to
Postal system all offices, and the tele-
graph lines on 4,745 miles of railroad in
populous and important section of the
country.
This is the most important and far
reaching deal ever made by an opposi-
ton telegraph company. 1t not only
takes away from the Western Union and
gives to the Postal large revenue from
commercial telegraph business, but in
cidentally will put the Western Union
Company to heavy expense in removing
it's pole lines from the railroad rights of
way and rebuilding it's lines in other To-
cations
although this is perhaps the most Sc
rious blow that the one time monopoly
has ever received, it is not the only re-
cent one. The Postal Telegraph and
Commercial Cable Companies victory in
connection with the Pacific cables, in
which fights the Western Union Com
pany is said to have expended large
sums of money involves the loss to the
Western Union of very considerable flu
ture revenue. Even the Cuban cable
fight although nominally a victory for
the Western Union, really resulted in
loss to them because it compelled a
heavy reduction in rates.
"The Postal Telegraph and CONNER
-cial Cable Companies comparatively re-
cent connection with the new German
cables, and also with the Halifax and
Bermudas and direct West Indies cables
have resulted in diverting very consid-
cradle business from the older company.
The completion of the new Pacific cable
will also result in large increase of the
Postal Company's business.
1.-The Postal has within the past two
years made substantial gains in various
other directions, notably in the acquir-
ing of branch offices in the principal ho-
tells of the country. The company has
recently opened offices in every impor-
tant hotel on the ST. Lawrence River and
has made numerous connections With
railroads, particularly with roads exc
tending into the newly developed copper
and coal-prOducing territory in the South
and Southwest 1t has also won numer-
Gus condemnation suits in various States,
thus establishing its right to construet
it's lines upon railroad rights of way
and destroying the most valuable eXclus-
i've feature of the Western Union rail.
road contracts. 1t has also within the
past few years secured long term leases
in the most desirable locations in the
larger cities in the country and has
completely reftted its offices in those
cities with new and improved apparatus
and is eXpending over 81, 900, 900 per year
in the rapid extension of it's line in all
directions.