The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-08-02
CONTINUANCE: Il! IN
TELEGRAPH CASE Ga /.
Western Union and Postal 70: tai Coi IL
panies File Briefs Before 2 s State
Corporation Commission.
SHORT CONTINUANCE GRANTED n 7 E }
Probability That Telegraph l&atc
Cases May Be Settled Without 'al7ls3s
Legal Delays.

Judge "A. u Holladny, state counsel for
the Western linton Telegraph Company,
and Mr.. CIV. Meredith special counsel l7Is'Is
for the Postal Telegraph nnd Cable Com !'lfr-s
pai,y, appeared yesterday morning before 't'
1.-The State CORPORATION Commission In res
sponse to summons and filed answers.
| for their respective clients, giving rca-
sons from, their standponts why It is
iupractlcable and Improper for them 20
comply with tho tariff rates promul.S
gated ana proposed to 20 ehto 1e,,e ~
the commission. l5 45 s5l
~ Counsel explained tho delay IN present.
ing the briefs and tho explanations we're
perfectly satisfactory to the cofninisso on
Tho commission took recess TO 3;So 70
consider tho briefs.
w. ~ Mehegun, manager Of tho Sou th-e
ern and Adams Cypress Companies, also
appeared before the commission ycster-l
day morning and asked for q few days
moro t!mo In which to prepare and file
I'M ans wcr. as to why tho schedule OF
express chnrges proposed for 3Virglnins
BY the commission shall not be adopted
IIe was given further time, and Will prob
ably have his answer ready by tho first
4 Of next week. # Il
The briefs filed by the two telegraph
companies aro lengthy documents and II
took tic conln,lss lonors several hours
to give them duo consideration. M IL.
ll=,yls Value Of Competition.
THAT Of the Postal, which is much
shorter than the Western Union, recltes
that tic company first constructed Its
lines. established offices, and prepared to
afford to the citizens OF Virginia the benz
efits to be derived from active. agg res
sive competition in telegraph service N
1889. At that time the average toll on
telegralns Throughout tho United States
was fraction over 81 cents, and the
average cost Of handling telcgralnl1ss#
throughout tho United States at that time me
was a fraction over % cents. ~ The aver
ago toll on kilograms In Virginia at that;
time was considerably higher, and the
average cost was not materially different
from the general average cost. Il
Tho advent OF competition In TINS g very
essential means Of quick communication II! g y
resulted in very apprcciaIblle reduct'on
OF rates In Virginia "a All n .{}S
Our rates are now tho same as they
were ten years ago. and the cost OF oper-s
alton and maintenance Is materially
greater than 1T was then. In fact, upon
a general average throughout the colln q
try the modern telegraph service leaves !
this company a net revenue OF loss than
2 cents per message handled.
Heavy Losses from Storms.
The brief goes ont to enumerate the
great loss the corporation has to bear
from storms, thea burden OF excessive
taxes, and further says that the .tatu-
tory penalty law has resulted In s'ln-&,
scrupulous persons successfully :chem-
ing to make natural weaknesses u. OF
the tclegraph'a source OF revenue. and
mr.
from such schemes
1--WE believe that II repetition With
out charge be required by the COM.
mission, the demand would be made
aupon us to such an extent as TO very
materially Increase tho cost OF opera
tion and result in serious losses. f583
The brief calls attention to the COM
petition Of telephone and other com.
panies, and the consequent difficulty
OF earning q easonable return I LOT Inc
company's investment
a FINALLY It takes up tho consideration
OF the legality OF the proposed tele-
graph rate tariff, and declares that It
violates the act OF Congress OF July
p, 1866 sections 1868 to 626s. inclusive.
and Is under this net an instrument OF
Interstate commerce. It can enter each
State without the State consent, ana
is therefore not to be regarded as
public corporation subject to the cohtrol
OF the state.S It violates also. says tho.
brief. section g. article g. OF tho Consti-5
tuition OF the United States, which says
that Congress shall have the right and md
power to regulate commerce witt foreign
nations and among the several sta ses:.
The brief states that the proposed
rate tariff, II adopted by tho commits
sion, will violate Article XIV. o. the
Constitution, and also Article 3LYlll.g OF
the Constitution Of the State OF virginia.
Western Unions Plea.
The answer Of the Western Union IS
much longer than that OF the Postal, and
recltes many or the same facts as to the
cost OF doing the telegraph. ne COM
pnny says It commenced business ~ io %,
that It controls not less than S seo ~
miles Of poles and cables and l,zul ,eD
miles OF wire; that the company has 2s,-
900 Offices and transmits yearly so!s'e 49,, ~,
100000 messages. Tho references to lega!
records are substantially tho same as
those In the Postals bricf The docu-
ment summed up, treats tho case under
four heads That OF goYorHmentni agency;
interstate commerce, Const tuition ana
laws OF Virginia ana conflscatl lon. s
Settlement Possibly in Sight,
Tho afternoon session OF the commits
sion was brief and in the nature o.
conference. Nlessrs. Holiday and Mere-{
dith were present. A short COZ llliuu'tce
OF the hearing was granted,
lsllt is thought that, with some sus
modification OF tho rules governing We
transmission OF messages. thete -
strong probability OF o settlement o. o.. '''s
case without the usual 1esas coA wy"
IMPROVE GROUNDS