The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-01-19
End of the Struggle Between the Western
Union and the American Union Tele-
graph Compauies.

NEW YORK, JaS 1.-THE terms of the consoli.
dation betweeS the Western Union and the
American UniON Telegraph Companies have been
agreed upon andthe preliminary papers signed,
The Evening Post says OF the union of the Tele-
! graph Companies, that rumOr has ii that new
stock Will be issued, Western Union stock going
into the new Company at par, American at par
and Atlantic and Pacihc at 30 per cent each In
proportion; that the plan then will be to turn the
! Company over to the Government. The Graphic
says: 1T is understood the combination was ef-
fected the basis of $50, 1900 capital for the
the new Company, OF which the Western Union
is to have S5S 0O0OC0 the American Union SIS, 600
600 and. the Atlantic and Pacific s7.OO0,O0O
The present capital of the Western Union is about
sll eco 600; OF the American Union, S15, 600 00O,
and OF the Atlantic and Pacific SI4 900 900 Thus
il will be seen that the Western Union gets scrip
dividend of 10 per cent, the American Union
goes in ut par and the Atlantic and Pacific is put
In at so per cent It is undenlable that this move
ment has been engineered throughout by Jay
Gould. who to-day holds vastly preponderating
control OF the entire telegraph system OF the coun-
| try. Ii is movement in which he has checkmated
his opponents completely, and il is estimated his
profits viii run up into the millions The pres
ent movement in telegraph stocks was begun in
the latter part OF November by Vanderbilt, who
run the stock up from about par to l0i15, TO ell
able nm to unload, whlch ne dld ali inc way
down TO CO. as he said the preparations the rival
line was making for Al severe aud protracted COM
petition. From 60 the stock was carried down
some lS points by Gould's short sales. The spec
ulatiye movement lay dormant for a few days,
but assumed activity by the sale of one block OF
1000 shares at 7S1s, seller sixty days. and
another OF lOUJJ shares. on similar optlOn. NJ
The street was Ioystifed to the purport of the
transaction but spectators generally were
induced to put out heavy lines of
shorts. From this point the stock
began TO advance, and immense transactions
were the order OF the day. There Is little doubt
but that Gould and Vanderbilt have been acting
in concert in the buying movement. although IL
Is believed Gould is by fa- the largest buyer, as
he appears TO have dictated the settlement of to-
day. The first section OF the new American
Union cables VIII probably be laid in May next,
NOVeIl-
Der. Whatever is the upshot of the amalgama-
ton project OF the 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 10 the increased de-
mand for more cable facilities. The old Cable
Companies have offered the projectors of the new
cables every inducement TO discontinue work.
The cable stock is at premium of D per cent
| From trustworthy sources II Is learned that the
general plan of the consolidation is as follows:
The consolidated Company is to retain the title OF
/ the Western Union Telegraph Company. with u
capital of $50, 1000. To perfect the Company
a certificate of incorporation with
a capital fixed at that amount is 10 be filed. The
shares of the several Companies are 10 be merged
In the consolidated Company, at valuation OF
about 129 for Western Union. 1874 for American
Union. and 663 for Atlantic and Pacific This means
practically a scrip dividend of % per cent, on
Western Union aud Is per cent. on American
Union. making the capital OF the first, in round
Figures, s0Soo,ooo. The capital OF the