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Lorsque le document est trop grand pour dtre reproduit en un seul cliche, il est film6 d partir de Tangle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n^cessaire. Les diagrammes suivants illustrent la mdthode. ly errata ed to nt ne pelure, icon 6 1 2 3 32X 1 2 3 4 5 6 ■«*«*«- Entire Correspondence BETWEEN |m |.«F !<"■''' |t#in>tlland mi |pndon ir TELEGRAPH COMPANY AMD C|t Ittternational ®tean TELEGRAPH COMPANY, Ir regard to the latter' s Tariff discriminating against European Business. 18t0. te-jta-rrr*; ^^ I iiftifaiiiiikaiiii ■Urtrtir ^^^^" J. "% r .^ ^ 'ft _iirii!tiiii MH« ) CORRESPONDENCE. (copy.) Offiok N. Y., N. & L. Tkl. Co., | Nkw York, April 4, 1870. ji My Dkak Mr. Orton : < Will you kindly inform me what tariff' is charged the puMic ot> busiaesH from New York to Havana, and also the tariff charged on Atlantic Cable business from and to the same points, and much oblige . ' Very truly, your friend, Cyruh W. Fiki.I), Vice-President. To Wm. Orton, Esq., President W. IT. Tel. Co., N. York. (copy.) W. U. Tel. Co., i Nbw York, April 4, 1870. \ My Dkar Mr. Field: Replying to your favor of this date, I beg to say, that on inquiry, I am informed that whereas the tariff" on a busine«« message of ten words from this city to Havana is but 15 and 40, the rate for business to and from the Atlantic Cables between the same points is f? 50 and 75. This discrepancy was unknown to me until this moment, and some action should promptly be taken to secure uniformity. Very truly yours, William Orton. Cyrus W. Field, Esq. iiWkiiHllMI iMHitliHMMi "■i«*!»7CTn^»w?" (copy.) N. Y., N. & L. Tel. Co., ) Nvw York, ApriU, 1870. ^' Gen, Wm. F. Smith, Pre»t. I. O. T. Co., Dear Sir: Will you kindly inform nu'wlml turirt'is charged ,,!« public on buHincsB from New York f. Havana, and ulfi<. , u' tariff charged on Atlantic Cable businewH from and to the lime points, and much oblige, Very truly, your friend, Cyri'h W. Fiki.o, V ice-President. (copy.) . . . Office of thk I. O. T. I'o., ) No. 88 Liberty Street, > New Yokk, April 5, 1870. ) Cyrits W. Fiki-1), K81< ',*>". .$1 80 AiK.ri» *}5i! KSST' :;::;:::v.v.v.:: ii« Aa.trUandHn«Kary I ;«; ~»H,.te.; . . l . . ! \f. B<''K'>"» : 6 20 KiiHHltt, 81b.Ti», ftr«t roKlon B«iiglm/.i • — '" CImuuel lilanda 3 70 1 -in HufMa, Hlberltt.' iiecond r«Klon » 8jJ 1 HO 8ervl« • J .jQ t!l*Jul.»-o«tV»ftileVl"el«dVu«'po«Uge 14 V< Sicily [V."'.'.':!^::::^.'^.'^!!. i 10 Uoimiark. - - - - \ ^V) Nortuoermany. ^^ S:;iSu.;d:::::::::::v.v' i::: .:::: «• "'** HO Tripoli •' (Iretctt aud lunlan 1 Holivnzoll«rn. I (10 Tniila. SO 1 60 ""»"'' 13 1)0 I Turkey In Europe....... ' ^^ ''d'» 1 w Turkey in AKla, «r«t region 3 80 Jta'y- 70 ! Turkey In Aala, H.MOud region <» w LuxBni'.K.nrg | go I WurteniburK .™ jSl!j:.v..,wai.aouia;::;; ::::.::.:::. ^iJiAijj^^S'^^^^ 5J«^*jy .■.'.'.!■' « «0 I aue/ Canal Company « *' "7ore«=htenorfr»cllnnof'ten«orda above twenty. ohar«e. In addition. ..ne-half uf thew rate*. Um,K8* FOR BITftlNKSS WITH PI.ACKH BKYONL (JRKAT BRITAIN AND IRELAND. THK.se KII.K8 OOVERN THIC ADniT.ONAL ..lUmU) ..KVONI. ..HKAT UHITAIN. All ton.ponnd names, IncludinK names of Connlries. Stales. .V.. and rom- lamnd words, count for as many words as they contain. Two.,.ence, three-pence. *o., count as tw.. words ,n eacl. -ase. Double rates must be charged for all (iovernmenl messa^.s wr.Uen .n code '"■ ' The'^ntinental Telegraph (V.mpanles will not entertain or Invcs.iKato com- nlalnts r jrror or delay in unrepealed messages. ' t all other respecls the rules for Cuba Cable business will be observed. (1 50 1 33 TARIFF OF RATES EXCLUSIVELY FOR TELEviS ■. PH MI-SSAOFJ^ ORIOINAT- mo IN THE UNITED STATES AND BK.TISH PROVINCES. TO AND KBOM HAVANA, OUBA. All Messages must bo prepaid. Tariff .n gold. 10 words, .nclusive of date, ad- dress, and signature. . Each add 1 10 Words. ^ord. To or ftom any office of the Weatern Onion Telegraph Company, m theU. 8., East of the MUaUalppi. including St. LoulB. ^^ ^ ^ Mlaaouri ^' To or fron. any office of the Western Onion Telegraph Company. i„ the D. 8.. West of the Mlsrisrippl, exoepUng St. I^uts, ^ ^ ^^ Ml8«ouri . ■■|! H ' % I I i ^i! **|pnr! .r-. IMc. 4SC. IMIc. «8c. from «ny office In the V. H., not on Weitarn Union T»l*Kr»i>li Coiiipaii.v'a Hue. uld lu U"M tlin loral Urlff iif cunnectlng (!omii»ny— from the offlee of tlin Wmtorn Union Telegreph Oonipitny, where roeiMtKe In Imniled over to the cionnmitlnK line or from any offliie of the International Ooeau Tolegraph Uom- 1 g^ ^^^ puny, exceptinK Key Woat, Fla ) To or from Key Weat, Klor 1 '"' To or from oHlcea In (^anaila ' *' To or from offlcea In New Brnuawlck and Nova HooUa « ••« To or from olUcea In NewJoundland '? Wl On mesHagos to llm lollowinK i>HI(i«ti In Ihfl Islmid of CiibH, hoyonil lUviiim colleol, In iiildlllon lo iibovii rateH, H|miilMh local tarlir, vl/, : iievoiily-flve i!oritn, ({Old, for twenty wordK or hw*, and lw«nlytW« cenlH, nold, for oacli aildltmnal Ion words ()r fraction often words. I,I»T OK T?:i,Kr.RAPHI(; STATIONM IN tM'HA. Hrttalm Hpjucal, Bemba, Hocu du Hagiia, Hayamo. ConHolacion del Siir, Colon, Cardenas, Clonfnngos, Calbarlon, (Mono de Avila.Cuba, tiiiamvlay, (litlnea. (iualmaro,.llguanl, LoH I'alaclos. I,oh Punas, Malan/.an, I'lnar del Klo, Paso Real, Puorln Principe, llemedios, San Antonio, Hanto DomlnRo (dolonlnde), SaKiia, Hanta Splritu, Trinidad, ITnion de Reyes and Villadara. \, It All dispatches to points in (Jiiba. beyond Havana, are required by the Spanish (;overnmenl to be written In the Spanish languadje, and this t!om- pany will take no lesponsibility on snch inessaKes if forwarded In any other than the Spanish langnajte. ■ ^ • Janpabv 1. IH7". Peisonsdesirousof forwarding by mail dispalohes to points beyond the telegraph lines in tne West Indies, are informed that steamers leave Havana as follows : BAY ov MONTH. MAKE or BTEAMBB, 3 Barcelona. 