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To THE Senate and House of Representatives of the United States of America, in Conouess assembled. The answer and remonstrance of the American Telegraph Com- pany, to the " Memorial " of the Magnetic Telegraph Company, and the New England Union Telegraph Company, and the supple- ment thereto, which memorial bears date, March 10th, 1858, and is signed by Amos Kendall and others. Committee, / him, which contained, among other provisions, the fol- lowing^ : — " Tho several companies, parties hereto, bind themselves (o each other to connect exclusively, as far as practicable, with the lines of such existing comj)anies as may bocorao parties to this agree- ment, and in no event to connect with any new lino whi(rh may bo gotten up in opposition to, or to the obvious injury of any existing line." "This agreement shall take effect as soon as ratified by any three of the companies, and shall be perpetual." Your remonstrants were present at said meeting, and were in- vited to join in this agreement. Their lines extended then, as they now do, to tho Province of Nova Scotia. Had they acceded to the propoh,ition, the memorialists would have been content ; but any parties who might hereafter have extended lines to the frontier, would have bad the very same ground of complaint against the memorialists, that they now claim to have against your remon- strants. The patriotisin and solicitude of the memorialists are only ex- cited when they regard their pecuniaiy interests as likely to be afiected. At the time of the meeting above-mentioned, and directly there- after, it became evident to your remonstrants, that unless they would accede to terms dictated by the memorialists, their design was to effect a combination in opposition to your remonstrants, and to certain Western and Southwestern companies. As the propo- sition above quoted shows, the agreement was to be binding upon the companies signing it, as soon as any three should ratify it. For twelve years the memorialists have made every effort to pre- vent competition in the business of telegraphing, and have enjoyed the protection of a patent which has been in force eighteen years ; and, having been notoriously wanting in the spirit of progress, they now ask for legislation which would compel the enterprising to share with them the well-earned reward of their risk and expendi- tures. And this they presume to ask, when they have not oidy .tl ■V 8 declined to participate in the hazard and outlay of the enterprise, but liave eiiileavoretl, by ceaseless opposition, to embarrass its pro- jfress. It is not denied by your remonstrants tliat all of the companies represented at the ineetini^ in July, excepting only the memorialists, have united in an agreement for their mutual benefit, md for the more prompt interchange of business, but without increasing rates, or otherwise (combining to the disadvantage of the public. And your remonstrants respectfully represent that, as they be- lieve, none of the arrangements made by them in any way violate tiie legal or moral rights of any parties; and they aver that no parties have more readily entered into such arrangements than the memorialists who now ask at your hands legislation for their pro- tection. Your remonstrants deny that they have, either alone or in com- bination with others, endeavored to force the memorialists to sur- render their property ; and aver that they have had no desire to bring about a connection with the lines of the memorialists for any other purpose than that, in the legitimate and proper extension of their own lines, they might avoid a co'lision of interests with tho" memorialists, and, at the same time, have lines extending to Wash- ington, in ^rder to facilitate communication from their other lines; to adopt iuij- \>ved systems of telegraphing, more rapid and more perfect ; and to reduce the rates between New- York and Washing- ton, now higher than in any other part of America, in order that their other lijies might be bencifited and their patrons better served. For this end they have repeatedly sought to effect an fjnicable arrangement with the memorialists. In November last your remonstrants proposed to lease the property of the Magnetic Company for ten years, paying to them a" annual rent equal to thirty per cent, upon the cost of new pro- perty, superior in every respect to theirs, and covering the same routes ; but the otfer was rejected. Snbsequeiitly negotiations were opened between the memorialists and your remonstrants, for the purpose of doing away with the p prospective antagonism, by a union of interests ; and on the 23d of December last the following memorandum was agreed upon : — " Memorandum of an understanding between the Rfagnetic, American, and New England Union Telegraph Companies, subjv^ct to ratificftion. " Let each of the three furnish to the other two a statement of the proportions of a given amount of stock — say, for example, $1,200,000 — which they think it right for them to claim in a con- solidated company, with the statistics of their receipts and expenses, and every fact on which their claim is bjised, with proofs. " Let each appoint a committee of one, with full power to con- sider and adjust the amount to be assigned to each. " If the committees cannot unanimously agree, each company to select a disinterested person, and the unanimous decision of the three shall be final. No person to be selected as an arbiter who is objected to by either of the companies. (Signed.) " For the Americaii. Company, "PETER COOI'ER, President. " For the Magnetic Company, " AMOS KENDALL. " For the N. E. Union Company, "JOHN McKESSON. " New-York, Dec. 23c?, 1857." Three days afterwards, your remonstrants, by one of their directors, sent the following communication to the representative of the Magnetic Company : — " New-York, Dec. 26th, 1851. " Hon. Amos Kendall : " Dear Sir : — Permit me to hand you enclosed a copy of the memorandum of the 23d inst., and a letter addressed to Wm. M. Swain, Esq., President, &c., which I send to you, as we understand Mr. Swain is absent at the Fouth." [The letter referred to was open, and contained an official copy of a resolution of the directors of the American Company, ap- V 10 pointini^ one of their number a committee, in accordance with the above memoriinclum.] " I am cnnfaac