Beautifully engraved certificate from the Western Union Telegraph Company
in in the 1940's and 1950's. This historic document was printed by the American Banknote Company and has an
ornate border around it with a vignette of two allegorical women flying on clouds. This item has the printed signatures of the Company’s President and Secretary and is
over 54 years old.
January 26, 2006
After 155 years in the telegraph business, Western Union has cabled its final dispatch.
The service that in the mid-1800s displaced pony-borne messengers has itself been supplanted over the last half-century by cheap long-distance telephone service, faxes and e-mail.
In a final bit of irony, Denver-based Western Union informed customers of its decision last week in a message on its website. The terse notice was in keeping with telegraphese, the language that customers devised to hold down costs.
Western Union, which primarily transmits money from about 270,000 locations in more than 200 countries and territories, ended the service a day after parent First Data Corp. said Jan. 26 that it would spin off the company.
In 1832 Samuel F. B. Morse, assisted by Alfred Vail, conceived of the idea for an electromechanical telegraph, which he called the "Recording Telegraph." This commercial application of electricity was made tangible by their construction of a crude working model in 1835-36.
This instrument probably was never used outside of Professor. Morse's rooms where it was, however, operated in a number of demonstrations. This original telegraph instrument was in the hands of the Western Union Telegraph Company and had been kept carefully over the years in a glass case. It was moved several times in New York as the Western Union headquarters building changed location over the years. The company presented it to the Smithsonian Institution in 1950.
The telegraph was further refined by Morse, Vail, and a colleague, Leonard Gale, into working mechanical form in 1837. In this year Morse filed a caveat for it at the U.S. Patent Office. Electricity, provided by Joseph Henry's 1836 "intensity batteries", was sent over a wire. The flow of electricity through the wire was interrupted for shorter or longer periods by holding down the key of the device. The resulting dots or dashes were recorded on a printer or could be interpreted orally. In 1838 Morse perfected his sending and receiving code and organized a corporation, making Vail and Gale his partners.
In 1843 Morse received funds from Congress to set-up a demonstration line between Washington and Baltimore. Unfortunately, Morse was not an astute businessman and had no practical plan for constructing a line. After an unsuccessful attempt at laying underground cables with Ezra Cornell, the inventor of a trenchdigger, Morse switched to the erection of telegraph poles and was more successful. On May 24, 1844, Morse in the U.S. Supreme Court Chambers in Washington sent by telegraph the oft-quoted message to his colleague Vail in Baltimore, "What hath God wrought!"
In 1845 Morse hired Andrew Jackson's former postmaster general, Amos Kendall, as his agent in locating potential buyers of the telegraph. Kendall realized the value of the device, and had little trouble convincing others of its potential for profit. By the spring he had attracted a small group of investors. They subscribed $15,000 and formed the Magnetic Telegraph Company. Many new telegraph companies were formed as Morse sold licenses wherever he could.
The first commercial telegraph line was completed between Washington, D.C., and New York City in the spring of 1846 by the Magnetic Telegraph Company. Shortly thereafter, F. O. J. Smith, one of the patent owners, built a line between New York City and Boston. Most of these early companies were licensed by owners of Samuel Morse patents. The Morse messages were sent and received in a code of dots and dashes.
At this time other telegraph systems based on rival technologies were being built. Some companies used the printing telegraph, a device invented by a Vermonter, Royal E. House, whose messages were printed on paper or tape in Roman letters. In 1848 a Scotch scientist, Alexander Bain, received his patents on a telegraph. These were but two of many competing and incompatible technologies that had developed. The result was confusion, inefficiency, and a rash of suits and countersuits.
By 1851 there were over fifty separate telegraph companies operating in the United States. This corporate cornucopia developed because the owners of the telegraph patents had been unsuccessful in convincing the United States and other governments of the invention's potential usefulness. In the private sector, the owners had difficulty convincing capitalists of the commercial value of the invention. This led to the owners' willingness to sell licenses to many purchasers who organized separate companies and then built independent telegraph lines in various sections of the country.
Hiram Sibley moved to Rochester, New York, in 1838 to pursue banking and real estate. Later he was elected sheriff of Monroe County. In Rochester he was introduced to Judge Samuel L. Selden who held the House Telegraph patent rights. In 1849 Selden and Sibley organized the New York State Printing Telegraph Company, but they found it hard to compete with the existing New York, Albany, and Buffalo Telegraph Company.
After this experience Selden suggested that instead of creating a new line, the two should try to acquire all the companies west of Buffalo and unite them into a single unified system. Selden secured an agency for the extension throughout the United States of the House system. In an effort to expand this line west, Judge Selden called on friends and the people in Rochester. This eventually led in April 1851 to the organization of a company and the filing in Albany of the Articles of Association for the "New York and Mississippi Valley Printing Telegraph Company" (NYMVPTC), a company which later evolved into the Western Union Telegraph Company.
In 1854 there were two rival systems of the NYMVPTC in the West. These two systems consisted of thirteen separate companies. All the companies were using Morse patents in the five states north of the Ohio River. This created a struggle between three separate entities, leading to an unreliable and inefficient telegraph service. The owners of these rival companies eventually decided to invest their money elsewhere and arrangements were made for the NYMVPTC to purchase their interests.
