The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-09
ALLEGETELEGRAPH MONOPOLY
ACKNOWLEDGEMENTS OFFICE
TAKES UP INCREASED RATES.

1Se
Asks to Have . Referee Appointed 60 De-
termine whether Western Union and
Postal Are In . Deal To Put Up Prices
Together and Operate Joint Onlces.
Attorney-General jackson has applied
to Justice Platzek In Part III. of the Supreme
Court for an order requiring the officers and
directors OF the Western Union Telegraph
Company and the Postal Telegraph and
abb Company and q number Of hotel
proprietors to appear before q referee and
give evidence on the question whether the
two companies lave entered into an agree
ment to establish a monopoly in the receipt,
transmission and delivery Of telegraph
messages in this State.
Through Deputy Acknowledgement De
Ford. who filed the application yesterday
afternoon, the Attorney-Genera alleges
that the two companies entered into an
agreement or or about January 1 Of this
year by which they raised rates and agreed
on a certain scale Of charges for messages
sent from New York city to towns and
cities in this State and other States. The
Attorney General also AYERS hat the two
companies agreed to maintain joint Offices
In certain places.
When Deputy De Ford made the applica-
ton he suggested to Justice Platzek that
Lawyer Nathan Vidaver be appointed
referee. Nathan vidaver is one OF William
r. Hearst's workers in the last campaign
and was much disappointed when Mr..
Hearst failed 70 find a place for him on
the Hearst-Murphy judiciary ticket. He
has an Office at 40 Nassau street. Mr..
De Ford said that it was the request Of
Attorney-Gene jackson that Vidaver
be named as referee.
Justice Platzek remarked that It was
usual in proceedings Of "a importance
for the Court to make its own selection.
when I have examined the papers," said
Justice Platzek, Il will decide whether
to appoint a referee and will then select
the referee II one is deemed necessary"
Justice Platzek reserved decision on the
application.
Nobody in the executive offices Of the
Western Union or tho Postal had heard Of
the Attorney-General's move against the
companies yesterday afternoon or appeared
to be greatly interested in the matter.
vice-President Bruch Of the Postal. when
asked for a comment, merely said: What's
the usef" President Clowry Of the Western
Union is out Of town and none OF the other
OFFICIALS CAT6u 10 uleCubh IL IIlhJteE.
In his application the Acknowledgement
stated that he ~purposed TO proceed against
the companies under Chapter 500 OF the
laws OF 1899. He set forth. pn substance,
that the two companies. competitors for
many years. had formed q combination for
the restriction OF competition In h tele-
graph business about January l, 1907. he
further declared:
THAT by the establishment Of said now
tariff, as aforesaid, the rates OF charge for
~ sranaposaaiOn ~ unaaaa DQN ma afOrQNaid
from the city of New Yor kto such other
points in the United States ave been ma
terially increased by both companies and
said increase being, In many instances. 20
in force prior to the establishment Of said
new tariff OF charges.
He asks that John o. Stevens be ordered
to produce the books and all other records
Of the Postal company before a referee
bring the books and records Of the Western
Union. He states that .the testimony Of
Clarence H. Mackay president OF h
POSTAL, John U. Stevens, Edward Y. Platt,
Albert B; Chandler. Isaac Smith, Miner N.
Davis. Edward q. Cochrane. William H.
Baker. Robert G. Clowry. Abiiah r. Brewer.
Myron T. Wilbur, George W. E. Atkins.
John C. Barclay, William Holmes. Belvidere
Brooks. j. B. Van Every. E: M. Milford.
Jesup and Edward H. Hartman is material
and necessary to the establishment Of the
unlawful contracts. agreements. range
ment and combination whereby the above
described monopoly was created and es-
tahlished."
He wants George C. Boldt. proprietor OF
the Waldorf-Astoria; William c. Muschen-
helm of the Hotel Aston, James B. Regan OF
the Hotel Krickerbocker. @. W. Blanchard.
COPELAND Thompson. George c. Sweeney,
Walton n. Marshall. Edward s. Butterf1eld
and George s. Scarborough ordered before
the referee to testify as to the arrangement
made by them as hotel men with the tele-
graph companies for the maintenance of
telegraph Offices in their hotels.
The Attorney-Generalis Office here gave
out this statement after the application was
fled:
aThe application for a referee is the result
OF two months work spent by b Attorney
General In investigating the conditions
governing business in the two telegraph
Companies. This research showed that
about every telegraph rate in the State.
saving that between New York and Albany.
had been raised on an average s cents for
ten words. The purpose of the intended
investigation is primarily to show whether
there exists a combination between the
two companies as suggested by their joint
raising OF rates on January ! last and by
the alleged fact that they In some places
maintain joint Offices. The referee Is ex-
pecSed TO start the investigation imme-
s-s.