18 No Regu- lar days. 5 or 6 Montezuma, ( PiOaro. ) Pelayo. British ateamer. 17 or 18 French ateamer. 11 or 33 I British ateamer. 4 or 6 ' French steamer. IS & 30 ' Spanish steamers. WHEBB TO. St. Thomas. St. Thomas. St. Thomas. St. Thomas. St. Thomas and Europe. St. Thomaa and Europe. Vera Cruz. Vera Omz. Cadiz. BIMARKS. ! Returning, leave' Santiano de Cuba about 8th & 33d Move Porto Rico about 3d k 17th. No French steamer for New Orleans. The Harcelona and Montezuma touch at the following polnte : Nuevltas, Gibara, Baracoa, St. Jago, Puerto Plata, Mayaguez, Auguadilla, Porto Bico. There are regular steamers- one a month for Hamburg, via Havre and Bremen, via Southampton. Customers will facilitate piompl delivery of their messages by leaving their addresaat the Telegraph oBice. \. iigtfrir /Hit Jill iW '^ir^ "**■ RULES. UUliK I. CIIKCK. Yiiu will Htato In the ohflcik : 1. Tli« niimlKir of wordii In thn entlw niowtiiKB, ImilmlInK HrtdreHH, (Ule, Hiiil !4lgniitiii'fl. ■i. Tlie nmoiiiit clmrKeil. Uin.K'i.- COUNT. The mldinHH.ftnlo, iindslKHftture mint be Included In llie I'oiiiil, Hnd I liiivKed for. The niimn "I the plrtiifi whero thn memtHge iirlKlnalBH miwt he Inoliidod li\ every menHHue, tn prutect the neveriil companleH Inteiented In Uh delivery. Should it ho dnMlifid to srnd it moHHHKB In whiidi nny of the hIidvo iPtiiilrementH «ie oniltted, the nender miiHt write hmm the ine.>lllty of Delivery Wiiived. " and slun the stime name or namps a.s in thn Hlnnalure of the dlnpalch. TiK' prertx " II. " mimt precede the (dieck upon muih mossaneH. Compound namoH of placed, Includliin name* of (NuintrioH, HtHtes, IslandH, (!ill(>», Towns, *c., and compound wordn, count as one word. Names of Indl- vldualu, llrmn, vcsselK, streets, and all other names count for hh many words us they (M.nlaln. The prefixes d' or de. and I", le or la, tiefore names of indtvid uaU, will not l>e counted saparalely. In other cases tbey will he charjiod as sluKle words. K. (). B., or (.'. K. 1., when written thus, " fob, " " cfl, " count ub one word : but when the letters am separated thus: P. O. B., or C. V. I., count liS three words. Kigures in ordinary messages must be expressed In words. The charge will he for the number of words, withiuil regard to the figures they represent. Twopence, threepence, Ac, up to elevenpence, count as one word In each case. Words must be written in full. Abbreviations will not be allowed, except such as are in ordinary use, as Co. for Company, St. for Saint. nULR 3.— Official Messages of the Spanish or United States Governments will l)e charged less than the above rates by »1 75 for each message of ten words or less, and eighteen (18) cents for each additional word. All suol messages must be signed officially, and the prefix "G" must precede the check. RULK 4.— Code or cypher messages and abbreviations are disallowed by the Spanish Government. In the event of the Spanish Government permitting messages of this char- acter to be received, they will be subject to the following regulations : CODE MESSAGES~hy which are meant messages constructed, for pur- poses of secresy, of disjointed sentences or words rendering the meaning unintelligible— will he transmitted with every possible care ; but the Company, while willing to investigate by post complaInU respecting errors in such mes- sages, will not return the charges upon them unless they be " repeated messages." (See Rule 6.) Should the receivbk of such a message have It repeated, the amount paid for application and reply will not be returned unless the message was originally a " repeated message, " and paid for as such by the sender. .. „ , ^ v:^, 'J y mm CYI'IIKII MKHSAdKH by wlilili iiri< moiiiil mnxMiiuuM rnrmldltiK of lotterN Kri>ii|ii>(t cir i.tlmrwlKi', mil rnrinliiK iiiiy known <>r illrtlnnHi'y wnrilN, or of hiinii'i'iilN- will III' I'liiintcil i>iii'li IkIIit or dKuri' iin ii word. Wlu'n ry|ilinr Im Intnrinlxi'il witli pliiln woriK. Hut |iliiln |iiirl ol tlio mcMitKii will li<> r'tiiirK"'! »' iirillnHiy riiloH, mihI lhi< ri'miiliififr hh cyiilicr. • lilll.R ft.-MI<>«SA(il':H IIKYONI) TKI.KOKAI'II lASK^. ^MniMHKiiN ilitMtlnml for iiliicim liKyoiiil llix I.iiii'n of Ti'lnxriiiih miiHl ronlHln hmtrni'tlonN from IIih •nilcr HN to tlin pliK!)!* from wlili'li tliny itrr to bo |ioNti'<>ntM, ;jold, nmiti Im I'lmrKud nxtni for poHtHKc I'rom Hkvhiih. Wn.K )).