New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-16

TIE END OF BUBBLE-BIOwING IN THE TELEGRAPH
BUsINEss-THE COMING REVOLUTION IN THE ART
OF TELEGRAPHY-THE RISING COMPANY OF The
FUTURE.
To me Editor OF The Tribune
SIR: Cheap Telegrapby," in a recent communica-
ton to some of the papers of this city, did the public
good service in calling attention to tine huge and
oppressive monopoly that has for years controlled
the telegraph system of tins country" aud it is to be
hoped his prophecy of its approaching end may
soon he fulfilled. IL is something amazing in the
history of corporations how this "watered and in-
tnnsically weak concern should have acquired such
power IN a country of free enterprise; but it is still
more surprising that its apparent success should not
long ago have brought into the field q competitor
sustained by more substantial basis of capital
All that Cheap Telegraphy" says about the enor-
mously exaggerated paper capital of the Western
1t,,o,, - tho """essitv therefrOm arising for cc,,-
pressive charges is true; but it is very much within
the truth. Let the following figures tell their own
story of this most remarkable of corporate bub
Nle-blowing
In 1855 the capital stock of Western Union was
SSs5,7OO. Subsequently, stock was issued for the
following purposes:
l&S-IsG6.
For cash ~ different times. ......... s1672OO On
For bonds and fractions OF stock dividends I46C4O 10
For other oblects -...-...-.....-...... l52O15 %
For stock 17SOI4G 10
For lines purchased. 5,J22OoO 20
Jan. g. ls66.-Total s42Ola7oO 90
Stock for United States Telegraph Co.
aud L. s Pacific Telegraph Co......... $72l63Oo 90
stock for American Telegraph A. o..,oo
For dividends to American
Telegraph CO................ SOOOOOO- n,SS31OO 90
ls69Total capital .O63LOO 20
Ihave reason to know that the weakness of the
Western Union Company aud its exposure to sue
cessfu attack from wel-conducted opposition have
attracted the attention of telegraph capitalists in
Europe. 1t has come within my intimate knowledge
that such parties have caused minute inquiries to be
made in regard to the basis of organization and the
property Of the Atlantic and Pacific Telegraph Com
pany and the prospects of extending its so as
10 establish really effective opposition The
snt of these inquiries shows that the Atlantic and
Pacific Company have $4,000 miles of owned and
leased wire; that its lines connect with the prin
cipal cities of New England follow the great routes
Of trade in New-York connect with the trade centers
nj the lake re gon and thence follow the line of the
Pacific Railroad TO San Francisco, branching of into
Utah and also along the coast line of California,
beside which their Southern branch runs through
New-Jersey. Pennsylvania, Maryland Washington,
Virginia and connects with all the cotton centcrs
of the South. while at Ogdensburg o0nnec
ton is made with the Canada system OF wires. 1t
further appears that under arraD gements already
completed the Atlantic and Pacific is to constitute
the land system of the Direct Cable, thereby estab
fishing cheap telegraphy with Europe. 1t is also
ascertained POSSIBLY here | may be speaking of
matters more or less conidentia that the Company
owns very important patents which, it is estimated,
would enable il TO do as much work its mileage
Of wire as the Western Union can perform under the
aid system with its much greater length of wires.
Id not feel at liberty to beexplct as to tine nature
of these improvements but perhaps it is not saying
TOO much 70 state that they will revoutionize the
art and the economies of telegraphy. These are
matters of detailed information that have gone TO
Furopean capitalists who have idea that there is
great room for a well -conducted company to com
pete with the Western Union. Whether foreign OF
home enterprise shall accomplish this much-desred
result is likely TO be soon determined.
see from the papers that Gen. Thomas l. Eckert'
late General superintendent of the Western Union
Telegraph Company has just been elected President
If the Atlantic and Pacific To those who are aware
Of the importance of Gen. Eckerts services as the
architect Of the Western Union system. this change
will appear 10 be great a misfortune to the
Western Union as il is good fortune to the AT
antic and Pacific. The voluntary resignation OF
tle General, taken in connection with his accept
anee of the Presidency of the younger Company,
carries with il a significant implication; for no one