Publication: Electrical Review
New York, NY, United States
The B. and O. Raises $2,000,000 to be
Applied to Extensions.
It is announced that the Baltimore and Ohio Telegraph has determined to press very vigorously and with immediate, activity in opposition to the Western Union. Arrangements have been made for extensions from Baltimore to Norfolk, Richmond, Charleston, Savannah and Atlanta, and from Chicago to St. Paul and Kansas City. President Bates states that these extensions will probably involve an outlay of not far from $1,000,000, and that twice that amount has been raised within the last few days to be applied for the development of the system, and the extension of its lines. The remaining million of dollars will be employed in extensions in other directions. The Baltimore and Ohio's recently completed lines to Boston, Providence, Newport, etc., etc., were opened on Monday last, and are reported to be 'doing a considerable business. In the Southwest, though, the efforts of the Baltimore and Ohio to reach out telegraphically have been met by a decided opposition, foremost in which is, very naturally, Jay Gould, as representative of the Texas Pacific Railroad Company and the Western Union. These two corporations are making a bitter fight in Texas particularly, and are seeking through the courts to prevent the Baltimore and Ohio's lines from being run along the Texas Pacific Road, from Texarkana to Sherman, a distance of about 155 miles. It is reported in New York that the real use for the extra million of dollars referred to above is the purchase of a controlling interest in the crippled Bankers and Merchants' Company. Its financial embarrassments have not been relieved. Default was made on Monday on $3,000,000 six per cent. bonds of the American Rapid Telegraph Company, assumed by the Bankers and Merchants', which also holds a majority of the American Rapid's stock, but foreclosure proceedings cannot be begun for six months.
The line of the Bankers and Merchants' Telegraph Company, from New York to Philadelphia, is bonded for $290,000. It owns a majority of the stock of the Rapid and the Southern, and a majority of Rapid bonds. The Baltimore and Ohio owns 4,700 shares out of 9,200 shares outstanding of Commercial Telegraph Company's stock.
|Keywords:||Baltimore and Ohio Telegraph Company|
|Date completed:||April 27, 2009 by: Bob Stahr;|