The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-01-13
CORPORATIONS coNsoLIpATEp.
AmaIEamaIIOn Of the W. U. and A. 4 p.
Telegraph Companies and the Amsri.
eau Union.

AmaIEamAlIOn Of the ". U. and A. 4 p
Telegraph Companies and the AneFi
eau Union.
NEw foRK, January l2,-It can be Au
thoratively announced that consolidation
Of Althe rival telegraph companies, the
Western Union, the Atlantic & Pacific and
the American Union, has at last been eI,
fecled. The final arrangements were con.
cluded this. morning, The matter has
been under consideration for several days,
but the completion OF the negotiations
was not effected until to-day. The details
Of the consolidation have not been known
10 the outside public; in fact, negotiations
are now in progress IN settle the exact
terms OF the consolidation. The market
price OF the stock OF each OF the three
companies has advanced in consequence
OF the contamination OF the negotiations
Tor pooling OF intereats
Itis understood that the combination OF
the telegraph companies was effected on
the bRsia Ol $50 001 900 capital for the new
company. OF this the Western Union Ia
to have i5S 600 600, the American Union
Sl5 Goo 900 and the Atlantic and Pacific
$1,000 zoo, The Present capital OF the
Western Union Ia about $43 OOO.0 1000. OF
the American Union $4,000 900 and Of
the Atlantic and Pacific, $l4 900 900 Thus
1t will be seen that the Western Union
gets II scrip dividend OF 40 per cent, the
American Union goes In at par, and the
Atlantic and Pacific Is put in at 80. Itis
uudeniahle that this movement has been
engineered throughout by Jay Gould,
Vh0 to-day holds vastly prepOnderatiug
control Of the entire telegraphic system ot
this country.
II is movement In which he has
cheCkmated his opponents completely,
and II Is estimated that his profits run np
into the millions, The present movement
In the telegraph stocks was begun In The
latter part VI November by Mr. Wander.
bilt, who run the stock up from about par
to lOi! 10 enable him TO unload, which he
did all the way down to 90, rs he saw
preparations the rival line Was making for
a severe and protraCIed competition. From
10 the stock was carried down some thir.
teen points by Goulds short sales. The
speculative movement lay dormant for
lVW dHypl hut hoHNulVh hCtlNlly Nv IIl6 bhle
OF one b oCk OF 10000 ahares at 7SI, seller,
sixty dSys, and another Of TO- 600 shares on
imilaropiion,at7S The street was mysi.
fed ~ to thepurport oiths transactions, but
SpeCulators generally were induced to put
out heavy lines Of shorts. From this point
the stock began to advance, and immense
transactions were the order oil the day,
There Ia little doubt but that Gould and
Vanderbilt have been acting In concert In
the buying movement although 1t Ia be.
lieved that Gould Is by far the largest
buyer, as he. appears to have dictated the
settlement OF to-day.
The first section OF tho American Union
cables will probably be laid in May next,
aud the whole system will be finished n
November, Whatever is the upshot Of
the aula lgamatiOn project OF tho land lines
here, these new cables will certainly be
laid, rs there Ia a demand for more wires
TO Europe aud the property will always
be- In request, owing to the increased do.
mand for more cable facilities. The old
cable companies have offered tho pro.
jectors Of the new cables every induce.
ment 10 discontinue the work. The cable
stock is al premium Of rs per cent.