Hiram Sibley recapitalized the company in 1854 under the same name and began a program of construction and acquisition. The most important take-over was carried out by Sibley when he negotiated the purchase of the Morse patent rights for the Midwest for $50,000 from Jeptha H. Wade and John J. Speed, without the knowledge of Ezra Cornell, their partner in the Erie and Michigan Telegraph Company (EMTC). With this acquisition Sibley proceeded to switch to the superior Morse system. He also hired Wade, a very capable manager, who became his protege and later his successor. After a bitter struggle Morse and Wade obtained the EMTC from Cornell in 1855, thus assuring dominance by the NYMVPTC in the Midwest.
In 1856 the company name was changed to the "Western Union Telegraph Company," indicating the union of the aforementioned Western lines into one compact system. In December 1857 the Company paid stockholders their first dividend.
Between 1857 and 1861 similar consolidations of telegraph companies took place in other areas of the country so that most of the telegraph interests of the United States had merged into six systems. These were the American Telegraph Company (covering the Atlantic and some Gulf states), The Western Union Telegraph Company (covering states north of the Ohio River and parts of Iowa, Kansas, Missouri, and Minnesota), the New York Albany and Buffalo Electro-Magnetic Telegraph Company (covering New York State), the Atlantic and Ohio Telegraph Company (covering Pennsylvania), the Illinois & Mississippi Telegraph Company (covering sections of Missouri, Iowa, and Illinois), and the New Orleans & Ohio Telegraph Company (covering the southern Mississippi Valley and the Southwest). All these companies worked together in a mutually friendly alliance, and other small companies cooperated with the six systems, particularly some on the West Coast.
By the time of the Civil War, there was a strong commercial incentive to construct a telegraph line accross the western plains to link the two coasts of America. Many companies, however, believed the line would be impossible to build and maintain.
In 1860 Congress passed, and President James Buchanan signed, the Pacific Telegraph Act, which authorized the Secretary of the Treasury to seek bids for a project to contruct a transcontinental line. When two bidders dropped out, Hiram Sibley, representing Western Union, was the only bidder left. By default Sibley won the contract. The Pacific Telegraph Company was organized for the purpose of building the eastern section of the line.
Sibley sent Wade to California, where he consolidated the small local companies into the California State Telegraph Company. This entity then organized the Overland Telegraph Company, which handled construction eastward from Carson City, Nevada, joining the existing California lines, to Salt Lake City, Utah. Sibley's Pacific Telegraph Company built westward from Omaha, Nebraska. Sibley put most of his resources into the venture. The line was completed in October 1861. Both companies were soon merged into Western Union. This accomplishment made Hiram Sibley leader of the telegraph industry.
Further consolidations took place over the next several years. Many companies merged into the American Telegraph Company. With the expiration of the Morse patents, several organizations were combined in 1864 under the name of "The U.S. Telegraph Company." In 1866 the final consolidation took place, with Western Union exchanging stock for the stock of the other two organizations. The general office of Western Union moved at this time from Rochester to 145 Broadway, New York City. In 1875 the main office moved to 195 Broadway, where it remained until 1930 when it relocated to 60 Hudson Street.
In 1873 Western Union purchased a majority of shares in the International Ocean Telegraph Company. This was an important move because it marked Western Union's entry into the foreign telegraph market. Having previously worked with foreign companies, Western Union now began competing for overseas business.
In the late 1870s Western Union, led by William H. Vanderbilt, attempted to wrest control of the major telephone patents, and the new telephone industry, away from the Bell Telephone Company. But due to new Bell leadership and a subsequent hostile takeover attempt of Western Union by Jay Gould, Western Union discontinued its fight and Bell Telephone prevailed.
Despite these corporate calisthenics, Western Union remained in the public eye. The sight of a uniformed Western Union messenger boy was familiar in small towns and big cities all over the country for many years. Some of Western Union's top officials in fact began their careers as messenger boys.
Throughout the remainder of the nineteenth century the telegraph became one of the most important factors in the development of social and commercial life of America. In spite of improvements to the telegraph, however, two new inventions -- the telephone (nineteenth century) and the radio (twentieth century) -- eventually replaced the telegraph as the leaders of the communication revolution for most Americans.
At the turn of the century, Bell abandoned its struggles to maintain a monopoly through patent suits, and entered into direct competition with the many independent telephone companies. Around this time, the company adopted its new name, the American Telephone and Telegraph Company (AT&T).
In 1908 AT&T gained control of Western Union. This proved beneficial to Western Union, because the companies were able to sharelines when needed, and it became posible to order telegrams by telephone. However, it was only possible to order Western Union telegrams, and this hurt the business of Western Union's main competitor, the Postal Telegraph Company. In 1913, however, as part of a move to prevent the government from invoking antitrust laws, AT&T completely separated itself from Western Union.
Western Union continued to prosper and received commendations from the U.S. armed forces for service during both world wars. In 1945 Western Union finally merged with its longtime rival, the Postal Telegraph Company. As part of that merger, Western Union agreed to separate domestic and foreign business. In 1963 Western Union International Incorporated, a private company completely separate from the Western Union Telegraph Company, was formed and the agreement with the Postal Telegraph Company was completed.
History from Encyberpedia and
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