The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-22
THE TELEGRAPH POOL.
Western Union Left Master
Of the Field.
FUTURE EARNINGS TO BE SHARED.
The Atlantic and Pacific Company
Virtually Sold Out

Seldom do BUSINESS negotiations involve sreh co..
ossal financial ihterests those just tsrmnated be-
tween the two great telegraph companies The con-
ference on Monday night between Messrs. Vanderbilt.
Morgan aud scbel on the part Of the Western Union
ana Messrs Dillon, Sage add sampsqa for the Atlantic
and Pacific resulted virtually 10 the transfer Of the
latter company to tho former When II was announced
Yesterday morning that q nna contract had been
nnado spsculatIon rife upoA - terms and effects
upon the holders of stock. In the busy precinct Of
Wall street every man stopped 10 exchange word
with his acquantances on the subject OF tho great
agreement but not until late In tho afternoon was
tho situation promulgated and understood. Many
ante patod rise In the prices Of both stocks, but
were disappointed to discover that after fair opcn
ing in the morning the later quotations were lower
than those of Monday. 1t was rumorcd that the
application OF Atlantic and Pacific shareholders tor
an injunction produced this decline The larger
operators who were most Interested the negotia-
tons appeared well pleased with the arrangements
made and gave little heed to tho temporary tumble IN
prices Mr.. Keons and Major Ssover we're reported
be at Long Branch. Jay Gould was observed in the
street in the afternoon In company with Mr. Frank
Work. Tho contract itself not to be obtained,
those In control saying that us details not OF IN
terest to the public The gist Of the now order OF
things may be found however, in the subjoincd inter-
Wow with President Orion.
STATEMENT PRESIDENT ORION
The manager OF the Western Union was found, like
all others concerned, compliment and SATISFIED
mood but ready converse upon affairs SO far and
farther. He commenced by saying that for reasons
given above, tho contract would NOT DO published
"What are the main terms aarced upon?"
.'rhat the earnings Of the road to be pooled, ID
the proportion OF one to seven-that Is the Western
9Uni6uto' fetatn SIX psr cent and the Atlantic aud
pacific 12ss per cent Of tho joint earnings"
~ ssIs any change made In the managementss"
siNot1or Che present at least The motive will
actuate tho companies and II any differences o.
cur they are to DO settled BY arbitration II Is In
tended on the part both to reduoo expenses and n
crease profits"
s.Wsll rates for tslcsrAphng be iucrcaseda"
s.Not worry much, and in some directions not at all.
The number Of Offices win 10 reduced, bat the
vcnience Of the public will not be sniringed In many
places wherc there have been two rival Offices but one
us me pooling arrangement based on any transfer
H. 1000 shsres) transerred 70 secure that compa-
ny's control 70 The Western Union Tho shares were
gladly ssv. disposed stock Al Tue price ABOUT
halt OF the amount paid Western Union stock a.
u, though we would rather have gwen all cash."
''Was this conclusion VI affairs expected ~
IL did not know until eleven O'Clock Monday night
what would be agreed upon OF course IL has been
long under discussion. The result secures control Ia
The Western Union, though Two distinctive manage
ments Will be continued. presume the Atlantic and
Pacific Company Will 60 on TO complete any new ex-
iens,ons they may have had In view the West
ern Union has not q line already established"
.'Thcn It only remains for the Two companies to
1.-The committee OF Monday aignt appointed with
power 20 decide Arosay . meeting Of our Exoeutys
ratincd. The mccag was TO havo Iakon place regu.
larry tomorrow, but was called today we're sure
"And is the new basis likely 10 be permanently"
Tns consrse. Is for twenty years and y WIN not b.
,alned." concluded President Orion, with quiet
smile
Other gentlemen wero called upon during tho AFTER.
noon by the writcr including Mr.. Russell Sage Mr.
s"Scr was NO, dscnss "a. suOiec, Of The compro
mise. He expressed hts satisfaction with the
proceedings and is reported to have said that he ex.
peoted u moderate ADVANCE IN the rates 10 Western
cities no thought the present rates werc too owi
but OF these points did think tho tarid
Ex-Governor Morgan, chairman of The committee,
also declined to talk about the agreement H6 thought
tho public beyond knowing that the
two companies had agreed 10 pool their earnings.
At the oics OF Mr.. sydnsy DILLON, President OF the
Union Pacific Railroad Inc new division OF earnings
rumors OF the street. Il was Thought the agreement
would be permanent and The results provo bensnca
| The stockholders OF both corporations
Mr.. William II. Vanderbilt had copy Of the agree
ment 10 hts possession. but would not impars It's de-
MI Chandler Treasurer OF the Atlantic aud Pacific
said no knew little about the stock operations, but hi
did know that their company could about $500 0M
by fair and reduce operating expenses
about 100000 Under tho arrangement entered into
tho stock holders of tho Atlantic and Pacific would bs
| amply protected, and y consequence OF tho ANAL
| gsmation would be dividend ON tho earnings
The meeting OF the Executive Committee oil the
Western Union spoken OF above by Mr.. Orion, took
place al haiipsst ten In the morning, and adjourned
at twenty minutes past elcvon O'Clock Among those
present wcre:--Mcssrs. William Orton Norvin Green,
Edwin d. Morgan, Augustus Scheh, Cornelius Wander
| bt and Frank Work.
L1l GgG.i IGj rHE PROSPECTIVE INSULTS
h " js given that the division OF earnings at the
ratio OF 10 seven Was determined by the compara
tive earnings OF the two compares for the past ID
It ia said tho Atlantic and Pacific members OF toe
committee were near taking cne-sixih OF The gross
eArnings and at another timc one.nnth Was tho
point of q skirmlsh. During the past
six uuonths H. Is said the TWO companies
earned SO 500, 000 and 1t Is claimed the Western
Union Will be abc TO pay At The rate Of eight to ten
dividend and The Atlantic and Pacnc four per
cent per anpum. Expenses which nave heretofore
ranged from sixty to savepty per cont now thought
cent Of tho receipts The Western Union has had liza
Offices In this CITY and the Atlantic and Pncic forty
As 10 the matter oil rntcs II appears 10 be generally
conceded that the highest tarh viii not always Afford
tho most profit. With such an experience IN The past.
II Is not thought that any considerable advance Ia
presSnt Will be adopted. Cheap telegraphy APP
pears consistent with the general view, and
many officers Of tho Two companies have expressed
themselves in It's favor.
A CANDIDATE FOR BAPTISM.