Publication: Electrical Review
New York, NY, United States
Postal Telegraph Company.
The Board of Directors of the Postal Telegraph Company met in the office of the company, No. 49 Broadway, Wednesday last, for the purpose of accepting the resignation of Joel B. Erhardt as president and director of the company. It was reported, and the report was not denied by officers of the company, that John W. Mackey, the California millionaire had purchased a large amount of stock in the new company, alleged to be $500,000 worth, and that at the meeting of the Board this afternoon he would be elected a director and also be chosen president in Mr. Erhardt's place.
One of the officers of the company said: "On Monday last, the day the company began sending messages to Chicago, we sent 438 messages. Yesterday the number forwarded was 1,364, and our business is increasing every day. I have been connected with many telegraph companies, and have built a number of lines for the Western Union, and I have never known a company to start under such favorable auspices. We have two copper wires working to Chicago. Our lines are built in the best manner, and the cost of maintenance will, therefore, be much smaller than on other lines. Despite the fact that we are only transacting business in the daytime, the receipts for the first month will be sufficient to pay the running expenses. Every other new line that has been started in this country has failed to pay expenses for the first six months or a year.
"As soon as the Board of Directors is re-organized, the work of pushing the lines to other important points will begin. We shall increase the number of wires to Chicago, and from that point extend our system to St. Louis, Omaha, and thence to the Pacific Coast. Lines to Toston, and from that point to Maine, will be constructed, and at the Maine end connection will be made with the new cables. We shall also construct a line to the South, with branches to all sea coast and gulf cities, and the principal inland cities in the South, and shall make connection with the South American telegraph system. Afterward we shall construct a line to Cincinnati, Louisville, Nashville, and Memphis, thence running south to New Orleans."
In regard to the report that Mr. Mackey had purchased $500,000 of the stock of the company, the officer quoted said that he could not state the amount, and could only say that the company had disposed of $1,000,000 of stock in the last week, of which Mr. Mackey had taken a large share. George D. Roberts and L. C. Horton being among the other purchasers.
The meeting adjourned shortly after two o'clock. Mr. Cummins, the vice-president, said that the resignation of President Erhardt was accepted, and that Mr. Mackey was elected a member of the Board. No one was chosen to the presidency of the Board, Mr. Mackey declining the position, because of the many other offices he held. Mr. Cummins also said that the company's receipts for the coming month would undoubtedly show a surplus over all expenses, and that the company had sufficient funds to push forward the system to all important points. He added that the present tariff or rates would be maintained.
The election of Mr. Mackey as a director of the Postal Telegraph Company was announced on the tape before two o'clock. The capital stock of the Postal Telegraph Company issued is $19,000,000, of which $12,000,000 are in the hands of George S. Coe, representing a pool to be controlled by Coe and Mackey.
Of the rest, $1,000,000 are first mortgage gold bonds, six per cent. to secure which a mortgage of $10,000,000 has been filed, covering factory in Ansonia and all lines. Three millions of bonds have been issued to create a working capital, and 7,000,000 remain in the treasury of the company. J. W. Mackey, H. L. Horton, and G. D. Roberts obtained $1,000,000 of remaining bonds yesterday.
|Keywords:||Postal Telegraph Company|
|Date completed:||March 24, 2009 by: Bob Stahr;|