New-York tribune., 1881-09-16
LOCAL MISCELLANY.
WESTERN UNION REVENUES.
WEI LINN N1'ION 1tI- ' fa4VVI1'7'
A Talk WITH THE PRESIDENT or THE COMPANY
TIE CoMPANYs RECENT INVESTMENTS.

WESTERN UNION REVENUES.
A Talk WITH THE PRESIDENT or THE COMPANY
TIE CoMPANY's RECENT INVESTMENTS
The West rn Union Telegraph Company II Wltn,aa mn
the last few months has sold stock OF the 0ou I a
Stock Telegraph Company and OF the M y ~ tIo
Ocean TSegraRh CopanE r reGgES% 1nGerto9a that the
amount sold by the company eHcee : P! Pl!ooC~o CreD
In regard to tha trnsacti9nTs THo NJ TeIearaph Com
panT saio Of his company are larger than the
~ ;rod Nv u for the payment Of the dividends and
fyed charges The dividend reCelp IRON com
panies which contTQ ar as egtimaaSy TG'n u
r,orcy We have sold stock OF these companies, but
to-day hold more stock in them tnan al ne tiine
f hs last annual statement: more than at the lime
of the consolidation, and more than at the time
of taking testimony in the injunction suits More
over Their mar>e value Ia greater nov than at any
of these times, that the assets Of this company
have absolutely Increased sirGe the iaSi annual re-
port was made. We sold only part of the stock
received as stock dividends ard then we appropr
ated more than the proceeds of the sales 10 the pr
chase of her properties which we considered OF
more Importance to this company. We expect these
purchases TO result in great benefit 10 us, rs
holders, who will derive more advantage than they
would have done by the distribution Of the divi-
to the public in about month, when our annual
r. port viii be made up. Al present | cannot give
advance of the anns,Gl report would De only
necessary work We cannot make each one OF cur
a. asartfRry tRa snaea repo aa have 6Sag6
stock of a. Canada company, the Great
Northwestern
the Bankers and Brokers lire and so the lines
built along the Oregon and California Railroad.
Beside these purchases we arc spending large sums
in the construction of line along the southern Pa
ciic road which expect to have ready for bus
iness by October. The payments for stock Of the
Canada line run through the last three quarterly
ports because we had begun TO buy the stock long
before the final arrangements with the company
''Tho earnings of the company for actual tele-
graph business have been for two months OF tins
quarter the rate of ten per cent year. and for
the whole quarter will exceed probably the rate of
nine per cent a year. These earnings are exclusive
But it has always been the habit of the company &c
include in its revenues dividends paid OF stocks
Atlantic and Pacific about $4,000 each
quarter and this SUN was inclnded in the revenues
in the quarterly statements Ihat OF course we do
not receive now since bought that company, but
the dividends always included in the revenues,
and see no reason why the proceeds from the sale
of stock dividends shOull not be treated III the same
In regard to the estimates in the quarterly
for construction and purchase of new tines. We can
guess very arly the net revenues for quarter,
but when we make up our statements two or three
weeks before the end OF the quarter it is impossible
to predict what the payment for constructlou and
Stance What purchases the company may ye make
before the end If the present quarter and II Is
improbable that the estimate for aeW lines il the
last statement may be considerably too small. As
to the net revenues the company has 10000 Offices
to hear FROM aud Iep0Ts from some OF them are not
received for montE after the end OF the quarter.
Jn spite of this we have no difficulty In fore cling
the business for quarter very closely. About 800
port weekly by telegraph the remaining offices,
which do the rest of the business, report more
slowly. This reminds me OF error that peo-
pie have been led to make in comparing the
business of this company aud that OF other
companies started in opposition. OF the $50 Offices
that report weekly presume the American Union
Company reached probably 800; hut that company
actually comp ted for only "a per cent of the busi
ness because these offices DO business with all the
other offices at points which the American Union
touched.
Il repeat That the earnings of this company are
more than sufficient to paw dividends fixed charges
and ordinary construction. Some of the construc-
ton is extraordinarily expensive especially in the
building of the Southern Pacific line. Why, it costs
more TO get the poles to the places where we want
them than the first cost Of the poles
themselves. l believe that the company
is building miles of line
than the American Union built in the same time,
and than the Mutual Union will build. l
refer. OF course, to actually new lines. This com
pany has recently bought the line of poles the
Texas Pacific Railroad, and VIII place lines on
them. have not recently computed the number of
miles we control, but it must be between 100000
and $40, 900 miles,"