, 1879-07-18
ANOTHER TELEGRAPH WAR.

LIDO He6t8rn Union LdeRFAnn company
recently applied for an Injunction In the
Circuit Court Of st. Louis 10 restrain tho
81. Louis, Kansas City 4 N&tthern Railroad
and other parties from constructing md op.
araaing a line Of telegraph from St. Louis to
Kansas City. Tho ground o. which ,the
application was basod Is that, the Western
Union l,as Contract with. said rail-
road, as with others, whereby Tho rAil-
rond Is permitted 10 uso tho Western Union
lines for It's own business, but Agrees, In
consideration thereof, not to peruit any
other telegraph company 10 ontor its dopots,
nor car7y mntaria1 for the construction Of an
opposition line, nor in my other way aid or
encourage the establishing of competing
line. Judge TuArzn denied the motion for
temporary injunction, md, Ms this denial
was based upon q State statute which pro-
hibits any property -holdor from granting tho
exclusive right Of vay to any telegraph eo1n-
pany, 1t ia naturally concluded that the
prnyer for por1nAuont injunction will like
wiso be refused.
In a conversation with reporter for tho
| GIo5e.D Dmocrat Mr.. ALLEN, ono Of tho at
| torneys tor the Western Union Telegraph
Company, said that this was but part Of
huge stock -jobbing operation Of JAZZ GouIp's.
Mr. ALLEN went over tho history Of tic At
lnntio !, Pacific Telegraph Company, which
| jar Gou1D built up and perfected, and thon
used to 1epreciato Western Union stock; all
this, according to tho attorneys notion, was
simply preliminary to purchase of largo
blocks of Western Union stock by jar
Gou1p, after which d consolidation was
brought about, Western Union stock ngain
run up to hik h figure, mud JAR GouIp thus
enabled to mako millions Of money. Tho
same authority is responsible for the state-
mant that jar Gou1D intends to construct
several lines Of telegraph in different
States along tho railroads Which he
controls, and eventually consolidate them
20 aa to control formidable rival
to the Western Union Telegraph CON-
pany. The new privilege granted by
Congreas in the Army bill passed. at tho last
session, Which authorizes any railroad COM
pany to do general telegraph business over
it's limos by simply filing notice of such in.
teution, will contribute to tho SUCCESS Of sucf'
scheme. Tho purpose accredited to JA1
COUP in to Bocure tho bulk Of tho general
tslegraphing business by low rates, thus cu|
down tho dividends Of tho Western Union
then buy In tho Western Union stock il
large qusntities, rs be did before, hnall,
4 bring about consolidation, and thus realizs
mora millions by tho operation. ...
The general public has no interest In tht
SUCCESS Of my OF JAZZ GoULn's stock jobbint
operations, but there will ho no popular OBJ
jeotion to his establishing rival telegraph
company TO compete with the Wostorn Union
and thus destroy, oven for time, monopo1,
which has harvested more richly thnn i
deserves at the public sxpenso. It Is nat
ter OF considerable doubt whether anothe
consolidation can eyer be brought about, II
case another comprehensive system Of com
me1cial facilities be established In this conn
try. If not, then the telcgrapliug busincs
will be conducted on the basis Of leg.timat
competition like other business, and tho pull
, lio will bo the gamer in both rates nnd faoill
, ties; but, it q consolidation should DO the #
, suit after lapse Of some yeazs, tho publ
| will have enjoyed in the meantime tho bent
| fits Of competition, and millions Of dolla,
: will DO Ravod to the general business Of til
country. In either case this particular stool
. jobbing operation Of jar GouLD's, If suoh
t be, may DO OF great seryice to the America
4 | manila