Atlantic and Pacific Telegraph Company
Encyclopedia
The Atlantic and Pacific Telegraph Company (A&P) was an American communications company that operated in the 19th century. The Maine Legislature
charter
ed the company in 1854. The company's stated objective was to build a telegraph system extending from the East Coast
to the West Coast
.
In 1869 A&P leased telegraph lines from the Union Pacific Railroad
(UP) and the Central Pacific Railroad
, in exchange for shares of stock
. Subsequently the UP attempted to retake control of the lines in order to lease them to an additional, competing telegraph company, the American Union Telegraph Company. In 1880 the A&P obtained a court injunction
to prevent the UP action.
Through several complex transactions, which included patent
negotiations with inventor Thomas Edison
, financier Jay Gould
acquired sufficient shares of A&P stock to obtain control of the company by 1875. (During this time, Gould was also increasing his ownership in the UP, which he ended up controlling by 1880.) Gould's takeover was contested in litigation; meanwhile, Gould initiated a rate war with competing telegraph companies, most notably Western Union
, the largest company in the industry. By 1878, Gould had sold the A&P to Western Union at a handsome profit.
Maine Legislature
The Maine Legislature is the state legislature of the U.S. state of Maine. It is a bicameral body composed of the lower house Maine House of Representatives and the upper house Maine Senate...
charter
Charter
A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified...
ed the company in 1854. The company's stated objective was to build a telegraph system extending from the East Coast
East Coast of the United States
The East Coast of the United States, also known as the Eastern Seaboard, refers to the easternmost coastal states in the United States, which touch the Atlantic Ocean and stretch up to Canada. The term includes the U.S...
to the West Coast
West Coast of the United States
West Coast or Pacific Coast are terms for the westernmost coastal states of the United States. The term most often refers to the states of California, Oregon, and Washington. Although not part of the contiguous United States, Alaska and Hawaii do border the Pacific Ocean but can't be included in...
.
In 1869 A&P leased telegraph lines from the Union Pacific Railroad
Union Pacific Railroad
The Union Pacific Railroad , headquartered in Omaha, Nebraska, is the largest railroad network in the United States. James R. Young is president, CEO and Chairman....
(UP) and the Central Pacific Railroad
Central Pacific Railroad
The Central Pacific Railroad is the former name of the railroad network built between California and Utah, USA that formed part of the "First Transcontinental Railroad" in North America. It is now part of the Union Pacific Railroad. Many 19th century national proposals to build a transcontinental...
, in exchange for shares of stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
. Subsequently the UP attempted to retake control of the lines in order to lease them to an additional, competing telegraph company, the American Union Telegraph Company. In 1880 the A&P obtained a court injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
to prevent the UP action.
Through several complex transactions, which included patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
negotiations with inventor Thomas Edison
Thomas Edison
Thomas Alva Edison was an American inventor and businessman. He developed many devices that greatly influenced life around the world, including the phonograph, the motion picture camera, and a long-lasting, practical electric light bulb. In addition, he created the world’s first industrial...
, financier Jay Gould
Jay Gould
Jason "Jay" Gould was a leading American railroad developer and speculator. He has long been vilified as an archetypal robber baron, whose successes made him the ninth richest American in history. Condé Nast Portfolio ranked Gould as the 8th worst American CEO of all time...
acquired sufficient shares of A&P stock to obtain control of the company by 1875. (During this time, Gould was also increasing his ownership in the UP, which he ended up controlling by 1880.) Gould's takeover was contested in litigation; meanwhile, Gould initiated a rate war with competing telegraph companies, most notably Western Union
Western Union
The Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
, the largest company in the industry. By 1878, Gould had sold the A&P to Western Union at a handsome profit.