The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-13

The TeIeg rnph pmpanies 10 be Con
aOlfdat ted.
WESTERN UNION, AMERICAN UNION. AND ALLAN
TIC AND PACIFIC TO BECOME 0NE--MR. VAN
DERBILT's CONFIRMATION or THE REPORTS
CURRENT Is WALL STREET.


New York Times, l2thJ
There seems TO be little doubt, notwitb-
standing Mr.. Jay Gould's positive denial OF
Monday last, that not only are negotiations
for the consolidation OF the Western Union
aud American Union Telegraph Companies
in progress. but that the terms are pracii-
cally agreed upon. As far back a. Mon day
OF last week mysterious heavy pur-
chasing movement in Western Union
stock began on the Stock Exchange.
On that day 11l,OO0 shares changed
hands, and since the movement be-
gan the aggregate dealings In the stock have
amounted to G76,l0 sbareS-much more
than The entire capital Of The company. The
market-value Of the stock, " hch had been
greatly depressed by reports Of large sales
bv Vanderbilt and the other directors. and
OF probable ruinOus war OF rates with the
rival line. rose steadily from 81. the price
at which It was quoted on December 3lst,
TO lO3. AZ which rate it sold at one time du-
ring The dav yestPrday--an advance OF 2l5
per cent. Atlantic aud Pacific Telegraph
Company's stock did not begin TO move I'M
iii two DAYS later. and American Union
Telegraph stock until Saturday last. The
advance recorded in The latter has been 16
per cent.-frOm 10 10 S6-and IN the former
per cent.-from 33 TO 40.
Ii was not until toward the close OF last
week that the reports Of
PROPOSED CONSOLIDATION
became current in explanation Of the move
ment, and it was only on Monday las that
thew assumed definite shape. 1t was then
reported that Gould and Vanderbilt bad had
a conference on the subject on the previous
fol
but Mr.. Gould, being questioned on the
suhiecr, said the story had no foundation,
and, moreover, that there was no truth in
the statement that negotiations were in pro-
gresS. jude Green, president OF the
Western Union Company, refused to be
seen, and the brokers generally were not
disposed to put much faith in the reports.
Yesterday, however, rumO.s OF con-
sOidatOn were thicker than ever,
and were generally credited. Mr.. Gould
declined to be interviewed at his
office, but Il prominent broker, who has
been closely connected with him in business
for many years, said that ~ his opinion
there was some basis for the story, and vol
unieered the statement that the terms would
prObabIv be par TO the Western Union
stockholders, 30 per cent. to the American
L
Atlantic and Pacific stockholders in new
stock 10 be Issued by the consolidated COM
pany. Another broker, whose information
can always be relied on when he chooses TO
speak. said that while waking down Fifth
avenue on Monday evening he saw jay
Gould and General Eckort, president OF tue
American Union Company, enter Mr.. Will
liam II. VanGcrbil'> house. General Eckeri,
when approached subsequently. said he
knew nothing about the proposed CONSOLE
dation, and Judge Green sent out from his
private Office a similar answer to a written
question.
\ Times reporter called on
MR.. VANDERBILT
last evening ard inquired H. to the truth Of
the rumOr OF Ihe consolidation. II was
then about : O'Clock, and Mr.. Vanderbilt
said: "Thc negotiations are in progress
and will probably be completed tonight"
On being asked whether The stock basis OF
consolidation was ~ reported, Western
Union at par, American Union at 90, and
Atlantic and Pacific at IL, Mr.. Vanderbilt
said he "couId not say anything as to
the basis, bccau>e The negotiations
had not been concluded" Later In
the evening the reporter called again.
but Mr.. Vanderbilt was engaged, and
could not be seen. 4 meeting was then
beng held al his house, which lasted from
s L. NJ. until aitel IL O'Clock. There were
present at the conference Mr.. Vanderbilt,
JAY Gould. Augustus Schell. Samuel f..
Barger, and her gentlemen, some seven or
eight in all, but no details Of the result OF
their negotiations could be obtained. MI.
Gould, alter the conference had closed, de-
cined 10 talk with a reporter who attempted
to obtain information from him. All he
would say was thar he ''cOuld not answer
any questions las, night
The capital stock If the Western Union
Company according To the report issued in
October last Is S4l.G13.4 40. OF which $685.
$3.50 are in the cOmpany'S treasury. It's
bonded debt. less sinking funds, amounted
then to 5000, 229.6i, aud it owned stocks
OF other telegraph and cable companies II Il
market value Of nearly $1,000, 900. Among
these are 1l,00O ShareS-abOut nVe-eighths
OF the capital stOck-of the Atlantic and
Pacific Telegraph Company. with which IT
was practically consolidated on August 20,
1877.
THE TERMS
OF the consolidation were that each COM
pany should maintain IT. own plant, and
that the Western Union should receive SO
per cent. and the Atlantic and Pacific l23
per cent. Of the gross earnings OF both.
Tue American Union Company was lncOr
porated April %, 1879. with capital stock
of Sl,000,000, the great bulk OF which Is
owned by Mr.. Jay Gould personally.
The lines we're opened on January 2Gth Of
last year. Meantime. Notwithstanding con-
tiuual obstruction and litigation, a large
and valuable plant had been secured,
making the new company the most IOrmid-
able rival the Western Union Company had
ever encountered. Recently contracts were
entered into for the laying Of two new ca
bles between this country and Europe, to
connect directly with the new company :
land lines. which now extend all over tue
United States. A. Il result Of the compcti-
hon thus created, there has been i large re-
duction in tariff rates by BOTH cOmpanie>-
q benefit OF which the proposed conSOlda-
ton will probably deprive the public.