The New York Herald Newspaper, May 23, 1858, Page 2

2 Newfoundland and Ocean companies, effect the American branch of the origi ‘ing into scheme. Here, then, we have three companies carved out Cet ann ee but the responsibilities are divided. incipal mat rs are virtually, if not identically, same; but they now act through three organizations instead of one managers are the principal stockholders of the Newfoundland and American Telegraph Companies, heavy stockholders in the Atlantic Telegraph Com- and are the originators of the whole soheme. pany | If further evidence were needed to prove a com- munity of interest between these three companies, it is found in the recent preseodings of the Atlantic h Company in England, constituting some of the principal stockholders of the American Com- who are also stockholders of the Newfound- Company, honorary directors of the Atlantic Com, pany. If any doubt conld exist as to the ultimate object of this , Avene it is solved by the efforts of its au- thors to hedge round the continent and the islands of America, 808s to render impracticable competi- tion with them by other telegraph lines across the Atlantic Ocean, and even to extend their monopoly into the United States. Their Newfoundland monopoly is as exclusive as language can make it. No other com- pany or individual is to “touch” shores of that island by a telegraph ted, line of any sort. If, as has been rey that is the only point where the ocean can be crossed that grant is of itself a bar of the same sort. But by a telegraphic cable, tO every other it should be found to land a telegraphic cable at some point farther west, the managers of the Ne d_ mono; sought to cut off the the extension of their They co a claim clasive ri of landiog a telegraphic cable in the province of Nova Scotia. and actual procured, from the Le- planere ee the State of an act prohibiting a submarine cable from other from layin; wa? mgeorbeis we the coasts of that State for twenty-five years. The title of this act, the prohibitory clause, are in the following \CT GRANTING CERTAIN PRIVILEGES TO THE NEW YOBK, NEW- s da under its jurisdiction, with aay telegraphic cable, wire or other means of telegraphic communication from any other provinces, State, county (country?) or place whatsover beyond the continent of America. This act was approved April 10, 1856. It does not, as the title erroneous!: nt an; ivilege to the New York, ‘Newfoundlan and red Soa Telegraph Company, but merely prohibits an; cable Tn'the landing a transatlantic telegrap! State of Maine. And this prohibition is equally for the benefit of that company and of the Al in Telegraph bir ory Gee it purports ‘to secure a monopoly of the foreign telegraphic cor- nce through the State of Maine. Indeed, nothing could show more Sone than the pro- curement of this act the identity of interest and management of the American and Newfoundland companies. A zealous effort was made to secure similar legis. lation in Massachusetts, but without success. Without adverting to rumors of similar operations elsewhere, these instances are abundantly sufficient to show the one © of these parties to hedge round the continent of America by exclasive grants and prohibitions, so that the United States should be anapprvachable, telegraphically, otherwise than tbrongh their line from the coast of Ireland, and through the Newfoundland and American lines chiefly owned by them or under their control; and this monopoly they are endeavoring to extend prac- tically through the several States. Your memorialists further represent, that the aid of the governments of Newfoundland, of Great Britain, and of the United States, has been sought and obtained to establish this monopoly on a basis which shall forbid all attempts to get up compe- tition. The government of Newfoundland, in addition to the monopoly of fifty years duration, gave the com- pany about twenty-tive thousand dollars in cash for clearing a bridle = necessary to the construction and repairs of their line of telegraph, guaranteed six per cent interest on about two hundred and fifty thousand dollars of bonds issued by them, and granted them fifty square miles of public lands when the line on the is! d should be completed and con- nected with the lines on the continent, and fift square miles more when the communication wit the coast of Ireland shall be established. These grants were made, it will be remembered, to a com- any Which embraced in its plan the building and Ciro of lines in the United States and laying a tele- graphic cable to the coast of Ireland; and the grant of fitty square miles of the lands is expressly in con sideration of the successful accomplishment of the latter enterprise. But whether the right to the lands as well as the enterprise has been transferred to the Atlantic Telegraph Company is to your me- morialists unknown, though they have reason to he- lieve it has not; nor do they know how or by what authority the ocean part of the original scheme has been severed from the Newfoundland Company, and vested in another company, though they do not | doubt it was a measure projected and matured by the chief managers of the original company. Your memorialists farther represent that the plan of a transatlantic telegraph, though perhaps ori- inally projected a# a noble enterprise, in which its promoters expected to receive their chief recompense in the glory of success and the gratitade of nations, has been since converted into an enor- mous scheme of monopoly, aiming to control the telegraph business of the two hemispheres for the purpose of securing, directly and indirectly, inordi- nate gains to a few individuals. The facts of the case, in their estimation, warrant this conclusion. Your memorialists have already shown that this measure is but a part of a more extensive operation, from which it has been nominally s |, thoagh still as effectually united in inter as if it still re- mained under the direct control of the Newfound a . AS @ separate concern, the stock of the Atlant Tel bh pany was raised, at least in part, w rey tations of a circular marked “ Private.” amount of stock was fixed at £300,000, since increased to £550,000, equal to about $1,700,000. That circular represented that, ‘ = a very mo- derate computation of profits, the capital would yield # return exceeding 40 per cent.” These profits are to be divided among all the stockbolders in the ordinary way: bat one half of the amoant over 10 cent is to go to four individuals —three of them British subjects, and