Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-01-13
TELEGRAPH CONSOLIDATION
The Lightning Monopoly Further
Strengthened.
Especial Telegram to the Globe


Especial Telegram to the Globe.]
MILWAUKEE, Wis, Jan. IA rumor
which seems to be well founded has been
in circulation here to-day, that the West
ern Union, American Union, and Allan
tic & Pacific Telegraph companies have
become consolidated. The basis is said
to be par for the Western Union, 30 cents
for the American Union and 30 cents for
the Atlantic & Pacific. The effect would
be to strengthen the Western Union
monopoly and increase rates. If it has
been done on the basis described, Gould
has cleared 100000 or 100000 in
American Union. The Vanderbilts and
their friends own majority of Western
Union and Atlantic & Pacific. This ex-
plains the rise in Western Union within
the past week.
GoULD's GRAB.
NEW YORK, Jan. 12.-.-Noticing The consoli-
dation of telegraphic companies, the Graphic
says it is understood the combination was ef.
fected on the basis of $S0,0OOOOO for the new
company, of which the Western Union is to
have $4,000, 900, the American Union SIS, 900, :
600, and the Atlantic and Pacific $1,000, 900.
The present capital of the Western Union is
about 81, 100000, of the American Union
$14, 100000. Thus it will be seen that the
Western Union gets scrip dividend of 40 per
cent, the American Union goes in at par, and
the Atlantic and Pacific is put in at so per cent.
1t is undeniable that this movement has been
engineered throughout by Jay Gould, who to-
day holds vastly preponderating control of
the entire telegraph system of the country. 1t
is movement in which he has checkmated
his opponents completely, and it is estimated
present movement in telegraph stocks was
begun in the latter part of November by Van
derbilt, who run the stock up from about par
to 1O4H, to enable him to unload, which he
did all the way down to 80, as he saw the
preparations the rival line was max
IN ing g, no.it?an iGr severe 90 and protracted
was carried down some nc thirteen points by
Gould's short sales. The speculative move
ment lay dormant for a few days, but assumed
activity by the sale of one block of 10000
shares at 79H, seller sixty days, and one other
Of 10, 600 shares on a similar option at 78. The
street was mystifed as to the purpose of the
transactions, but spectators generally were
induced to put out heavy lines of shorts. From
this point the stock began to advance and i'm
mense transactions were the order of the day.
There is little doubt but that Gould and Van
derbilt have been acting in concert in the buy
ing movement although it is believed that
Gould is by far the largest buyer, as he ap-
pears to have dictated the settlement of to-day.
The first section of the new cables will prob
ably be laid in May next, and the whole
system will be finished in November.
Whatever is the upshot of the amalgamation
project Of land lines here these new cables
will certainly be laid, as there is demand for
more wires to Europe, and the property will
always be in request. Owing to the decreased
panies have offered the projectors of the new
cables every inducement to discontinue the
work. Cable stock is at a premium of 25 per
cent