Savannah morning news. [volume] (Savannah) 1868-1887, 1884-09-15
WESTERN UxIoN's RIVALS.
How the Telegraph Complications ar
Looked UpOn-The Western Union
situation.

How the Telegraph Complications are
Looked UpOn-The Western Union S
Situation.
In view Of the recent complications
among the leading telegraph companies,
and the rumOred possibility that the Wes-
tern Union might gObble up some Of them,
Manager Dillon, or the Savannah office,
who is well posted on the affairs of the
company, was interviewed yesterday by
a MORNING NEWS reporter in regard to
the probability Of any such arrangement.
"What do YOU think Of the Western
Unions absorbing the opposition COM
panies:r asked the News man.
THE Western Union does not require
their lines at present, and you may be
sure it will never pay any such enormous
price for them as their present capitalIza-
ton represents. Why, the capitalization
Of the combined opposition companies is
SOS. 4O3 so. and they have only 60, 421 miles
of wire all told, while the Western
Unions wire mileage has been increased
los. 553 miles in two years without re-
ducing its surplus on hand single dol
lar"
..What is the effect of competition upon
the earnings of your company"
at costs more to handle the business
which is now competitive, and it pays
the companies handling it the least profit.
[ will read YOU what the Indicator OF
recent date says upon this very subject;
1.-The lines Of the opposition companies con-
! ect The following cities; Boston; New ork'
Albany, Buffalo. Philadelphia, Washington,
PittsbUrg, Chicago, Cleveland, Clnclnnal,
st. Louis, Kansas City. Milwaukee, Rlch-
mond. Va, Montgomery, Ala, and Louis
wi G. XIV. with a few other less important
cities. Nearly all Of the business of the
United Lines Is between the sixteen cities
named. \ computation of the business done
by the Western Union company nLIty
cities and with each other SHOWS that
the5tOtal business amounts to less than S2,0OJ,-
COO. The average rate per message received
10y Western Union last year was . cents ana
the cost % cents. or 66 per cent. Of the re-
CENTS The cost of dong business between
cities is more than at other points, bus estl-
mating the cost at only % per cent. the loss OF
all this BUSINESS OF the Western Union would
cause a diminutiOn in net earnings OF $60O,OJO.
Taking the net earnings as they were last
year, and making the deduction, the follow
ing result appears:
Net earnings as in 1883 ------------- SI,66o.349
Deduct estimated loss ------ --------- 0OJ.1VJ
Balance. ..................... s7.o6o.8io
Deduct
Interest on ponds ...........s $4,000
sinking fund ...-........ 10000 $4,000
Balance applicable to dividends. s6,59S,Sl9
s.This balance of So. 593, $40 is equal to S.24
per cent. on the SSO,O00,000 stock of the
Western Union"
s.Then the Western Union does not re-
gard with fear and trembling the cOmbi-
nation Of the different opposition compa-
MES ?"
s'NO. sir. The Western Union has over
10000 offices which are operated without
cost to the company. 1t reaches 1900
towns with a population of less than 1900
No opposition company can
hope to reach these places, because they
would not get business enough to nay eX-
peuses. Fully three-fourths of the Western
Unions business is beyond the reach Of
competition. and the combined opposition
companies must, therefore, rely upon
division Of the remaining One-fOurth.'