one of them a citizen of the United States. That citizen is the gentleman who procured the act of the Legisiatare oc Newfoundland, incorporat ing the New York, Newfoundiand and London Teie- Pt hey ¥; the same who got up the American aot ‘ompany; the same who doubtless origi the present plan of the Atlantic Telegraph Company: ey’ ye] who is now said to be entrusted witl jaty of superintending the layi of the Atlantic cable. ~ <3: Of the SS anieiied over 10 per cent, this gentleman is to receive thirteen parts out of twenty- tour, which, if the estimate of ita as held out to subscribers shall be realized, will give him an annuai income exceeding $120,000, in addition to twenty-five cent npon bis stock in common with other stock- Ae As this estimate was promulgated before jica- tion was made to Congress fee Sustanee, 9 ence was no mention of any bounty from the British go- vernment, it would seem that the & per cent per to be secured om = ag ‘roments years, was not clu in the 40 per and while 4 per cent of it ie 10 gt to of stockholders beyond 25 ir is to be divided—thirteen citizen, and eleven parts to hjects hereinbefore to. As no interest in the fifty square miles of land appropriated by the Legislatare of Newfoundland to encou: the laying of the te’ ic cable is mentioned as invested in the Atlantic Company, it is presumed that the New York, Newfoundland and London Cempany purpose boun PS aoe fer to another com for which it was ided. But if the fifty square miles i” nas is tan to the Atlantic Tel sph Com. 1, it will swell the enormous profits anticipated Ka other sources beyond the fordguing estimate. Your memorialists further represent, that the in strument through which this combination, backed by the direct aid, influence and money of the three governments, seeks to force the New Fngland Union and Magnetic lines of telegraph into « tion with valty « faxal, is them on their own terms, under tion of their property in case of American Telegraph Compar Thiet compan: covers a field of operations, as already shown, which was embraced in the Newfoundland act of incorpo ration. Tt was gotten up by the same men who con trel the New York, Newfoundland and tondm Telegraph Company. Both companies have the same President, are composed mainly of the same stockholders, and are under the same contr The objects of this separation have been ate tially avowed. If the al project had bee & prosecuted ander the Newton Shed of tneven tows, tag Piale aud igdersi goverimects Would have had direct control over that corporate body b: | operating — the American branch of their p And prise, and control would have reached the sub- same ae cane But by baggy the Ameri- can brane! original scheme, and confining the operations of the Newfoundland Com, to the | British Provinces, that company, as sy other branch, the Atlantic Com the reach of the direct States, and of the several States through pyogenes may pass. © And the avowed object of the chiet ietors and principat managers of the ewfoundland American companies—| Ni and boing in the main the same men, and all, or nearly all, citizens of the United States—is to bar all telegraph less be nly SEDOES SnGh Bs may Os Cwresd, trolled, or them, from connection with the ac Mantic cable, by means of car- iad on be oe ee the v4 Shale own goverument special grant and prohibitions procured front Bitate lepialstasee, aa shown in the act of the State of Maine. Your m charge, that oeeee by Ld , and an clusive connection that monopoly with the Atlantic cable, the authors and managers of the combined ‘tion have the principal their control upon their own terms, and not suc- ceeding 1n relation to the lines re) nted 1 pad ac: uired, Seoattiened i Wieeteae ont st 1 ol ic combinal the bom of the gore to ness valueless, no! only by cutting them off from all‘connection with the Atlantic cable, but by up rival lines in the United States, and ‘ing them the exclusive re- i Z une and the obj me! After the Newfoundland Com, 4 ee, and most of its stockholders, as already , organized themselves into another company, with a nominal capital of $100,000, (since increased —_— ,000,) and assuming the name of the Ameri- » can clograeh Com , became a corporation under the laws of ew York. The Brat sap waa to make proporals to lease the existing Morse lines on the A‘ ic coast, from the British Provinces to New Orleans, and from New York to Buffalo, for an annual rent in general below their current income. The several companies were much inclined to accede to these proposals, though there were well-grounded objections in the small capital of the new company to the security for the rents; but before they had time to consider and act upon the pro) » American Company sudden: ly withdrew them. ‘The next step of the American Company was to purchase a new and untried telegraph instrument; and while they were reer hundreds and thou- sands of dollars upon it to it of any use, they silently allowed the agent of the associated press, of or through whom they had made the purchase, to fill the country with misrepresentations in relation to its powers and performances, and to announce their purpose to establish new lines of telegraph along the a commercial routes in the United States, in competition with the existing lines. When thee publications, suffered to pass by them without contradiction, had circulated lon; eas to thoroughly alarm the stockholders of existing lines, the American Company came forward with a new set of proposals to rent them on terms much reduced below which they had withdrawn. Convinced that the policy of the American Company was to force them into a surrender of their Rroperty through fear of destruction in case of refusal, compan! addressed, with a natural repugnance to such a sys- tem of coercion, rejected these new proposals. In the meantime the American Company rented the Maine line, taking into their service the Presi- dent and Superintendent of that line, thereby effect- ing a connection between the city of Boston and the British Provinces. Not Lee nnienon 9 in securing, by lease, control of any considerable line south of Boston, the American Company purchased an_ existing line between that city and New York, and entered into competition with the New Engiand Union line between those cities. This was the condition of telegraph matters, as between the American Company and the og nies ited by your memorialists, when the At- lantic Telegraph Company made application to Con- gress for the and bounty of the government. The community