St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-09-06
ANELECTRIC WILDCAT.


AN ELECTRIC WILDCAT.
The GLOBE has from time to time taken
occasion TO speak of the inefficient service
rendered by the Western Union Telegraph
company in the Northwest and more par
ticularly in st. Paul. Instead of mvesti-
eating the complaints which the GLOBE
has entered against the service. the manage
ment has found it easier to content itself
with a general denial of the statements
without making an effort to either substan-
tiate or disprove them. Now II turns out
that tue GLOBES charges of inefficient ser
vice are not only proven beyond the pos
sibilitv OF doubt, but it is also demon
strated with equal clearnesS that the whole
ST. Paul end OF the Western union is as cor
rupt as it is inefficient. in yesterday morn
fngS issue of the Minneapolis Tribune ap-
pear the sworn statements of two gentle
men who recently occupied prominent posi-
tions in the St. Paul, Office which establish
the most corrupt practices in the Western
Union establishment that were ever known
to exist in a like concern. Mr.. Z. w.
BUCKLEY. who is known to be reliable
man and who has for the past six years
been connected with the Western Union
service. and who has recently voluntarily
retired from the telegraphic service, makes
affidavit to some inside facts concerning
the Western Union management which ex-
hibit an appalling condition of rottennesS.
Mr.. BUCKLEY testifies that for some time
past the local telegraph officials were ope-
rating the commercial news department III
their own interests. A conspiracy was
formed among these officials for manipluat-
ing the market reports in the interest OF
the local telegraph syndicate. The method
of working this scheme is thus described by
Mr. BUCKLEY:
The market quotations, as soon as received
from Chicago, are Immediately turned over
to the ticker operator in the G. n. ID. depart
ment for immediate transmission over the
ticker circuits to the brokers Offices and
boards Of trade of st. Paul and Minneapolis.
From this it can be readily understood that
by concerted action on the part of those in
charge of the traffic Of the ONCE, manlpula-
ton of these quotations was made easy. 1t
was found that on numerous occasions when
the markets were Unusually excited and
fuctuating, these market quotations were
held back. The machinery which should have
6IQDlCYeQ
to stand still while the arriving reports were
being scanned, and the agent of the gang was
engaged in placing the trades of the clique
in the hands of the unsuSpecting broker.
Upon the return Of the stool pigeon, the ma
chinery, as if by magic, began to move, and
the delayed questions likewise. After sufi-
Gent time had elapsed the broker would
again be visited by the customer, who would
order his deal closed and call for
his profits. This was worked to such
an extent IN st. Paul that at least
one of the victimized brokers, suspecting
that he was being worked refused to post
the quotations, thus forcing the clique TO seek
a new field of operations. These market quo
tatiOns being at this time ''relayed'' to Du-
luth, the board of trade of that city was So
licited as being the next most favorable local
ity, and doubtless numbers of its members be-
came victims of the sharks. The plan of OPP
erations between St. Paul and Duluth was
much the same as that practiced in st. Paul,
except that not only were market quotations
manipulated but also brokers private mes
sages liable to affect the market / am relia-
bly, Informed by one of the interested parties
that with the assistance of the Western In
ion manager at Duluth, who placed the deals
and took a half interest therein, and the st.
Paul management. who held his checks to
cover margins and vOuched for the same and
with the assistance Of the chief operator,
who ordered the operator working the Duluth
wire to hold back the market quotations
and brokers' private messages, he (my
informau9 was enabled to realize handsomely
Dr. these deals. After the closing hours of
d. the boards Of trade, all private messages and
cables liable to affect the market were trans
mitted to Duluth and there given to a few
favored brokers, who as late as II p. m. sold
wheat in the St. Louis hotel and realized large
profits from the transactions. For this extra
Information they of course paid literally.
Complete information of these irregularities
was furnished by myself and others to Supt
MCMICHAEL. at his own request, at various
times and places.
I also furnished upt.MCAIICHAEL with evil
dence of irregularities in the delivery de-
partment of the st. Paul Office, consisting of
outrageous overcharges on messages deIiv-
cred and taken for delivery, number of the
largest firms in the city being among the
victims, and proved to his own satisfaction,
rs he admitted 10 me, that his local manager
was aware of these facts. The delivery clerk
was summarilY dismissed but the manager
suffered to remain.
Mr.. BUCKLEY also relates that Supt.
MCMICHAEL was informed of another
scheme Matched by Mr.. l.. A. HUGHES, the
managers brother, assisted by several as
sociates, which was to be worked on the
broker firm of ii. W. DAVIS & Co., and
says that there are other matters connected
with these disclosures of which he proposes
to speak hereafter. The charges of inef-
ficent service previously made by the
GLOBE are substantiated in detail by Mr.
BUCKLEY. His statements are fully
corroborated by Mr.. JOSEPH B. BRACKEN,
another former employe of the st. Paul
Office, whose affidavit states that he worked
wire No. between st. Paul and Duluth
and transmitted messages between the
local officials of the two cities in which the
purchases and sales of wheat on the Du-
luth board of trade were ordered, and that
he was frequently ordered to hold back pri-
vate messages and sc. n. D." quotations
which would have an immediate influence
On the Duluth market.
Commenting on the above facts, the
Tribune says:
According TO these informants, conspiracy
has existed with headquarters in the st. Paul
Office, to profit by the criminal manipulation
OF all the market news coming over the wires
to parties in St. Paul, Minneapolis and Du-
luth. The various methods which dishonest
telegraph officials might use to profit by the
messages passing through their hands when
destined to such important market centers as
Minneapolis, Duluth and st. Paul will readily
suggest themselves to any experienced bust
ness man. Mr.. BUCKLEY's clear and careful
recital shows that this st. Paul and Duluth
conspiracy has actually employed these
various means of profit. 1t has, for instance.
held back quotations from the sstickers'' in
exchanges and brokers' offices until its agents
had made deals on the strength of the SUD-
pressed information. In similar manner it
has been accustomed to delay the delivery of
private advices. 1t has gone further and
actually altered the figures in market bulle.