The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1882-03-31
THE TELEGRAPH MONOPOLY
Mutual Union Controlled by the Western
Union.

1t is reported that the control of the Mutual
Union Telegraph Company has passed into the
hands of the friends of the Western Union
Company, and that the two systems will be
operated hereafter in complete harmony. No
attempt to unite the companies more closely
will be made at present, but by securing con-
troll of the rival lines friends of the Western
Union have removed all danger Of active oppo-
sition to that company. The negotiations
which are said to have been brought to sue
cessful issue Wednesday night, have been in
progress for several months. Jay Gould has
bought SO 800 shares of Mutual Union stock,
and George f. Baker, president of the First
National Bank of New York, and George
S. Scott, also of New York, own
enough more stock to make the whole amount
$1,000 shares. The entire capital stock of the
company is $10,000,000, SO that these three
men own an absolute majority. They have
united in an arrangement by which the
Mutual Union will be operated entirely in the
interest of the Western Union. 1t is reported
the agreement was assigned Wednesday night.
The 1000 shares of stock have been placed in
one pool, and, under certain restrictions, will
be used Ito insure harmony between the two
companies. The litigation in which the new
company has become involved is to be discon-
tinued The lines of the company are to be
extended in accordance with the plans of the
present management, but only SO far as the
extensions will be to the advantage of the
Western Union. The business Of the new
company will be developed to the full capacity
of its lines, and the Mutual Union Company
will be operated precisely as if it formed part
of the Western Union system.
The new board of directors of the Mutual
Union Company, made necessary by the own
ership, had not been fully agreed upon
William Ballou, the vice president, Charles F.
Peck, the secretary, and George F. Baker will
remain. John G.. Moore, the head of the firm
of contractors which built the lines, will be-
come member of the board and the president
O I the company. H. G. Fahnstock, vice pres
ident of the First National Bank of New York,
G. j. Gould of Washington, E. Conner and
Granville M. Dodge will become directors jay
Gould had not consented to take seat in the
board but it is believed he will do so. In case
no should decline, it is believed that the place
would be given to George s. Scott.
In this management the Mutual Union Com
pduy ICbAiho 4" hoHAnnA noIViicy VI ulTeCtoIo,
but the agreement between Mr.. Gould, Mr..
Baker and Mr. Scott places the practical con-
troll OF the company in their hands. The new
directors were to be elected at meeting to be
held yesterday.
The bulk of the stock secured in the interest
of the Western Union was obtained from the
estate of the late John o. Evans, who was the
original president of the company and its most
earnest promoter. Other amounts of stock are
understood to have come from George William
Ballou g. Co., the fiscal agents of the company,
and from John G. Moore & Co., the contract
ors. The price paid for the stock has not been
made known, but it was considerably less than
ten dollars share, or less than 5000 for
the whole. $1,000 shares. The purchasers
| also secured a considerable amount of the
| companys bonds estimated at nearly $1,000
| 900 at their face value. The purchase price
| for these bonds will put nearly 81 100000 in
| money in the company's treasury This is al
most equivalent to ten dollars a share on the
entire cepital stock. The share capital was
increased to $40, 100000 last fall, but it is I'M
| derstood that Oh ly oHe-half of this amount was
| offered to public subscription to accompany
the So, 000, 600 for mortgage bonds, which were
| issued last year.
Referring to the transaction, a prominent
| friend of the enterprise said: 1.-THE price was
| very low one, it is true, but the company
| gains relief from litigation, and after ali the
| bargain will prove to be a good one for both
| companies"