of interests between that compa- ny and the American Reread A the fact that this application was le he Presi- dent and principal stockholders of the latter compa- ny, who visited and spent much time in Washington to promote the passage of the bill. Four memorialists further represent that some of the stockholders of the Magnetic bee oy a Compa- ny, apprehensive that the power which, in anticipa- tion, was alre: ased against them,and might here- after be used inst the commercial and political interests of ir country, would be greatly strengthened should Congress accede to this applica- tion, interposed to prevent its success, and for atime its fate became doubtful. Your oar toe 8 — — Le re to rove, that in this emergency incipal manager tf the application on the of fie Atlantic Com- pany, who is also one of the chief managers of the i American and Newfoundland Companies, anda large stockholder in all three of them, accompanied by a | British stockholder in the Atlantic Company, called | ‘on some of the most influential stockholders of the Magnetic Company, and by pledges that the Atlan- tic cable should not be so managed as to effect inju- riously the interests of the Magnetic Company, pre- vented the interposition of said stockholders in op- | position to the passage of the bill then before Con- | gress. And they farther charge, that within leas | than four months thereafter, in anticipation of the | immediate successful laying of the Atlantic cable, | these pledges were falsitied by one of the men who | made them and his associates in the American Com- pany, who entered into arrangements, the palpable | object of which is, to use the power anticipated from the absolute control by their three combined compa- nies over the transatlantic correspondence, for the injury, and, if practicable, the destruction of the lines owned and controlled by the Magnetic Tele- graph Company, as well as those owned and con- frotlea by the New England Union Telegraph Com pany. arrangements were made secretly du- ring the pendency of negotiations, with a view of securing to the Magnetic Company that position in relation to the Atlantic cable which had been ple iged to them at Washington, as well as to put an end to telegraphic warfare. And in pursuance of those ar- rangements, the American Company have estah- lished a line from New York to Philadelphi ad avow a design to extend it farther south, for the pur- pose, not me of m lizing the Eure mn cor respondence, but depriving the Magnetic Gempany of its local business. Your memorialists further represent, that the arrangements thus secretly entered into were after- wards publicly ratified, and that they provide in effect for cutting off the companies represented by yout memorialiste for thirty years from business | reaching the continent of America by the Atlanti cable; and to make the exclusion more effective they contemplate the extension of the American ‘was formed, its lines the Atlantic coast south to New Orleans. Finding their very existence thus threatened, the Magnetic and New England Union Companies cor for mutual defence for a like term of thirty years, and made contracts of the same daration for connections with other lines. Jt soon became evident that the American Company | and their allies, foreign and domestic, were not to destroy the Magnetic and New England Union lines | without a severe and e: ive struggle, when that | company indicated a amalgamate the three companies. While some of the stockholders | of the two former companies were ory attempt a removal of the obstacles which had been created hy contracts on both sides for exclusive connections for a others thenght the attempt aseless, | and for t and other reasons the project was not entertained. Your memorialists farther represent, that by a contract of the Maine Telegraph Company, entered } Jaen the lease of K, 4. ne Bn te oe el Company, the Maine line elegrap' Fn mm toa Ferpoctual connection with the New England Union Company at Bos'on, to the extent of returning that company as much business from the East as they might receive it from the West, | and this contract, at the time of lease, the Ame- rican Company became bound to fulfil in good faith. But ‘ince the) Reed s line for their own use from Boston % New York, they have, under various pretexts, refused to fulfil this contract so far as it ' relates to business from beyond Portland, thus cut- ting off the New England Union line and its connec- tions from all business com from points east of that city in the United States, in the Britash ay and from Europe through the Atlantic cable. Your memorialists further represent, that the act of Congress, approved March 3, 1857, ‘to expedite telegraphic communication for the uses of govern- ment in its foreign intercourse,” provides for a con | tract “with any competent , persons or asso | elation,” for the aid of the government in laying the submarine cable, and for ite use paying thorefor $70,000 per year until the net income of said parties shall be six per cent, and afterwards $50,000 por annom for twenty five years. As the persons const}. tuting the New York, Newfoundland aud London Telegraph Company have the exclusive right of Janding a telegraph cable on the coast of Newfonnd land, and those persons are in the main the same who constitute the American Telegraph Company, it is evident that this liberal grant is for the benefit of the individuals composing the latter company as mach as the former. If the Newfoundland Compa. by have ceded their exclusive right to the Atlantic Company, it. is not likely to have been done without ac Jeration, of which a part would accrue to the principal stockholders in American Company, aud in any event, the bounty of the government wil! ro to strenathen each of the combined cam through those wdiridaals who are heavy stoc! 2 NEW YORK HERALD, SUNDAY, MAY 23, 188, in them all. But ifthe ita of the Atlantic Company shall equal even less one-half of the estimate of of the: goveroment appropeatisns, both at” Great ol e government » botl reat Britain and the United , Will accrue to a citi- zen of New York, who is believed to be financially the | ripear yd the whole scheme, and is notoriously the life and soul of each and all of the three compa- nies which compose it. Your memorialists are not disposed to complain thing their government may be inclined to do in promoting or rewarding this great ent 5 all that they desire and ask is, that the thas stren, enriched i samo terms and cindidons favor of the iment § re: all g among the of tho'Ualted States said sut marine communication, aad the ‘telegraph which may at any time coanect with tho game at its terminus on the coast ot Newfoundiand, and in the United States, in any centract so to be entered into oy = person, persons or association, with that govern- ns ality of rights" seemingly f on “eq or this proviso &, ao fran their are concern- ed, wi y ue No line other than that of the Newfoundland Com- pany can connect with the submarine cable, on ac- count of their 5 No line but that of the American Company can connect with the Newfoundland line, because both virtually belong to and are managed by the same men. Members of the American Company have al denied the right of any other Lng tora siston a connection wit submarine for the a i re po gone rly aa oe fhe purpere of an ving in tinental messages, claiming that Peivioge 98 8 por tion of their oon FeO » And by. exclusive connection, as a8 by the legislation of the State of Maine, the managers of the scheme virtuall: tend their Newfoundland ones = though meumages going to: Hurope may be delirered jough messages may to them at anyof stations in the United States, to an: Aen gd pouabed 2 ae stations atties in aihenes them, will be sent toy Owe ee eceeel effect of which will soon be to make the lines of the American Company in the United States the exclusive channels of Euro- hic correspondence, “equality of > poet mentioned in the roviso, includes a right telegrap! nited States to a reciprocal connection with the submarine cable through connecting lines for busi- ness both ways, it is aright depending on a contract panies are not proposed to be parties and af couse are not pi , and of course will ope upon them no obligation. And the Atlantic Company is in no a bound to secure access to its own terminus, and if it were, could be held responsible, as the matter now stands, only by the Tae tad of the futare bounty of the govern- ment. mS premocialiste neither boo desire the inter- ition of Congress to protect them against comy tion in the United States. The: neither ask nor sire the withdrawal of the aid of the government from the Atlantic Telegraph Company, or its refusal to any other company which may be organized to span the ocean with a line of telegraph. All they ask is to be protected against combinations for the pur) of ar ray or destroying them between partes operat in the United States and out of ‘he United States, and to be put on an equal footing with all others in their connection with foreign lines entering the United States by sea or land. This protection your memorialists are ad vised it is the province of C to afford them, by virtue of their constitutional er to regulate trade and in- tercourse with fe a nations. And they appeal the more confidently for this protestion, on account peta bes gv by Con; to the combination inst them, increasing their power to oppress. Your memorialists therefore pray for , age of a general law, which shall preyeat combinations between citizens or companies in the United States, and monopolists or companies out of the United States, for the purpose of 0 “ago 2 nega companies and monopolizing bnsiness of tele- graphing in the United States, and shall enable all tel lin the United States to form con- nections with’ telegraph lines approaching their borders on terms of perfect equality. Your memorialists are the more emboldened to present this prayer, from the consideration that the monopoly of telegraphic intercourse between, if not throughout the Old and New Worlds, now sought to be established, may be applied with fearful effect to the commercial and political, as well as telegraphic interests of the United States, unless regulated by law. Amos KENDALL, Sauver C. Bisnor, Zexvs Barnum, Committee of the Magnetic Telegraph Company. Francis O. J. Sacra, H. M. Scutrrre.in, Committee of the New England Union Telegraph Company. Marcu 10, 1858. SUPPLEMENT. TO THE SENATE AND HOUSE REPRESENTATIVES OF THE CNITED STATES OF AMERICA, IX CONGRES3 ASSEMBLED. The supplement to the memorial of the M: ic Telegraph Company, and the New England Union Telegraph Compan’ ctfully represents: — That since the mem: , to which this is supple- ment was prepared, sundry publications of The Atlantic Telegraph Company in Bngland have been received, which show some modification of their ori- ginal arrangements, and tend to confirm the mate- rial statements made in said memorial. The capital of the company has been increased to £500,000. The reputed projectors of the scheme have com- muted their right to half the net income over ten per cent for £75,000 in the stock of the company. A publication, of which the following is a copy, has been recently issued by their secretary. COPY OF PRIVITRGK® ACCORDED FOR ENCOURAGING THE PLETION OF THE ATLANTIC 1. Exclusive right for 60 years com. Beoenarae ‘Steamers overnment of ‘Steamers United os government fre: § 8 jes in e Us North Smertoan Provinces. , — If this publication be true, and the alleged grants be valid, then the shores of North America, from Hudson's Ba; already barred which may wish to extend a line across t! ‘Atlantis. None concessions, from 1 to 6 inclastye, were made to the Atiantic te Company, buf they ismbon Teesmoh New Newloundland Company, whose seat of power is in New York. The nse made of them in this publication fs fur: ther evidence of the identity in interest of the two companies, is, however, one important omission ia the “Summary, &c.” It is the privilege of locating and appropriating fifty square miles of land in Newfoand- land, gran’ by the Legislature of that colony for specific purposes. The Tithe or theee “Piivieaee accorded” i# par- ticularly noteworthy, {t is “exclusive arrangements over 40,000 miles of existing telegraph lines in the United States and British North America.” Accerded-—ty whom? By the American Telegraph allies, Company and Already, if this statement be trne, 40,000 miles of telegraph on this continent is bound by ;“exclusive traffic arrangements” to this great transatlantie mo- n te rhtlens this assertion conveys to the British mind the impression (as wejl it may) that all tele- graph lines in the United States have been brought finder the control of the New York mai of this enormous monopolizing combination, while, in fact, it only embraces the lines controlled by the Ameri- can Felexrap o Company ond eo allies. a it proves ost conclusive testimony the main pesto taken in the memorial, vin: The combina. of ies in the United States with ont of