The New York herald., 1876-11-30
A BIG BEAR FIGHT.

A STRUGGLE OVER WESTERN UNION n wAIa
STREET.-THE BULLS AND BEARS GO INTO
THE CIRCULAR BUsrSEss--wHAT PRESIDENT
onToY AND OTHERS THINK OF THE FUss-
SHORT NAN WHO TOO SHORT FOR MS
OWN COMFORT.
About week ago the air OF Wall stree: thick
with rumors concerning q disclosure that was TO bs
made relative TO the Western Union Telegraph Com.
panys business. which, It claimed, would knoct
tho stock OF tho company down among the sixea
Large holders OF the stock advised TO soil "a
order TO avoid the impending disaster and many per.
sons who had only lev shares did sell oui
on the strength OF the threatened 'rumblc.n II
was freely gwen out on the street that lin iev
days. The daily newspapers would MAKE an attack
upon tho company, al least that something OF grave
importance concerning It would bc published. On
Monday a circular scattered right aud lett among
tho bulls and BEARS IN which was given tho answer
a request OF three gentlemen who had written TO
fourth party ascertain the 'condition OF the com.
pany, IT'S business and tho probable cost OF duplicat-
ing It's existing lines" Tho request was made be-
cause they asserted they had learned that bill 10
introduced N Congress authorizing the govern.
10 takc the postal telegraph and run u
on its own account The answer given to
this request contained Tho iollowing:-"li
the government, in tho exercise OF its
very they would pay than SIS 600 ooo
they could probably build lines OF their
that sum- THIS circular not only scattered
all the street, hut II was published as an adver-
iisement on Tuesday in the daily papers OF course
il attracted considerable attention, and speculation
riie among those who not familiar with tho
ways OF the bulls aud bears what the real OBJ
Jcct OF the circular.
Close on its heels came another circular pokng nuH
u.
to buy it s'bccausc Il is widely distributed" and "h
highly esteemed by Congress-" aud at tho samc time
advising holders OF Western Urion to sell ''because
II earns over eight per cent per annum
and pays only lusf..e,I'y d'viarnas Of QUO % ash
another reason -: Because there is short rtcrcs:
IN tho market" rnen came ano her circular our.
lcsquins The nrst one signed by tne three anx Gus
inquirers 70 the condon OF Western Union, sisncd
follows Pagan the Jew "Knight OF the Gloomy
Mug" prince George OF LacSawanna;'' "Don Caross
Is ANYBODY VERY 'ssuoar?'
IL became evident yesterday that this circular bust.
meant war between thc bulls and the bears. AID
IN order ascertain what y rra'iy indicated HERALD
reporter made tour oi 1.-The street.
ihe general impression among tho brokers
found 10 be mat the parties who signed the original
circular OF inquiry were not much interested In u
as another whose name had not appear ed--n nmey,
Jay Gould IL was freely asserted ou all sides that
Gould 4 short OF western Union II, 900 shares aud
that he got up original tho hope of
knocking down the stock 10 nsure that would cn1blo
HIM 10 cover his shorts" II 'hls DO So tho success
the enterprise did not quite up 10 hs cxpecta.
tons. Tor when the circular was hrst issued ON the
street lne stock was quoted az = ! aud y rose
- Tuesday and quoted as high as 124s yes
tcrday In trying 10 get a. the bottom faces
Of The matter Tho reporter learned from
cular issued they had been conndentiay advised
10 sell tho Western Union they held. Ono gentleman
that friend oil his had been called upon AZ his
house sunday night by a gentleman, who told him
us TREND 10 ''sc o.t, because something was going
to appear the papers that would send tho stock
down several cents the dollar. Another acknowl.
edged that he had sold out little having got somc-
what Scared
Tho reporter called during thc day, upon Mr. Will.
lam Orton. The President o the Western Union Con-
pany asked hi.n whul all the circular fuss meant
.Wcll,n said he, ~ hayo not tho honor Of the ac.
quaipiaucc o the gentlemen whose names are signed
10 that circular In winch Mr. Barrct figures; bnt
whoever Mr.. Barret Is who prctcnds a. give much
valuable Information concerning tho Western Union
Company's affairs Will say that hts answer 10 tho re-
uucsL iuade hun very good evidence that he
does know anything about s condition or its bust,
ness. He takes table oi lsurcs published IN somo
paper nearly years ago and bases ciusous
on that. There nothing hidden In tho business VI
tho company In the bins be uund All doc
un,cnts ana reports thnt show everything concrrn-
ing H. -
"Wcll suppose That whcr some people get short
OF STOCK they do their best hot losers
und sometimes some people arc very particular az
to the means they order to attain that end
boen in Wan street over twcc IN SIX months
but come IN contact dairy with gentlemen VINO arc
prct,y well posted about what IS being done down
\ ihcrc | have heard that u is the impression
ON the street that tho Barret circular WAS
are short OF Western Union. Eavc heard she pamo
OF n certain party mentioned In connection with tho
circular who said to he largely short OF the stock,
but know nothing ol the tact OF my own know ledge
evident 10 my mind that II was gotten TO bear
the ock. OF the real condition OF the company. as
said before Mr. Barrct seems TO be wonderfully igno
rant. HIS TO the three gentlemen who sought
| Information IRON him proves his ignorance, II Z
| proves nothing else OF the conpany's AFFAIRS The
fact IS the company Is doing a large ami profitable
business is able pay dividends out the mtnej
1t earns and is accumulalins surplus besides"
WHAT Ex-GoyERNoR MORGAN SAYS
! Ex.Govcrnor +. d. Morgan member Of the ex.
ecutivc committee OF The company. Tho reporter
called upon HIM at his Office in Exchange place.
"Why, sad he, referring to The Barrct circular,
'sAli that is mcrcst trash anu you regard
everything like that which may be published. IL was
made W Tor stocK-lo5bins purposes. Nothing else.
but you see the result Not quite what those who
were short expcced-thc stock has gone up since it
was Issued Way, The fellows who are short OF the
stock lay awake nights thinking all sorts Of
plans by which they can cover ana get out with
whole skin. II wanted TO be selfish Id ike 10
like 10 buy" Hero the cx-GovcrnoIs smile was fuii
OF meaning sralk. said he, of the buy
ing he company out Tor S5,0oo0oo The government
ISN'T going 10 BUY at alt II dos not wnnt IT, and II u
did would have to lake the stock at for that's
where ought TO be, taking II at tho real value 10
represents"
4 gentleman present here remarked that II tho
stock was at l59 January, when no would have
money to spare, ne would ike to invest some moaey
.In my opinion II is likely" said Mr..Morsan,
s'to be at 10 then than 100.
Another member OF tue executive committee, the
learned had openly stated that Inc
OF tho company Tor the prsecnt month were the larg
est Tor any month in any previous ycar-that Tor
tho first week the increase over tho corresponding
week OF last year was 500 600; Tor the second week,
SO, 000 and the third week. $l3, 3,00U This director
had stated Also tho reporter oarncd that Jay Gould
was without tho behnd the sccEcs" In the
circular business ana that hc had rcsorcd TO u with
the view breaking down tho stock as Lo shore
from 10, 900 10 7o0oo shares
RIISINESS TROUBLES