The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-08-14
lines between New York and Boston,
and paying 5000 each anually,n

graph company is doing business at a
large monthly loss, Ia untrue. The
defendant company is one of large
number of companies organized
throughout the various States aud
operating together so as to constitute
one
LARGE OPPOSITION SYSTEM
Of telegraphy. The entire stock OF
these companies Is owned by the Balti-
moro & Ohio Railroad company, Il cor
poration of the State of New York,
whose wealth, standing and credit sre
universally known TO be one Of the
highest character by
any corporation in this country
and unequalled by any company en-
gagged in the telegraph business. |
cannot conceive of any grounds for the
belief protessed by Dr.. Green that the
business by the defendant company is
conducted "with the sole purpose and
expectation of compelling the Western
Union Telegraph company to either
bny them out or form pooling ar
rangement." 1t is true that the Balti-
moro q Ohio Telegraph company has
reduced.
THE RATES OF TELEGRAPHINa
ON its lines below so per cent. of the
rate charged by the Western Union
Telegraph company. This reduction
was made In January, 1885, but DIR.
Green is mislead by the facts of his
own experience in managinga COM
pany with capital vastly expanded
beyond the real value OF its works and
lines into suppOaing that the defend
ants company y rates are placed below
paying basis. / believe it is
Irue' hy' him however, ,Sr,, no as stated stated
inflicted upon the Western Union COM
pany by the general cutting of rates
| "is greater than tho loss sustained by
the defendant company" The defend
ant company and the allied companies
own no unproductive, unnecessary or
supernumorary lines. they are all
new, requiring minimum OF cost in
repair have all been builtfor cash, with
great economy and with reference 70
greatest durability and efficiency. The
companies owe no debts and have no
past consolidation With competing
lines TO pay for, or earn diYidents
upon. Their
STOCK IS NOT FOR SALE
in any stock market. Such u state O
things is naturally difficult for Dr
Green TO understand. 1t Is manifeslly
untrue, rs stated by DR.. Green, tina
the facilities Of the Western Union
Telegraph company are ample for do
ing all tho business of the country, in
cluding tnat of the Baltimore
Ohio Telegraph company, since the
lines OF the Baltimore Il Ohio company
reached several hundred places where
no line of the Western Union com
paDy exists, and by tho fact that the
pubic employs this company at the
same rates to the amount of over
100000 kilograms por annum. The
bueiness Of the Baltimore d. Ohio Tele.
rraph company has been built NJ
through many years past, being based
upon y fixed policy Of the Baltimore 4
Ohio RNlro2d company. which has
during all that time, been IL
opposition to tho Western Unior
Telegraph company; aud In this re
specJ the Baltimore Il Ohio Telegraph
: company has performed y valuabl
service TO tho public In enforcing
system OF low rstos and In giving ad
[ ditional telegraphio communication
; In doing this 10 does not make use o
, any devices which its officers EelievC
are valid patented inventions belong
ing TO any other company. The actua
, facts IN respect 10 thB earnings o
th6 Baltimore Il Ohio Telegraph
company hav0 been published
by tho Baltimore & Ohio railroad
company in tho authorized reports o
, Affairs IRON time to timo and show ,
profit In the transaction of tho deiond
, ant cOmpgny's business.
, Now, lot mo show you some figures
| AH nuNa 40
and mileage Of tho Western UniOl
, company were doubled between lSS
and 1889, but the earnings of the com
paUy show an almost Insignificant In
CreRse-so small, indeed, that II Il
oomioal. The capital stock went from
, $l0,0O0O00 TO SS0000,0 ,0C0 between 1881
! and 1855. Now, let ms show how th'
earnings won't.
, In 1850 they were o................. .S5,SiS031 Z
, In 1851 they went tO......,...... 6,guS,GD7
, In lbN2 10 ...........,...... ...,...... hllNOlOW
In 1883 to....... ........ S,66O,3iDb
! In 1881 tO....................,.... 6l018i z
Now lot us consider the surplus ant
} sec II there Ia spare cash on hand. AC
! cording to tho official hguros Of thu
, Western Union company, tho surplus
: a year ago was Si,l57 465, 50; a yea
/ later tho TepOrts say tina
) tho surplus increased Sli5,S6jl1
- no that on tho lst OF July last the sur
plus was Si,3O3,33,O6, Now let us se
what is dono with this surplug. Di
roctly ovor the signature of tho socro
t2ry, Mr.. Brewer says that since Jan
b unry, 1881, the WeStern Union com
I pany has invested S5,3j0 1870. Ther
! was nothing 10 show what WAS speu
from July, 1850, to January, lSSl, bu
II you average Fix months acCOrdin
B to tho rate OF investment shown 10
l four years, you nave S69, ,SS0g1. Thi
! added g. the money which tho cir
l cul0r says was spent, woul
make S6,O20,0O972, TO meet this tn
: company had It's surplusof 81, ,3O3 1884 06
I IL had just Sl,725,6Ij,G6 less than 1
: probably spent. Now whence did th
4 money como irom2 Every husines
4 man knows that no can not sponl
4 mOnoy unless he first gota it, Ther
aro two ways by which tho Western
, Union company could raise money
q by borrowing u or selling its assets
Hero is list OF It's assets. Many @
q tho stocks included In this his
are those OF old lines, som
p OF which have b9on absorbed Ivy N
WOstern Union syst0m through leases
r aud In each case tho Western Unioi
:. company has guaranteed dividends o
h, them. Now If II sold those stocks
= would be practically issuing bond
d with every high interest guaranteed
I, Instead OF gaining money, IL would b
a LOSING MoNEY
I and getting into debt. Olt OF tho list
S6SiN,SH Of tho stocks are In that con
0 dition, This leaves ON J 81 i222610,G
] OF available assets In tho list. Thos
S assets are the vorypropertlos used fou
: years ago rs basis for Tn
l Increased capitalization In the shap,
r of q stock distribution Of Slj5,9i5.00. /
L these assets have boon sold what be
a comes Of the Increased stock? tel
: you this Ia q very serious matter. Tn
/ question is: Has the Western UnloI
{ sold It's assots, or is IL In debt2 IL ha
4 better answer these questions THAI
A talk about buying up
STRONG, SUCCESSFUL RIVAL
( like the Baltimore d Ohio.
y Mr.. j. q. Ref, tho well-know
4 financial expert, expressed hi
+ amusement at tho bundl
: lof lottoTs published In yol
h terday's Herald, knowing th
Il Western Union men as he does an
: boing tho shrewd business man this