the United States, by exclusive traffic arrange: ments, “‘to monopole the foreign telegraphic cor- ce, and through the same instrumentali- ties the domestic telegraphic correspondence also.” Nothing could more conclusively show the identity of interest and ma t of the Atlantic, New foundland and aph Companies than this “summar. vileges * and sorely, with the propamed bounty of the British and American governments, their arrangements embody a power which timid men might fuatly fear to encounter. It is against the oppression of that power, composed, as it is, in part of foreign elements, that the memo rialists ask protection not only for their own basi ness, but for the bosiness of the country as con- nected with the te home and abroad, ‘aph at K Dat, Chairman, Xe. ANSWER AND REMONSTRANCE OF THE NEW LINES. To THE S#NATR ANY Hover OF RerrmsmNTaTrves OF Teo Sraree or Aumnrica, tx Cx A ee . The anewor and remonstrance of the American oldors ' Telegraph Company to the “memorial” of tho Mag: | to the State of New crags are | against any other telegraph com netic Telegraph Company and the New jagland Union 7, and the eto, vale Sieeeset baie ies tasstaten: eae ee eC, ” i— ‘That said ‘me rays for the “of a general law which shall prevent combi be- tween citizens or companies in the United States and monopohists or companies out of the United States, for the purpose of oppressing selogrel h companies and monopolizing the business ee iz in the United States, and shall enable all telegraph lines in the United States to form connections with all ph lines vaching their borders, on Your remonstrants find it difficult to believe that Congress could, in any event, be induced to contemplate tne passage of such a law, striking, as it would, without Sause’ at the ordinary business ar- rangements of com} acting under, and amena- ble to, the laws of the States or governments by are created, and, as unnecessarily embarrass com- to discourage en- , and to give to one the fruits of the labor expenditure of another. ge cenenaieanie bes leave 9 snhmalt the fe reasons against the passage of such » law:— it is asked for by two only of the ten or twelve te w leading telegraph com; of the United States. The ce Com, of is that the pecuniary int of these two compauics are not to be bene- fitted to the extent they had anticipate, in theevent of the successful completion of the Atlautic tele- graph—while it is 2 that the memorialists, ‘ough repeated|y invited, have refused to contri- fete is the capital required for such At- .antic telegraph, but, on the contrary, have opposed the papeecinp sted and the pub- lic pee under their control, as well cove: 0] re Phe ice of such a law will be apparent when it is ered that who, by the expenditure of millions in an of the greatest hazard, should establish ion from the political or communi commercial capital of the United States to Europe would find themselves compelled, in the event of success, to turn over at the ier an eqnal share of the business to those who had a perform the service only in a most inferior manner, without forfeiting their claim to equal consideration with the best. It is worthy of consideration also whether a tele- jh com receit important despatches in a Recigt countey for rib to Ws or to New York, and transferring them at the tier to another, in whose hands they should be delayed, altered or lost, would not be held responsible for the damage base, Cad such delay, error or loss, and eA Ibo proper that telegraph lines crossing A \t ph lines c1 the boundary of the United States should be com- pelled to transfer at that poiat to other parties a tion or all of the despatches which are destined for places in the United States, it would appear to be within the province of each State antigen 4 which telegraph lines may run to make a like provision relative to all lines approaching their borders. If such a law be proger in relation to tel ph lines, it would be equally so if applied to railroad, steamboat, express and transportation companies. The law sought by the memorialists is ‘ned solely for their benefit, all of the other leading tele- graph companies of this continent being entirely satisfied with their arrangements for connection with the Atlantic line. It would, therefore, though professing to be gene- ral in its character, have the most obnoxious fea- tures of special legislation. Although the memorialists profess to be prompted only by a. desire to share in the business comi over the Atlantic line, they ask for a law whic! would equally embarrass communication with Ca- ie or the other British Provinces, or with Cuba or lexico. The law sought for would interfere with contracts that have been in force for many years between tele- graph companies, the propriety of which has never. been called in question, and for some of which valua- ble considerations have been given. Your remonstrants do net comprehend why such a law should be made applicable to te! lines ates, any approaching the borders of the United a more than to those which are wholly within the United States; and yet the memorialists admit in said me- morial that they have “ combined together for ma- tual defence for thirty years, and made contracts of the same duration with other ies.” ‘The business of telegraphing has hitherto been left to private enterprise, and to the regulation of the several States; can it now be transferred consti- tutic to the jurisdiction of the general govern- ment? rovision of the constitution confers upon Con; ‘the authority “to regulate commerce with foreign nations and among the several States.” Does the “eommerce” for which the memorialists have strangely substituted the terms “trade and intercourse,” ‘apply to telegraphing? But if, in the wisdom of Congress, it should be determined that they have the power, under this or any other provision of the constitution to legislate upon this subject, your remonstrants respectfully submit that no sufficient cause for the exercise of this power has been shown; and that the effect of such an application of it asthe memorialists seek, would not only be of no benefit to the commanity at large, but an absolute yd to their interests. Having presented some of the considerations op- sed to the passage of sucha law as is sought 4 he prayer of the memorialists, your remonstrants beg eave toreply to the more prominent charges and represenia:ions of said memorial, omitting, how- ever, to notice much that is irrelevant, but to all of which they declare their ability to present a com- plete