New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-20
CONTROL 12,500,0OO
MILES OF WIRE
American and Western Union
Companies Earn Approximate
Nv S16O,OOO,OO0 a Year.

The American Telephone and TELEGRAPH
Company on November rs. 1909, obtained
! control Of the Western Union Telegraph
Company through the acquisition of the
Gould holdings IN the latter concern. The
price the Goulds received for their stock
was not made public, but it was believed
to have been around $50 n share. II was
also believed at the time that the Amerl-
can Telephone and Telegraph Company
had in mind to include the Postal Tele-
graph and Cable Company in its scheme
of consolidation, but this plan never ma
terialized.
The Western Union was organized IN
1856 under the laws OF this state The
American Telephone and Telegraph Com
pany was organized in 1885. also under
New York laws. to build and operate the
American Bell Telephone Company's long
distance system The combined Wre
mileage OF the two companies Is in excess
OF 1250o.OoO OF which more than H.
300, 900 miles are controlled by the tele-
phone company. At the time Of the con
soldation the joint earnings OF the t"o
! companies amounted TO approximately
$3.50 10000 a year.
At the close of its last fiscal year the
Western Union operated 2l7i72 miles OF
poles and cables and 1,5lISl7 miles OF
wire. II had outstanding capital stock
| Of s99. 7s6, 759 and a funded debt of s32,bl2,-
| 600 Net profits were s6925.9h, out Oh
which 81 67o.i17 I'm bond interest and 81
| q91, S23 In dividends were paid. The Amer
| lean Telephone and Telegraph Company
when il bought control OF the Western
Union i'm 1912 also assumed the payment
of the interest on the funded debt.
The willingness OF the American Tele-
phone and Telegraph Company to part
with its Western Union holdings without
forced dissolution suit is regarded as
an indication that the American Tcle-
phone and Telegraph Company will be
willing TO dissolve voluntarily It's hoId-
ings OF other securities of wire systems
The stock of the company has shown
marked weakness in the last seVefaI
weeks on rumoTs that the government
contemplates taking over and oporat'hs
the wire systems of the country !. y
Vail. president, said, however, that such
a procedure would not injurc the stock
holders securities. as any appraisal OF
the properties which the government
might make would certainly be in excess
OF the value carried on the company ,
books.
Besides ownership of the Western mon
the American Telephone and Telegram
Company owns or controls the follow
ing companies: The Bell Telephone Com
panv of Canada, the Bell Telephone
Union Telephone Company. the CmcaEo
Telephone Company. the Cincinnati ana
Suburban Bell Telephone COMPANY the
Cumberland Telegraph and Telephone
Company, the Duluth Telephone COM
pauy. the Iowa Telephone Company, the
Mutual Telephone Company. the Mich'-
gan State Telephone Company, the MIS-
souri, and Kansas Telephone Company, tue
Mountain States Telephone and Telegraph
Companv the Nebraska Telephone COM
many. the New England Telegraph Com
many. the New York Telephone Company'
the Bel Telephone Company Of PennsNl-
vania. the Central District and Pruning
telegraph Company, the Chesapeake anu
Potomac Telephone Company, the Deia-
wareand Atlantic Telegraph and Telephone
Company. the Diamond state Telephone
Company. the Maryland Telephone com
pany, the Commercial Union Telephone
Company. the Friendship Telephone COM
many. the Allegheny County Telephone
Company. the Otsego and Delaware Teie-
nhone Company. the Rochester, Syracuse
and Utica Telephone Company, the Pacihc
Telephone and Telegraph Company the
Pioneer Telephone and Telegraph com
many. the Providence and Telegraph
Telegraph Company, the Providence Teie-
phone Company. the Southern Bell Tele-
phone and Telegraph Company inc
Southern New England Telephone COM
many, the Cleveland Telephone Company
the Northwestern Telephone COMPANY
the Southwestern Telegraph and Tele-
phone Company and the Wisconsin Teie-
phone Company.
The Western Union in turn controls OF
leases twenty-five telegraph companies.