New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-30
CONTROL OF MUTUAL UNION.

VIRTUAL END OF TELEGRAPH RIVALRY.
A MAJORITY OF THE CoMPANY's STOCK BOUGHT IN
THE INTEREST OF THE WESTERN U.IoN CON-
PANY.
The control of the Mutual Union Telegraph Com
pany has passed into the hands OF friends OF the
Western Union Company. and the two systems Will
be operated hereafter in complete harmony.
No attempt to unto the companies
more closely will be made Mt present, but, by
securing control of the rival line friends of the
Western Onion have removed all danger of active
opposition to that company. The negotiations.
which were brought to successful
issue last night, have been in pro-
gress for several months Jay Gould has
bought 80, 800 shares of Mutual Union stock. and
George F. Baker, president of the First National
Bank and George S. Scott enough more stock
to make the whole amount $1,000 shares. The en-
tire capital stock of the company is 10,000000, 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 Company lhe
agreement was signed last night. The $1,000
shares of stock have heen placed in one pocl and,
under certain restrictions, will be used to insure
harmony between the two companies The litigation
in which tho new company has become involved
is to be discontinued. The lines of the company
the present management but only so far as the ex-
tensions will he to the advan age OF the western
Union. The business Of the new company VIII be
developed 10 the full capacity of its lines so
far as they NAV be considered part of one vast
system. In effect, the lines of the Mutual Union
Compaany VIII If be be 1Rerated Precsey se as 'hey
The new board of directors Of the Mutual Union
Company, made necessary by the change Of owner.
thclold Board George William Ballou the vice-pres
dent, Charles +. Peck, the secretary, and George r.
Baker will remain. John G. Moore, me head Of OF
the firm of -, con raelors which ,o built
the Board and the president OF the
company. II, c. Fahnestock; vice-president of the
f. ConnOr and Granville NJ Dodge will become dl-
rectors Jay Gould had not consented last night TO
take seat in the Board but was a 6eeyed Tsn fnat ne
was believed that the place would be given TO
George S. Scott. In this management the Mutual
Union Company retains nominal majority OF me
directors, but the agreement between Mr. Gould,
Mr. Baker and Mr.. Scott places the practical control
of the company in their hands. The new directors
will be elected at a meeting to be held to-day.
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
its most earnest promoter. Other amounts
of stock are understood 10 have come from George
William Balou & Co.. the fisca agents g OF the com
tors. The price paid for the stock has not been
made known, but it was considerably less
than $40 snare, or less imah
5000 for the whole $4,000 shares. The
purchasers also secured a considerable amount of
the company's bonds estimated at nearly
81 600. 900 at their face value. The purchase prce
for these bonds will put nearly 81 0OO0 in money
in the company's treasury This is almost equiva-
lent to SO share on the entire capital
stock. The share capital was increased
to 900 600 last fall, but il IS understood that
only one-half of this amount was offered to public
subscription to accompany tho &5.000,000 first
mortgage bonds which were issued last year.
Referring to the transaction, a prominent friend
of the enterprise said last night: The price
very low one, it is true, but the company gains
relief from litigation, and, after all, the bargain
will prove to be good one for both companies"