- -UKI'KATKO MH>4SA(iK.S. In ordur to mor« eHitctuitlly aeoure HO(inriii-y In tniiiHtnlHiiion, m()NHHK<*'< miiy Im rt'pniitod tiack from tliii atiition iit wbiclithey have linnn ronilved to Ihn Hliitlon from wliliih they were orlKinHlly aent. Ifppoiitnd m<>RHHK«i« urn oliiirKnd donbln ttio ordlimry ratna. The wordH " llnpnt.ltlon paid " muHt Ihi Innerted Immridlatnly after tho addreHH, and oharKud for. jl^Hhould thn HKi'KivKK of an ordinary mH8Hav« rai|ulr« it to hn ropi-ated on Hoconiit of HUpinmnd error, the applioatlnn for repotltion inimt lie addreMxod to the HpnditiK Ki'iilon. Hii'di application and repetition miiat he treated hm two dlNtin(;t indSHHKeH, and be prepaid liy the applleant. Hhould an error lie discovered, the charKoa for th<' apjillratlon and rRpetitlon will lie returned. mn,K 7. -PKKrATO nKVI.IKS. riie aeiider uf a tiiexHaKe may prepay the reply aa followH : Tho sender muHt insert immediately after the address, and pay therefor, the wonls "Keply, words paid. " The number of words paid for will be written in tho blank space. Should the reply contain more words than the number so aiiecitied, the sender of the reply, on presenting It for transmission, must pay for the excess. The reply must be tendered not later than eight days after arrival of original at delivery station. if answer of only ten (10) words is prepaid, It Is aufHcient to insert in orit'inal message, " Reply paid. " In cases where more than one reply Is required and pre|)aid, the sender must state the number of roplies thus: " Three replies paid : " or. If more than ten words, thus : " Three replies, each words, paid. " The privilege of jirepaying replies provided for by tliis rule is conttned to business with Uroat Britain, Ireland and the United States. RUIiK M.-(i0VKUNMKNT CYFRKK MI'SSAOI'M may consist of numerals or letters, or both, and may contain jilain dictionary word*. They will be counted as follows : 1. Count plain words as single words. I ■ . -. iii-rli iniiii(i1iTMi"iiai>rtrw* > tiJMrtfclMrt ■■>- t or Iflttem irilH, i)i' I'l ryplHir in I'liiiritml lit IH ear*S»V.- Referring to my letters of April 4th and 6th, and yours of the oth, 7th, and 27th ult., on the subject of tariffs, I beg to say that the proposition of your E.teeutiye Committee, o( pro rata reduction, could not be entertained, for the simple reason that our tariff between Amereia and Europe is a very low one, and yours between Cuba and Florida a very high one. We are strongly in favor of low tariffs, and are very anxious to do what is exactly just with all connecting lines. We would propose that our through tariffs be based either upon the exact cash cost of the lines, or pro rata upon the miles of land line of each, and the miles ot cable of each, although this latter would be greatly against us, as our cables are in much deeper water, and our land lines through a country which renders maintenance much more costly than yours. As your Directors will be in session to-day, I would urge the presentation of this matter to their consideration, and hope to receive an answer this afternoon. We cannot doubt that they will, in any event, order the tariff between Cuba and England andFrance reduced to %12 50, being the full amount of your present tariff between Cuba and the United States, and the full amount paid to connecting lines between the United States and Europe. I remain, my dear sir. Very truly your friend, Cyrus W. Field, Vice-President. * 1 I have read the above letter and would most respectfully urge its immediate and favorable consideration. (Signed), Pbtbb Coopek, Okfk;k of the 1 THE 1. O. T. Co., I May 3, 1870. ( Cyrus W. Field, Ksq., Vice-Prest. N. Y., N. & L. Tel. Co. Dear Sir: I am inHtruc-ted by tlie Board of Directors to acknowledge the receipt of your letter of this date, and to send you a copy of tlie resolution i^assed at the lioard meeting to- day. RESOLUTION. . , - . • >■ " A communication from the New York, Newfoundland and London Telegraph Co., dated May 3, 1870, having been read, in reference to the through tariff on business between Cuba and Europe, and the same having beeu carefully con- sidered, therefore Resohed, That the Board do not feel justified in making any change in the present tariff, except on the principle that the companies interested shall each bear their /wo m<« share of the reduction, based upon the proportion each company now receives on the present tariff." The Board recollects that the original tariff from London to New York was *100, and they are also aware that for private interest, and under the spur of competition, the tariff has been reduced to 17 50. These reductions have never been made with any reference to this Company and its tariff, and there seems to be no especial reason now why any such relation should be established. If the Western Union Telegraph Co. and this Company have seen fit, for their own interest, to develop .the U. S. busi- ness by a reuuction, it cannot be claimed that other companies who do not unite in that reduction should share in the benefits arising from it. The Board, however, were quite willing to enter upon a general reduction, as indicated in my letter of 27th ult. That proposition has been declined, and therefore ail further dis- cussion of the question would seem to be useless, as there are -a existing agreements or business relations between the companies. With great respect, believe me Very truly, yours, «&c., Thos. p. Bladen, Treasurer. i ; J * 14 \. Y., N. & L. Tklk«kai'h ('o., ) Nkw York, May 7, l«70. \ Tho8. 