answer. The principal charge of the memorialists is that your remonstrants have entered into a combination with the New York, Newfoundlend and London Telegraph Company, and the Atlantic Telegraph Company, and have made arrangements, the object of whe is to use the power anticipated from the control over the Trans-At'antic correspondence, for the injury, and if practicable, the destruction of the lines ot the memorialists. Your remonstranta aver, and are prepared to prove, that the only ground whatever for the charge of combination, above mentioned, is the fact that having the only lines extending east from Boston and to Nova Scotia, your remoustrants have entered | into contract with’ ‘the Newfoundland ‘Telegraph | Company for an interchange of messages; and upon | condition of receiving from said Newfoundland com- pany all ofthe despatches it may have for trans- mission westwardly, your remonstrants have agreed to forward despatches between Nova Scotia and | New York at rates sixty-five per cent lower, the dif- | ference in distance being taken into account, than those charged w the lines owned by the memo- rialists between Washington and Boston. No other contract or understanding whatevor exists, or has ever existed, between your remon strants and either the Newfoundland or Atlantic companies. The contract obove mentioned is precise'y similar to those which have been for many years almost | universal between the telegraph lines in the United | States, and is much less a “ combination” than that | admitted in said memoria! to exist between the me- m themselves, wherein they have “com- | bined together for mutual protection for thirty years, | and have made contracts of the same daration, for connection with other lines.” —_ exclusive ee aa existed for od ten years a ween the two compar | — in'said memorial. | is to any arrangement being made between | the Newfoundland and American companies, an | agreement was entered into conditional the for- mer with one of the memorialists, the New England | Union Telegraph Company, In which it was agreed that an exclusive connection should exist between those jes for twenty years, with the further obnoxions provision [Extract from the contract, dated May 9, 1865 ) That the Newfoundland Compeey. eal! exert themesivcs to connect with the Ne# Engiand \oion line at Boston, so that all business from and t» Europe shall come firs: to, | or start lastfrom New York, over tho lincs of the Now England Union Company. By this arrangement all mess: coming from Barepe for Boston, or any other place east of New York, were first to be transmitted to New York, and thence returned to the of their destination— thus securing to the New England Union Company | double tolls; and in like manner, every 1m rom Boston, or other places in New England, destined | for Europe, was to be first sentto New York and thence forwarded to Europe. This ont was | cancelled by notice which the Newfoundland Com- y had reserved the right to give. If this contract Pad continued in force, i is not probable the New | England Union Company would have made any com- | plaints of aR iy ip ad exclusive connection with the Newf: nd Company; and the Magnetic Company, the other mem: ist, between whom and , the New England Union Com an exclasive com- | bination exists, and who would, therefore, have en- joyed a portion of the advantages, appeared to see no objection to such connection. 4 Said Magnetic Company haa always maintained its right to connect with such lines as it pleased, and at this time refases to return to the heron ol and New York “House” Jine ony, messay m the Waehington and New Orleans line which is ander its control. They have also for many years refused to accede to the demand of the Baltimore and Wheeling line, that despatches from Washinj Or points sonth thereof, destined for Cincinnati, Louisville, St. Lonis, and other points, should be forwarded from Balti j thore by that line; and have connected exclusively for the West with lines leading from Philadelphia, via Pittsburg—althongh the former was the most direct route, and, as its proprietors claimed, was entitled to exch bosiness by the terms of the con- veyance of patent received from Prof. Morae through the gentieman who stands at the head of the memo rialiets ‘The gen’ rialists in behalf of the New England Union Tele- | ture of a large amount, to , Want of means, applied to graph Company—who owns more tnan one half of its atock, and who formerly owned most of the line between Boston, Mass., and Portland, Maine, then | graph points—took the respon- | A oe Pay about jow seventy thousand dollars to tedness ‘any messages what- then cxetun, and to vedere tae a destined to pass over, the lines | the the Prownce of Nova Scotia; and continued in this the only line between those sibility, for purposes of his own, of refusing to the transmission over said line of ever coming irom, or manner to embarrass communicatica greatest ies, to whom ip with that Province, until other , bought said line ‘trants ha Mi ata," As further evidence that the complaints are not founded in the sincere re with an improper the momo- it to ome tall ge fl od ihe compl which are made the ground of in at the invit first amcog the matansalias Pass Log principal tel com| of the United States rn held bres proposition eee pumaieted by 5 5 of a ae tained, among r provisions, The several companies, hereto, them- selvee to onsh other to connect oxalu aye 1 | Janes at este, mbsting, and were invited to join in t. Ti extended then, as they now do,‘to the Province of Nova Scotia. Had the; to the ition memorialists w we been content; but any | partion wehe, it ve extended lines te ‘tier would have had the same ind of com ne the now claim ve against your The and solicitude of the memorialists are only excited when they re; their pect in- terests as likely to be the protection of a which has been in force eighteen years; and, wing been notoriously wanting in the spirit of pro- gress, they now ask for legislation which would com- pel ent ig to with them the well earned reward of their risk and expenditures. And this they presume to ask, when they have not only declined to participate in the hazard and outlay of the enterprise, but have endeavored, by ceaseless op- ition, to embarrasa its progress. Port is not denied by vom remenstrants that ali of the companies represented at the meeting in July, excepting only the memorialists, have united in an agreement for their mutual benefit, and for the more prompt interchange of