Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-10-05
A NOVEL CONTRACT.
The Western Union Telegraph COM
pany to Have a Monopoly Of the =.
Distribution of the
Chicago Board Of Trade Quotations
A Great Advantage Gained Over
Competing Lines.

CHICAGO, October 3.-The Western
Union Telegraph Company is TO have
monopoly of the distribution of the Board
OF Trade quotations. The directors have
almost completed negotiations with the
telegraph company, whereby, in consider
alton of the payment by the latter of $l0,-
600 per annum to the board, it will be
given the exclusive right to collect these
produce quotations and to distribute them
over the world. The contract is a novel
one. No exchange in the world, it is
claimed, ever entered into & similar one.
1t will give the Western Union great ad-
vantage over the other companies that
compete with it here.
The contract has been the subject of
much controversy. and is really the chief
reason why Mr.. Charles Randolph has
handed in his resignation as secretary. 1t
is the last resort, which expected to end
the war of the Exchange upon the bucket
shops. Some months ago it was proposed
as an amendment to the rules of the board
that it should devise machinery for col
lecting its own market quotations, should
engage its own operators, and should dis
tribute the quotations to persons of whom
it approved.
A committee was appointed, consisting
OF Directors Bryant, Ball and Sidwell, to
carry out the scheme. 1t was found that
it would be necessary to engage at least a
dozen market reporters and clerical force
even larger than that already in the en-
ploy of ti.e board While tie officials
were considering the difficulties of their
scheme the Western Union made a prop
osition to carry out the plan, not only Of
fering to acceptthe conditions of the board
relating TO the bucket-shops and other OBJ
jectionable persons, but even to pay
$4,000 for the privilege.
The offer was taken under consideration
and finally accepted. 1t is expected that
the contract will be closed next Tuesday
at the regular board meeting If it is
closed, Secretary Randolph's resignation
will be accepted. If, on the other hand,
Secretary Randolph's resignation is with
drawn, the world may take it for granted
that the negotiations with the Western
Union, which were all but completed,
have been broken off.
The scheme is of more than usual public
interest Tho Baltimore and Ohio the Mil
waukee and the Postal Telegraph Compa-
MES all collect now and distribute to their
customers their own market quotations.
They will be debarred from this privilege
when the contract with the Western Union
Is signed. AS very large revenue is de-
rived from this class OF business it is not
likely that the competitors of the Western
Union will accept the situation grace
fully. This, however, is only one feature
of the proposed contract. 1t is stipulated
that the company shall keep list of the
customers to whom it proposes to sell the
quotations, and that this list shall be open
to the inspection of the Board OF Officials.
This condition is to compass the downfall
of the bucket-shops. No stipulation, how
ever, is made as to what the Western
Union shall charge for the quotations in
which it will have a monopoly.