Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-09
WIRE COMBINE IS CHARGED
NEW YORK ATTORNEY GENERAL
AFTER TELEGRAPH COMPANIES.
Says Long Investigation Proves Them
Combination in Restraint
of Trade.

NEW YORK July 9.-Attorney General
William g. Jackson yesterday made applica-
ton to Justice PlatZek of the supreme
court of New York county for the appoint
nent of a referee to take testimony on the
attorney generals allegation that the Pos
tai Telegraph and Cable Company and the
Western Union Telegraph Company have
formed a combination to increase rates OF
telegraph service in this and other states.
He declared that he was about to begin
action to restrain this alleged combination.
and asked that George ]. Gould. Jacob
Schin. Morris X Jessup, E. H. Hartman.
Clarence Mackay. Robert c. Clowry and
many other officials of both companies be
ordered to testify before the referee as to
the existence of the alleged combination.
In his application to the court Attorney
General Jackson said that his action against
the two telegraph companies would be taken
under chapter GO of the New YORK state
laws of 1899 an antitrust law and that his
action would be directed against the Of
ficers and directors Of the companies as
well as the managers.
He alleged that the combination which he
seeks to break was made in January last,
and that as a result the tolls on messages
between New York and points in this state
were raised about cents per message of
ten words.
He charges also that the effect OF the al
legged combination has been to increase the
rates on messages between this city and
other cities throughout the United States.
in many instances 20 per cent over the
rates previously existing.
Would Divide Business.
The attorney general charges also that
the two companies have agreed to establish
at various places in this state common Of
fees and to divide the profits and business
received at these Offices He declares that
when this was done in certain New York
hotels the telegraph companies agreed to
divide the gross receipts OF the business
equally. To support this allegation he asks
that the proprietors OF several New York
hotels be summoned as witnesses.
The combination. he alleges. constitutes
monopoly in restraint Of competition In
the telegraph business He asks that John
c. Stevens, secretary of~the Postal Tele-
graph and Gable Company. and Ahijah r.
Brewer, secretary of the Western Union
Telegraph Company, be summoned to pro-
duce the records. books and papers Of the
two companies relative to the alleged IL
legal contracts before referee to be APP
pointed by the court.
General Jackson Justice PlatZek appointed
R. Burnham Mofratt. an attorney. to take
evidence based on the attorney general S
allegations Mr.. Moffatt announced this
evening that the first hearing in the matter
will be held at his Office. on Wall street,
July 1G.
The attorney general said last night in
relation to the petition that his department
for about two months has been engaged in
making an investigation Of the alleged CON-
bination between the two telegraph COM
panies. Among the curious things he dis
covered, he said was that the rates to and
from Albany have not been in anywise al
tered. and that rates have not been mo-
Tested to or from the capital of any other
state. Other rates. however, in many in
stances had been increased. said Mr.. Jack
son.
President Mackay OF the Postal company
declined last night to make any statement
regarding the attorney generals action in
court today. President CIowry of the West
ern Union could not be found.