Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-04-08
NO WIRE COMBINE
BY WESTERN UNION
Vail Says Fusion With Long
Distance Telephones Is
UnWorkabIe.


| Telegraph Company, in his annual
report to the stockholders delivered
| at a meeting held here today, says
| there is neither any prospect of the
company taking over the long-dis-
| lance telephone lines and combat the
competition offered by. other tele-
! graph companies, nor of the govern
ment purchasing or operating the
| telegraphs without the shareholders
receiving in return, as minimum
| for their holdings a price far in ex-
cess of the present market value OF
| the shares.
Mr.. Vail also states that the West
ern Union and the American Tele-
phone and Telegraph Company are
Conducting their business indie
pendently, and that the so called
divorce of the two companies Is being
accomplished with very little confu-
sion"
Mr.. Vail says, in part:
MANY inquiries have been made as
to the prospects of the company,
either under any possible purchase
by or competition of the government,
or as going concern operating IN
dependently of the American Tele-
phone and Telegraph Company.
1.-THE relations between the Ameri-
can Telephone and Telegraph Com
pany and your company have always
remained the same as between Two
entirely independent companies. The
organiza tions of the two companies
were entirely distinct and indepen-
dent. and, with the exception OF the
President and a minority of the di-
rectors, had no officers in common.
All contracts and operating arrange
ments were such as two Independent
companies could enter into under the
interpretations of the existing laws,
and the commercial interests of each
company were carefully guarded, so
that the so-called divorce of the two
companies is being accomplished with
very little confusion.
"As to the government purchase
or operation of the telegraphs: the
property of the company cannot be
taken without just compensation;
that is, a full and proper equivalent
for the property taken must be re-
turned to the owners. In such a
case the shareholders should re-
ceive as n minimum, far in excess OF
the present market value of the
shares.
Combination Is UnwOrkabie.
1.-THE other alternative which has
been advanced, to take over the long
distance telephone lines and enter
into competition with the existing
telegraph lines for the purpose of de-
stroying their business, is not only
of SO questionable a character as to
be repudiated when its full signifi-
canoe is realized, but is so utterly
impossible and unavoidable from
practical point Of view as to make 1t
negligible. The owners of the securt-
ties of the Western Union may rest
quietly, and not be scared into the
sacrifice of their property. Headline
prophecies should be read and re-
garded in the light of the results
which have followed the headline
prophecies of the past.
1.-The technical department of the
company has been at work in con-
nection with that OF the Bell system
In the development of what might
be termed mechanical transmission,
and there is now in daily use rapid
transmission apparatus which nearly,
il not quite, quadruples the most ef-
fective yet devised, and is giving
great results on the trunk lines where
there Is concentrated business be-
tween large places. There Is moth
ing as yet and not likely to be any
thing which will supersede the old
key transmission of a scattered busi-
ness distributed to many points on q
local line.
1.-THE following extracts from a
statement made in January, 1914, are
given as showing the substantial
position of your company:
'The financial condition of the
Western Union was never better. 1t
has liquid assets in cash, demand
and time bills receivable, less cur
rent liabilities of some 100000, suf-
ficient to take care of all construction
demands for some years to come, II
the surplus revenue Is not adequate
for that purpose.
UNLESS conditions change very
much for the worse. the shareholders
of the Western Union are on the
eve of getting some return for their
patient waiting, and this return
should be continuous and increasing.
Bucket Shops Are Hit.
Whatever decrease there has been
In the Western Union revenue from
private line leases has come from the
discontinuance of leasing lines to
those who put them to questionable
uses and to the fact that in case of a
general interruption the Western
Union was compelled, when such
lines were restored, to use them for
it's commercial business and thus de-
prive their lessees of their use for
time.
THE telegraph business had been
carried on entirely on the basis of
immediate transmission and delivery.
This naturally called for operating
staff and facilities equal to the peaks
of normal demands, and it naturally
followed that there were considerable
intervals when this operating force
and these facilities were idle New
ri Fae Inn Il NJ a
transmission and delivery, were grad
ually introduced to fill in these idle
intervals. with beneficial results both
to the public and to the company.
"The new services, in spite of adj
verse criticism and charges of unfair
competition from some quarters, have
been revenue producing and profita-
BILE and of great benefit to the public,
and have not In any way affected adj
versely the regular business at regu-
lar rates. These were introduced in
spite of the belief on the part OF
many that they would largely affect
the long-l line telephone business.
"The results have demonstrated
that there is field for them; that
with equally available facilities for
both the telephone and telegraph are
not competitive, but each has its own
distinctive field. If telephone and tel
egraph facilities are equally availa-
BILE, the public will use that which
is best adapted for the particular
purposes for which it is used In case
OF unequally available facilities it
will use one or the other as an al
tentative
The additions in the year ended
December 81, 1918, amount to s3,76l,-
496 namely, for
Land line and ocean cable
construction and equip
ment ..................... ", l94, S9l
Real estate ........,.....-.... 1875, 726