Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-01-13
Aancaster ftltellssellrer.
thursday EVENING, JAN. u, 1881.
The Latest Swallow.

The Latest Swallow.
The existing lines of telegraph are
about being consolidated into one
process which has MANY times been re-
peated to the great disadvantage of the
public. The Western Onion has taken
within its capacious NAV other compa-
nies too numerous to mention, and in the
process has swelled its stock almost to
bursting. There was an impression
lately that the bursting point had been
reached and that the corporation would
not be able to distend itself to swallow
its latest and biggest rival, the American
Union, which. has been built up by the
immense capital of Jay Gould. 1t
seemed that this young and vigorous
rival, whose capital was SO much smaller
than that of its unwieldy opponent, was
about to deal it its death blow and so it
would in the natural order OF things.
Anyone can see that company which
has equal capaoity for business rs the
Western Union, with very much smaller
capital to pay dividends upon, can do
business profitably at a much lower rate;
which is a very good thing for the new
company and the public, but bad for the
Western UniqL +
But the owners of the new company
found that they had better thing for
themselves in wrecking their company
than in floating it. After using the solid
argument we have named in favor of
their stock, for the purpose of breaking
down the price of Western Union, Mr..
Gould goes to Mr.. Vanderbilt with an
offer to consolidate; and upon their Sc
cret knowledge Of their agreement to do
10, they and their friends buy great
quantities Of Western Union stock and
make large and quick profit
by what they deem their shrewd-
ness. They expect further profit
perhaps in the rise of the joint
stock, although this is hardly reason
able expectation, since no wise person
would invest in Western Union stock
watered by heavy increase Of litho-
graphed pictures, printed to pay for the
lines Of the American Union and Pacific
and Atlantic companies, that are but
dead stock in hands of the Western
Union, which has lines enough of its
own. The new stock is near
ly pure water, representing no value
but the bought-off opposition of the
other companies and that is but tenn
porary advantage, as year will not
elapse before new company is started
to make fresh strike" by black-maii-
ing the old company. For many years
there have been men who have made it
their business to start mushroom compa-
nies for the purpose of. being bought out
by the Western Union; and they have got
rich by their trade. In these days such
an attempt, to be successful, must be
backed by very large capital to enable
it to offer serious rivalry. But for such
q certain prospect of reward capital can
always be had in any quantity and con-
sequently Western Union will never be
able to rest in peace. but must be ever
ready 10 swallow, until it's hide gets too
thin to stand the strain. Then its only
hope will be to saddle its property upon
the United States.
It may be that the proposed talk of
consolidation is only for stock -jobbing
effect, and that after the lambs have
been feeced the wolves will cease their
truce and 60 again at one another's
threats.
The ways of these men are past find
ing out. Gould and Vanderbilt can only
be judged as natural thieves. This is
their nature, and it is safe to assume
that they are equal to any meanness. Men
of ordinary honor, possessed Of their
wealth, would be content, at least, not
to seek to increase it by fraudulent
devices and by concocting secret schemes
to swindle their fellow stockholders. It
may he, now, that when they have run
the stock of their telegraph COM
panies up to a high figure, they
will step out and let it drop, to
the undoing of the stupid ard confiding
public. These men make their fortunes,
like the patent medicine venders, out of
the folly and gullibility of the public.
This present rise in the telegraphic
stocks is good illustration of it. Why
should they rise because the companies
have combined The ready answer is
because monopoly in the business is
established. But the wise man, re-
flecting how often before this
monopoly has been created only to he
quickly shattered. and realizing that the
increased capital of the Western Union,
required to gobble the other companies,
will have little of value behind it but
lot of telegraphic material that is now
comparatively useless, will reflect that
the stock Of the bloated company is in
trinsically worth less, instead of more.
And when further it is evident that it is
being manufactured by set of black
legs and card sharps, it is only the SIM
pie one who will offer himself as their
victim.
Mr.. Quay sits at Harrisburg directing
the battle of the present state ring for
Mr.. Oliver. Mr.. McManes, of Philadel-
phia, sits with him, with his wings clip
ped and acquiescent in the plans of the
old Goccoc Of vrhono ho Ivac 1ato1v ou,hi