The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1867-03-14
Sharp Correspondence that will Explain
Itself. ....
OFFICE AMERICAN EXPRESS Co. -
Nos. 122 & 124 BRoADwAY,N Y. $50
Feb. Is, 1867.

DEAR SIE-The managers of the American
Express Co. have deemed it prudent ana
for the best interests of the stockholders 20
omit the usual quarterly dividend payable
ON this date SO that the entire earnings OF
company may be used in carrying tn sue
cessfui result, the competition formed to
black mail this and other established ex-
nress companies Neither selfrespeet nor
the uermanent financial advantage of the
stockholders will permit any compromise
with the already staggering company
known as thu Merchants Union Elk
press"
In making this explanation of the rea'
SOUS for passing the dividend, it is due to
those who hold the stock of this company
as an investment, to caution them against
parting with it at present market prices,
which are much below its real value. 1t is
evident that competing express companies
caunot long continue to operate upon the
same lines, and it is clearly the policy OF
company to expend every dollar Of its cur
rent and surpluss earnings, and if necessary
to assess its stockholders, to insure lasting
and complete victory, rather than to aban-
don the struggle which can have but one
result The circular of the managers of the
Merchants Union Express" sent out as
apologies for fresh assessments, and the adj
vertisements to bolster up their sinking for
tunes, contain positive proof of their faslty
The extravaganza of their expenditures,
the reckIessness OF their management, the
desperate expedients TO which they resort
to secure business done at a positive loss,
and to deprive other companies of the ser
vice of their agents and employees, by treb
ling the salaries paid them, all attest the
fact that they are losing confidence in an
enterprise undertaken to be abandoned
whenever it's projectors could command
their price.
Under these circumstances, the managers
of this company are so confident OF ulu
mate SUCCESS that they refuse to part with
their stock; aud it will be gratifying tc
know that their partners, who have shared
hitherto in the profits of paying business
also decline sacrificing their stock, which
cannot fail of becoming as valuable as ever,
aud that they continue to use their inHu
ence to promote and protect the interests OF
the company. Respectfully yours,
HENRY WELLS President.
JAMES O. FARGO, Assistant Treasurer.
To Norris WINsoLw, Watertown N. I
MERCHANTS BANK, Watertown N. Y.
HENRY, WELLS Esq, President Amerlcan
Express Company
DEAR SIR-I am in receipt of your crcu-
lar bearing date of Feb 18th 1867, saying,
1.-THE managers of the American Express
Company have deemed it prudent and for
the best interests of the stockholders, to
omit the usual quarterly dividend, payable
at this date so that the entire earnings OF
the company may be used in carrying on to
a successful result, the competition with an
organization to bIack-mail this and other
established express companies" &c, &c
must confess that | had much rather
received notice that you were able to ee-
clare your usual dividend, than that you
had fooishly spent all the earnings Of the
company for the past quarter, in carrying
on a war (waged by YOU against the ''Mer-
chants Union Express Company, and that
you propose to carry on the strife until you
expend every dollar of the current and sur
plus earnings, aud, if necessary to assess
the stockholders.
My stock in the American Express Com
pony has already fallen i'll market from 81
80 to less than go cents on the dollar, and
| am now requested to still hold it until
the officers have spent ''eUery dollar" try
ing to do what they must see will end il
the destruction of the company. The gen
erous support given to the Merchants I'm
ion Express Company is conclusive evil
dence that the American people have no
sympathy with company that publicly
say that they will destroy legitimate COM
petition or ''dis in the attempt"
If such course will cause my stock to
become as valuable as ever, it will be con-
trary to all past experiences in the man.
agemsnt of corporations.
On the contrary, if you divide among the
stockholders the vast amounts paid for pub
fishing articles signed Paddock. " Stock
holder" and other and more foolish expen-
ditures, and give the same attention to the
legitimate business of the company, my
stock would much sooner command a re-
spectacle price in market than it will under
the present management.
Your obedient servant, NORRIS WINsLow.