Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-06-02
TO FIGHT TELEPHONE.
Western Union wan put in Long
Distance ana Local .lshones.

New York, June 1.-The Western
Union Telegraph Company will fight its
great rival, the American Bell Tele-
phone Company, on its own ground, ac-
cording to a Western Union director
Most of the 100000, 900 of the new " per
cent bonds which were recently author
lied by the Western Union are to be
uGed in equipping many of its lines
with view to installing modern tele-
phone plant.
This admission by the director, who
was particularly careful that his name
should not be mentioned, is the first
that has come from any of the Western
Union people, who have thus far siren
uously denied that they have any in-
tention Of entering the telephone field.
The private Wire revenue of the West
ern Union Company, however, has suf-
fered so greatly that immediate action
was necessary. 1T is understood that
/. l.three-uuarters of the private wire busi-
mess of the telegraph companies has
been lost to the long-distance telephone
lcompanies. thereby greatly mpairing
the earning capacity of the former.
Orders have gone out to string large
| amounts OF copper wire, particularly
adapted to the telephone business, be-
tween leading cities. The inference to be
derived from this is thot the first tee-
;phone lines to be established by the
4 Western Union Company viii be long
distance ones. AT the same time the
Western Union Company will be long
! ties for establishing vast network of
4 ilocal lines thruout the United States.
/ and it Will be simple matter to attach
telephones to the existing wires and use
i them either for telephone or telegraph
purposes.
1t is to the long distance business,
1 which is chiefly patronized by business
4 men during the middle of the day, that
4 the Western Union will now direct It's
4 Elsat,ention with Its new telephone SER
a vice. Itintends to adopt the tactics of
the American Sugar Refining Company
and the Standard Oil Company and cut
rates until its rivals cry "enough!'
) Meanwhile it will go its own way with
the telegraph business and keep the
Il rates on something like a paying basis
unless the Postal Telegraph Company
should compel 1t to do otherwise. Bui
..Iif necessary the Western Union vii
install telephones in all parts of thu
country and make a speciality of loca
business as we'll as long distance, run
/. ming telephone and telezraphy alon'
side by side.
But this is only one side of grea
: warfare which is fast developing ant
(which bids fair to cause disaster t
some of the contending companies. Th
\, Bell Telephone Company IS beset. ol
the other hand. by the Telephone. Tele
: graph and Gable Company of America
! a s3,OO0,00O company. which is backed b.
such men as Martin Maloney of Phila
! delphia and John Jacob Astor. of Ney
y York. and is supposed to have the sup
port of the Whitney syndicate. Ihi
young and lusty telephone company !
5 reaching out in all directions. and
! has already secured enough of the loca
\ Icompanies thruout the United State
liseriousy to threaten the business of tn
Bell company. 1t struck a body bloN
3 when it absorbed the Erie Telephon
: and Telegraph Company.