The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-02-17

our country has suddenly attained great promi-
nence. But, ia addition to these subjects, Mr.
Du Chailu's extraordinary adventures, Win
his graphic way of describing them, viii afford
great amusement as well "a instruction. After
he has delivered his course Of lectures IN New
York be should 90 to Washington. and Congress
should invite him TO enlighten them on the
negro ia the Hall Of Representatives.
Tho westsra Uniss TeIesraph Company
IL. Last Report to Its stockhoiders.
In December last, at meeting Of the board
Of directors OF the Western Union Telegraph
Company resolution was adopted calling
upon the Executive Committee for 20 concise
but full statement Of the affairs OF the COM
pany, to DO printed and distributed to the
stockholders. In pursuance OF this resolution
q report was some time afterwards prepared
and published by the treasurer (; but whether
1t hes been circulated freely among the stock
holders we do not know Fit has been. it viii
neither eniightsn them A. to the SEXUAL con-
dition OF the companys affairs nor encourage
them ia regard to its prospects. Although 1t
IL the first printed statement that has sr,a-
mated from the management aimee October.
1863 or nearly two years and half ago, 1t is
nothing more than brief summary Of the
results Of the business for the last eighteen
months, or since the executive Office Of the
company was transferred from Rochester to
New York, and an aggregation Of figures that
are all Greek to the unlearned in the mys-
teries Of Western Union jobs, but which, like
the mantle Of CHARITY, cover multitude OF
sins.
The report starts out with the statement that
the capital stock Of the company in October,
1865, was, in round numbers twenty-five mil
lion dollars, and proceeds to show how 1t has
been subsequently increased to fOrty-One mil
lions but it singularly omits to notice the
fact that two years prior 70 that time, in 1868,
the capital stock was only three million dol
lars, or to set forth the process by which it
was first watered from three millions up to
twenty-five millions, before it took It's final leap
to forty-one millions We will supply the
deficiency =
10 January. 1884 the capital stock s8ooO,ooo
On March 2, 1858, II WAS Increased by tho
issue OF an additional. Observation-Disclosures. 5000. 900
From this period to May %, 1864 it was in
creased BY the purchase Of otber limos and
reoOnstfucuOn. .........s........ DVOUiu0O
Making the capital stock theu $II, 900, 900
On May 49, 1894. IL was again doubled by tho
Issue OF IN add tonal. IL 900 900
last statsment. $22, 0o0 900
The report is deficient in another particular.
II fails to explain the advantages TO the COM
pany In telegraph and other property Of its
several purchases and consultations, or to
give any details OF the facts connected with
the Russian extension enterpriss, by which the
bonded debt Of 1875 has been increased some
three million dollars. Tbs stockholders ought
to know exactly how il was that they were
saddled with this amount Of loss on that OK
ploded enterprise whether the action Of the
board OF directors in authorizing the CONVEX
sion Of the Russian extension stock WAS legal
and binding, and FOR whose especial benefit
the whole body of stockholders Of tho Western
Union were made the sufferers by project in
which the majority Of them had no interest
Neither does the report remove any Of the
mystifcation that now hangs about Che pur-
chase Of the Pacific lines, the United States,
The American and the California State lines,
which, within the period covered by the report.
have enlarged tho capital of the Western
Union twenty million dollars. The stock
holders are especially interested in knowing
the actual stock and value Of these lines before
consolidation and Lhe terms upon which they
were consolidated.
The most remarkable feature Of this singular
report is the statement Of assets and liabilities.
In this The telegraph lines and equipments are
set down IS worth forty -seven million dollars,
which forms all their assets, with the exception
Of six hundred thousand dollars Of their own
stock, owned by the company, and about eight
hundred thousand dollars in real estate debts
and cash Now, let us SEQ what this forty-seyen
million dollars is really worth. The company
pretends to own some ninety thousand miles
Of wire. To make up an asset of forty-seven
million dollars this must be worth over five
up and thoroughly equipped to-day for two
hundred and tmenty-6Se dollars mile. This
alone would reduce che value Of She whole
Western Union lines to little over twenty
million dollars but this is not all. The ninety
thousand miles Of wire are not ninety thousand
miles Of route; several wires being put up on
the same poles between the Same places, all Of
which are counted separately over and over
again to make UP The total number Of miles Of
wire. For instance, from New York to Wash
ington, say two hundred and nfty miles, tho
Western Union has six wires, which II counts
as fifteen hundred milos. The estimate OF two
hundred and twenty-five dollars mile Is for
single wire, on new route, With all the instru-
ments and batteries and including tho work Of
construction. When second wire is put up
along the same route and on the same poles
the additional cost is only She price Of tho
WIRE the insulators and the labor, or about
one hundred dollars . mile. This plain
statement will serve to show the utterly un-