Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1877-07-25
Atlantic Cable COMPANIES,

At meeting of the Direct United
States Company, held on Tuesday, it was
decided to Iiquidate the company, and
to give to- the shareholders shares of a
new company, that is, to enter into a
working agreement with the Anglo
Company Of so peculiar character that
individual shareholders, unconnected
with Mr. Pender's syndicate, naturally
protested against it. Admitting that it
was wise to enter into any association
with company which is the outcome
of years of financing, and which only
exists by the expensive plan of buying
out all competition, the agreement is
unfair toward the Direct Company, as
its terms are entirely in favor of the
Anglo Company. This is not surprising,
as Mr.. Fender, the new chairman of the
company, who was elected by an associ-
alton of fnanciers, is actually the chair
man of trust, whose gain is the loss of
the Direct Company To discuss at any
length an agreement made under such
auspices would be waste of time. By
one clause, if the Anglo Company has
for more than one year only one short
cable between Newfoundland and Ire
| land in working order, and the Direct
Company has a cable between Ireland
and the United States in working order,
the former would receive IS per cent,
and the latter 35 per cent of the gross
receipts. By another clause, as long as
the Anglo Company has two short ca
bles between Newfoundland and Ireland,
and the Direct Company has its one
cable between Ireland and the United
States (which is about equivalent to the
two Newfoundland cabIes), the latter
only receives % per cent Of the gross
tratfics, and actually has to pay over to
the Anglo Company 10000 per annum
Mr.. Fender was glad to be able to say
that two members of the old board, who
have consented to retain their seats
upon the new board, were in favor of
this arrangement. One of these gentle
men is tobacconist in Belgium, and
the other a German, engaged, [ believe,
in provision business connected with
South America. Both of them received
secret commission for connecting
themselves with the company, and this
commission does not appear on the
original prospectus 1t is not astonish-
ing, therefore, that they should advocate
any scheme of liquidation and recon
struction that would preclude the posi-
bility Of their being invited to return
these commissions. The Times has very
rightly characterized the proceedings of
Mr.. Fender and his gang by the express
sive word, "wrecking" Those share
holders who are wise will take advantage
of Section 100 of the Companies act of
1862, and within seven days claim cash
for these shares.
Among other facts that were elected
at the meeting was that the statement
of Mr.. Fender, which appeared in the
Times, that in reality the earnings OF
the Direct Company never exceeded 265
per cent" was absolutely untrue, and
simply calculated to injure the company
in it's negotiation with the Anglo Com
pany. Mr.. Fender further stated that
the Globe Trust held now 10000 shares
of the Direct Company, and therefore
the trick of exchanging shares of the
Direct Company against those of the
Trust, at the artificial price of Stock
Exchange quotation Of the price carried
by the operation of syndicate, is in
full swing, to the advantage Of said syndi-
cate, and the disadvantage Of said Trust
Mr.. Fender, indeed, may be said to have
solved the difficulty Of serving two mas
tiers, by serving number one and getting
paid handsomely in the shape Of fees
for this most intelligent and practical
proceeding. London Truth. a ?