business, but without in- cS g rates, or otherwise combining to the disad- —. of the public. And your remonstrants respectfully represent that, as Gay vars, none of the arrangements made by them in any way violate the be ge any agp and they aver that no parties have more readily entered into such arrangements than the memorialists who now ask at your hands legislation tor their protection. that they have, cither Your remonstrants den; alone or in combination with others, endeavored to force the memorialists to surrender their propert, ; and aver that they have had no desire to bring about a connection with the lines of the memorialists for any other p than that, in the legitimate and proper extension of their own lines, they mignt avoid a collision of interests with the memorialists, and, at the same time, have lines extending to Washington, in order to facilitate communication from their other lines; to adopt improved systems of hry good ing, more rapid and more perfect; and re- duce the rates between New York and LO agg gro now higher than in a Boonen! partof America, in or- der that their other lines might be benefitted and ‘ir patrons better served. For this end they have an amicable arrangement with the memorialists. In November last B so remonstrants proposed to lease the property of the Magnetic Company for ten years, paying to them an annual rent equal to pen A per cent upon the cost of new property, supe- rior in every respect to theirs, and covering the samo routes; but the offer was rejected. Subsequently negotiations were opened be- tween the memorialists and your strants for the purpose of doing away with the prospective ant , by a union of interests; and on the 23 of December last the following memo- randum was agreed upon:— Memorandum cf an understanding between the Magne- tie American and New England Union Telegraph Compa pica, subject to ratification. Let c> > ofthe three furnish to the other two a state. mento ‘be proportions of a given amount of stock—say, ea oh they think it right for them toc! in a consolidated company, with the #tatis: tics of their receipis and oops and evory fact on bared oy } which their clatm ‘ono, with fu'l power to or moral rights of itedly sought to effect Lat each appoint a committee conrider and adjust the amount to be assigned to each. If the committees canno} Ereenouny syet, each company to select s disinterested person, the unavi- mous decesion of the three shall be final. No a to be selected as an arditer who is objected to by einer of "for the Atmeriean Com ‘or the Ame! pan, For the Magnetic Com; ites coos ‘or the Mageetic 1D wd aie i ‘ a AMO’ KENDAL. for the :. Uaion \ TURN MoKRaS0N, Naw York, Deo. 23, 1857. Three days afterwards your remonstrants, hy one of their directors, sent the following communication to the representative of the Magnetic Company:— Naw Yors, Dec. 26, 1867, Prosi loat Hos. Awos Kexpatt:— Dwar Sin—Permit me to hand you enclosed a copy of the memorandum ot instant, and « letter ad- Ym. N Swain, Req., President, &e , which I understand Mr. Swain oa open, and contained aa cial copy of a resolution of the directors of the Ameri. can Comp:ny, appoi one of their number a commit- 1 Sasteeyonpcicn alte or to by am ¢ Dgage:! 0 16 ° furnished to the other two compsnies, and shall be to receive theirs at their conven: . As the committee on the part of this company, to mset with like commitices from tho others, I shall be prepared to meet them at any timo they may agreo upon. The of the American Company received in pce hho Wasurserox, Dec. 30, 1867. Dran Sm—I deem Ly mn in courtesy to your com- ey to inform you that received this from Rie tla of the accsesion of the New om] ‘nion Com) Provisional articles r agree upon by Mr. Cooper, Mr. McKesson and myself, entirely 8. cerely ‘that our labors have not led too Ee rasth, foes tonsteen tho ject of the union of three companies at an end—at for the present Very reapectfully, your obedient servant, AMOS KENDALL. It will therefore be evident that the representa- tions of the memorialists to the effect that your re- monstrants have songht to op them, are unfounded; and that, on the cont , the memo. rialists have had every opportunity to participate in any advantages your remonstrants have se- cured, but have of their own choice declined so to do. Your remonstrants respectfally represent that they are not aware that the memorialists have any rescriptive Rad to the telographing business ween Washington and lew York, and therefore do not feel the force of the complaint of the memorialists that they are to be deprived of their local business; althongh ir remon- Seanteadmit that if euch local ‘busiiee sould be materially reduced; the Magnetic Company could scarcely expect to make dividends of twenty-four per cert per annum,as they have done in past years, upon the cash capital actually paid in. They will from your remonstrants none but open and fair competition ; and if their adhe- rence to old systems Selogrephing, or their pra- dence or want of enterprise, prevent them fom sowing in new fields, your remonstrants see no rea- had they should permitted to reap harvests Your its further fully deny that the Atlantic, Newfoundland ie no Cvenps nies are one in interest, or that that they have ever ‘heen one and were separated for any put what- ever, it is not denied that some of the stock- holders in the American Company are also owners in the others. A large majority in numbers and in interest in each of the companies has no interest in either of the others. ctfally submitted, therefore, that the solicitude manifested by the memorialists lest one of the companies charged should hold more than its just share of benefits is needless, While your remonstrants might with propriety leave the foreign companies complained of to an. ewer to the authorities by whom they were created and are governed, yet they are unwilling that a mis. repreeentation of those companies here should ‘ he made the ground of unfriendly legislation hy Con- In 1853 a company obtained a charter from the Province of Newfoundland for the purpose of en abling them to erect tolegraph lines therein and to connect them with the continent of America. This -Y | transmission of thei remon: | should ing the New York, Newfoundland fights noatioe’’ enterprise. Tncessantly since Boor » face of the » lewfoundland has energetically pushed forward Stosam lines the province of foundland sh | ah a Oy now cata wi remonstrants for con- | ‘difficulty, and af an expense una ext #08 your yemonstrants