The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-02-18
SAYS MEXICO WIRES
ARE MONOPOLIZED
e. II. Mackay Explains Why
Postal Cannot Help Better
the News Service.

Clarence II. Mackay, president Of the
Postal Telegraph-Cable Company. being
asked yesterday why 1t is that the Post.
al company does not give competitive
service to Mexico. especially in view q,
the fact that the rates are very htrh
and the present service leaves much
to be desired. said:
"You are correct that the rates sre very
high. in fact the Western Union rate
from New York city to Mexico city Il
s1.I5 per message, although the distance
is but 2.s67 miles, while our rate from
New York TO San Francisco Is only 81
although the distance is 3,400 miles The
press rate to Mexico city is correspond.
ingly high. AS TO the service I soc that
only last week 1t was announced that the
submarine cable from Galveston TO Vera
Cruz was interrupted. thus interferins
still further with the service. The pres,
Is right in its contention that the tele.
graph service between the United States
and Mexico is not only expensive but in.
adequate.
Now the reason why the Postal lines
have not been extended to Mexico is this :
over ten years ago we tried to break ,rp
the Western Union monopoly in Mexico
At great expense we built telegraph line
from Albuquerque. N. NJ, south through
New Mexico and Texas to FL Paso. where
we had arranged to connect with railroad
telegraph lines running from Ell Paso 10
Mexico city. We began giving competi.
tive telegraph service between the United
states and Mexico. but the Mexican Gov
ernment stopped 1t by peremptorily order.
ing the Mexican Railroad Company TO
cease exchanging telegraph business with
US.
"The Western Union and its allies claim
n monopoly in Mexico by reason Of their
contracts with tho Mexican Government
Leading Mexican lawyers have declared
that monopolistic grant a violation of the
Mexican Constitution. but there It is never
theless Bad service and high rates arc
the natural results.
The Postal Telegraph Cable Company
is prepared to give competitive service 10
Mexico and at lower rates II Mexico wants
them. II allowed we will lay submarine
cable TO Vera Cruz and then build a land
line from Vera Cruz to the city Of Mexico
a; our own expense II the Mexican Gov
ernment will give us the privilege OF hav.
ing our own offices ana doinG q competi-
tive telegraph business in those cities. il
Is for Mexico itself to decide whether it
wants competition in telegraph service and
lower rates. We are prepared to give both
prepared to make a reasonable rate Of 81
per message instead Of the present rate Of
S1.15 per message.
There is one feature Of this matter 70
which I would particularly call attention
The Western Union Telegraph COMPANY
is continually reducing telegraph and cable
rates in the United States, where II has
competition, but In Mexico. where Il and
Its allies have monopoly. 1t maintains
extortionate rates. That company does
not even give Mexico the night letter or
the day letter. the pet reductions Of the
Western Union. 1t shows that Western
Union reductions are not for the public
good. but are for the purpose Of elminat.
ing competition. Where they have q mo-
nopoly they can't get enough"