The New York herald., 1877-02-08
TRANSATLANTIC TELEGRAPH MONOPOLY.

To EDITOR OF THE HERALD
The imminent probability Of the absorption Of tho
United States Direct Cable Company by tho monopo-
lists OF the Anglo-A American Company at London.
aided by It's shrewd and active coadjutor. the pres
dent Of the Western Union Company here, has nat
urally aroused a great deal OF opposition, both In
London and in this and other commercial cities on
this side OF the Atlantic.
The HERALD, as, doubtless, tho largest individual
patron Of cables in this any other country,
and also as in pre-eminent degree representative
journal OF this great city, has taken up this subject and
discussed 1t with great carnestncss in opposition to
the proposed amagamation or the two present cable
companies and giving the monoposts timely notice
that should they succeed in their efforts to consolidate
the cablo interests immediate and energetic efforts,
which can hardly fail Of ultimate success, will be
made to secure at least two new cables between Eu-
ropo and tho United States. which would be far more
formidable opponents of the AngIo-Amcrcan Com
pany than tho present Direct Cable Company Is
There point which all tho writers upon tho
aud us 1t appears TO me 20 be a vital one beg TO
point out that future writer's upon the subject
may take IN the whole question.
Ihero are probably tow tclegraphers even who are
aware OF The fact that very large majority think
about seven tcnths-of tho whole transatlantic tcle-
graph business from this side originates outside Of
this city and state II needs argument, therefore,
that the Of any new cable enterprise
must depend very largely upon tho ability OF It's pro-
ieclors proper connections with land lines
throughout this country, independent OF those lines
which owned or controlled by the Anglo-American
Cable company and its comonopoliss
A year before the United States Direct Cable Com
pauy proceeded to suomerge their cable an accom-
plished agent sent TO this country TO secure
liable inland connections and careful contracts look
ing end tered into between the Atlantic
companies which gavo to the cable company direct
communication with all the prominent cities OF the
Union.
Almost before the ink which recorded the signatures
TO these contracts was dry Of the high contract
ing parties took measures to have II made known TO
the Western Cnion Company, the right bower OF the
London mouopo,sts that their honor as wcll as their
signatures merchantablo commodities, and there
upon active negotiations were entered upon between
the executive officers OF the Southern and Atlantic
Company and the president OF the western Union
Company, which speedily eliminated In dcpriving the
Direct Cable Company OF It's facilities for forwarding
to receiving business from tho South, excepting
through the OF land lines III tho interest o the
Western Union Company tho active c0nfederates OF
the London cable monopoists.
II can readily DO understood how serious an incon-
venience aud loss tins has been to the Direct Caoe
Company when II Is considered how largo proportion
OF the cable business is connected with the cotton
interests of Southern cites, in when, since the
war; the cotton business has been yearly more and
more contracted, and making the control OF direct
land line connections through the South matter Of
vital Importance TO any Transatlantic cable COMPANY
This question OF direct inland telegraph connections
will force itself upon any new cable company sooner
later, as it can DC easily proved that Atlantic
cable possibly be maintained IN oppos ton to the
AngloAmerican and Western Union monopollsts with
such inland telegraph connections; and it would
tent OF least 900 5000 miles Of twowirc line,
and costing about ST. 100000 $4,000, 900 for lines
and equipments before proceeding 10 expeud
Sd 900 $s 900 600 which would be required
even good Atlantic cable.
The organizers .of the Southern aud Atlantic Tel
egraph Company forcsaw the value and Importance of
their enterprise necessary factor In the main
tenanco OF healthy system OF tcIcgraphic competition
between New Orleans and Liverpool, and guarded,
far ns possible, against the absorption
OF their lines by any competitor. With any
reasonable degree of capacity IN its manage
mcnt the Southern and Atlantic Com pany could easily
have held the balance Of power In such u competing
system, and would as designed. have formed nucleus
Tor hca ithy. honest and legitimate system OF tclc-
graphing which would have Afforded facilitics to the
public such as they have enjoyed and ut rates
which would have largely superseded the necessity Tor
using the Post Office tor business communications
1t is difficult TO conceive Of more striking instance
OF mlsmanagcment, greed and betrayal OF honorable
the part OF IT'S responsible managers than the
history OF this corporation affords, and with
your permission will, In future communication. lay
before the dcludcd and deirauded shareholders some
OF the peridious Of Its executive managers, u
whom alone Is the recent transfer OF the line,
through trickcry aud fraud to the Western Union
Company and thus deprived the Direct Cable Company
ofa very large percentage of its legitimate transatlan
tic cable business. ORIGINAL STOCKHOLDERS.