The sun., 1881-01-15
VOL. XLVIH. NO. 137.
THE WESTERN UNION DEAL.
TIE COTTON EXCHANGE PROTESTING
AGAINST the CONSULTATIONS


the Papers-A Rival Telegraph Company. |
A petition Is In circulation for signatures
In tho Cotton Exchange. requesting The Board
o, Managers to call for an early day meeting
otthe Exchange. to protest against tho consoli-
da,ion OF tho telegraph companies. and to doVise
measures which with efforts in other CONNER
cial bodies will destroy the telegraph monopoly.
Tho petition is receiving the approval OF tho
most prominent members oi tho Exchange.
Shortly before the American Union Telegraph
Company was organized. the Produce Exchange
considered tho advisability Of cooperating with
similar organizations throughout the country
10 create a telegraphc system connecting the
principal commercial centres. With the APP
pearance OF the American Union and Its prom
ises OF relief from the Western Union monopoly.
the project was abandoned The movement In
the Cotton Exchange may lead to its revival.
Tho counsel for the companies in the CONSOLE
dation scheme are drawing up the necessary
papers. II is currently reported that about sl2.-
0OO000 OF the additional capital stock which
tho Western Union proposes to issue will be d.
yiied among its stockholders as q scrip dv-
dcnd of about thirty per cent This would
make the basis OF that company in the consoli-
dation something more than s53.OOO.OOO For
the $40 1000 .00O Of stock and s5OOO.OOO bonds oil
the American Union $4,000. 900 Of new West
oEu UNION BLOCK Will 10 RlNou' anu S''ooN'N'0
moro will 20 for tho sl5OO000O capital stock Of
the Atlantic and Pacific Company, being at the
;ate Of one share OF Western Union for one
share OF Atlantic and Pacific. These estimates
make total OF $75500000. 1t Is conjectured
that the remaining S4. 500 900 OF new stock will
be held In the treasury OF the consolidated
company either as melon " from which
prospective scrip dividends may be cut in the
interests of Stock Exchange manipulation. or
as a reserve for tho purchase OF new rivals. 1t
may be. however. that such remainder will
not exist. for some are confident that the pres
ent scrip dividend on Western Union is nearer
forty than thirty per cent. sufficiently large
TO consume oil the new stock not required for
the purchase OF the other two companies. In
making estimates OF what the American U MON
and Atlantis and Pacific will get in the con-
solidati N, the street 10 guided largely by the
prices Of the stocks OF the two companies. for
II the former were TO come into the scheme at
SsoSe 50 per eens ns Se demand for the stocks
would be greater than It is at the present prices.
which are about 90 and 40. respectively II the the
streets estimates are correct. and S225OO 900
OF Western Union stock is to be given for those
companies. then the capital of Western Union
900. The actual watering will. however. be
much more; The American Union system. for
which the SIS 900 .000 of Western Union stock
is to be given. has cost less than $5 600 900. The
Atlantic and Pacific cannot be more than half
+. The ia y. ,Som ySTs e Ss G S"
secure facilities OF that value III. Western
Union increases its stock by neary s3g Ooo'QoO:
making the stock that represents nothing hut
300 600.
twenty-three years presents some Interesting
figures. In 1858 its CAPITA was S3S5.7oO. Eight
oOo Of which S. s2S 600 was issued in ia- -'Gn pnr
chase OF competing lines. and nearly $4,000 900
Ss he ssd ta,s com
paSy by an issue OF 81 800 Of its own stock.
The next rival absorbed was the American
for When .ii OF Of Wesern nA unon s;oss
was issued. This brought the capital of West
ern Union up to SAL 100000 A portion Of the
Western Union stock issued in exchange for
that OF other companies came into its own treas
pry by reason OF the company being a stock
holder in the concerns purchased. as is the case
today in its half ownership OF the Atlantic and
Pacific Company. About year and hall ago
the stock 80 accumulated aggregated about
100000 par value, and 1t was divided among
tho stockholders. This amount. together With
be added nv the consolidation. makes an agra
gate of $50 100000 Of stock that represents
simply absence OF competition.
Already a new rival which promises to be
more or less h I3rmidaGlr e is dEsseopinS E n % the
pany. 1t is Incorporated under the laws of this
State. with capital Of s. 100000. Among It's
airect9rs are George F. Baker. President Of the
First National Bank of this city: John O.
Evans. wealthy contractor OF Washington. and
Gen; John NJ Gorse. a prominent Western rnil-
road man and President Of the Toledo. Delphos
and Burlington Narrow Gauge Railroad. The
company is now putting up line between Bos-
ton and washington. which 1t expects to open
for business In about three months.
The speculation in the telegraph stock was
IN all tbre" sosk
q little more than 40. 900 shares. and all OF them
declined
OBSERVATIONS OF rR. RUFUS HATCH OF WALL
STREET.
Mr.. Rufus Hatch OF Wall street was found in
his library on Park avenue last evening. He
worea velvet coat. and sat swinging his leg
nf Q hni WA1 Gtr
men say that you prophesied the consolidation
the several telegraph companies weeks ago
spd i that yog were in the DEAL" the writer said.
lt should tell you the truth ,E. about this
S aasa Hs yA be
careful =, Of IN his reputation. The Sun prints
could tell 10000 lies % While Could Gd only tell tell
one truth in day. have both a mathematical
light cigar and go and talk with Mr.. Wander
pi pi!I: Hes personal friend OF mine and very
Is there any truth" we asked. in the ru.
NOR that Gould and Vanderbilt occupied the
basement OF your house on Thursday evening
anu that they there agreed upon "a basis OF con-
Where did you get that information 2" Mr.
hhatrn lnqnirGd. lifting his leg from the arm ol
The Information came from Mr.. W. F.
Connor. Mr.. uouids confidential broker" we
Well. Mr. Eufus Hatch OF Wall stree, an
s"otou' Supp'Sc i nave lud 10 do with
putting up Western Onion than any othrl
member OF the Stock EYGhuuge. | Hrots II let.
ter on Dec. ~ that will throw light ON the whole
subject"
TO whom did you address the letter ?" VIC
TO Billy himself" Uncle Rufus answered.
Who is Blly2" was the next question.
Why good gracious me-" Mr.. Hatch re
marked. WIN. II. Vanderbilt. Don't yo,
know that the old Commodore always cal ed HIN
Billy, the same as | call my oldest boy Junior Z
Have you II copy OF the letter p we asked.
what do YOU want OF Il copy?" Uncle Rufu
Inquired.
,"I want to throw light on the subject" wa
the reply.
Mr.. Hatch began to pull out the drawers o
MS table; After long search he found tn
original draft Of the letter. should not Civ
you copy" he said, were 1t not that Billy ha
already shown il TO Jay Gould and others Of hi
friends. considered il strictly personal, and
Is now matter Of history. Here 1t is. Iol
may have It,"
The following is copy of the letter:
RUFUs lIATcH \ Co. ~ E1cHASCR PLACE !
W ~ P1nJ>rLh E,2
Nr DtAE Slg have given you advice several time
"hlrh has proved correct
lneTe - one iug ought to do TO make yourself tn
rAes man awe on TINS continent tpday. with the be
ihutAhoh Tor tue tuture that build n series
eleht hou,eh Tor The poor people. leaving the rent
.eCumuiate Invest. say, ave millions Of dollars witnil
4 Va