New-York tribune., 1907-10-03
PEACE BY ROCKEFELLER
WIRE VAR ENDED By HIN.
Western Union and Pennsylvania
Railroad Make Terms.
IBy Telegraph to The tribune. !


Pittsburg, Oct. 2.-Through the influence Of
John D. Rockefeller. one of the heaviest stock
holders of the Western Union Telegraph Com
pany. the war between that company and the
Pennsylvania Railroad is at end.
BY an agreement which was entered into on
September 23 and which became effective yes
terday, the Pennsylvania lines sign twenty
five year contract to the Western Union
wires exclusively, and to permit its wires to be
strung along the right of way. In exchange for
this contract the Western Union drops all suits
for damages and other litigation, not only
against the Pennsylvania lines. but against the
Pennsylvania company we'll
James McCrea. president of the Pennsylvania
company. will become a director of the West
ern Union and it is believed that at the expira-
tion of the contract held by the Postal Telegraph
Company the Pennsylvania company will shift
back to the Western Union on the lines east.
The trouble between the two great companies
started some three years ago, when the Penn
sylvania company ordered the wires of the
Western Union removed from its right of way.
The Pennsylvania had entered into fifteen
year contract with the Postal. after having used
the Western Union for many years. The West
ern Union did not remove it's wires as rapidly
the Pennsylvania thought it should, and
workmen employed by the railroad company
wires. badly crippling the Western Union.
When Pittsburg was reached an armstice was
agreed upon. and pending settlement. the West
ern Union wires were allowed to continue along
the lines west although contract was entered
into with them. The Western Union entered
scores OF suits for damages against the railroad
company.
Mr.. RockefeTcrs vast railroad interests were
used as a lever on the Pennsylvania company.
and President McCrea accepted the peace over
lures which were made. with the result that the
ended yesterday. officials of both the Penn
sylvania and the Western Union admitted this
evening that peace had come.
Announcement Yesterday IN Wall Street,
nrmed later at the offices of the Western Union
Telegraph Company. that now contract had been
signed between that corporation and the Pennsyl-
vania Company, which operates the lines of the
Pennsylvania system west Of Pittsburg and Erie
was generally regarded indicating the restora-
tion of friendly feeling between the Pennsylvania
and the Gould interests. between whom acute hos
tiuty developed Ave years go The contract
which, Is understood. is 20 for twenty-five
years. IS effective as of October /. and provides
that the Western Union Telegraph Company shall
operate the same Pennsylvania lines west OF
PittsburE heretofore. with several additional
lines included In the contract Among these are
the Grand Rapids & Indiana and the Columbus &
sandusky roads. which previously had the Postal
Telegraph Company's service.
Since 1903 the telegraph service tho lines ot
the Pennsylvania Railroad Company, the part OF
tho system east of Pittsburg and Erie. have been
operated by tho Postal Telegraph Company, the
contract OF which has still number OF years 10
run The transfer OF that business to the Postal
was direct result of the antagonism of the Penn
syIvania To the Gould plans for entering Pittshurs,
plans which have since then been carried to a
successful outcome
In September Of 1907 1t may he remembered
the Pennsylvania served notice upon the Western
Union that its twen.y-year contract. which would
expire six months later. would not be renewed
Litigation followed. and in May of the next year.
acting under decision of a United States Judge
dissolving an injunction obtained by the Western
Union the Pennsylvania sent out its wrecking
crews who. working with derriclts and locomo-
tives tore down most of the Western Union
poles and wires along the right OF way eastward
from Pittsburg In December. 1903. the contend
ing CORPORATIONS reached agreement under
which the Pennsylvania desisted from further de-
struction OF Western Union property pending the
outcome OF litigation then in progress