1*. Blauen, Esq., Treasnier Inteinati<»iial Ocea.ii TeU'- graph Co. Dear Sir : I have the honor to acknowledge the receipt of your letter of the 8d inst., with copy of the rcBohition j.aHsed hy the Directors of your Company. The entire correspondence between your Company and ourselves on the subject of tariffs has been read to our Direc- tors, and they express great surprise at the position yonr Company takes. I would correct your impression that under the spur ol competition we have reduced our tariffs. The Hrst tariff was merely an experimental one, and was announced before the cable was laid, many scientfic men asserting that we could not get over two words per minute through so long a cable. Our reductions were as follows : Nov. 1, 1866, fromllOO to «50 00 Dec. 1, 1867 to '^^ "^ Sept. 1, 1868 to 16 87 June 1,1869 - to 10 00 and Aug. 10, 1869, to the present rate 7 50 These reductions were the result of our desire to give the public as low a tariff as could possibly be afforded, and were all made before any competing line was open to business ; and all of the imjjoitant ones before the French line was even talked ot We inclose you copy of resolutions unanimously passed by our Jioard this day, and would ask your Board to carefully consider the annexed statements. I remain yours, very respectfully, Cyeus W. Field, Vice-President. 1. CASH COST OF LINKS. The Newfoundland, Atlantic, Anglo- American and French Co.'s lines, between eighteen and nineteen millions. Cuba Co.'s lines said to be about $600,000. 0. \ eHii Tel«- •eceipt of n itansed any iind ur Direc- ion your '■ spur ol' ;arift' was etbre the we could a caVile. 00 !5 00 6 87 00 and 7 50 give the and were ncHs; and was even passed by carefully •esident. id French 8. 16 2.- -THK nKKPEST WATER CABLES r,AlI) IN. Xowfuundlaiid, Atlantic and French C'o.'s 2,700 fathoms. Cnba Co. «4^ :<_ niTAl. I.K.MiTH OK ( VHI.ES. Newfoundland, Atlantic, Anjilo and French 7,:W2 miles. (^uha (-0 ^''-^ 4_ — loiAl, I.KMiTM OK 1,AM' LINKS. Newfoundland, ,\tlantic, .Viijilo and Ff nch 2,7K4 miles. CnhaC. ^^'" •' 5. roTAi. i.KNiini>iani> ani> ) London TKi,K?ive your Company 46 eents on the same messajje. Wliat would your Directors say if our (!ompany should charge on every nu'ssage passinj; between Cuha and Kurope #'2 5(» in golfl more than was charged on a message of the same length hj'tween the United States an and 6 48 $10 60 City . 14 50 $16 00 k* A tariff of fifty ct-ntH for a nu'SHagf of ten word» over this length of line woidd he a higher rate than in charged you by any connecting liiu' that we know of in Kurope or America. Hy the act of CongreHH whi. This undoubtedly meant currency, as nothing is said in the bill of its being gold; and un(|uesti<)iiably it was intended that the tiate, address and signature should g<» free, as that was the universal rule (ui lines in the I'nited fstates. We again most respectfully urge you to consider this sultjeot, believing that it is for the interest of y<»ur Company as well as for the public that the tariff for telegraph messages b»- tween the United States and (.luba, and betw«'en Cuba and Europe shoidtl be immediately largely reduced. We remain, gentlemen, Very truly, your friends, Peter Cooi'KK, ., Cyrus W. Field, Moses Taylor. (copy.) Office of the International Ocean Telkuraph | CoMi'ANY, No. 88 Liberty street, r New York, May 20, 1H70. ( Peter Cooper, Ksq., i Cyruk W. Field, Kwi., V Directors, *e. Moses Taylor, Eson(U'iMO, a. Vf ry truly yoiir»., Ac, VVm. F. Smith, Prowidont. ' (ropY.) N. v., Xkwkoiini>i,ani> ani> Lonimin ) Tki.khkai'ii Company, r ,"" . - Nkw Yohk, May 2:<, 1h7o, ) (ii't\vvu\ Wm, l<\ Smitii, l'r»'sitW«>(*ll il nu'), !)»• * osidnit. >MiON ) 170. ( ci'iiii 'IVle- n'ot'ipt of m to |>riiit I ri'gtinl to I'siK'i-tluIly »C'oiii|mny )f our lint' H to ol)taiii iii», and to i exet'ssive ii'l, the Di- meaiiH. ir Board at EI.D, J. ROBBBTS. ^ I 31 (copy.) OkKU'K ok TIIK ImKHNATIONAI. Oi KAN TKI.KtlHAPlI | Company, No. hh l/ihiTty htivot, r Nkw YoiiK, Muy2:<, lH7t». ) I'ktkk ('ooPKii and otlicr^ (iKNTi.KMKN: I Inivi- to ackuowludj,'!" \\w rowipt «»f your U'ttor of this datf. May I ln%' tlu' favor of an nmwvv to I lit' followinj? (pU'Stlon, wliifli will probably be one awki-d by Honu- of tin- nu-nibi-rH of thit* Hoard : Ih thiifany t'xanipU' of dim-nniination in tin- tariff of ralei* for ti'li'iirapliio ini'HHai,'i'H b«'twfi'n Knropo and America, otlicr than that with which this Company is i-hargi'd ? An iMrly iinswor to this .picslion will aid nu- in thi' ri-jtort ti» be made on lllis subject. Yonrs, vi-ry truly * *' Wiu.iAM F. Smith, President. (copy.) N Y., N. & \j. Tki.koiiapii CJompany, ) Nkw Yohk, May '2S, 1H70. \ General Wm. F. Smith, President International Ocean Tch- fjraph C'onjpany. Deau Sir: We are in receipt of your favor of the 23d instant. In reply we have to say that we are not aware ot any Company charging more than their full local tariff and the full amount that they pay to other lines, except your Company, which charges #2 50 extra on every nu-ssage between C'uba and Europe. If your inquiry may be regarded as an indica- tion that you know of an instance of tlu- kind, we shall be much obliged to you to be infornu-d innnediateiy of it, so that we can at once apjily to the Company in respect to the matter. We renjain, very truly, your friends, Peter Coopek, President. J 2a Orrii'K OK riiK Intkknatidnai. Ockan Tki.kokai'ii i ('(tiHi'ANV, Nil. HH I,iln'r1y SlitMt, NkW YoKK, .lllllt' 7tll, IH7II. j 'I'd Mt'NHrH. I'ktkh Cooi'icH, Cvri'h W. Kiki.h, and (itluTH. (iKNTI.KMKN : Volir ctilillllllllinitioli nt' tilt* 'illtll lilt. llUM llffll liiiii l)i'fort> tho Dirortoi-H at tliir* ('iini|iHiiy, ami Inm rfi-t>ivci| tlifir curcriil ntiisitU'ratinii. I am ilirt>clt>i| to make tliin ruply lo it. *^- , ■ ^ : ■.,■ ^r .