The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1882-04-01

r,osoRyp NEGOTIATIONS BETWEEN THE MI
svAL UNION AND WESTERN UNION CohPA-
MIS-.
NEW YORK, March 29.--It has been posi-
lively said to-day. by persons who are In q
position TO know, that negotiations Tor q
harmonious operation Of the Western
Union and Mutual Union Telegraph
Companies have been concluded. In
what way they originated could not be
ascertaincd, but ii Is understood that they
first developed into the requirement by
some one acting IN the interest OF the West
ern Union OF an option TO control by
purchase and otherwise majority OF the
capital stock Of the Mutual Union Compa-
nv. The capital Is s10,000,0OO, OF which
s8OO. 900 Is original stock. or the remain
der IS. 0OO, 900 was offered to the public last
spring upon the terms that each subscriber
To ten shares OF the stock should receive as
a bonus a $1,000 G-per-cent. bond. The
disposition OF the balance OF the stock was
not stated, but il is understood that most
OF 1t was to go to the contractors who have
built the company's line. When the com
many was nearly ready to issue its stock to
i,s subscribers, they having paid up their
subscriptions and received the bonds to
which they were entitled, it was prevented
from doing 30 by an injunction obtained
by Pliney Babbitt.
The subscribers are now awaiting the re-
suit OF the Babbitt suit in order to obtain
The stock to which they are entitled. A
majority of the stock-the amount is said
10 be little over 5l,000 shares--has OF late
been in the custody OF the First National
Bank OF this city, the president OF which,
Mr. George T.. Baker, Is d director OF the
Mutual Union. An option to control these
shares was obtained by some one repre-
senting Western Union or Mr.. Gould.
The holder, 1t is asserted, availed himself
OF IL to-day. The general terms OF tie
transaction are understood to be as fol-
lows: The purchase outright of the greater
part OF the $1,000 and a contract on the
part OF the owner or owners OF the balance
TO deposit the same in trust and vote upon
it in accord with the block purchased.
The amount purchased Is also TO be held in
trust either for the Western Union or those
most interested In that company. The lines
OF the Mutual Union will under this ar
rangement be operated in harmony with
the Western UniOn-possibly by 1t, for a
certain percentage OF the earnings. 1t Is
understood that the business OF The MI
tual Union insures not only the interest
on its S5,OG0,0O0 OF bonds, but indicates
dividend on the stock. AS a re-
suit OF the deal it is predicted that
within few days the Mutual Union Board
of Directors will be changed and completed
by the substitution OF the following names
A. L. Hopkins, yice-president OF the Wa
bash Pacific railroad; Louis Fitzgerald,
president OF the Mercantile Trust Com
pany; George A. Scott, president OF the
Iron Steamboat Company; George j.
Gould aud Washington Il. Common, all Of
who are identified with Dir. Gould's enter
prises. The Mutual Union Telegraph
Company was started about two years ago
by the late John o. Evans, who up 10 the
time of his death, last winter, was its
president, to build line of wires between
Boston and Washington 10 be leasedfor pri-
yate use. About a year ego, inspired by the
Of the American Union, the
decided to increase its capital and
build q. general telegraph system. 1t has
pct up about $1,000 miles OF wire, reach
ing ali the principal business centres north
OF the Ohio river and west Of the Missis-
sippi, and opened about $50 offices. IL has
competed with the Western Union at all
points where its most profitable business
was obtained. Among the probable re-
suits of the deal are the dissolution Of the
Rabbit injunction and the listing OF the
Mutual Union securities in the Stock EX-
change. Special 10 Philadelphia Times.