The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1870-12-01
GREAT WESTERN TELEGRAPH
COMPANY. s7faa 'lg1
"a N" ITN T|T'-T|I--T N n -7ILlI .T-TT : : y
Sharp Practice.-A New Way to
Raise Money. 's

| caH ,CnIeAGoi Nov. 80,
The Tribune this morning. makes an ex-
posure of a financial transaction Of the
Great Western Telegraph Company,
which has, two lines in operation from
this city--One to Milwaukee, and one to
Omaha-which, If true, offers something
new in schemes for raising money. The
Tribune says: -,..',--..r,.-
1.-THE capital stock Of tho company i
three millions, in 10000 shates, at $2J
each. OF 100000 shares, constituting the
whole ot the stock, III, ,807 shares were
subscribed by one Selah Reeve, and by
him conveyed 10 Josiah Snow, in trust on
the company 10 sell tho same and pay
ayails back to Reeve, in tul6llmcnt OF
n acontract made by tho company with
Reeve to construct 1000 miles Of the
company's line In accordance with this
the stock is being sold by, thef company
throughout the country. One, ,3f the BY,
laws Of the company, provides that no
certificates Of stock shall, be issued until
forty per cent Ofthe whole shall have
been paid in, and, as It is loft entirely op.
tional with the company as TO when and
how much the assessment under forty per
cent on the stock may be, it seems proba'
hle that those who subscribe for stock on
these conditions arc likely to wait some
time before they have any voice in the
election Of directors FOR managemept Of
the company. This is the condition OF
the stock and property Of the company.
The names Of twenty-five Of the most re-
spectacle business gentlemen of this
city areplblished as1ireetors, and though
these have been formally elected by the
company, it is alleged that none Of them
have been qualified rs directors, and that
they know nothing Of tho business trans.
actions recently. A suit has been brought
by some persons in this city who sub
sCribcd for stock They file bill alleging
fraud in thescOntractmad blythe company
with Reeve, in which It IS agreed to pay
him at tle rate of $500 per mile, for a line
Of poles furnished with one wire, and an
additional 800 per mile for each, addt.
tiOnal wire, viz $$400 per mile when the
poles L are furnished with two
wires; $500 per mile when fur
nished with three wires, and 5000
per mile when furnished with four wires.
1t is alleged that u line Of poles with one
wire can be erected for from $125 to $3.50
per mile. This allegation Is sustained by
the testimony of at least ono half dozen
telegraph builders Of experience and cs.
tablished reputation. II this company
should pay Reeve Gtthe rate Of $500 per
mile, it would leave net profit Of $440,-
600, aud when he had furnished tho full
compliment Of four wires making the to-
tal cost to the company 5000 per mile,
The net profit on his contrast would be
about 100000, the forty per cent Of
money which the stock holders arc
to pay in before, any certificate OF
Stock are to be issued to them, would
amount to $4,000. This corresponds
to the amount Of the construction con-
tract t6 Reeve at 5000 dollars per mile,
which,amounts tojust 81 ,200O00OG The
construction contract and the payment
on the stock arc arranged so that the
money paid in shall be paid out to Reeve,
before the stockholders have received any
certificate Of stock, or have anyvoice in
the disposition Of their money! aa~