Savannah morning news. [volume] (Savannah) 1868-1887, 1885-06-03
WESTERN UNIONS DEAL.
THE SOUTHERN TEIsEGRAPH IN
ITS CONTROL.

a Break Between the Bankers and Mer
chants Company and the Southern
and the Latter "a Operate Hereafter
with the Mutual Union Changes Like
~ to Take Place.
The rumor that the Southern Telegraph
Company had passed into Western Union
hands created considerable stir yesterday
in business circles.
No official notification has been received
either at the Western Union or southern
Office here of any change, but IL is gener-
ally understood that the Southern is now
being operated under Western Union
management.
A Washington dispatch last night an
nounced that 10 had separated from
the Bankers aud Merchants Company,
with which IL has been operating, and
had entered into business arrangements
with the Mutual Union, with which it
will exchange business hereafter. The
Mutual is one of the Gould lines, and was
purchased by the W estern Union Com
pany several years ago.
Inquiry at both Offices here failed to
elicit any positive information. Manager
Dillon. OF the W estern Union Office,
stated that he had received no notice Of
any change in the SOuthern's affairs. II
there had been any deal whereby the
Western Union had obtained control Of
the opposition line he had not been in
formed of it.
Manager Gustin. of the Southern Office,
had received no notice Of any change.
1t was generally believed that in event of
the company passing into other hands 1t
would 20 under the Baltimore and Ohio
management, to which it would be a
more valuable acquisition than to the
Western Union. The Baltimore and Ohio
is extending it's connections in the South,
and the control Of the SOuthern's lines
already built would do away with the
necessity for erecting new lines in the
territory which It now covers. Orders
were received at the Southern office yes
terday afternoon to check messages direct
to certain points reached by the Mutual
and Western Union where messages
heretofore have been TelaYed by the
Bankers and Merchants. This is the
only official Information that has been
received here or any change. The fact
that the Mutual is one of the Gould
lines, and that an alliance has been made
between its management and the South
ern, is an evidence that the Western
Union has "A hand in the deal. II is
stated that the arrangement was made
by the Southern for the purpose of
securing a cheaper and more efficient SER
vice i0r IT'S Northern business. ana at
the same time to extend its field of opera
tons. 1t is generally believed. however
that the Western Union has got control
Of the Southern, and that it will hereafter
operate under It's management. In this
event there is a likelihood for a speedy
advance IN rates for Southern business.
Although no positive information can
be obtained at either of the offices here,
and the managers say they have no know-
edge whatever Of any change,
there is good deal of gossip
"OYer the wires" and the indications point
to early developments There is under
stood to be no likelihood OF an immediate
closing of the Southern Office, although
sueh a move may he made at no distant
day If the Western Union succeeds to full
control OF the SOuthern's affairs.