New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-06-30
The United States Telegraph
Extension 10 the Pacific.

To The T6ito, Of The ~ j. Tribune
SIR: / am in receipt of circular from James
MeKsye, President Of the United States Telegraph
Company informing that It is proposed to construct
, telegraph line TO the Pacific 20 form part Of the
United States lines; that have the hight and prii'
lgs 10 subscribe for and take one share OF said e1'
tenson) stock for every two shares now held by you
me In this company be paid for at the rate OF sixty
81, and tvothirds OF dollar per share"
At first sight that looks very tempting.
ppt tho circular does not state what the proposed
line il 10 cost; nor how much extension stock In Vie
aggregate il 70 be issued indeed how much is TO
be issued at a nominal price TO or In behalf Of the
.cheming managers in addition 10 what we have The
privilege TO subscribe and pay for nor does II give
anu in formation to enable TO Judge whether the stock
will or will not be worth farihins.
These facts aroused my suspicious and led me to seek
.uoh information in other quarters which publish Tor
the benefit Of my stockholders.
amour, OF stock to be Issued for the Pacific Line
az we have said. 10 not stated.
II may be- and learn that such suspicion exists,
that while We stockholders outside the ring are eI'
peoted TO furnsA all tie m0nsy TO build the line. s'
lo,s,y amount Of stock 10 b. is',d 10 n, msmbs' o. ne
rinx," for pAieA hay to pay nothing or nH TO
nothing.
II So this 10 startling fact II naturally suggests
references and inquiries embracing the whole manage
ment Of the United States Telegraph Company from the
beginning. Suppose the holders of only s4'ooo"o OF
the United States Stock he present aggregate Is con-
sderaby more take the bait and use their privilege
TO subscribe. that will give the managers thirteen
hundred and thirty odd thousand dollars In cash-the
line at most liberal estimate, Will not cost ~ much
by several hundred thousand dollars. am satisfied
from information picked up In various quarters-in'
formation obtained with much labor and difficulty but
vet believed TO be ruHHorhy-that the programme II
TO stock the extension. when built into the United
States Company. at from -four and AHJ TO or millions
Of dol!ars.
On this basis who furnish every dollar OF money
70 build the line would have t2Oc 600 OF stock al the
cost OF 6Gi per cent; while 1.-THE ring would nave ON
tpo and ontAay to four millions % Prse""y me same
stock free Of coat and rGa! handT'd MoI'ana ao"a'' %
,aon,y b.,d,. In other words we, unnitated stock
holders would pay the cost othe whole line una propa
Rio mot I,ss than half million Of dollars But on
dividing" with "the ring" they would get more IMAM
half OF tho stock representing the line; they would
get several hundred thousand dollars in eAsh-an NJ
nom;na co,t and We innocent subscribers would get
minority Of tho stock at cost OF between si,o"o'
and 81 900 in cash. That is the kind OF entertain
nent to which this ,cratiy drawn circular ih''e' u'
For one beg to be excused.
My inquiries have led me to sinowiedge OF fao',
bearing upon the general management OF the on''eo
states Telegraph Company. which are exceedingly sig
nscapt and which, carefully kept from those most In
,srested in them should be brought distinctly before
every stockhoder;
According to Lows Telegraph and Railroad Direc
tory. page I5o tho United States Telegraph Company
wires cover the sams territory. substantially a. those
Of the Western Union and American Telegraph Com
psuiss yst the gross earnings Of ,hess antsK0u1'"