, 1879-05-03

yenience its through business has, bae1ru,ne by
| the Western Union COMPANY. ~. ;Tfa6 Wabash
Railway Company is said to OWN .its own lines.
It Is understood that these compn1tess have nc
contracts with the Western UNION Company
that viii interfere win the exercise d claimed
inherent rights. II!
By completing the proposed line'bs The Cen
tral uniun Company to Buffalo. alta .by build
ing the line now under contract from Boston to
Baltimore, the new Company is brought into
direct connection with railroad lines exreudin1
to the Pacific Slope. 1t is said bv officers of the
new Company to be improbable that theiroilroad
| companies Will wait for the passage Of theCon-
gresstonal bill. Several of them aroNt orctcd
| soon to unite with the lines Of the Comuany.
1t is understood that they will take portions Of
the stock of the Company. y
The new line will run. 1t is said, over the
! routes OF the Union Pacific and Kansas Pacific
Roads, OF the Kansas City s. Northern and the
Wabash Roads. From the eastern terminus OF
the Wabash Road it will run by several routes
| to the seaboard. One of these, it Is expected,
will. be the Pennsylvania Road, another By the
Baltimore & OHIO, and still another by the new
| route by way OF Albany and Buffalo.
The Central Union line has been heretofore
| under the charge OF Joseph OWel, OF O5weGo,
| who projected it. He will be tic Secretary Of
the new Company. Its President Will be David
II. Bates, OF this city, whose RESIGNATION as Cen
era1 Superintendent Of the Atlanue& Pacific
! Company will take elect to-day. Dennis
Doren, who has been connected for many
! years with the Western Union Company, will
! be its Superintendent OF Construction Charles
| A. Tinker, one OF the corporators OF the new
Company, recently resigned position with the
Atlantic 4 Pacific Company TO accept that Of
Superintendent Of Te1egraphs on the Baltimore
! & Ohio Railroad Company Mr.. Tinker has been
identified with teleeraphy for eighteen years;
Air. Bates, the President, for ! little longer
period; while Mr.. Dorcn has served for more
than quarter Of century.
The name Of the ne4v Company, as filed IN the
articles OF incorporation, is the Union Telegraph
Company. 1t was found yesterday that prev-
Gus charter had been granted about twenty
years ago TO company with the same name.
change in| the designation will be made, there
fore, at o1cc, but it is said that the ne in this
State will fbe known by that Of the Central
Union, tp whose rights und charter the new
Company has succeeded.
In regardto the right Of railroads to do gen
eral tecgraphic business, member of the new
Company said last evening: aThe railroads
undoubtedly possess the right already. In any
case, they may say. as the prisoner remarked to
his lawyer who declared there was no law bv
which he could be put in JAIL But am now
in prison. The railroad companies are now
doing public business along their lines"
WESTERN UNION VIEW OF THE SCHEME.
A person connected with the Western Union
Telegraph Company, in speaking Of the forma-
tion OF the new Company, said, last night: 's ]
have not very exalted opinion OF this new
scheme. l don't believe thar 1t is legitimate
enterprise. believe that the persons interested
in It never intend to build the line. It looks to
me like demonstration, d kind Of public show
for making handsome profits out of Western
Union stock. l don't know who are 'short'
OF Western Union, but some persons are,
and they are attempting to get the price down.
In q word, + think the plan to form new tele-
graph company is stock-jobbing operation.
T1is is not the first time it has been discussed
either. think it VAS nearly year ago that it |
was first spoken about. 4 man by the name Of !
Crn 4uhe o} linz .hlri1Eo
Companies which have been in opposition to the !
Western Union, was very actively canyassing |
for this new. Company last fall. They have |
line already constructed from Syracuse |
to Oswego. About last Christmas they placed |
in position o number OF poles on Seventh ave-
nue.. The Company was then known as the |
Central Union Telegraph ComDany. Well, |
Owen tried to get subscriptions because he |
wanted to build the line. He worked hard to /
get subscriptions, but didn't succeed, and finally
the scheme fell through. Now it has been re-
viyed again. It takes about $40 to get char
ter for corporation With q capital OF S10,0o0,-
00o, and then those interested can begin work
ing their olaus.
''1here 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. 4 dodge Of this kind
Union stock. They get afraid that Western
Union will fall very heavily, and they sell at
. sacrifice. 1t does not affect the large hold
RS, such men as Vanderbilt and ex-Gov.
Morgan. OF course, there have been attempts
made before TO form companies in opposition to
he Western Union. There were the United
States, the Southern Atlantic, the franklin, the
Continental, the Bankers d Brokers' (which
Pacific. Some OF these Companies lasted
lumber Of years, but can safely say that not |
2ne ever earned q dividend. The Atlantic IL
Pacific paid dividend, but the Directors after
nn{-n IfrAd thGAth f3T1ft In I
ieye that none Of the Companies ever earned
heir working expenses
s'1t must be remembered that the money is |
made in building these new telegraph lines, not
4 operating them. When the Continental |
Company was formed, this was seen very plain
:. The managers made heavy contracts Tor
'niidfng the lines to Baltimore and Boston.
Then they tried to organize the Company and
tock: 10 operate a new Company with sue !
ess, it woulu have to touch all points in the
ountry: This vas the great mistake made
y > the the Atlantic 1t = q Pacific; They !
da a. hfr san Pes Fancteo oaehag s qo the one
lille. Chicago, New Orleans, Buffalo, Detroit,
nd some intermediate points, and on the other {
ide at Boston: Portland, Montreal, and inter- !
acdiate stations. They argued that these were
be places which yielded more than half the
eyenue to the Western Union, and that they / Z
ad the cream OF the business. But it was t
ever thought that the revenue was not derived =
rom these places communicating with carh
ther. The money was certainly made ut the
lrge cities, but communication was received !
:om all over the country. SO, when the earn
lgs were pooled with the Atlantic s. Pacific !:
ompany, it was discovered that they had less u
IAN one-eIghth. 9
''As for rairoad-te1egraphy, which this new =
ompany probably contenlplates, it is a humbuy. /
ou would have to 20 back twenty-five years in q
he history OF teIcgraphy to link together roads
} make such method pay. Whatever might o
ave been done in the past, q system Of that Il
ind could not succeed now. I don't think any > =
NotHpAny could damage seriously the Il
lslness of the Western Uuion with less than 1t
70 000O, ,000 capital in less than five years. The
ru1atlon OF new Companies might Dc u little
a'ntul to the Trustees Of the Western Uniun, :,
1t 1t Coesn't frghteu them in the least" Il
THE ROSE AND THE VIOLET. e
Ii
[ n