■ In f(inH«-i|m>n('«^ <>t' tht- |>ul)lifaliun ot'u t'unnt'rci>i-r(*M|iiin on tliiN Miiltji'ci liftw«'*>n Mr. CyniH W. Kicltl, \'i<'t'-l'i«'»Ii |)id)lica- tion Vtux «-ontfn)|ilati>d, it iMronicH nt-ccsNary to nuilio a nioiv i-xttMidcd anwwt'r, u» to tlu' h-hmoiin ^overnin); the action oft hie Company, than wan ^ivt-n in thi-ir fornn-i' IcttcfH when it wuk asHiimcd tht'v would ht> rt-ad only by thoMi* to whom they were addiVHSfd, and who wci-«> familiar with the (|Uf»(tionH involved. The authoritative tone a>>Numed in the letiern Hi^ned Wy Mr. Field niaken it neceKsary to ntate what would not otlierwine he apparent ttt thoHe not a<-t|iniinted with the fata; that thin Company ih an oruraniKution chartered under the Iuwh of New York, entirely independent <'ither of the TrunH-Atlantic Cpt all the (Mindi- tionH impoHcd upon it by its |>;rantr< and franchiNc, and is striving with every proHpe«*t of muccchs to carry out itsoriirinai purpose of cHtablishint; teleijraphic connection with all the |)rincipal West India Islands as well as with South America. Ah its busiiu'ss has developt'd it has reduced its rates to a puint m low as it (^an atford to nniintain it line which h Bhort- lived at best, and subject to peculiar ha/arda. While it means to give to the public prompt and reliable service at ^ n 9n rt>HNniial)lf ruU'H, il il'-';* not intcnil, whilf iimlrr itH prcsfiil iiiiimiurt'liu'ii' to fiiiiihilt- fht' ext»ii|ilf ol tliuNo liiit'N of whloh Mr. I'"i<'lt| in coiiHidtrcfJ the fontndliiiir uiaiia««T ; hikI wliicli, iK'coidiiiji to hiH testimony, liiivi- not jciid tliivf |ic'r ci-iit pi'r luiiiiiin on tlu'ir coHt. Its line wiiK o|K'nt'tl.H-2 ; In the correHpomlinn montliH of |H7(), iimler its present tarift", that tax fell ofi" to lil'2,»74.7l. Ill his letter of tith of April last, printeil on pa^fe It, Mr. Field aeknowledjit'S th«' reeeipt of the letter from this otHee of April 5th, and after stating the writer's eoiivietinn of the igno- ranee of the Direi-tors of this (.'otnpany of their own I'stab- lished tariH", he adds : " If we were to deliver bni.ness to you at New York, the sum of your taritV ami ours would be but ♦ 12.60, vi/.: (treat Hritian to New York ♦7.o<> New York to Havana ♦ft.oo ♦ 12.50 As he does not state any n-ason why his Company ilo.'s not "deliver its iiieHsaj^es to us at New York," and as no reason in laet exists ajrainsl the rijfht and ability to do so, the eom- plhtnt which is made about this " serious diserimination ajxainst iiritish and Knropean business" sei'ins to be without founda- tion in fact. I5y his ow ii showinji his Kii^ I « ■ idea which a disinterested person would draw from it is that the International Company has originated the principle of dis- crimination, and that it is the only Company in whose tarift sheets that principle enters. Ir) the letter of May 28th, it is distinctly stated " that you are not aware of any Company charging more than their full local tariff and the full amount they pay to other lines." That letter also contains a mistake with reference to the excess on the European tariff over our lines, it not being $2.60, The tariff sheets of your own Companies abound in discrim- inations. Discriminations against the people of the United States. Discritniuations against sections, whereby messages to and from other points than New York City are crharged at a higher rate than the local tariff between New York and those points. Discriminations, moreover, against C'nba business begun at a time when you were the only jjcople for whom we were doing business on a basis of ten words to the message ; and when, therefore, no discrimination could have been urged as being practiced by this Company. A tabular statement of some of these discriminatious can be furnished you for pub- lication if you desire. Your letter of the 0th of April was answered on the 27th of April by this ('ompauy making an offer to reduce the rates fnmi London to Havana -V.i per cent, upon the present tariff. Ou the third of May Mr. Field, as Vice-President, replied, de- clining this offer, and made on his part two propositions : First : That a through tariff be based upon the actual cash cost of the several lines. Second: A jjto rata upon the number of miles of Land Line, and Cables of each. An acceptance of the first proposition would give to this Company, as since stated in your letter of May 20th, twenty cents for each message, and upon the second, according to the same authority, forty-five cents. No one knew better than the proposer that the highest of these rates would not pay the cost of the service. He knew I ^^^ I ti it is that iple of dis- rhoBe tariff " that you 1 their full 08." That excess on ill (liscrim- lie United messages rharged at York and ha business whom we e message ; been urged atement of on for pub- the 27th of .' the rates •sent tarift". replied, de- tions : actual cash es of Land ;ive to this 0th, twenty ■ding to the highest of He knew ■BE m that the expenses of working a cable were as great upon a line of one hundred miles