New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-04-30

are short of Western Union. but some persons are
and they are attempting to get the price down. ~ ~
WORD think the PSanh to form new Tbs = ot
the first time it has been discussed, either think
| 1t was nearly year ago that 1t was first spoken
about. a man by the name OF owen, VINO was 4,
line builder for those other companies which nave
been in opposition TO the Western Union, was very
actively canvasslng for this new company last Fall
They have line already constructed from Syracuse
| to Oswego. About last Christmas they placed in
| position number of poles on Seventh-ave. The
company was then known as the Central Union
Telegraph Company. Well, Owen tried to get sub
scriptions because he wanted to build the line. lie
worked hard to get subscriptions. but didn't sue
coed. and finally the scheme fell through. Now it
has been revived again. IL takes about SlO TO get
a charter for corporation with n capital OF
$1O,00O000. and then those interested can begin
working their plans
"There are two motives that induce men to enter
into an arrangement of this kind. The practical
men make money by building the line and the
Wall Street men make money out of Western
Union stock. dodge of this kind frightens the
tmd men who hold Western Union stock. They
get afraid that Western Union will fall very heavily
and they sell at sacrifice. 1t does not affect the
large holders, such men as Vanderbilt and ex-Gov-
ernor Morgan OF course, there have been attempts
made before to form companies IN opposition 10
the Western Inion-> There were the United States.
tine sPg bS An the fapP tine Ho sC snd
out by the Sheriff., and the Atlantic and Pacific.
some of these companies lasted number of years,
but can safely say that not one ever earned
dividend. The Atlantic and Pacific paid dividend,
but the directors afterward acknowledged they
didn't earn it. believe that none of the companies
ever earned their working expenses.
Ii must he remembered that the money Is made
in building these telegraph lines not IN Operat-
ing them. When the Continental Company was
formed this seen very plainly. The managers
made heavy contracts for building the lines 70 Bal
timlrc and Boston, Then they tried TO organize
the company aud get subscriptions but they never
obtained the stock To operate new company
with success it would have to touch all points i'll
the country TINS was the great mistake made by
the Atlantic and Pacific They had their lines
Louisville, Chicago, New-Orleans Buffalo, Detroit
and some intermediate points, and on the other side
at Boston, Portland Montreal and intermediate
stations they argued that these were the places
which yielded more than half the revenue TO the
Western Union, and that they had the cream OF
the business. But il was never thought that the
revenue was not derived from these places cOmmu-
nicatng with each other. The money was GER
taIniy made at the large cities, but communication
was received from all ever the country. So when
the earnings pooled with the Atlantic and Pa
ciic Company it was discovered that they had less
than Onc-c lghth.
"As tor railroad telegraphy, which this new com
pauy probably cOntemplates. 1t is a humbug. You
would have to go back twenty five years IN the his
tory of telegraphy to link together roads to make
such method pay. Whatever might have been
done in the past, system Of that kind could not
succeed now. don't think any telegraph company
could damage seriously the business OF the Western
Union with less than $20.OOO.OOO cap.
ital in less than five years. The formation OF
new companies might be n little painful to the
trustees of the Western Union, but 1T doesn't
brighten them in the least"