The daily gazette., 1883-02-12
ooULDls BIG onAB.
Ne SWALLOWS Up the Mutual Union reIs-
grnhh Company ON Saturday.

graph Company ON Saturday.
A New York special dated Saturday says
The Western Union Telegraph Company has
leased fo1 a term of ninety-nine years the
lines OF the Mutual Union Company, guar
anteeing the interest on the bonds and
annual dividends Of Ia per cent on the
stock. his agreement was approved
by the directors Of both companies
at full meetings of the boards to-day. The
| Western Union directors met shortly after
noon, and the Mutual Union directors an
hour or two afterward No opposition to
the plan was offered at either meeting, and
the approval Of the stockholders of both
companies is expected TO be given with the
same unahimity
The stockholders will not be called to-
gether, but 1t is expected that they will ex-
press their consent In writing. There is said
to be not the slightest doubt that the stock
holders OF both companies will assent to the
agreement at once. BY the terms of the lease
It is provided that the Western Union shall
assume NJ the obligations and contracts of
the Mutual Union, that 1t shall pay the in
tereat on the $4,000, 900 bonds and ~ per
cent. dividends on the SIC, 600, COO share cap
itsl OF thd company, and that 1t shall 0stab-
lish sinking fund Of not less than $780, 900
year towards the payment Of the principal
of the bonds.
These charges amount to S400, 900 year,
the interest to $500, 900 the guaranteed diyi-
dends TO S160, 900, and the payment to the
sinking fund to $50,OO0. The earnings of
the company have been recently at the rate
OF about S1 SOC, 900 q year, and the cost of
operating its lines has been about two
thirds of the gross earnings.
A large reduction In expenses is expected
to be made by the practical consolidation of
the company with the Western Union.
Offices will be united as rapidly as possible
and the number OF operators reduced.
Western Union officers say that the cost
of working the newly acquired lines will
be very small, because that company will
not be Obliged 10 increase greatly It's present
force. The lease Is TO go into effect
Immediately, but the arrangement of
details isllkely TO take some time. All the
existing contracts of the Mutual Union,
both for the sending of press dispatches and
for leased wires, are TO be observed by the
lessee company. The Mutual Union has a
large number of these contracts. The COM
pany's officers assert that all of them are
sources Of profit, but 1t is understood that
few of them were objected to by the West
ern Unidn. No exception was made, how
ever, in the lease.
The Philadelphia offices of the Western
Union and Mutual Union Telegraph Com
p4AhAOsb WhiNh NSic RANuiuAJ
by consent of the directors of the two con-
Germs have yet received no official notifca-
tion of the fact. The officers attribute their
failure to receive notice TO the fact that the
lease was only made Saturday, and there
has not been sufficient time. They expect
official Information to come along in day
or so after all the iormalities of the pur-
chase baye been attended to, and the stock.
holders of both companies have in
dorsed the action of their directors.
The Lease of the Mutual Union by the
Western Union appears TO have caused no
surprise among the telegraph men. They
were looking forward TO the former being
swallowed every day, and now that Gould
has finally succeeded in sucking up his most
energetic and dangerous competitor, they
claim credit for prophetic foresight.
IL is understood that the Mutual Union
office In this city will be closed In about two
weeks.