New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-01-06
DENIES CABLE RATE WAR
Western Union Head Says No Old
Charge Has Been Disturbed.
LESS FOR SLOWER SERVICE
That's All That Has Been Done,
Says Mr.. Vail-Predicts
Universal Wire System.

Theodore y. Vail. president of the west
ern Union Telegraph Company ana inc
American Telephone and Telegraph Com
pany. called the newspaper men INTO MS
office Yesterday and said he wanted 10 ue"'
the reports that had been in circulation re-
Gently that a rate war was gOing on amohe
the telegraph and cable companies as re-
suit of the deferred cable messages anu
other innovations in the telegraph anu
cable services recently introduced pS 'Ho
Western Union Company.
IAN talk about telegraph or cable Wal
or cut rates is absurd Mr. VAN sd'u
"Not a single old rate has been cut OF oiu
service disturbed, nor will any be so lohs
as the revenue is needed for the legitimate
purposes Of the company. All we nave
done is to charge a lower rate for a slower
service. the same as is done on the rail-
roads. where they charge less on the $40"
trains than they do on the fast expresses
Not only is there no rate war, but there
will be none so long as the Western Union
can prevent it. Anything which would IN
,arfere with existing business would be de-
structjve and of no permanent Oencnt 10
tho public, and we don't intend to nave any
rate war.
"Tbe trouble is, that If everybody eets
talking rate war the first thing you kno"
there is a rate war. and it is to eradicate
the idea. that there is any such thing gong
m that I have asked you newspaper men
IN here, I want the public to be set right
in the matter
What we are going in for is construc-
tive. not destructive, competition. The day
Of destructive competition is past. Compe-
tive, and must be along legitimate and
nroAtable lines. We believe the public
wants efficient service, and that means well
naid seruce-vou can't get IL otherwise.
BANKRUPT utilities cannot give the pubic
acceptable service"
Seeks improved Efficiency.
Mr. Vail said that the sole object Of the
Western Union in introducing the deferred
half rate cable messages. daily and weekly
csbIa MESA ges and other recent innoVa-
lions was 10 improve the efficiency OF Its
service and to develop new services for IN
accommodation to meet the ever growing
business and social requirements. lie
added:
we believe that the future development
Of the wire system in the United states
will afford facilities for the humiliation OF
both time and distance by the general use
Of electrical transmission for written or
personal communication, and will a1ord
electrical communication Of every kind OF
Intelligence from every one at every place
10 every one at every other place. 1t VIII
be comprehensive. universal
He EXPLAINED that 10 maintain a nearly
as POSSIBLE this universal telegraph service
no l. ~
miles of wire connecting 5000 regular
Western Union offices. besides several thou
sand other points connected by telephone
One Of the peculiar burdens Of maintaining
a universal system, ne said, was that %
rer cent Of the company's regular Offices
dld not take in $40 a month three-fourths
took in less than 80 and only 10 per cent
Of the $500 Offices took in more than so
month gross. Each Of these offices. how
ever. must be maintained at the expense OF
the whole if such a system was TO be main
tanned.
Speaking Of the recent changes in the
service. Mr. Vail said
Every innovation as to rates or service
has been made by the Western Union after
thorough study and elaboration, the pur'
pose being the Introduction Of new anG
popular forms Of business. upon the theory
that nothing in the way Of a deferred bust
ness would he acceptable at any price
where expedition was desirable.
Freight Business Pays the Bills.
TO say that any telegraph or cable COM
pany is not a deferred message company
IS begging the question. The great trunk
lines Of railroad might as we'll say: we
are not a freight line; we are a limited
express line In the railroad business the
deferred-i. e, the freisht-business gener.
ally pays the bills and makes the divi-
6ends
The civilized countries are spending
millions for fast and still faster trains and