Savannah morning news. [volume] (Savannah) 1868-1887, 1884-10-09
WESTERN UNIONS REPORT
TEE CONIPANY'S LAST FISCAL
YEAR ONE OF PROSPERITY.

@6,6IO,435 in Profits in a Twelve
Month-The Surplus June 80 S4,I57,-
s69-The Strike Estimated to Have
Cost the Company 81 OOO,OOO-Divi-
dends of Only 6 Per Cent. Recon-
mended for the Present Year.
NEW YORK, Oct. Sat the annual
meeting of the Western Union Telegraph
Company to-day President Green pre-
sented the report for the year ended June
30, 1884, which has been approved by the
Executive Committee. He said that the
capital stock was $4,000, 600; bonded
debt, 1924 ,456; sinking fund apprOpria-
ton not yet used for the redemption of
bonds, $500, 1852. The statement of the COM
pany's business for the year is as follows
Surplus July l, 1888, $3,65S, ,553; reve-
nues for the year ended June so, 1884
$l9,632,9 ,939; expenses for the year ended
June 80, 1884, $13,022, sos; profits, $6,610,-
435; total, $10,26S,9 ,9SS. From which
was applied for dividends, $5,599, ,179;
interest on bonds, $472, $50. and sinking
fund appropriations, $39,991; total, So
111,520; deducting which leaves a surplus
June 80, 1884, of 81, 157, 469, represented as
tollows Surplus of net revenue for the
year over dividends, interest and sinking
fund appropriations, $49S, S,915; surplus at
the commencement of the year as above,
$3,65S, ,553; total, $4, ,157, ,469. The expenses
for the year were: For operating and
general expenses, $9.27S, ,761; for rentals
of leased lines, ST, ,S42,6S9; for maintenance
and reconstruction 81, $50, AL; for taxes,
$3Ol, ,O77; for the equipment of office and
wires, $249,52S; total, $l3,022, ,503.
THE COST OF THE STRIKE.
The gross earnings were increased over
those of 1888 by SITS, 900, but the expenses
were much heavier, owing to eXtraOrdi-
nary expenses in maintaining and oper-
ating the lines during the strike, the ex-
penses being nearly if not quite $500 200. 1t
is believed that the total loss by the strike
was nearly $1,000,0O0. Despite this and
sharp competition the net profits have
paid Z per cent. dividend, interest and
sinking fund expenses and added $49S,91
to the general surplus. The company has
sold none of its telephone stock,
the earnings of the latter having
been so disproportionately large as
compared with the price offered.
These securities will probably rapidly adj
vance in value with the rapid growth of
this business. The cOmpany's policy
continues to be conservative reduction of
rates. These reductions always result in
an increase of revenue three or four
months later, though competing lines
claimed to have tapped rs per cent. of the
Western Union revenue, yet it appears to
have lost nothing, and has even increased
its earnings. The report concludes:
1t is confnently believed by the manage
ment that we shall be able TO maintain our
revenues for the next year, and that with a
material reduction of expenses. yielding a
handsome increase of net profits. Neverthe-
less, IN view of the continuing necessity of
extending the lines and adding wires to meet
the demand for leased wires, especially in
view of the probable forced sale of consider
able amount of telegraph property, which
may be purchased for much less than the cost
Of production, it is recommended that div-
dends be hereafter confined to the rate of
per cent. and the cash surplus accumulated
IN the treasury.
THE DIRECTORS.
The following directors were elected for
the ensuing year by unanimous vote:
NOrvin Green, Thomas 7. Eckert, John T.
Terry, John VanHOrne, George D. Nor
gan, in place of Augustus Schell, de-
ceased, Harrison Durkee, Jay Gould,
Russell Sage, Alonzo b. Cornell, Sydney
Dillon, Cyrus w. Field, George j. Gould,
John Bender, NJ. p, Henry Weaver, Percy
X. Pyre, Robert Lenn0X Kennedy, Hugh
J. Jewett, j. Pierpont Morgan, Frederick
j. Ames, John Hay, William d. Bishop,
Q. 2. Huntington, George B. Roberts,
Frank Work, Samuel Sloan, Erastus
Wiman, John j. AstOr, Chauncey NJ. De-
pew, James w. Clendenir, and Abraham
r. Vannert, in place of Christopher C..
Baldwin, resigned.