section_path: History/Newswire
section_name: Newswire
paragraph_text: Newswire
  
  The development of the electrical telegraph, which often travelled along railroad lines, enabled news to travel faster, over longer distances. (Days before Morse's Baltimore–Washington line transmitted the famous question, "What hath God wrought?", it transmitted the news that Henry Clay and Theodore Frelinghuysen had been chosen by the Whig nominating party.) Telegraph networks enabled a new centralization of the news, in the hands of wire services concentrated in major cities. The modern form of these originated with Charles-Louis Havas, who founded Bureau Havas (later Agence France-Presse) in Paris. Havas began in 1832, using the French government's optical telegraph network. In 1840 he began using pigeons for communications to Paris, London, and Brussels. Havas began to use the electric telegraph when it became available.
  
  One of Havas's proteges, Bernhard Wolff, founded Wolffs Telegraphisches Bureau in Berlin in 1849. Another Havas disciple, Paul Reuter, began collecting news from Germany and France in 1849, and in 1851 immigrated to London, where he established the Reuters news agency—specializing in news from the continent. In 1863, William Saunders and Edward Spender formed the Central Press agency, later called the Press Association, to handle domestic news. Just before insulated telegraph line crossed the English Channel in 1851, Reuter won the right to transmit stock exchange prices between Paris and London. He maneuvered Reuters into a dominant global position with the motto "Follow the Cable", setting up news outposts across the British Empire in Alexandria (1865), Bombay (1866), Melbourne (1874), Sydney (1874), and Cape Town (1876). In the United States, the Associated Press became a news powerhouse, gaining a lead position through an exclusive arrangement with the Western Union company.
  
  The telegraph ushered in a new global communications regime, accompanied by a restructuring of the national postal systems, and closely followed by the advent of telephone lines. With the value of international news at a premium, governments, businesses, and news agencies moved aggressively to reduce transmission times. In 1865, Reuters had the scoop on the Lincoln assassination, reporting the news in England twelve days after the event took place. In 1866, an undersea telegraph cable successfully connected Ireland to Newfoundland (and thus the Western Union network) cutting trans-Atlantic transmission time from days to hours. The transatlantic cable allowed fast exchange of information about the London and New York stock exchanges, as well as the New York, Chicago, and Liverpool commodity exchanges—for the price of $5–10, in gold, per word. Transmitting On 11 May 1857, a young British telegraph operator in Delhi signaled home to alert the authorities of the Indian Rebellion of 1857. The rebels proceeded to disrupt the British telegraph network, which was rebuilt with more redundancies. In 1902–1903, Britain and the U.S. completed the circumtelegraphy of the planet with transpacific cables from Canada to Fiji and New Zealand (British Empire), and from the US to Hawaii and the occupied Philippines. U.S. reassertions of the Monroe Doctrine notwithstanding, Latin America was a battleground of competing telegraphic interests until World War I, after which U.S. interests finally did consolidate their power in the hemisphere.
  
  By the turn of the century (i.e., c. 1900), Wolff, Havas, and Reuters formed a news cartel, dividing up the global market into three sections, in which each had more-or-less exclusive distribution rights and relationships with national agencies. Each agency's area corresponded roughly to the colonial sphere of its mother country. Reuters and the Australian national news service had an agreement to exchange news only with each other. Due to the high cost of maintaining infrastructure, political goodwill, and global reach, newcomers found it virtually impossible to challenge the big three European agencies or the American Associated Press. In 1890 Reuters (in partnership with the Press Association, England's major news agency for domestic stories) expanded into "soft" news stories for public consumption, about topics such as sports and "human interest". In 1904, the big three wire services opened relations with Vestnik, the news agency of Czarist Russia, to their group, though they maintained their own reporters in Moscow. During and after the Russian Revolution, the outside agencies maintained a working relationship with the Petrograd Telegraph Agency, renamed the Russian Telegraph Agency (ROSTA) and eventually the Telegraph Agency of the Soviet Union (TASS).
  
  The Chinese Communist Party created its news agency, the Red China News Agency, in 1931; its primary responsibilities were the Red China newspaper and the internal Reference News. In 1937, the Party renamed the agency Xinhua, New China. Xinhua became the official news agency of the People's Republic of China in 1949.
  
  These agencies touted their ability to distill events into "minute globules of news", 20–30 word summaries which conveyed the essence of new developments. Unlike newspapers, and contrary to the sentiments of some of their reporters, the agencies sought to keep their reports simple and factual. The wire services brought forth the "inverted pyramid" model of news copy, in which key facts appear at the start of the text, and more and more details are included as it goes along. The sparse telegraphic writing style spilled over into newspapers, which often reprinted stories from the wire with little embellishment. In a 20 September 1918 Pravda editorial, Lenin instructed the Soviet press to cut back on their political rambling and produce many short anticapitalist news items in "telegraph style".
  
  As in previous eras, the news agencies provided special services to political and business clients, and these services constituted a significant portion of their operations and income. The wire services maintained close relationships with their respective national governments, which provided both press releases and payments. The acceleration and centralization of economic news facilitated regional economic integration and economic globalization. "It was the decrease in information costs and the increasing communication speed that stood at the roots of increased market integration, rather than falling transport costs by itself. In order to send goods to another area, merchants needed to know first whether in fact to send off the goods and to what place. Information costs and speed were essential for these decisions."