The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-01-05
THE WAR or THE CABLE CoMpAYIEs
The Latest London scheme to Get Rid Of
Competition.


LONDON, Dec. 1G, 1s76.-There Is an unu-
suai agitation here In financial circles In conse-
quence OF the proposed attempt OF the Globe
Telegraph and Trust Company to force Joint
purse arrangement between the Anglo American
Telegraph Company aud the Direct United
States Cable Company. As this IL matter
which seriously affects the public of the United
States, a few words with regard TO 1t may not
be uninteresting. Mr.. Pender. who Is Chairman
OF the Globe Trust Company, is gentleman
well known In the world of teegraphy not
for his scientific attainments, but for the
extreme dextentv with which he has
financed various cable and telegraph companies,
thereby securing a very large fortune TO him
self but not always satisfactory dividends TO
the shareh oldcrs Of the various companies OF
which he Is q director Associated with MT.
Pender, the names OF Lord william Hay. Sir
James Anderson, julius Beer. Sir Daniel Gooch,
and Mr.. Cyrus W. Field are well known to those
who have taken any interest In teegraphic en-
terurise. az figuring upon the boards OF one or
other of the telegraph or cable companies which
The appearance OF the Direct United States
Cable COMPANY upon the stage having So
tiers of telegraph enterprlse which these
gentlemen have hitherto enjoyed, II IS
at large ara delighted at the prospect
of an Infusion of now blood into
THIS branch OF Industry. Inc impression nhs ldt-
tedy been growing that the DIVIDENDS OF the
comp1nv Of which these gentlemen are direct
urs have not been go irze as tney might nave
been under more judicious and loss Interested
management. The policy of absorbing connect
ing lines has Invariably proved to be more profit
able to the persons promoting the absorption
than to the persons abs Jrbed. This was conspicu-
Ously the case on bOtn occasions when the An
rlo- Americ IA Comuany afrecuonatcly squeezed
the New York aud NewiIuudland Telegraph
Company and the French Company 70 de tn
Ever since that luckiess day the sharehold-
~ nI hAf
aUout bewaiing tue high DIVIDENDS which
they have SACRIFICED, and wnicn Will never
more return, pouring out their sorrows iutO
auy sympathetic ear, and their maledictiOns on
the moment when they listened to the voice oil
the charmer, who certainly, SO fir IA his own
pocket was concerned Gu rmed never so wisely
aud now Mi. Pendtr Is assuming tue IN tntIe
which mas iahen from the shoulders OF his great
colleague, ana end .avoring to WOO the coy ana
Reluctant shareholder to his insiuiuus embraces.
At TINS moment that unhappy individual Is rent
by conflicting emotions. GA tue one hand, he ~
temp cd by the aluring promises of Pcnder; on
the otner.threatened with being held up to pub-
lie ignOminy for gross Oreacn oi faith by nis own
board, who sternly refuse to listen TO the over
lures Of the Globe Company, aud nave APP
pointed a day Of meeting wheI the knights
vi the Globe aud Direct COMPANIES viii
set their lances In rest and tilt Tor the favor
Of the majority OF the -ockholders.
For my own part cannot withhold my sym
patny from the Diiect Company IN the gallant
struggle 1t Is making against this oaud OF
wfeckers, for they are nOt.ing more. SIX
months ago the Globe CompInv did not own
"a snare OF Diect COnpauy's stock. Finding
mat thcir only CnduCe OF raising tue price
of their own stock aud that Of the Anglo
Company was to destroy competition ana put
up rates. they deliberately. anu Of malice afOrr
tnp. gnt, gradually acquired what they now
claim TO he IOntrOllin! interest IN the Direct
Company. knoN1ng perfectly well tnat II con-
tanned q clause Ia Its cuarter prohibiting ANAL
4matiOn, on the fatn Of wnicn IL DOT iied
is Landing rigtts IN Canada anu the United
states, and 10 contracts with the Land
companies In America. lnis clause they
now propose mould b. Repealed, Dut tons
& III only be done Uy the liquidation of Tue COM
pany and It's Ouii sion Ia tIe cuar.er OF a new
company. THIS toufse OF procedure can only he
The honorable engagements OF tne comp ny
were. tnev enter II Tor t1e purpose Of tOrci ~ II
To break tbose eng teements, to tue great injury
OF the Original siiirsholuers. to the great dis
e edit OF the company its,lt aud all connected
with II. and to tue great damage OF all those
tons.
l trust that on your side Of the Atlantic you
will not allow 50 glazing an attempt to force
upOn the company the violation OF It's
pledges with the public To pass uDcOndemned.
\ GU are even more dependent upon cable
am l trust YOU VIII resent this effort on Tue
part OF financial KING wuO u We nituertO
chiefly DISTINGUISHED themselves 10y Ir-ying
upon tue pubc, TO sacridce the community u
New York to their own financial designs. am
happy to say the subject Is being wed ventilated
here III all ITS bearings, ANA from indications
when have perceived. TANK the controversy
may De productive OF good. AS throwing some
lis"t uuon the mOdus Operdndi OF "A Knot OF up-
orators who nave acc tired "a very cOusid faOle
social and nlncial position on tue strength Of
having been beneiactofs to tue ~orIj at iaig
but whjse enterprise may be foLnd TO have
been directed IN cuanuels less disinteresteI
tnan those Tor wniCn tue world has gwen them