The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-22
THE TELEG RdPH POOLING.
An Application to be Made to the Courts In
Behalf OF stock hoIdcrs.

]
| Behair OF Stockholders.
| The negotiations between the committees
| Of the Western Union and the Atlantic and Pa
! cinc ACKNOWLEDGEMENTS were closed early yes
to-day morning, and resulted 40 far as the two
companies are concerned. In an amicablc ar
rangcmcnt. Mr.. William orion. President OF
the Western Union. said. in substance, rs fol-
| lows:
| " An arrangement was made between the two
| companies 81 take effect this morning BY it
| the gross receipts Of both companies are to Ice
| pooled. and monthly settlements are to be made.
| The Western Union II 10 have s7is per cent. of
the gross receipts. and tho Atlantic and Pacific
il to nave l2'a per cent. There il to Ice a rcv-
sion Of telegraph rates. and r moderate increase
will be agreed upon 10y both companies II Is
not intended to make n sudden or exorbtant
increase. and II is sufficient to say that neither
company will go back TO the rates that wcs' cur
rent before the contest OF the two companies be-
gan. This settlement was in every way desira-
able. II gives both companies n chance 10 re-
trench and at the same time increase their in
come 10y the advance OF rates. Each company
now has motive for letting the other get all il
can. The prospects Tor the stockholders OF the
Western Union for increased dividends are
good and so far AZ the Atlantic and Pacific is
concerned, they are no worse. for they have
never paid dividend anyhow. The increase
IN rates Will be a steady one and not oppressive
a. cumulative evidence shows that there il a
certain revenue rate below what 1t was ex-
In answer to q question as TO what guarantee
there wns that the contract between the two
companies would be carried out in good faith.
and what truth there was in the report that the
western Union was negotiating for II controll-
ing influence IN the direction OF the Atlantic
and Pacific Company, Mr. Orion smilingly said:
Well, promises have been known To be-
hrok.n. az we have seen recently can say
large block Of Atlantic and Pacific Telegraph
stock and that the negotiation may be consuin-
The capital stock Of the Atlantic and Pacific
Telegraph Company is 10000 shares. II was
learned that the Western Union had purchased
a pric. in the negh6orhood Of ;225 share, For
sSsrss INC n Would se S SSsq
stood that VIM. II. Vanderbilt was the neeotia-
tor who brought affairs to n successful issue
These shares are thought 10 have been bought
from Russell Sage and James Il. Keene. Mr.
orion said both companies would run along in
dependently and do business separately, but
with majority Of the stock OF the Atlantic and
Pacific controlled by the Western Union IL is
believed there will be a practical amalgamation
al an early date.
Mr.. Chandler. Secretary OF the Atlantic and
Pacific Company. said that although there might
be- difference Of opinion rs 10 the equitable
adjustment in the pooling of the receipts. il was
yet considered fair. The stock OF both com
panies would necessarily be made more valu-
able M the rctrenchmcnt 81 expenses and
advance OF rates would augment receipts
a nSfA Esc. Says nS osa 'S M o g6S
terms Of late. and there exists much curiosity
g know how Gen. Exert is TO be disposed Of.
Mr.. Chandler said that he thought all differ
ences had been harmonized. but that i the COM
pany could get along without Gcn. Exert the
latter could get along without the company:
Mr. Chandler knew nothing Of the purchase Of
q controlling Influence in the Atlantic and
Pacific by the Western Union, and said that. so
FAR ms he knew. the combination WIS a simple
business transaction. in which the party that
should suffer from broken faith has It's remedy
In law.
There were sales in tho open market Of $50
shares OF Atlantic and Pacific stock opening AT
20 declining to 49,. and closing at 10. West
ern Union opened at 81. advanced to s2a. fell
OF to 79i., and closed at 79A The course Of
these stncks showed but little faith or interest
were concerned. 1t wis evident that some one
inside had been unloading heavily. A leading
banker said:
Things in the telegraphic line are getting
mixed, but II IL evident that Gould's dog In the
light Il again on top. and has more hair on than
lcct for which he has been struggling Tor two
years. which was to get into the direction Of the
Western Union. Orton and others in the direc-
ton have always been his friends. and after his
late brilliant coup they will scarcely dare 20
back on him; for, though'he has apparently
Pacific. he may have other anchors to protect
or revenge himself This whole thing has
drama, begun TWO years ago and concluded. 40
far HI the first two acts are concerned. in u de-
cided triumph for the lead ng actor, To come
down e. a year ago In October Gould WIS long
OF 10000 shares Of Western Union. just
before the election he borrowed $1,000
more, and put tine whole in his name
with the intention OF getting voice
in the direction. General sentiment every
whore was AGAINST it. both among the stock
holders and outside. and his ambition WIS do
frated. How he sold out his long stock and put
out an Immense short line is well known. also
pool, and how, by means of Atlantic and Pacific
he turned the s.rews on Western Union and
sent II down TO %. Then he adrOitly turned
bull again sent Western Union up to the pres
ent price, and at the same TIM disposed II that
squeea"d lemon, Atlantic and pac nc, to those
1islnl'rrsted phanthropsts. Russ" Sage and
will paddle out OF his long stock in Western
Union and put out short line. and when he
does you can bet there will be- anothcrteiograph
war. Gould Is the best waiter you ever saw
and has plenty Of patience, which. with u little
cash Will always make money in Wall street.
Persons investing in Western Union at these
prices will do well 10 closely scrutlnil, the ma
Atlantic and Pacific stock. Ia like 10 know
how Enkert will come out in this thing. lie
virtually upset Gouds apple cart your
ago, ana don't thlnk he's very friendly With
Henry n. Smith. after witnessing the closing
OF the negotiations between the two committees.
early took glass Of milk from passing milk
man, short nap, breakfast. and the 3 r. NJ.
train for Saratoga where he will patiently wait
for the advance OF Western Union to par.
=. Russell Sage was uncommunicatiye. Even
the . put and call " and strqddlc and spread
dealers waved their greenbacks at him in vain.
1t WIS ascertaned. last evening. that the ru-
mors concerning the breaking up of the telc-
graph pooling arrangement 10y the Atlantic and
out" nave substantial foundation. II il I'M
dcrstood that Mr.. W. j. Syms vice. Prcs-
dent OF the Atlantic and Pacific Company.
denounces the pooling scheme as II stock
lobhing operation. "conduoted.' he says, " for
selfish ana hnso purposes. and opposed in
every way to the public good. Mr. Syms says
that he intends to consult his attorney with a
view Of breaking up the scheme. lie demons
!
stockholders Of the Atlantic and Pacific OF their
Just rights and privileges by utterly destroying
the value of their stock
Mr.. Syms will. in conjunction with other stock
holders, make an immediate application 10 the
courts 20 rcsrQ II the officers Of both companies
from the further execution or enforcement If
the pooling contract signed ON Monday night
and ratlic4 yesterday.