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Show Gnat Western Telegraph Company. .By Telraph. Chicago, Not. 30. The Tribute of this morning makes an exposure of the financial transactions of the Great Western Wes-tern Telegraph Company, which has two lines in operation from this city to Milwaukee and one to ( Imaha, which, if true, offers something new in schemes f.-r raising money. The Tr'lupt says the capital stock of the company is $.).f.'uX. in l-Vi.OoO shares at i.i each. Of the l-'O.ooO shares, constituting constitu-ting the whole stock, llT.SC'T shares were subscribed by one Sclah F,.eeve and by h m conveyed to Josiah Snow in tru-t for the company to scii the same and pay the avails back to Reeve, in fuitjiliueut of the contract made by th company with Reeve to construct 'X0 miles of the company"s line. In accordance, accor-dance, this stock was sold by the company com-pany throughout the country. Ooe of the laws of the company provides that no certificates of stock shall be issued until 40 per cent, of the whole shall have been paid in; and as it is left en tirely optional with the company as to when and how much the assessment under 40 per cent, on the stock may be, it seems probable that those who subscribed for stock on these conditions condi-tions are likely to wait some time before be-fore they kave any voice in the election of directors or the management of the company. This is the condition of the stock and property of tbe company. The names of twenty-two of the most respectable business gentlemen of this city are published as directors, and though these have been formally elected by the company, it is alleged that none of them have been qualified as ditectors and that they know nothing of its business transactions. Recently a suit has been brought by some persons in this city who have subscribed for stock. They file a bill alleging fraud in the contract made by the company with S. leeye, in which it is agreed to pay him at the rate of $3o0 per mile for a line of poles furnished with one wire and an additional $1UU per mile for each additional wire, viz: 400 pier mile when the poles are furnished with two wire-:. .SoOo per mile when furnished with three wires, and t'ooO per mile when furnished with four wires. It is alleged that a line of poles with one w ire can be erected for from $120 to s fjo per mile. This last allegation is su.-taiued by the te-tiuiouy of at least half a dozen telegraph builders of experience ex-perience and established reputation. If the company should pay Reeve at the rate of -J00 per mile, it would leave a net profit of 440,1)110; and when he had furnished the full conir plement of four wires, making the total cost to the company of -MjOO per mile, the not profit on his contract would be about 700.0(10, The 40 per cent, of money which the stockholders are to pay in before any certificates of stock are to be issued to them, would amount to $1,200,000. This corresponds to the amount of the construction contract to Reeve at -ooo permile, which amounts to just l. 200, 000. The construction contract and the payments on the stock are so arranged that the money paid in shall be paid out to Iveve before the stockholders have received any certificates certifi-cates of stock, or have any voice in the disposal of their money. |