as upon a line of three thousand miles ; and that a working and repair force must be kept employed as well upon a line working one-fifth of its capacity, as upon one working three-fifths of its capacity. lie knew that while the lines he represented absorlied the telegraphic business of the commercial world with the I'nited States, including the for- eign business of this Company, and made the whole system of European, Asiatic and African Cables its tributaries, the bus- iness of this line was confined to a single island with a pop- ulation of about fifVeen hundred thousand souls. Tliis simjile statement of the relativ*' conditions of each party to the proposed agreement furnishes its own commentary upon a proposition for a basis of rates founded upon the seve- ral cost or length of the lines. ' The assumption, however, in the letter in question of the cost of this Company's lines, is so grossly incorrect as to force this Company to unpleasant conclusions as to the intention in writing, and appearing so s])eedily in print. Hence it is not supposed that the offer was made under any belief that il could be accepted ; and if any good pui-pose has been gained by publishing it the parties are welcome to the benefit of it. A comparison of the lines and capitals of the N. Y., N. F. & L. and I. O. T. Telegraph (Companies may not be unin- teresting. Our length of Cable is 370 miles Yoursi8.._ - 561 " Our length ot Land Line is 640 " Yours, I am told, is 250 " OurCapital Stock is *1 ,600,000 Yours is 4,000,000 The business of a world goes over your line, while ours has to do with the commerce of one city. Your dividends, we learn on good authority, have been 8 per cent., or $320,000 in gold per annum, an amount nearly 1 -^ gr -^' ' 26 •2^ tinu'8 the net eaiiiiiijjs of this (.'oinpiuiy during its last and best fiscal year. It is true tliat this Company labors under a disadvantajfe, as compared with yo»n-«, (\i' payiuij the United States (Tovernmeiit Internal Revenue tax of 3 per cent, on its gross receipts, which of course diminishes the relative net earnings. To return a little, and assuming that repeating a message in the United States would be an inconveuien«!e, and for that reason is complained of as a discriiniuation, the action of this ('ompany on that subject is fret- from criticism. On the loth ot August, last the rates from Havana to Lon- don were fixed at *15. At that time the rate from Cul»a to the C'ity of New York for a message of twenty words, includ- ing the charges of the Western Union Company, was *1(). Some time after the 1 0th of Avigust a negotiation was entered into between the Western Union and this Company for the establishment of a reduced tariff of rates, in the hope of de- veloping an increased business in the United States. This resulted in an agi-eement which went into effect on the first of January last, reducing the rate to five dollars for a message of ten words to any part of the United States east of the Missis- sippi River — this was intended primarily to encourage the United States business; but it was equally open to all the world. In the written acceptance by the Western Union (.'onipany of December 21, 1869, it was expressly stated that this tariff was not to apply to Cable business by either the English or French lines, which was to Vje considered as exchanged with this Company at Lake (.Uty, and t)ver which their regular Atlantic Cable tariff was to be charged. By this arrangement uo change was made in their tariff of ♦1.50 received by the Western Union on our European busi- ness; but in cojisideration of the reductiim made by us, and that our land line had to be maintained through a wilder- ness of over five hundred miles, with no local bnsiness, the rates were made at four dollars for this Company, for its ca- ,n last and VH uiidtT a lu' United i-nt. on its la live iu'( lU'SMafii" in tor tliat on of tliiK I a to Lon- n Culm to Is, int^lud- , was *1(). IIS entered ly for the )pe of de- les. This he first of uessage of he Missis- ijruge the to all the {.'onipany tluH taritf Knglish or iiged with 'ir regular ir tariff of pean busi- by us, and a wilder- isiness, the for its ca- 27 hies and land lines, and one dollar to the Western Union for its land line. If there is any concession in this to the interest and <'onven- ience of the )»eo))le of the United States, this Comjtany sees fio reason either to repent of its actictn or to review it. When the business of their lin*- will warrant a further redue- tion on their rates, their eonduet in the past is the best guaran- tee of what thev will do in the future. , _ The letter of the 2f>th of May on the same subject, is a repe- tition in effect of the suggestions in the lett«'r of the 3d of May, with a series of calculations based on a receipt by this Company of either '2(» or 45 cents per message ; presenting again the anojnaly of alternative jiropositions in which the re suit as to one produces a rate more than twice that of the other, and is based upon values, some of which at least are for sale at 75 percent, of the cost. As this has been already answered, it is not necessary to go over the same ground ; but there is one suggestion of new matter contained in the last connnunication. I refer to the statement that by the Act of Congress of May, 1h««, we are limited to a