The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-08-23
THE TELEGRAPHIC WAR
THE TALK OF WALL STREET.
This All-Ahsorbing Topic strl the Main
Subject of Conversation In the
Great Metropolls-A Lively
and Interesting Summary
OF the Situation.


York Herald this morning, under the
cspsion, "The Talk of Wall Street.-The
Mackey-Bennett Cable Eating the
Profits of Pender and Jay Could"
Mr.. Cyrus w. Fields was not in his
Office yesterday afternoon. The door
was locked, and no information could
be obtained regarding Mr.. Pender's
expected reply to the demand for the
"overture" lotter which he claims to
have received from Mr.. Garrett. There
is much doubt on the street as to
whether any such letter is in existenca
The whols two columns OF Western
Union Field correspondence falls TO the
ground in tho absence OF the missing
Ink. Mr.. Bates smiled aud said, "It
would he q long time before the letter
would be produced" 1t Is asked whv
Mr.. Ponder in England is 80 anxious
TO bring about a consolidation between
tho Western sUnion and Baltimore 81
Ohio Telegraph companies. The ex-
planstion lies back of the land tele.
graph system. IL is the
MACKAY-BENNETr CABLES
that canses MIR. Ponder and Jay Gould
so much anxiety. Mr.. Pender,ys dlrec.
tor In the Western Union company, is
tho chairman of the Direct United
States Cable company. The Mackay.
Bennett cables In connection with the
Baltimore Il Ohio land telegraph sys-
tom have eaten into tho earnings OF
the pool cables OF Pender and jaw
Gould ut tho rate of As per cent in six
months. The Western Union Gould
cable pool is composed OF live cable or.
ganiSations,namcly: The Direct United
states Cable company, the American
Telegraph Il Cable company, tho Pou
yer QUARTER Cable company, the An
glo-American Gable company ard the
| French DuXbury Cable company
Air. Pender and Jaw Gould with al
thes5 cables and theWestern Union Tel
graph company ut the back OF them
have not been able TO compete witt
tho MacN9y- Bennett cables. This ac
counts for lh9ir great desire TO consoli.
| date,
| PUT UP RATES
aud create a new and powerful monop
oily on land and sea. the half-yearly
general mosting held in London ii
July OF MIR. Ponder's Direct United
States Cable company, Mr.. Ponder 1,
reported In tho London papers as say.
ing that at the last preceding meeun!
| he had told the directors TO bo prepared
for reduced dividend, which no wa,
very sorry TO say had come about, th,
| company, was therefore in the position
of either having to adopt a higher rate
or being obliged for time 70 make
considerably lower one, because tC
work at the present tariff with
no immediate prospect OF increase
In tho traffic would bt
unwise. Mr.. Ponder said, however,
that no was hopeful that when those
| Interested in the Mackey- Bennett ven
turo found that the business was sC
unsatisfactory ho could not conceiy,
that they would not be anxious tC
coma TO some understanding whlcl
would increase their earnings. HAy
Ing referred TO the worry great compe
tltiou now going on between tue lant
lines Ia America, Mr.. Pender won't OF
10 show that before q permanent sci
tl0ment of tho submarine system
could bo made there must be gom
arranBoment como to by the land Lin
companies. In this frank but demor
alizing statement, made TO his boar,
Of directors, Mr.. Pender revealed th,
whole situation. His cable comblna.
tion was losing money, therefore som,
arrangement must bo "oome tor bN
tho land line companies, which means
that the Baltimore & Ohio lines, work.
ing In connection with the Mackey,
Bennett cables, arc destroying Jay
Gould's profits.
Tho following condensation OF the
ocean cables earnings of Mr.. Ponder'e
company, Is derived from tho same re
port. The analysis is interesting tC
the public, IL not to the Jay GoulC
monopoly. Ocean cable earnings foi
the half year, ended Juno 30, 1885, tn,
halt-yearly general meeting OF the hi
rect United States Cable cOmpan,
was held at tho Cannon Street hotel
July Il, 1889, aud the following figures
were submitted: Revenue Tor hall
year, after deducting out.pRymente
E36, ,lO6i working expenses, income tax
etc, but not including cost of repairs
tl1 1,2O6, leaving q balance OF 1lS,0O0 a
net profltior the half year. The rove
nue. showed u decrease of ES2,4G7 a
compared with tho corresponding pC
Tiod in 1881, beinga decrease
OF FoRrY.EGGnT PER CRNT,
owing TO tho operation OF the RI
ducad tariil, competition, and othe
: Causes. The stipulated share of cAbl
: earnings In the Atlantic Cahlo poo
pertaining 10 tho Direct Cable con
pany, was 1928 per cont; that OF th
western Union company % IL nc
cent As 10 2-3 IL 10 % l-S, so is CSC,
: 70 the Western Union share for III
: half year, say iiS,600 or S250O0O. Th
I working expenses OF the Direct Cab
company with one cable amounted TO
= the half year, na above to El720G, :
tho western Union company, wit
two cables, must b0 supposed TO hay
expended for It's working expense
no less than this amount, prcbabl
more; exclusive also OF repairs. Thi
would leave q balance TO tho Wostor
81 Union company for tho half year, {
} about Sl63,010. Out OF this, however
must como tho payment for the II
pairs TO tho Gould cables, which wer
l broken during the ontiro half year
several unsuccessful efforts TO repRi
them having been made In tha
period. Allowing for tho payment b
the Western Union company 20 th
/ American Cable company of guar
anteod Interest on the Cable CON
pany's. stock, SS5O,000, for tho hal
, year, the above shows a
APPARENT DEFICIT
for that period la tho operation q
these cables OF Sls6,O)O, without prc
vision having boon made for tho COS
OF repairs to broken cables or for sink
ing or renewal funds. In addition /
this, however, the damage 10 th
Western Union revenues, In oonst
quence OF the competition of th
Maokay-Bennett cable, In not ontirol
= shown in the cable tolls proper, a
above. Tho Western Union COMPANY
under the contract with the Atianti
Cablo company, received for It's Ian
line tolls, east Of New York, a frat
tion over 2 cents word for each wor
In overy message, both sent aud r,
ceiyed. A brief calculation viii sho,
, that tho total revenue TO tho Atlanti
cables In the pool, for tho half year enc
cd June last,was In tho nelghborhoo
OF 81 100000, which at 40 cents per wor
equals $3.50 words. Now, asthe tots
: cable tratlic In the pool fell Off As pt
: cent, as compared with the year bC
fore, II follows that tho loss 10 tli
Western Union company on It's Ian
n lima lnllQ pnat 30 Navs V..t. - ~