New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-29
DETAILS OF LIE PLAN.

| An abstract of the agreement for uniting the
Western Union. American Union aud Atlantic and
| Pacific Telegraph Companies was published yaster-
| day. 1t is understood that this abstract Is sub
| stantially correct. Jay Gould was too busy
| to be seen Yesterday by TRIBUNE reporter,
| General Eckert president of the American Union
| Company replied to inquiries that he had nothing
to saw aud President Chandler, of the Atlantic and
| Pacific Company, was not at his Office. President
| Green of the Western Union Company. dilated for
a long time on the advantages Of the union but at
| last admitted that the published synopsis of the
| agreement was in the main correct. He said
that the popular camor about the in furious effects
of the consolidation was based upon o fallacy.
| There were two reasons why the service would he
improved by the union Of the companies: AT points
where there Was only line the delay caused by
the repeating of the message would be avoided. and
| at places where there large business over all
| the lines, great improvement would be made by
proper classification of the wires.
Nothing has increased fast and TO the greater
cost of the companies" DR.. Green continued. than
| the exactions of the service The principal part of
the business is confined practically TO about five
hours day. aud Il service that was satisfactory two
wears ago brokers and merchants now rage about.
These exacti0ns not only involve greater cost in do
ing the business hut also in aifordngn new facilities
| Thus in the last eighteen months tbs company
has expended over 81. Goo 600 manly i'll new lines.
But the principal ground OF public complaint is The
increase in rates which is expected to result from
the consolidation of the companies. Now since The
| consolidation In 1868 the reduction OF rates has
been constant; il haa been accelerated at times Nv
competition, but it has still zone on when The com
petition had ended. The average rate for each
message has declined from 81 047s in
1868 10 $500 cents in 1879, 500 C"nt'
in 1870 and 3Sl1O cents in 1850.
During the last year. winch was one Of sndrn COM
PETITION, the reduction in rates was or'y IVA Of
cent while the sane reduction exactly was made IN
1879 after the Atlantic and Pacihr opposition htd
ceased. II will Ocrnr 10 any "ne tirb, that the
owners Of the companies can better anor'i Tcduc-
on IN rates aft Ter consultations than ore because
| the cus' Of operation will be largely Tednccd.
I" | nave heard that member nt the STATE senate
has taken occasion recently 10 declare Iat he enor
nous profits IN the telegraph ha>nrss demonstrated
That topographic message could he cent as chtapy
A. the present postal rates. Now, the Pust once
does not furnish station cry. nor keep record of IFS
letters, nor supply operators 70 handle ad dcVeI
thcm Why, for the deliveries IN tins city
alone paw the American District Icle-
graph COMPANY more than the postal rates
aud hen get the work done cleIp'r than We can do
If ourselves. With AL the economies wr can throw
INTO the business. he lowest point 10 winch We have
been able to reddce the average cost Of lnc-s iGc j.
232lO cents and twelve years deO the average cost
was ga 10 cents. There mas been Nteadv reduction
each yer III the cost and 1t has been nearly
in proportion with The reduction In IN"
average rate. The average OF profits
has been steadily reduced too. and in ISIS
was 10 cents u message; hnt t." company malc
tolIr times as much money ~ in 1865. wien the
average profit was Al cents inrN-agr. Move. the
captaiIz Iun of the new COMPANY has very uile to
do wifh the rates OF cl"oraphY. The necessary 81
pcnses will he about ST.nO00OO wear. aud ANY
rate that w0nll brug ne average down e. - '"n-a
messIVe would leave nothing 10 dlTide, no matter
In respect 70 the capitalization of the company
I will say. however. that ut the rate the American
Union Iuc, have cost, and, presume, they have
been buI.t Chca?ly as new line, can be but. con-
sIdeuEg ;he obstacles encountered by Il new COM
many saw oh, the bass OF ,hr actual cost of the
American Union lines, the property of TINS company
aone being about tcniOid greater. Is worth
$50, O00O0G. Most of our lines were bu'It very
chciply, however, hccausc, on account OF favorable
contracts " th railroad companies "ur materials were
carried tree an ten wlIcI III many instances was
One-haf OF the cost OF the whole line. Ihc capltal-
ZatlOn CT he united companies VIII Iot he eGces-
siVe.'
What have you TO say about the published all
stract of agreement - the reporter tmi,ily asked.
81 had hoped you you'd forget that Dr. Green
replied severely, and then, alter 4 long pause lie
added: Well. | have been much puzzled about
tbar publication, and without having compared 1t
with the contract to see whether 1t was exact IN
every particular, can only say that the figures are
substantially correct"
Are thcy not the figures submitted to you a few
days ago which you then said were not right T.
- remember an essential difference Inc accre-
ton OF Western Union stock is larger than had been
generally understood. because the stock winch will
be received for the Atlanc and Pacific shares held
by this company Will be divided among the present
"Oi course, you have no doubt OF the success OF
the 2 G. ,o..t in tho wor,on nr cro.n s,;,
"nothlng but the formaiity OF time-time and notice
st, nds IN the way of us accomplishment
And then he added IN conclusion: "AlthOngh, as
in the Atlantic and Pacific case, we consider this
rather "a hard contract"
ABSTRACT OF THE AGREEMENT
The Westt I'll Union Company Is to absorb the
American Union an Atlantic and Pacific Companies
by the purchase OF ali their property. The American
Union Company, il '1 agreed, will receive 10000
shares of Western Union stock at par, which will be
distributed IN exchange for 1OO 900 shares of Ameri
Union stock and IS 600. 900 In bonds, The Allan
tic and Pacific Company will receive 81 900 shares of
Western Union stock in exchange for 40 900 shares
of Its own stock. AS this amount includes the
72,010 shares now held III the treasury OF the West
ern Union. tile new shares exchanged for them Will
be distributed among the holders Of the
present Western Union stock. The capital
stock Of the Western sd un,on Company is to
d@ nG will Ss uss S5s92SoaO of Which
American Union and Atlantic and Pacific Compa-
MES, ana the remaining $l5,526.H90 will be di-
vided among the holders OF the present Western
Uulon stock. who will also receive distribution Of
tho $5S, S55 90 stock now hold "A the Western
Union treasury. All the exchange are to be maze
by the Union Trust Company.
The new W estern Union Company virtually under
takes all the of the other companies, and
particularly the agreement Of the American Union
Company lease two wires IN connection with two
new Atlantic cables proposed 70 be LAID The rights
secured to the American Union Company by
Ohio RAILROAD Railroad Company p 'HG are excepted par;
company's rights under that contract shall be pre-
served. The Western Union Company Is to take
possession on February "a bnt it ia agreed that the
purchase shall date from January and that all
earnings from that date shall be for the account OF
the Western Union Company