The New York herald., 1877-03-04
THE CABLE WAR.
Telegraphing to London Almost as
Cheap as to Harlem.
BATTLING THE AMALGAMATIOSIsrS.
Mr.. Oiphant. Of the Direct Company. Ex-
plains the Situation.

The cable war IS in active progress The two
eiants--the Angio-Amcrican and the Drcct-have
Rrappled aud the cry both their managers seems to
be- .War 10 the knfe" Who will 10 victoriousy Is
the question. There is doubt that tho public ut
large sympathzcs with the firm stand which the Direct
Company has taken against the efforts OF the Anglo
Company to re establish cable monopoly They have
not forgotten that the destruction OF that monopoly by
the Direct effected Immediate reduction from 81 10
seventy 1.-Two cents per word Tho Anglo Company has
now order to discourage shareholders In the Direct
Company from holding out against the amalgamation
project reduced its rates 10 twenty-five cents word
IN gold and the places OF origin and destination aud
the registered name ofhc addresses are caoed Tree Oh
charge. Both companies have been working under
these new rates March l. The public has, there
FORE thus far greatly gained by tho cable war; How
marvelously cheap these rates are IN comparison wuh
those prevailing only lew years ago. whcn the cable
messages S. gold per word, and ut the rst open
ing oil cable unication when no message could be
sent for less than $780, gold.
AS tho question oil competition in cabling is thus
shown 10 DO OF high Importance TO the public the
writer called upon Mr.. Ohphant, manager OF the
Direct Company, to obtain statement from him re-
garding the situation.
WILL AMALGAxAriox DEFEATED?
"You have suffered q legal defeat in the London
courts have you noty' Mr. O!iphant was asked.
..The effect OF tho decision OF the Master ot tho
Rolls" replied Mr.. ophant "wiIi be In no way to
lead directly to amalsamalion. Tho point on which
the vote taken--and which Is nOw anrnntivey
decided by the Master OF the RoIlswas only whether
. committee OF tho shareholders OF the Dlrcct
Company should be appointed consider " and
how the present antagonism between the two compa-
n be nuL AN end lO
course, such committee must 10 appointed, but
that is ALL"
..And do you think the committee can nnd auy such
wpys"
III the committee appointed they will simply End
that there Is no such way" returned MI Olphant
vigorously .'except analgamaton aud shat Is tnpos-
sbic under the law. except by liquidation Of tho
company THIS requires the assent ot threefourhs OF
nil the shareholders, aud those desiring amaigama
tion have under the COURTS favorable ruling
majority OF only 40 900 or C5 900 shares you
that they still long way from the eourths
required by the law. There VIII be a meeting Of the
shareholders on Monday, wucn the decision viii be
and the committees probably appointed"
''And VIII the dIrec crs OF The company counenancc
any proceeding looking toward u llqudation!"
.'Tnat just, another stumbling block which tho
pmulga Will pr0tabiy have encounter. The
directors all opposed amagaInati0n aud them
may possibly refuse to meet the committee required
Ly tic resolution on the ground that they viii do
nothing Toward an evasion the law, whose purpose
II clearly to prevent amaeatnation. And II they
not positively refuse they may refer the point TO
court whether Is rgnt for them, under
the circumstances. to meet tlsr comlnittcc Tho ANAL
gulnatonisis Viii douu now. also make an effort 10
their scheme -
CHEAP cADLlSo NOR VERY PROFITABLE.
s'And what IS the real object OF the reduction of
cable tolls by Inc Anglo Conpanyy"
..Uny 10 irghten our shareholders into conscntng
TO arrangement By showing them that they cannot
get any divideuus II The two companies light each
other"
''can you really pay dividends under the present
I'VE may possibly pay small dividend CAPT
tal of IL 400 VO0 but the Anglo cannot on It's capital
oil - 00U, OO0 while continue do th {
lhe whole caule BUSINESS We than live = ID
they cannoI Ol course II is needless II conceal
fact that neither company be very pronta-
bile when you cable to London three
words Tor about the same amount which II
would cost 10 telegraph the same number
words Jersey City. To send three words 10 Har
lem would twonty conts and TO send three
10 London only costs twenty-seven cents Hundreds
D people who telegraph 10 cipher aud have their own
Keys can now cable twenty cents Ono
plcr word the body oI tho message often repro
and when the address IS regsered so that instead Of
s'rhoDas Smith & Co., NO AZ Threadnccdle street,
LONDON, we s,mpy telegraph Manfred. LONDON" or
'Byron, London" or cable any other fictitious name
iroe OF charge, you see that people can keep up
the most important business communication per
cable lor the unDrcceuentculy low sum oI twenty
seven cents. -
Does in proportion to the
ductou ui the tolisy"
ave are perfectly besegcd with rush OF messages,
md beg state justice TO that II delays
occurred within the last day Or two the pubiIc
Shouli them owing to this unprecedented rush.
also owing the storm which interrupted
our land lines to Rye Beach, and that these delays will
not happen again tnat cable Is again perfectly
clear II Is obvious that these last long,
the shareholders Will exert pressure upon both com
panes to end a ruinous warfare. "
Nv hat do you consider "A far living ratcY'
s'About nny cents word tor "A company like ours,
which has been properly knanced ana whose stock
has not been watercd IKE tnat o the Anglo Company"
''iou believe then. that liquidation cannot bo uc-
sompiishcd tor some Time at all cvcntss'
''Ccrtainy not IL will be fought ut every stage Of
proceedings the cours, and IL as doubtful Eng
hsh court VIII be found willing 10 iiqudaic company
Aho eau show that they coulu have paid dividends or
nine per cent II they had been intcrier,d wh.''
''But II you can pay lar divsdcnds nj hty cents per
word why did you charge seven'y'iivc cenisY"
'srhat temporary measure OF finalcIal rclicf
bccessitatcd by the enormous outlay caused by four
Successive breakagcs OF our cable
CONNECTIONS or rnE DIRECT COMPANY.
''ls true that an absorption OF the Atlantic and
Pacinc BY the Western Union would wholly deprive
you OF your inland conncctionsf"
al can say tins on this point:-lt s, OF course OF
the highest Importance to US that the piblic shall give
Its moral support to the Atlantic aud Pachc Tor II tree
trade inland ielegraphy ceascs Tree trade cabling
must also cease. such an absorption | would regard
ns pubic disaster, but am happy TO say that t,e
position OF the Atlantic and Pacnc believe be now
stronger than ever Money has been subscribed
the territory IN the Southern States oi winch
partially deprived by tue aDsoi ptun OF the
Southern Atlantic Company IN The Western Union"
This brought The formal interview to "a close; hut
Mr. Ui,phani before parting IRON the writer made a
1naI correction oil the cable dispatches IN yesterday
mornings journals Mr. Ophant SAID that IN these de-
vpatccs the Master o The Rolls was quoted having
sustained the right Of shareholders 10 s'or
Amaig gauation Of tho Two companies rhi, could not
possibly be correct as the question o voting Tor ANAL
gam alton never came up, aud Il was SIMPLY an ISSUE
hs 10 whether "A shareholder could vote on more than
100 shares by nominees. THIS question had. been
hirmatveiy decided by the Master OF Tue Rolls, but
nothing had yet been said ABOUT amalgamato, aud
Mr. Pendcr, the Chairman OF the Globc, st pre-
tends deny that tue present movement has Tor ITS
Dbjcct the destruction OF the Independence OF the
Direct Company
THE CII;CAGn SITIlTVAN TRIAL