Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-11-30
THE WESTERN UNIONS
THIRTY YEARS WAR

2 new lOIh Evening GuSAs
A bear campaign in Western Union
stock eliminated nearly 80 years ago at
a 1-2. Shortly thereafter Wall street
learned that Jay Gould had won control
of the property from the Vanderbilt in
terests. Control remained in the Gould
family until several weeks ago, when
George Gould sold his stock about q
per cent of the totaD to the American
Telephone and Telegraph company. The
matter was announced this week. greatly
to the surprise of Wall street in general,
though a few well-informed persons had
known for a good while that a change
was impending.
When the transaction between George
Gould and the American Telephone and
Telegraph company was closed, the price
of Western Union stock was about n 1-2.
Subsequently, and before the announce:
ment, # advanced to IS ga, and then de-
clined. In February 1905. the stock sold
as low as Al, because cash dividends had
been suspended. thereby breaking a
continuous dividend record of a quarter
Of a century. Never in Jay Gould's time,
not even during the bear campaign which
resulted in his getting control of the
property, did the stock sell as low as Al.
In the early days OF the telegraph bust
ness competition was easily set up, and
harassed by weak competitors, some of
which were organized for the primary
purpose Of selling out at high valuation.
The Western Union. being the strongest
organization in the field, was generally
the concern that had to buy the raiders
or. 1t was not only the strongest, but
the oldest. The first solvent and success
full large telegraph company was the New
York and Mississippi Valley Printing
Telegraph company whose name in 1855
was changed to the Western Union Tele-
graph company by act of the New York
legislature. Previously the House. Morse.
Speed, and Wade lines and patents had
been consolidated. The Western Union
formidable capitalization Of $500, 900. It's
capitalization in stocks and bonds now
exceeds S125, 600. 900.
A LINE TO THE PACIFIC.
About 1860 the United States govern
ment offered to substitute a telegraph line
to the Pacific coast. A r. Brewer, in his
history OF the Western Union, writes:
THE difficulties were regarded by many
as almost insuperable. It was alleged
for instance. that the Indians would tear
down the lines as fast as they were put
up, or that the poles would be swept
away by the irresistible movements of
the immense herds of buffalo then roam
Ing over the plains" The government
appropriated $4,000 year for the prefer
entail use of the line, the subsidy to con-,
tinue for ten years, and all of the six
telegraph companies then existing save
the Western Union, though this appro-
priation niggardly. When the bids were
opened, the Western Union was the only
bidder. 1t built the line, which was OPEN
ed for business in 1861.
The railroads found telegraphy indfs-
pensable in the conduct Of their business
and, as the right OF way of railroads af-
torded convenient routes for telegraph
lines, and as the telegraph lines were
more used by the railroads than by any
body else, there developed, naturally u
close contact of interests. Eventually,
the Western Union Telegraph company,
the largest organization in its business,
came to be controlled by the VanderbiltS.
who were the most powerful figures In
the railroad world. This was the situation
when Jay Gould arrived" He, too, had
great railroad interests, and was in
trolling both railroad and telegraph IA
cilities over large areas. His own raul
roads were patrons of the Western
Union.
Mr. Gould's first venture was with the
Atlantic and Pacific Telegraph company.
In which he, Russell Sage, and others
invested a considerable amount of money.
There was a rate war with the Western
Union at once. For reasons best under
stood by himself, the Atlantic and Pa
cif1c Telegraph company was not exactly
what Mr.. Gould wanted.
FORERJJNNFR OF A LARGE