Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1881-01-21

OVER TIE LAkE-According to the re-
Gently published report of Louis d. Pillsbury,
superintendent of State Prisons, during the
year 1880 the expenses of Clinton Prison
were 500, COG. 60, and the earnings S54, 952-
46-leavng deficiency of S35, 654 90 The
average number of prisoners was 5!3. The
average cost ut Clinton is i'll excess of that
at Auburn and Sing Sing, chiefly because a
larger number of officers in proportion to the
number of prisoners is required to prevent
| escapes, in consequence of the insecurity of
the fence surrounding the large area inclosed
and at present constituting the prison yard
The TELEGEAPHIC CONSOLIDATION The
consolidation OF the three great lines of tele-
graphic communication is an event which is
of the first Importance, whether regarded
from purely financial standpoint or in its
broader public bearings. The new consol-
dated company is to retain the title of the
Western Union Telegraph Company, with a
capital of $500 900, and that new GER
titicate of incorporation is to be filed in ac-
cordance with this agreement The prices
at which the Western Union, American
Union, and Atlantic x Pacific stock are to
be pooled, are variOusly set down, but that
the first named stock IS merged at about par,
the American Union at about 30, and the
Atlantic X Pacific at about 80, seems to be
probable. The capital stock of the West
ern Union Company according to the
report issued in October last is 81, 013,-
4l0, of which SIS, SS5. 80 are in the company's
treasury. Its bonded debt, less sinking funds,
amounted then to S6,096. 2296l, and it
owned stocks OF other telegraph and cable
companies of Il market value of nearly
8. 900, 900. Among these are II 900 shares
about 1vs-eighths of the capital stock-of
the Atlantic and Pacific Telegraph Company,
with which it was practically consolidated on
August 90 1871 The American Union
Company was incorporated April ~, 1879,
withIa capital stock Of Sl0, 200, 900 the great
bulk of which is owned by Mr.. Jay Gould
personally. The capital OF the Atlantic and
Pacific is $4,000 600. At a valuation OF
80 per cent its capital would be =, 900 eco
in the consolidated company. The only
bonded debt the consolidated company would
have would be the ST. 264, 514 of Western
Union bonds now outstanding. but the
Western Union now holds Us an
asset more than half Of the stock of the
Atlantic and Pacific Company, AZ above
stated, and will therefore receive more than
half OF the Few stock 10 tie given to that
company. y 10 the present inc W eStern
Union has been obliged To hold a majority
If the stock of the Atlantic aiii Pacific to
preserve intact its pooling contract with that
company. When the Atlantic and Pacific
becomes a put of the Western Mon that
necessity VIII cease, and considerable frac-
ton of its Own new stock will b. applicable
to its sinking fund. Should the company
realize an, thing like par fur those shares the
operation will he an exceedingly profitable
one, for the Atlantic and Pacific shares
held by il luvc been carried as M asset, ut
valuation Of Sl,S06. $50. The immediate
effect at the financial centres has hcen 10
cause an advance in all telegraph si0cks
This il indicative of the very natural belief
that the consolidated stock viii pay higher
dividends Than the stocks at th,' three com
peting lines paid To their holders Pleasant |
prospect for the stockholders, hut it involves |
an ominoris hint To the puhlicuf higher rates |
There is no question that the American [ mon |
Company, whose lines We're only opened on |
Jan. 20, 1880, had proved formidable com
pettor 10 the Western Union, and i'll the year |
of its independent existence it had done |
much Ia reduce the tariff on messages. 1t /
had secured II large stock, and hal made con /
tracts Tor the ayiug OF two more European |
cable lines which would haze broken the I
high rates ON foreign messages With this |
consolidation it seems only too likely that /
this iair prospect of cheap telegraphy will, I
temporarily At least, disappear.