The Delta independent. [volume] (Delta, Colo.) 1886-19??, 1911-07-07

New York, July 5.-The most
sanguinary and interesting three
cornered fight in the sixty-six years
history of the American telegraph
is foreshadowed here by the new
100000 bond issue of the
American (BelD Telephone Com
pany. Ostensibly intended for i'm
provements and extensions of it's
service, it is now no secret that
good portion of the money to be
raised by the new issue will be
used in bringing the Postal Tele-
graph company to terms and in con-
tinuing the fight against the tele-
post automatic system in the Mid
die West, which has been thorn
for several years in the side of the
Western Union.
The quarrel between the vari-
Gus interests has brought to light
soome heretofore untold secrets OF
the telegraph monopoly and it is
believed will precipitate at an early
date the termination of the so call
ed "Gentlemen's agreement be-
tween the Postal and Western Union
hereby the two companies have
maintained tne same IdleS " Ga
points for the last twenty years.
According to the story current
in the financial district here, it was
the original intention of President
Vail to take over the control OF the
Postal OF which Clarence Mackay is
president, at the same time that, as
president of the American (Bell)
Telephone company he brought out
the interests of the Gould family In
the Western Union for the telephone
monopoly. What caused him to
change his mind is not known but
as the negotiations were drawing to
close, Vail is reported to have
taken Embargo at something and to
have CURLY said to representative
of the Postal company: I'VE don
need Mackay, his money or his
brains to put this deal through.
This was reported back to President
Mackay and is said to have so Of
Tended him that all further commun-
ication with Vail was cut off. The
Western Unions deal for the &C
QUESTION of the Anglo-American
companys Atlantic cables and the
announcement of President Vail
that as a condition precedent to
the control of these new avenues OF
submarine communication it had
been decided to cut the rate from
rs to l2h cents per word on cable
grams quickly followed. Both OF
these innovations were aimed at the
Postal company's commercial cable
business, which has been very lu-
crative for many years. As an act
of reprisal President Mackay de-
cided to embark in the telephone
business.
On its end of the three cornered
fight the telepost company is hurry
ing arrangements for the early
opening of new extensions of its
system in the Middle West, which
will enable 1t to cut into the bust
ness of the monopoly in several of
the big cities heretofore unconnect-
ed with it's half and one cent
" ord service. BY the acquisition of
most of the independent telephone
companies of the West and Middle
West, the American Telephone Co.,
has sought to bottle up the telepost
which operates over the leased wires
OF Independent companies through
a good part of its territory and thus
prevent it from seeking new outlets
for its business. While this has re-
tarded its progress in many In
stances, the automatic company's Of
ficers here say they have been able
to overcome the obstacles in their
way ~ their big rival and will go
ahead with their plans in spite of
them.
No quarter will be given by any
OF the parties to the fight. which
financiers familiar with the situa-
ton. believe promises to he pro-
life in interesting Developments
before the end of the year.