Evening journal., 1896-08-22
Conditions Rlpe For a Deal.


Conditions Ripe Tor Deal.
NEW YoRK, Aug 22.-The Journal has
the following regarding the reported con-
solidation of the Bell Telephone company
and the Western Union Telegraph com
pany:
"A deal of some sort between the two
great dealers In harnessed lightning was
bound to be made about this time, as the
arrangement by which the Western Union
and the Bell Telephone company agreed
not to tread on each others toes expires on
Aug. % Real opposition between the two
companies would inevitably push the West
ern Union TO telephoning and the Bell
company to telegraphing With its thou
sands Of miles of wires and thousands Of
Offices scattered over the country, the West
orn Union can make the telephone bust
ness a source of great income with COM
paratively small increase of outlay.
'In the same manner tho Bell company
could easily take up telegraph business.
It's local system Of wires and conduits
would be available for an efficient tele-
graph service. If the two big companies
ever got to flying at each others throats,
diYidends would go down, and the public
would reap an enormous benefit IN reduced
rates, result no one is more anxious to
avoid than the Western Union company,
unless It be the Bell Telephone company.
"On June 10 the first step toward the
combination that Is supposed TO have been
contaminated within the last week was
taken. The New York Telephone compa-
ny was Incorporated by the secretary Of
state at Albany with capital stock Of
$4,000, 600. This was a substitute plan
between the two big companies to take
the place Of the famous agreement Of 1879,
which kept the big corporations working
in comparative harmony for nearly II
years This old agreement enabled thom
to keep down competition and to give
them practical monopoly Of the telegraph
and telephone business OF the country
When the agreement was signed In 1879
by the Western Union and National Bell
Telephone companies the Western Union
was tho owner Of the American Speaking
Telephone company, which owned patents
Indispensable TO the Bell people. BY the
contrart of 1879 the predecessor Of the
American Bell company agreed to pay the
Western Union royalty on its telephone
rentals, and the Western Union agreed to
abandon its existing telepboning exchanges
and abstain from all telephone business.
Neither company stood by its agree
ment There was constant trouble, and a
war was only averted by peace meeting
of the two companies officials, when the
Bell company yielded up further conces-
sion, it is said, of $780, 600 q year. The
actual proceedings of that meeting were
never officially revealed After the peace
meeting of 1898 the companies got along
without much growing for year or so.
Then the use of the telephone company
long distance wires for telegraphic service
made the Western Union sore again.
Lost Much Money.
"The Western Union had lost a great
deal Of capital through the rapid increase
Of the long distance telephone bushes:
and began its campaign to secure more
favorable terms with the American Bel
company soon after the Incorporation Of
the Metropolitan company in 1880 Its
capital stock was first placed at 81 600,
GOO Increases which brought it up tC
So. 500, 600 were partly takon by friends of
tho Western Union, and its 81, 600, 900
funded debt found Its way into the samG
channel. Within the last few months thC
Western Union emphasized its control oi
the Metropolitan in such way as to in
crease the disturbance between the Bel
and Western Union companies Three
years ago the agreement was brought e
the verge of cancellation by the Western
Union. The telegraph company had al
most determined to enter actively into th'
telephone business and thus retrieve III
immense losses
1.-THE telephone company threatened t
combine with the Postal company, whicl
stood ready to make a DEAL but mutua
concessions finally straightenod it out
The New York Telephone company, tn
organization OF two months ago, electe'
US its officers Charles II. Cutler, president
John H. Hale, secretary, and William X
Driver, treasurer. The Western Uniol
company men among the directors he'll
their hands off the election.
"The Bell Telephone company took th
business Of the National Bell Tolephon
company in 1880. There were then 2s,
3l6 miles of wire and 1872, 692 instrument.
Last year thore were 495, 72s miles of wire
connecting GA, 976 Instruments. Th
company has paid about S25, 100000 II
divide nds. +"