Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-07-12
JAY GOULD AND THE CABLES.
The Western Union Obtains a
Monopoly of Cable Land
Connections

the District United Cable Company
(llmited) a sufficient number Of
wires for the performance of
its business between New York,
Boston, and the American ter.
minus OF the cable at Rye Beach. N.
IL When the Jay Gould party OBJ.
tanned control Of the Western Union,
one OF It's first acts was to serve notice
on the cable company of a determine
ton to terminate the contract by which
the Rye Beach and New York wires
were leased. Pending the expiration
Of the notice, Jay Gould's American
Cable and Telegraph Company" came
into existence, and Immediately there
was a pooling arrangement entered
into between the two organizations,
one of the important stipulations being
that the Western Union Telegraph
Company is to have monopoly of all
the land business OF both cable com
panies on this side of the Atlantic.
and receive therefor a certain rate per
word. By this arrangement the Office
of the Direct Cable Company, at No.
III State street, was closed to the
public on Saturday, and the Office
of the company in New York
was also closed, and the EN-
ployes in both places notified
that their services were 20 longer re-
quirsd. The Direct Cable Company
Is the only one that has maintained
separate Offices for its patrons, and
they will not be likely to relish the
curtailment Of accommodations which
will ensue by this arrangement. Most
of the Boston and New England for
eign business transacted over this line,
and the system of operating employed
on 1t is little, if any, slower than that
on most of the land lines OF the coun-
try. The company was originally
formed in 1873, but the cables were
not laid until two years later, and
business was begun September IL, 1875.
The cable extends from Rye Beach,
N. H., to Ballingskelligs Bay, County
Kerry, Ireland, and has total length
of about three thousand nautical
miles. 1t is laid in two sections, the
main section being about 2450 miles
from Ireland to Torbay, N. s., and the
other section about $50 miles from
Torbay to Rye Beach. The company
started business with a tariff Of %
cents per word, but this lasted only a
fortnight, and the earnings under this
rate were unsatisfactory. The cables
we're interrupted on several occasions,
and in November, 1875, the tariff was
raised to 70 cents per word, but again
reduced in March, 1877, during com-
petition with the Anglo. American
company, to % cents. During the
whole of this period the financial re-
suits were anything but encouraging,
and no dividend whatever was paid to
the shareholders, nor was anything
placed to reserve. This led to re-
construction of the company, and a
joint purse arrangement was made
with the Anglo company, the 75.cent
tariff being resumed. The tariff has
since been varied, in consequence of
further competition. Joint purse
arrangements have also been entered
into with the French Cable Company,
and with the recently formed Ameri.
can Telegraph and Cable Company, and
the tarlffuow established is 90 cents per
word. The shareholders have every
reason 10 be- satisfied with the man
agenient Ut the company, seeing that
sluce It's reconstruction in 1877, a
dividend at the rate of 5 per cent has
been regularly paid, and substantial
reserve iund accumulated. In its
recent joint purse arrangement the
c0mplny has secured strong alliance
with the Western Union Telegraph
Company, which owns and controls
nearly the whole of the telegraph SER
vice throughout the United States of
America aud Canada. The instru-
ments exhibited at the Crystal Palace
in London, on the occasion of the
electrical exhibition, formed a very
interesting collection, and showed the
manner In which the company's entire
system is worked between London,
Liverpool and New York. On the
land lines on the English side
OF the Atlantic the ordinary
Morse printer is employed, while
on the land lines on the American
side the ordinary American sounder
is in operation. Over the main sec
ton OF the cable the mirror apparatus
of Sir w. Thompson is used, and over
the short cable there is through work
ing between Torbey and New York
with Allan & Browns relay and the
aid Of manual translating apparatus at
Rye Beach. Both cables are worked
with MuirEead's duplex apparatus,
which has been the means of increas.
ing their capacity to very considsra-
bic extent, giving, in fact, additional
transmitting power throughout equal
to second cable. From the
above it will be interesting to note
that there is actually only one
transmission between the shores
of Ireland and New York city,through
direct working between Torbay and
New York city having been establish.
ed since the introduction of the Allan
and Brown relay. The result Of this
has been considerable acceleration
in the time OF transmission, which has
been greatly appreciated by ne public.
As illustration of the speed of the
Direct Company's system, it may be
mentioned that ever since The compa.
ny has been open for business, The
results of the Oxford and Cambridge
boat race, the Derby, and other i'm.
portant sporting events in which
Americans take the liveliest interest
have reached New York and Boston
within thirty or forty seconds after
being handed in at the company's Lon
don ylice.