Year: 1876

In another column may be found the re-
port of an interesting conversation with
Mr.. Oliphant, Of the Direct Cable Company,
in reference to the projected absorption of
that corporation in the interest of great
scheme for monopoly in cables. 1t does not
appear that the project is favored by the
management Of the Direct company or by
independent shareholders, but the Anglo
American Telegraph Company, the Tele-
graph Construction and Maintenance Com
pany and the Globe Telegraph Company
together constitute sort of telegraphic Ger
berus which hopes to better it's fortunes by
associating them with those of the Direct
Gable Company. Monopoly to be success
full, must be complete. 1t is like the ''cor-
ners" which produce calamity for their
makers if they fail to cover any
source Of supply available at the
critical moment If the Anglo-American
and its associates can fully control the
cable traffic and put the tolls up to dollar
and half or two dollars q word they sup
pose they can readily carry the heavy bur-
dens already undertaken in the effort to
make a monopoly. If they cannot control
the traffic there is trouble in store for them.
But they cannot control it with an efficient
opposition that practically fixes the prices
as the Direct company does. Hence they
believe the independent existence of this
company to be the only obstacle to their alb
solute control Of the working and construc-
ton Of cables, and this opinion inspires
- 80 o1S
their own company. There seems to be
some likelihood of their success, for the
Globe Telegraph Company controls large
capital, which it has used for this pur-
pose by purchasing extensively the shares of
the Direct company in the hope to obtain
o controlling interest The charter of the
company declares that it shall not be ANAL
gamated with any other but charter pro-
visions are seldom found to be insuperable
obstacles to schemes of this nature. This,
as pointed out in the interview, would be a
watering operation. That is, the value of the
Direct company's shares would, in COM
mon mixture, be diluted with the feebler
value of the other shares. All this project
of the would-be monopolists rests upon q
great error. The Direct Cable Company is
not the only obstacle in their way, as they
will speedily find if they succeed in
removing it. They will find oppo-
sition to be o particularly vigorous
hydra, which cannot be permanently
kept in q decapitated condition. The
real obstacle to the Anglo-American
monopoly is the opportunity that an exorbi-
tant rate of tolls affords for the profitable
employment Of capital in other cables. The
existence and success of the Direct Gable
Company demonstrate that there is profit
able field in this particular opposition, and
if the field is opened by the removal Of the
Direct company from an independent posi-
ton the place will not long remain unoccu-
pied. The likelihood of its removal is fully
sufficient to justify preliminary organiza-
ton and there is not doubt that the
money could be raised Immediately by pop
ular subscription if called for on, say, one
hundred dollar shares. This would be in
vestment in sure property that would in
fallibly pay good dividends, and would in
sure to the public the use of the cable at
fair rates. The capital of tho company
should be made large enough to insure the
construction of two cables, for which thore
would be abundant occupation.