New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-05
ACTION OF THE NEW MANAGEMENT.

attention of the public yesterday. Various rumors
were aloat as to the composition of the
new Board of Directors. A report that
William Ii. Vanderbilt, Cornelius Vanderbilt, Ham,
ilton Mex Twomby and other representatives Of
what is known as the Vanderbilt interest IN the
Western Union Board of Directors. were to resign,
IS understood to be correct. Mr.. Vanderbilt goes
ont in accordance with previous arrangements, and.
1t is said. with the purpose Of retiring also from
prominent positions. sOOD, in other corporations. Jay
Gould, Russell Sage, Washington T.. COnnor, Sidney
Dillon. Thomas +. Eckert and d. II. Bates. with
some other of Jay Gouds friends are to be elected
to fill the vacancies.
In answer to an inquiry as to whether the changes
in the directory had taken place, President Green
of the Western Union SAID yesterday The pro-
vision for the representation of Mr. Gould and his
friends in the Board is matter for the future"
Another person who is interested in the new COM
pany said 1.-The actual changes in the Board have
not yet taken place. but new directory with Nr.
Gould in control is only question
of a day OF two. The composition of tue
Executive Committee is already satisfactory
to Mr. Gould. Ex-Governor Morgan will remain in
the Board and the permanent officers will probably
be DR.. Norvin Green, titular president; General
Thomas T. Eckert first vice-presdent and general
manager, with full control Of the entire manage.
ment of the company, and d. H. Bates. second vice.
president, with w. b. Somervllc i'll charge OF press
matters.
The details of the meeting of Thursday have not
been made public. President Green said Yesterday
that it was not the policy of the company to make
public its contracts, and no departure wonld be
made in this case. Another director said the Darc-
ulars of the recent transactions of the board were
an executive secret only To be divulgeI by resou'
ton of the Board. Russell Sage said there had been
no election of new directors. Jay Gould refused 10
say anything Other persons were equally retcent.
LEGALITY OF HE CONSOLIDATION.
There was a good deal of discussion as to whether
the consolidation had been legally effected. The
law requires that the consent OF the stockholders
shall be given " at public meeting duly called for
the purpose" Rufus Hatch and others claimed yes
terday that there could have leen no public meet
ing on Thursday as theY were stockholders and
had certainly received no notice OF any such
meeting.
son OF Dr. Green, said 1--WE had the consent of the
necessary three fths of the shares in each company,
and as that does away with the necessity for twenty
days notice under the law, do not see how the
legality the consolidation he questioned The
companies acted under the best lesa advice
Among the many rumOrs yesterday one was 20 tho
effect that a new Western Union Compiny' had
been organized under the laws Of Nrw-Jersey and
that the business OF the combined companies would
hereafter be transacted under this new charter.
President Green said there was 10 truth in this
statement Another rumor that the main Offices of
the Western Union Company wOuld be removed to
Boston was pronounced absurd"
TERMS or THE UNION.
The general terms of the consoatIoh have al
ready been published IN The Tribune. There will
be new issue of the entire stock OF ,O0OO,O0O OF
the Western Union Company, all tie old certificates
of the three companies being called III. The stock
of the American Union and the Atlantic and Pacific
will go into the Western Union treasury fast as it
il exchanged and will there with that OF the
sixty other companies which have been purchased
or leased at different times. 1t will be removed from
the lists of the Stock Exchange at tr expiration OF
the notice, which on February - VIII allow the
extra issue of stocks TO be placed on the market.
INTEREST AMONG IIIE EMPLOYEES.
There Was much concern expressed among tho
employees yesterday TO know what would
be the effect of the combination upon them. The
competition of the American Unon Company with
the Western Union has had tie effect Of increasing
the wages of operators ab0u; Sl5 "A month. Many
of these employees fear reduction III pay
in consequence of the consolidation, while there
is general belief that the force VIII DO
largely reduced IL is probable, however 80 far as
the operators are concerned, that there VIII not 10
much If any reduction in the force President Green
said the executive offices would all be concentrated
into the Western Union Building AT once; Other
changes would be made the Interests of the COM
nany aud the public require Them The rapid
increase in the business oi telegraph
ing however. would give full employ
ment to all the wires of the company lhe
number of messages sent over the Western Union
wires in 1873 was l4,456, $50, and the profits OF
the company were $2,7570G2 o. In 1851
% 215 800 messages were sent over lts wires, al
nr1Tt TO the company of 50 S}3,037 20. The de-
mand for new wires, instruments and other ina
terlals is constantly increasing ,-,
One of the effects OF the consolidation was SHOWN
Yesterday IN the operating rooms OF the Atlantc
and Pacific Company. In addition to the regular
a large number of surplus messages sent over from
the Western Union office. The MAN Offices oil !he
American Union and Atlantic and Pacific VIII DO
retained III their present condition Tor tiine as tno
companies have long leases OF the buildings Inc
wires however, will be connFeted gradually
tn trated in'V there. Some Of the br,uch offices
which are not needed for public convenience Will be
DR.. Green said there would be little change in the
rates at present There would be an equalization OF
charges to points where competition had redaceo Sa
the rates below paying basis. Tue city rate Oh ~
cents he thinks is low enough. while the locent
rate to Philadelphia is too low to be profitable;
when all the wires are run INTO the estern Union
Is abolished, the business can be done more promptly
than now,n said ce-President Van Horne yester-
day. and at large 81 Messages sss due in many
cases now to lack of sufficient time, nus
can be made direct hereafter, when wlii zoe . gam
in time as we'll as o saving IN cost IT. not tue n-
tsntion or expectatOn TO increase rates, except IN
few cases where they are now exceptionally iow.'
Rufus Hatch said he would 90 with his counsel to
the meeting of the Western Union stockh9IIoers 3Ioe
called for to-day and to that Of the American Union
caIIed for Monday, although 1t is possible that no
such meetings will taxe place. the business hsying
already been transacted for which they were called
nniess a new director should be elected. Mr: Hatch
said be would continue the fight against tho Western
Union and American Union Companies. and ne ex-
pected that there would be " music IN tile AIR yet.
COMMENTS IN THE STREET.
Many merchants were severe yesterday in their
criticisms upon the consolidation. IL was asserted
By some that there would now be u strone move