The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-23

have had direct control over that corporate body
operating upon the American branch Of their enter
prise and that control would have reached the sub
marine electric cable. But by cutting of the Ameri-
branch of the original scheme, and combining the
operations of the Newfoundland Company to the
British Provinces that company as well as its 9th n
branch. the Atlantic Company, are placed beyond
the reach of the direct Legislation Of the United
States and of the several States through which their
connecting lines may pass. And the avowed object
OF the chief propretors aud prInclpai managers OF
the Newfoundland and American companies being
in the main the same men, and all, or nearly all
citizens of the United States-is to bar all telegraph
lines in these States. except such as may be owned
controlled, or in league with them, from connection
with the Atlantic cable, by means Of operations car.
red on by them in part beyond the jurisdiction of
their own government and in part by special grants
and prohibitions procured from State legislatures as
shown in the act OF the State of Maine.
Your memorialists charge that backed by the
Newfoundland monopoly, and an anticiDated ex.
elusive connection through that monopoly with
the Atlantic cable the authors and managers OF
the combined operation have attempted to bring
the principal lines in the United States under
their control upon their own terms, and not sue
ceeding relation to the lines represented by your
memorialists, are now employing the power thus &C
CURED, strengthened by domestic combinations and
the bounty Of the government, to destroy the bust
ness of said lines and render them valueless. not
only by cutting them off from aconnection with the
Atlantic cable, but by getting up rival lines in the
United States, and making them the exclusive re-
cipients of European Geographic correspondence.
A brief history of the origin and progress OF the
American Telegraph Company is necessary to clear
understanding of the present position of the subject
and the object of this memorial.
After the Newfoundland Company was formed, its
managers and most of its stockholders, as already
stated, organized themselves into another company
with nominal capital of 800 900, (snce increased
to $500 O00,) and assuming the name OF the Amer
can Telegraph Company, became corporation under
the laws of New York.
The first step was to make proposals to lease the
existing Morse lines the Atlantic coast, from the
British Provinces to New Orleans, and from New
York to Buffalo, for annua al rent in general below
their current income. The several companies were
much inclined to accede to these prop osas though
there were we'll grounded objections in the small
capital of the company to the security for the
fents but before they had time to consider and act
upon the proposals, the American Company sudden
~ withdrew them.
The next step Of the American Company was to
purchase new and untried telegraph instrument;
and while they were spending hundreds and thou
sands of dollars upon it to make it of any they
silently allowed the agent OF the associated press Of
or through whom they had made the purchase, to fill
the country with misrepresentation in relation to its
powers and performances, and to announce their
purpose to establish new lines of telegraph along
the principal commercial routes in the United States
in competition with the existing lines.
When these publications, suffered to pass by them
without contradiction, had circulated long enough to
thoroughly alarm the stockholders of existing lines
the American Company came forward with new
set of proposals to rent them on terms much reduced
below those which they had withdrawn. Convinced
that the policy of the American Company was to
force them into surrender of their property through
fear of destruction in Of refusal the companies
adore ssed with natural repugnance to such sys-
TEN 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 succeeding 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 England Union line between those
cities. This was the condition Of telegraph matters
as between the American Company and the compa-
MES represented by your memorialsts, when the At
lantic Telegraph Company made application to Con-
gress for the aid and bounty of the government.
The community Of interests between that compa-
ny and the American Company is proved by the fact
that this application made through the 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.
Your memcrialists further represent that some of
the stockholders of the Magnetic Telegraph Compa-
ny, apprehensive that the power which, in anticipa
tion was already used against them, and might here
after be used against the commercial and political
interests OF their country would be greatly
strengthened should Congress accede TO this appca
tion interposed TO prevent its success and for time
its fate became doubtful.
Your memorialists charge, and are prepared to
of the application on the part Of the Atlantic Com
pany, who il also one OF the chief managers OF the
American and Newfoundland Companies, and large
stakeholder in all three Of them, accompanied by
British stakeholder in the Atlantic Company, called
on some Of the most influential stockholders OF the
Magnetic Company, and by pledges that the Allan
tic cable should not be managed as to effect inju
riously the interests Of the Magnetic Company pre-
vented the interposition Of said stockholders In OPP
position to the passage OF the bill then before Con-
gress And they further charge, that within less
than four months thereafter, IN anticipation Of the
immediate successful laying Of the Atlantic cable,
these pledges were falsited by one Of the men who
made them and his associates in the American Com
pany, who entered into arrangements, the palpabe
object Of which Is to use the power anticipated from
the absolute control by their three combined compa
MES over the transatlantic correspondence for the
injury, and, II practicable, the destruction OF the
lines owned and controlled by the Magnetic Tele.
graph Company, az well ~ those owned and con
trolled by the New England Union Telegraph Com
paDy. These arrangements were made secretly du-
ring the tendency OF negotiations, with a view Of
securing TO the Magnetic Company that position in
relation TO the Atlantic cable which had been pledged
70 them at Washington q. well as TO put an end TO
telegraphc warfare. And In pursuance Of those ar.
rangements, the American Company have estab-
lished a line from New York 10 Philadelphia, aud
avow design 90 extend u further south for the pur.
pose. not only Of monopolizing the European cor.
respondence, but depriving the Magnetic Company
Of its local business.
Your memoriaiists further represent. that the
arrangements thus secretly entered into were after
wards publicly ratified and that they provide in
effect for cutting of the companies represented by
your memorialists 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
lines along the Atlantic coast south TO New Orleans.
Finding their very existence thus threatened, the
Magnetic and New England Union Companies
combined together for mutual defence for like
term Of thirty years, aud made contracts Of the
same duration for connections with other lines. IL
soon became evident that the American Company
and their allies foreign and domestic, were not 20
destroy the Magnetic and New England Union lines
without severe and expensive struggle, when that
company indicated willingness 10 amalgamate the
three companies. While some Of the stockholders
Of the two former companies were willing 10 attempt
n removal OF the obstacles which had been created
by contracts on both sides for exclusive connections
for thirty years Others thought the attempt useless
and for that and other the project was not