Subsidiaries
name: label: Collection Creator
content: United Telegraph Workers.
label: Collection Creator
content: Western Union Telegraph Company
setName: label: See more items in
content: Western Union Telegraph Company Records
unitdate: label: Date
content: 1844-1986
dataSource: label: Archival Repository
content: Archives Center, National Museum of American History
identifier: label: Identifier
content: NMAH.AC.0205, Series 2
objectType: label: Type
content: Archival materials
scopecontent: label: Scope and Contents note
content: This series consists of records of subsidiary companies owned and/or operated by Western Union. Since its reincorporation in 1856, Western Union acquired hundreds of miles of telegraph line and incorporated them into a unified system. Western Union's acquisition methods included purchase, consolidation, conveyance, and arranging satisfactory terms of lease. Outright purchase did occur for smaller companies that could not compete with Western Union, with companies that accumulated large debt, and with companies under foreclosure. Examples of subsidiary companies which were purchased by Western Union (both directly and indirectly) include: The American Rapid Telegraph Company, purchased in 1894; the American Union Telegraph Company, purchased in January 1881; The Atlantic and Pacific Telegraph Company; The Central Union Telegraph Company; and the New England Telegraph Company purchased in September 1875.

Mergers were typically either the result of skillful negotiations with competing companies or the formal acquisition of nonoperating entities (in which the "competing companies" had no operating assets, operating revenue, or employees). In the latter situation, Western Union usually purchased a majority of the shares of capital stock, becoming the de facto manager of the company. Examples of companies which merged with Western Union include: Independent Telegraph Company; Kansas Telegraph Company; and the New York State Printing Telegraph Company. Examples of companies in which Western Union owned a majority of capital stock include: the Baltimore & Ohio Telegraph Company; New Jersey and New England Telegraph Company; New York Postal Telegraph Company; New York State Printing Telegraph Company and the Pacific Telegraph Company. 

Companies typically entered into leasing agreements with Western Union to avert ruinous competition. The rental amount was based upon a percentage of outstanding stock issue or other mutually agreed upon stipulations. Although some leases were made "in perpetuity" others could be revoked upon expiration, particularly if a competing company was not satisfied with the outcome of an agreement. Administration and maintenance of the line could be continued by the competing company or assumed by Western Union, depending upon the agreement. Examples of companies which (directly or indirectly) leased to Western Union include: American District Telegraph Company, 1867; Gold & Stock Telegraph Company, December 1881; Magnetic Telegraph Company, 1866; Philadelphia Local Telegraph Company; and the United States Telegraph Company, February 1866. 

Not every company represented in this series was acquired directly Western Union. Many companies were previously purchased by, consolidated with, or leased to other companies that Western Union, in turn, acquired. One example of this is the Washington and New Orleans Telegraph Company, which incorporated in March 1847 in Virginia. In 1856, the company was leased by the Magnetic Telegraphic Company. The American Telegraph Company (of New Jersey) acquired the Magnetic Telegraph Company in October 1859 by exchange of stock. Ultimately, the American Telegraph Company (which included the Magnetic Telegraph Company lease of the Washington and New Orleans) was leased to Western Union in 1866.

This series primarily contains minute books of directors and stockholders, articles of incorporation, and bylaws. Other administrative records include account books (ledgers, stock transfer books, journals, and cash books), correspondence, and other subject files. Most of the information is fragmentary. Companies such as Gold & Stock Telegraph Company, the Philadelphia Local Telegraph Company, and the Postal Telegraph Cable Company contain more extensive documentation, but are not comprehensive. Because of the complexity associated with leases, holds, and consolidations, an effort was made to cross-reference subsidiary companies. However, the cross references are not comprehensive. The notation "see" refers to companies that are/were known by another name through reincorporation or acquisition. Some records contained within minute and account books were removed. Such records appear in the container list immediately following the book entry in which they originated. The records should be consulted with the respective book. Unless otherwise noted, the series is arranged alphabetically by company name. See also Series 7: Secretary's Files, 1844-1987, specifically files about subsidiary companies, 1913-1975, and the dissolution of subsidiary companies, 1920-1959.