charge of *3.50 for ten words between the West India Islands and the United States, and that this means #3.50 in currency. As you had in the same letter quoted the tariff between the United States and the West India Islands as fixed by this Company at $1.75 gold, it is dilHoult to discover any practical application of the legal opinion you are good enough to favor us with to the case stated. When you shall be able to show that $1.75 in gold, which you say is what we charge, is more than $3.50 in currency, which you say is what the Act gives us, you will have taken at least an initial step in your argiiment ; imtil you do so its application is not perceived. As a matter of fact this Company has never charged ft>r a message from Cuba to the United States a sum in gold which would be equal to the limit of the tariff fixed in the Act when reduced to currency ; so that any discussion as to the true J construction of the Act of Congrt'ss on this subject is alto- gether unnecessary. As a matter of opinion, however, this Board has the misfortune to (litter entirely from tluit expressed in your letter. Kxtracts from the minutes of a meeting <»t the Board of Directors of the International Oeean Telegraph Company, held June 7, IH70 : Ritio/i't't/, That in view of all the eorrespondence which lias taken place between this Company and the New York, New- foundland and London Telegraph Company on the subject of a reduced tariff" between l>ondon and Havana, this Boanl arrives the following facts : , F^i'Mt: That the New York, Newfoundland and Londiui Telegraph Company i/einamief/ a reduction of the taritt" on Kinopeau business over our lines, without ottering themselves to become parties to the reduction. > mta reduction, which ott"er has been declined. Third: That this correspondence was declared to have been begun in the interests of the patrons of the Trans- Atlantic lines ; wherefore be it Resolved, That the New York, Newfoundland and London Telegraph Company be requested to inform its patrons that this Company now makes the following oft"er, viz. : To reduce its rates at once on all business between Europe and Cuba not less than 33^ per cent., nor more than 50 per cent., provided that all companies in the telegraphic line be- tween Lake Citv, Fla., and London will make the same reduc- tion, thereby reducing the tariff on the present form of message to not less than *7.50 nor more than $10, as against the present taritt of *15. ^he^£^ mtmm mtmm I ect is alto- vever, this t t'xprewsed ' Board of Company, • whic'li has fork, Xi'w- suhject of a tanl arriv«'s lid London \v taritt' on themselves .me general itern Union ited States ^ per (reiil, the connec- •li offer lias 'd to have ms-Atlantie md London )atrons that 'een Europe than 50 per liic line be- 8ame reduc- nt form of lian $10, as ' 29 lienolved, That this offer remain open until the 80th day of June, inst., and that copies of the above resolutions be addressed to the President of the Western Union Telegraph Company, and such other parties as may be interested. ReKolmd, That the foregoing resolutions be incorporated in the letter of the President, read to this Hoard in rejily to the Hcveial letters received from the "New York, Newfoundland and London Telegraph Company." It is believed that this communication answers the several suggestions and propositions contained in the letters received to this d^te. RespectfuUv yours, " ^ ' ' WM. F. SMITH, ■-.''"', President. Nkw Yokk, Newfoundland and London Tki.kukaph Co., ( Nkw Yokk, June 15, 1870. S (Ten. Wm. F. Smith, President International Ocean Telegraph Company, Sik: Your letter oi the Vth instant was duly received, and has had the careful consideration of the Directors of the New York, Newfoundland and London Telegraph Co., at their meeting held this day. Justice to our Mr. Field retpiiies the statement at the outset of our reply that all correspondence which has taken place between our Com|)any and yours has be- n considered and approved by this Board before being sent to you, and we regret that you should attempt to make any part of it a per- sonal matter. We would assure you that there has been no intention on our part of assuming any authority over the affairs of the In- ternational Ocean Telegraph Co., and we do not think our letters will lead any disinterested person to such an ojiinion. We have endeavored to convince you of the great injustice of the discrimination which you are making against European .-.- •> f i: m biisint^HB. We have referred to your own taiift' card, from whicli it is apparent that over the Hiune route you charge for United States buHiness one price, suy 16 for 10 words, and for English and European business another price for the same number of words, say 17 50 ; and it has been in respect to this difTerence of $2 50 gold, on every message, we have endeavored to secure a reasonable reply. It is evidently impossible for us to consider your proposition to make a pro rata reduction when your starting point is 60 per cent above the price accorded to any othi'r patron of your line. Wc desire to corit'ct the impression which you seem to have when you remark, r«'specting your line, that "it was o'J)ened in September, i8«7, and since then its rates have been reduced nearly 50 per cent." At your opening, by your printed cards, it appears