are, prepared to show, by more than tenfold the cost of tines of like extent in the United States. Tn 1855 their efforts to lay a-cable across the Gulf of St. Lawrence was unsuccessful. A se- cond cable was procured and laid in the following ear. Tn 1856 the Atlantic Company was formed in Fnalend. throoah she earnest efforts of one of directors of the Newfoundland Com; » Who cat fested his confidence in the ent ieee | war responsibility for more than $400,000 Thia stock he offered at cost te ann pastien in:hane rica, but not a share was taken by memorialiste, who now that the shall ment secure to them advantages Likely ¢o result from the risks incurred alone by some among your remonstrapts and others with whom they are charged to be im- tic any, is cluding ne many 2 nee New! pany, to exceed $300,000, no part of which is as. productive, risl After the ks that be memorial, and that unworthy insinna- tions of mer motives should be thrown out in regard to him, when he 80 richly merits distin- guished honor. His indivdiual investment in the hazardous riment of tel tween the continent of America and Ireland, ee of the whole of the lines dinate gains the Atlantic line, are robable its, and form no reason for ation likely to embarrass the enterprise, at a when the result is uncertain, especially as the £ vernments have reserved the right to regulate tariff of rates. Your remonstrants are aware of the | ee benefits conferred upon the enterprise of the Atlantic tele- ph by the governments of Great Britain and the nited States, in permitting the of vessels of their navies to in the great wk; but neither ernment has been called upon to contribute thing further towards the cost of the work; and annual sum which they have agreed t> pay for the ir despatches does not begin to accrue until the line is in successful operation. And 80 soon as the enterprise yields a return of six per cent to the company, the amount which each go- vernment is bound to pay is limited to fifty thousand dollars per annum. The Atlantic Company has, as yet, received no appropriation of money tn aid of its undertaking, from any source. Shares of the Atlantic Company which cost the subscribers £1,000 each have been freely offered as low as £500, and many of the original shares are now upon the market at a price far below their cost. It is not known to your remonstrants that any ua- derwriter of resposibility in the world will insure upon the next attempt to lay the cable. Your remonstrants beg leave further to state, that while individuals among their number have made great exertions to secure the successful completion of the Atlantic line, there have been parties, encou- ed, as your remonstrants believe, by the memo- rialists, who have t first from the Legislature of the State of New York, and subsequently from the Provincial Parliament of Canada, a charter for a rival Atlantic line. Your remonstrants do not deny that, under these circumstances, and the impossibility of obtaining the ne capital without some such arra ment, the Newfoundland and Atlantic Com | did obtain from Eastern States and Provinces as- | surances, which were ey peu that — enjoy alone, for a specitied period, the of connecting an ocean line to the coast, in o1 that their investment might be saved from utter de- struction, if haply a successful issue should crown the Atlantic enterprise. To this extent only are the companies named open tothe charge of monopoly so prominently set forth in said memorial. Your remonstrants respectfully submit that it ia 4 Po iawn Bae ha — we cost - the Atlantic telegrap! ing wholly of an ¢: a mental Character, aoehd. receive at ft; py eet encouragement as an invention for which patents are granted. The memorialists are in the enjoy- ment of a patent which has been made to cover a period of twenty oue.years. The lines of the memorialists extend eastwardly, | only to Boston, and were erected many years ago, with no reference whatever to a connection wi Europe. Having hazarded nothing in the experiment of the Atlantic line, or in the costly constructions of the Newfoundland Company, but, on the con’ » having opposed the former to the limit of thei nail the memorialists now demand, for thetr pro- e volt n Heman most prominent among the momo. | company having been compelled, after the expondi- ' company, but utting ction, that Lew} shall be permitted to share in the eee ct of vy gman , ‘ ntly ev! tt Congress wil th ‘neral considerati first ented, to which otliérs equally forcible might bé added, as in them- selves amply sufficient to require the denial of the rayer of the memorial, your remonstrants res; ully submit that the peculiar circumstances of the case afford important additional reasons in opposi- tion to the desired enactment. Perar Cooren, Witsow G. Hoyt, Committee of the American Telegraph Co. Arai, 20, 1858. PARLIAMENT. am In the House of Lords, on 23d of April, Earl Gare said he had recently learnt that acts had been gi the Colonial [ogialatares of North 3 I America, one farina th deck lop rticular communication between this coun policy such a determination could at. Without further remark he move for the production of the this important subject, of which he namely :— tracte@after the word “copies.” that « monopoly bad been granted to a caret telegraph company in ion to some of the ior hit n she present government were for whie! responalbl. in a — in 1 ty the — Ne which grantin; 5 passed an act ny to from the coaat of Ireland return h ‘were to enjoy pr the most have ‘Saaon. Ley act wor lao ‘of the then Colonial 7 of establishing a monopoly, and while acting in piece of Lord J. aseell who was then at Vienna, Sir }. Grey sent a letter to the Governors of the North American colonies, enforcing on them the necessity of not conceding snch exclusive privileges in future. In 1867 @ second act was passed by the same Legis Jatare, with a bill correcting some blots in = ori- inal net, yet securing the mon reviously con: Ferreds” thnt ct wre-ales teunsrnitted hotre, sod. it was agreed to, not without some hesitation--as the despatches would show-—by Mr. Labouchere. In 1854 the same company applied to the Legislature of New Brunswick (as we understood) for a lar act, which they obtained, and in 1857 the; red Sm ¥ £300 a year. 7 this a) eae plied that a money grant was properly concerned the Colonial Legislature, but that, e Was not yon to sanction the exclusive privi- 0 A an act was d there 4 raaap tne samme priv | legrea. granting r gee to the them te twenty yoars, instead