The New York herald., 1868-03-31
The Western Union Telegraph COMPANY and
the Herald.

The Western Union Telegraph Company and
the Herald.
Some of the stupid stockjobbing newspapers
of this city, incompetent to understand the re-
sponsibility and duty of public journalist,
and recognizing in the press nothing but an
instrument for the promotion Of personal inte-
rests, are surprised that the HERALD should
expose the disastrous blunders and inc0mpe-
tency of the Western Union Telegraph manage
ment when it has contract with the company
as a member Of the New York Associated
Press and receives its news reports over the
Western Union line. 1t is true that the
HERALD is a member of the Associated Press
and that we have contract with the Western
Union Telegraph Company for our news re-
ports. 1t is also true that we fulfil all our
obligations to the Press Association, that we
comply strictly with the terms of our telegraph
contract and that we exact similar compliance
from the Western Union people. This is o
private affair, of no interest to the public; but
there are other matters which are Of moment
to thousands of persons who have invested
The capital of the Western Union Telegraph
corporation consists of four hundred and ten
thousand shares, representing at par forty-on
million dollars. At the price at which they
now sell on the market the whole capital stock
of the company would realize but thirteen and
half million dollars, and this, after paying the
bonded debt of five millions and the floating
debt of half million, would only leave for the
stockholders eight million dollars to satisfy .
value of forty-one millions
The Western Union Telegraph stock sold iu
1857 at 100, in 1859 at 125, in 1860 at 175, in
1861 at 225, in 1868 at 24O a $50, in 1864 al
12O $50, in 1865 at ll6 12l, in 1866 at 90,
in 1867 at GA and at the present time it sells
at 33.
The working expenses of the line amounted
in 1859 to twenty-five per cent of the gross
receipts, in 1868 to thirtyfve per cent, in 1864
to thirty-six per cent, in 1865 to forty-eight
per cent, in 1866 to ffty-five per cent, and
under the present management, in 1867, they
swelled up to sixty-five per cent.
In 1868 the gross receipts Of the Western
Union Telegraph were eight hundred and sixty
four thousand dollars, and the company paid
dividend of seven and half per cent; in 1864
the gross receipts were two million and sixty
thousand dollars, which paid dividend of nine
and half per cent in 1865 the gross receipts
were two million seven hundred thousand dol
lars, and dividend Of four per cent was paid,
leaving surplus Of over half o million dollars
on hand in 1866 the gross receipts were five
million and a quarter dollars and the dividend
six and a half per cent; and in 1867, when the
gross receipts reached nearly seven million
dollars, the last dividend was passed and the
stockholders left without dollar of earnings
and with bonded debt of five millions and u
floating debt of nearly half million on their
shoulders.
1t would be well for the stupid stockjobbine
newspapers to study these figures, instead OF
writing parcel of trash about the HERALDs
contracts and endeavouring to bolster up
management that would speedily bring any
comDany tn the dOps