for 20 words your charge between .N'ew York and Havana was JtlO gold, which was an average per word of 60 cents. Your present rate, found also upon your published crard, is |5 for 10 words, which is an average p*er word of 50 cents. How you dis(fover a reduction of nearly 50 per cent is not very clear to us. It may be that you have not yet noticed that you are charging us, on Euro))ean busi- ness, 75 cents per word — 50 per cent more than you have ever charged any other jiarty — but by our (H)rrespondence we are endeavoring to bring it to your mind. While you charge 60 cents per word to the public, we ask the same terms for the patrons of our line. A pt)int in your letter which seems to us ipiite peculiar is that your high rate is sought to be Justified by what is said to be the testimony of Mr. Field that tin' lines he represents " have not paid 3 per cent per aniunn ; " but in another j)lace you say you learn on good authority tin' dividends on those lines " have been 8 |»er cent, or if!320,0O0 in gold per annum." It m perfectly true that tlie original stockholders in the Atlan- tic Telegraph Co.. who paid their mo-icy a 1866 (14 years •igo), have never received but one dividend, and that of 1 1 1 1 i% "i1 '.<: im^mifimmmm^ card, from charge for •ds, and for ' the same pi'ct to this 'iideavored proposition )oint is 50 ■ patron of )ii Ht-em to lat "it was have been J, by your re between m average also upon an average n of nearly t you have )pean busi- i have ever ice we are charge 50 us for the ))eculiar is t is said to represents >ther j)laoe > on those ;r annum." the Atlaii- (14 years id that of m 3 per cent. The statement mentioned by you as having heen made by Mr. Field must have been in reference to those stock- holders of which he was one. It is no particular purpose of ours to review the many mis- apprehensions in your letter, which seems to be written with tlie simjile intention of avoiding the point to which we have, in all our writing, endeavored to bring your attention, but we notice another instance so glnring it should not remain uncor- rected. You remark that the amount of our yearly dividends, whic^h you " learn on good authority have been 8 per cent, or $.120,000 in gold per annum," is "nearly 2^ times the net earnings of tlie International Ocean Telegraph C\). during its last and best fiscal year." The gist of this statement is that your Company's receipts during your last and best fiscal year were about ♦128,000. In this connection we would call your attention to the pros- pectus of the Company organized to connect the West India Islands, in wliich organization we are led to believe your own Com]>any has an interest, as your last letter says it (the I. O. T. Co.) " is striving, with every prosjiect of success, to carry out its onginal purpose of establisli- ing telegrajjhic connection with all the principal West India Islands as well as with South America." The interest of your Company in the West India Company is further apjiarent in the use, in the propectus of that Company, of your own name as a Director. In that prospectus allusion is made to contracts and agreements for connection with your Com- pany, and referent ^ is made to the actual earnings of your Company, which it quotes at fOO,000 ]»er year — equal to ♦300,000, gold. Now, as you were a Dire«'tor in both Com- panies, viz. : the International Ocean Telegraph Company and the West India and Panan>a Company, it is to be jtresumed that the statement made in the jtrospectus of the l.-itter was with your sanction. How that can V»e reconciled with the statement made to us in your last letter we are unable to see. But of these peculiarities we do not care to treat further. i ^ Yon know, qnite hh well as we, that the disorimination of which wt! complain cannot bo jnntiiicd, and tliat no amount of argument can make it right. It iw evident your Company can afford to Hend European hunineHH at the same pricH' for which it sends United States liuHiness; and eHj)ecially in view of the fact that on the httter your Comptmy realixcN a net of 14.00, gohl, for ten words, whih" our Company, with a much greater extent of line and more cable, actiuilly affords to send the same number of words for iH.ftO, gold.* As you say that the tarifl' sheets of our (.!oinpany abound in discriminations, we would respectfully repeat the request made in our President's letter of May 2W, 1870, for any instances. We append a correct statement of the length of the New- foundland C'o.'s lines and (tables, ami the tariff realized by it on a message of ten words, placing the same in conjunction with the lengths of your lines and cables, m stated by your- self, which may serve to correct your impression of the relative condition of each party. We trust your Company will see the pn>priety «»f placing European business upon the same footing as that of the United States. By «)rderof the Hoard, EuwAKO Kavamauii, Seu8 MUiniluK » SWmilee words— ••neB8 1^4 00 n buHinesH 6 60 $1,SOO,OOOOU Anglo-American Co. and Newfoundland Co. See Xkw Yokk, Nkwkoi .ni>i,ani> am» London Tki.wikaimi Co., » Nkw Yoiik, June 17, IH70. \ Sir: In reference to the tahiiliir Niatoinent appended to my letter of 15tli inwtani, addroswed to you, an i ' Secretary. Gcn'l W. F. Smitii, " '] \ Pres't International Oi-ean Tel. Co. ^^SfV^^^^"?*??