Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-06-28
President Asks For Light on
Relations Between Western
Union and Postal
FACTS TO GO TO CONGRESS
Evidence Offered to Sustain Violations
of Anti Trust Law in Increasing
TolIs-Rates Higher Than in Europe
discrimination is Denied - Other
News.

| Washington. June 2S.-In accord
Roosevelt, Commissioner of Corpora
tons Herbert Knox Smith is arrang-
ing for immediate investigation of the
relations between the telegraph COM
panies of the United States
This investigation will be conducted
/ in such manner as to avoid giving
any company or official the privilege of
! immunity from prosecution in case a
| violation of the law should be dscov-
cred. The Investigation will determine
| the nature and extent Of the agree
ments existing between the telegraph
companies, the rate of wages paid to
employees, the operating expenses, and
such other data as will be useful to the
department. of justice in determining
whether to institute legal proceedings,
and to congress should that body de-
sire to have the government exercise
control over the Geographic service.
The telegraph business of the coun-
try is practically all carried on by the
Western Union and Postal Telegraph
companies. So far as informa ton in
Washington shows, there is no definite
understanding or agreement fixing
rates between the two corporations,
but there is said to be an understand
ing that secret reductions in rates
shall not be made. 1t is asserted that
at certain points there is actual COM
petition for business, but as a matter
OF fact the average receipts per mes
sage have not be reduced since 1888.
and only last April the rate was in
creased thruout the country from 10
to 80 per cent.
1t has been charged that the Western
Union Telegraph company is enor-
mously overcaptalized, the methods
followed in increasing the capitaliza-
ton being those employed in railroad
enterprises. Since 1866 the Western
Union has spent more than $50, 000,-
600 in renewals and reconstruction. and
on some lines there are sometimes as
many as 200 wires, which greatly in
creases the cost. Terminals and UNDER
ground construction also are eXpen-
sive.
Nevertheless. the tolls imposed by
telegraph companies are alleged to be
excessive when compared with the cost
of service or with the tolls charged
in Europe, where government owner
ship exists. The rate per word for
messages in Great Britain is l cent,
the minimum charge being IL cents
tho tS M O
of all lengths actually sent being 10 V
cents. The rates in most of the coun-
tries of continental Europe are about
the same and in some cases lower.
In the United States the charge de-
ponds more upon distance and no
charge is made for the address and
as is the case abroad. The
or day rate. for a message
of ten words from Chicago to New
York, is so cents. the minimum. or
night charge, 40 cents. The average
receipts of the Western Union for
of all lengths and covering
different distances during 1900 were
3O.s cents. double that of messages in
Europe and probably higher now as a
result of the recent increase In
charges.
Allegations have been made against
the telegraph companies that they |
in handling messages, fav-
oring especially the brokerage business
and in some cases the newspaper bus
mess. The telegraph companies have
replied to these charges by the state
nent that no preference is given to
any class Of business except govern
nent business but that many brokers
and others have leased wires over
which the telegraph companies have
10 control.