New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-05-20
TELEGRAPH CONSOLIDATION.


The trial of the Williams suit against the
western Union Telegraph Company and others was con-
timed Yesterday Mr. seweil moved 10 amehu '"o Yin
plant 80 a. 10 ALLOW testimony 10 DC onereu III "
The connection between the American Union company
and the Central COnstrucuon COMPANY
denied the motion :, -, soo
Giovanni MorOsinl then testified that ne hSn poo"
trcasurer of the American Union Company since 's Or
ganization He did not have the books OF the company
and did net know where they we're nor had he ever
seen or made any entries iu them. He had never n'P
any account of the money received by him. or r"ther %
never received any money having been only hon"'!
treasurer The capital stock OF the COMPANY w ~
been paid 10 him, and he Lad never pad Out a"' i'
He never signed any checks ana never p0r' i.,
a,,is. "a Treasurer OF the company. He was appom'o
,,asrrer nv the Board Of Directors; his appointment
vos not iu writing and did not remember VINO com
nuncated the fact OF his appointment to him. lie never
received any salary.
Law Gould was next examined. He testified that he
was one of the original promoters Of the American Union
Company. did not know who drew the Articles Vi III
corpora,ion nor were they drawn under his urecuoh
He did not remember whether he furnished the cheek 10
Mr. Bates with which be paid for his subscription 70 INC
capital stock lie thought he himself suoscrloc" tut
E5,OOOOO0. -. 10000,
Mr. Gould-I think did. either paid a check for
n 600 600 or 81 O. OOOO 600 hm not certain
Did you get back any portion OF the money paio ny
your ,o,o -, I. bach so,d the stock to the
What WINS the Central Construction Company
The articles OF association will show what 1t was
Mr. Gould said he did solicit one to subscribe
for the stock OF the American In2n .h re omnanv in
January 1881 He did not initiate measures TOT Tue To
sodaton OF the companies out at bs house on sunday
evening at . o'clock
MR. Vanderbilt URGING A UNION.
In obedience to Mr. seweIs request that he should re-
neat as exactly as possible the language used by Mr.
Vanderbilt and himself at that meeting Mr. Gould said
"MrVanderblt told me he had had SOME talk with MI
Dillon president OF the Union Pacidc Railroad WHO n"u
Informed him that lac understood that was not aVerse
10 an amicabe settlement OF the contest then raging De-
tween the rival telegraph companies Mr.. vanderbilt
felt compelled 10 press the settlement personally because
so very many people interested In IT,
They came TO see him at his house ana Snin
planned OF the mPehahg rh VI var Mr. Vardcriit
said that he had received many letters one OF WHICH
NOT eontroi the American Union Telegraph Company:
aud urged "a consolidation. told MI vanderbilt tha'
ranys stock that the stockholders and directors were
the only persons with whom an arTangetH S%uu i, n9
my influence with the persons holding the contrOhS III
THE next morning received another note from Mr.
Vanderbilt asking To come wlth my ;srnus 10 nls
house to meet the Western Union people ATTENDED, tne
Conference with Dillon, Aincs and sage Nothing
WAS said between Mr. Vanderbilt and myself win ref-
Mr. Vanderbilt said be had stock OT ara mot
say how mgch and scented 10 '-SsiInS y tai had
nnrcbascd The conference lasted a long time and at
SreS m in row Icold not possibly proposed that
consolidation should be effected upon the basis Oh 80
ehare for the Aut Union stock for no 1an would
sci propertv To the Union Company for 10 per
cent less than be could sen IL IGr ~ ,e h Tho lpce
the position tben which | hcd before maj inc iurIe
holders OF stock should have coIiToiing voice IN
the arrangement OF consolidation might have neen
willing TO take less. a very large holder Of West
ern Union stock at the time and II was 10 my interest 10
sell American Union stock, and wanted 10 do so
Mr. Sewell-At what price did you BUY your western
'"'Hd don't rcmem Der. thought it was cheap or
would not bought ii. had been in the habit OF
DEALING largely in Western Union. bought when
Thought IL was cheap. aud sold when thought II was
dear. The American Union Company nad ~ te
time Of the consolidation. at point where II was IN a
condition to make very large earnings had calculated
that the company would earn per NJ on ne Ii value
which placed upon the stock General EcKert tn9usn
It could earn that per cent on eaP ittai VI
and aS1eD % the 0 epJSTene 9 e that
the monthly expenses of the company would be SSOoOo
s. 5oOOoO had watched the development OF the com
pany FROM the beginning and am free TO say that tue
hands and in the hands Of the people who controlled IT.
paid par for my stock ana e9lpo5Tu vHey os GS gu
5000 shares of Western Union stock have never
sold single share since that date"
Are YOU familiar with the cost Of building telegraph
nnesP
"What IA the cost per nile T.
WHY AMERICAN UNION COULD NOT BE DUPLICATED
THAT depends circumstances. They cost IN places
e. 600 a mile. But never go into details go Tor the
GROSS results don't believe the American Union tee-
.raph system could be reproduced at all IL would be
mnosbe TO get control the railroads. or at least you
would have to spend S0OOOoOO or S30OOO0O0 to doit
The railroad companies prefer In all cases to be con-
nected with great Of telegraph lines, 80 ;hatthey
vonld 20 with the Union Company In all cases,
because that company broad and gives the railroads
conneetions with every point III the United states The
American Union Company was ohy ape 70 ma l,s ,
ROAD Of the tlat It's
were connected with and cOnroedvast ~ stems OF ran
roads. My own ownership III era. ro"os III! f;
shin and control in others, enabled the American Union
10 make contracts the most OF when were iOr long
va IN
aicuiahle value controlled az the time Of the cOnsol
iation "a system of railroads in the southwest OF oOO
,,l.s aud / WAS about give the American mon the
beneft of this control The American Union Company
naG we ~ inc TERRITORY Including all of Texas, Mexico
and Arkansas and Louisiana had lust haue contracts
for two cables also half million OF the earnings
of the Western Union from their cable service
Sir swayne conducted the crosse xamlnailOn ON tne
part OF deiendants lie REFERRED 10 the III
t6e bin in which directors Of the Western Union
Company charged with conspiracy Wita certain
trltc a fraud upon tue Stockholders lie asked MIR.
Gould whether he had ever engaged III such con-
PMr j;ould-I know OF such conspiracy. was not
party it, aud never hedru Vi IT, Inc "AoedIioHs III
Mr. Gould testified urther that there we're other per
.ons i'm the American Union Company whose connection
with great systems Of railways gave that company an
advantage over all others ~ obtaining adyandageTqs
Thought the Western Union undoubtedly had the best
t Western Union Company had gone up than that
aft IN, American Union. Wall Street was the only erie
yon of values and it made prices. lie had already
honred All of mis- stock according of the
agreement OF consolidation before any injunction had
Was one Of the early BIRDS Mr. Gould said quietly
81 was a little lame and started early
THE RISE IN WESTERN UNION.
NJ seUe asked the witness whether the stock Of the
Western Union Company had not gone up on the as
sumption that that holders 10 receive STOCK
dividend Of ASH per cent Mr. Gould replied:
think not think 1t has gone up in the belief that
this arrangement that would largely increase It's
net earnings The that holder Of the stock was go
md nd nj M a q