The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1877-08-22
THE TELEGRAPH COMPROMISE,
A Contract for Twenty Years
Each Company to be Worked In.
dependentiy but HarmOniOusly,
and Low Rates to Rule.

Each Company to be Worked In-
dependentiy but HarmOniOusly,
and Low Rates to Rule.
National Associated Press to the Star:
NEW YORK, Aug. 22.-Atter years OF
bitter rivalry and innumerable and cost.
ly litigations the differences between
the W. U. and A. & z. Telegraph Com.
panies have been amicably adjus ted, and
henceforth these corporations will op.
crate on a better understanding, divid.
ing their earnings according to the CON-
pact entered into at the meeting of the
Joint Committee at the Windsor Hotel
last evening. The terms of the contract
provides that the earnings are to be
pooled, and that the W. U. is to receive
as its snare S7H per cent. and the A. &
z. 12H per cent.
The two companies are to DO CON-
Quoted as separate corporations and
carry out all previous contracts, ard to
transact business as usual, SUBJECT to
certain restrictions and rul les OF govern
ment, hereafter to be agreed upon.
New rates have not been decided upon
at present, and the schedule OF both
panies will be continued until fur
Their arrangements are made. Eacn
companyIs pledged to maintain Its lines
and offices and do all the business it
can, having a common interest in swell
ing the receipts, and neither company
having any interest in reducing the ex-
penses OF the other company.
The Executive Committee of both
companies held meetings. yesterday at.
ternoon and were Motif ID of the com.
pact entered into on Monday mig ht
President Orion stated yesterday alter
noon that the pooling arrangement en-
tered into by the TWO companies is to
last twenty years. The present con.
tracts with the press are not to be inter
fered with by either company. The
rates to the public are to be somew hat
advanced ana to be uniform. 1t is thought
the present arrangement will enable the
Western Union Company to pay eight
per cent. and the Atlantic & Pacific
Company four per cent. dividends.
Mr. Chandler, of the Atlantic & Pacific
Company, states that the arrangement,
which was consummated Monday night,
is in actual Iorce To-Day, and that the
companies are working under the coll
ditions agreed upon. There was an er-
roneous impression sought to be created
that the Atlantic & Pacific was sold out
or bought up in some way, but that was
not tue case. Under the arrangements
entered into the Stockholders OF the At
lantic & Pacific were amply protected,
and consequence OF the am algamation
would be u u! Yidend on the earnings.
Vice President Green, OF Jne Western
Union, said the compromise wou.d uu-
doubtedly prove beneficial to both CON-
panies. He thought that a Slight and
conservative increase in the tarItt would
follow in places far apart. The compe.
titiOn had demonstrated the tact Lnat
the largest revenue is not derived from
the highest rates. IL was his opinion
that there would be no increase in the
price Tor sending messages between the
large Eastern cities, although some OF
tue rates for distances beyond one cir.
cult had been running too low to pay
amy profit on the cost of the service.
Henry j. Syms, Vice President of the
A. & p. Telegraph Company, is reported
TO have declared last evening his lnten.
ton If applying to the Courts tor an Or
der restraining the two companies from
carrying into effect the contract OF Mon.
day night.