New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-06-29

which have been paid by the said associates and for
And these defendants further answering. admit that
at the time of the formation of the said Company, there
were then, and existing, three other express
companies, named in the said complaint and the said
fact was at the time Of the said organization OF the said
Company at the time of the subscription by the said
plaintiff and by the said person from whom tho SAID plain
tiff alleges he purchased his stock well known to the
public and the said plaintiff and to every other sub
scriber and ii was well understood and known by the
public and by the said plaintiff and all other subscribers
for stock, that the said Merchants Union Express
Company would necessarily come in competition with
some or all Of the said existing express companies and
would necessarily be very greatly mpeded and Obstruced
In the of the business OF the said Merchants
stock Including tho said plaintiff became subscribers
thereto with all the knowledge upon that subject which
the said defendants had at the time; and the SAID Mer
chants Union Express Company was formed and
organized for the purpose among Others OF destroying
me monopoly when existed ia anu W ~ nI y,
have the benefit of Express companies without submitting
to the extoron TO which they had been therefore sub
jocted and IL well understood by the subscribers to
the stock of the said Merchants Union Express Com
pany that It's lines and routes OF business would neGes
cation which traversed by the said three existing
companies and that would be necessary for the
ayers Of the said Merchants Union Express Company to
obtain by contract contracts the right OF ansp0rta
ton the said roads, and that reasonable compensa
ton would necessarily be paid therefore but they deny
that any stock had boon issued 10 any person Tor such
rights, either gauitousiy otherwise that In anteipa
ton Of the business OF the SAID Merchants Union Express
Company 1t was necessary for the said company 10 make
the necessary contracts ana WIN Inc sad
railroads and was expected and OF the sau
defendants and the Executive Committee OF said com
tered into that the business the said company could not
be commenced without such contracts and senens
They deny that said contracts have been made with any
railway company or companies at rnnOus extavagant
rates, that the said Merchants Union Express tOin
psn has agreed 70 pay one r t ~ y ~ day
and the said defendants aver that the said contracts
which they nave maze WIN .nS are aed 10 far
the said railroads used and employed by other ex
press companies have been In the same form and at tho
same rates ana upon the same teTs as tho W w.
made with the other companies Tor tho use o mo
roads, and not other or different; that In all IN
stances they have the use OF the several railroads en-
ployed by them equal terms with the other
tRer aver that the facilities which they contracted and
agreed with the railroad companies in anticipation OF the
actual business requirements and sna where they have
agreed to and pay for given number of day
ploY larger number Of from the first, and that in
every instance the arrangements aud agreements made
with railroad cOmpanes have been as favorable TO the
said Merchants Union Express Company and reasonable
In price aud terms with the other express companies
said defendants are informed Dy the Olncers Oh su
railroad companies and believe.
And the said defendants further answering. deny that
to enable the said Merchants Union Express company "
compete with said other three companies the said de-
PENDANT actually reduced the rates Of express charges TO
other three companies but they admit that they did es
tablsh tariff OF rates OF express charges much more
charged by tho then existing companies, but tamil
which wonld have gwen the defendants beheye re
mnneratlve prof. the express company ana 20 itS
shareholders and could they have been permitted TO
transact their business upon that tarf or any tarn
would have enabled TO transact their business at
profit TO the stockholders and TO extend their lines WIN
out calling their stockholders for more than the rst
ten per cent They deny that any tariff OF rates fixed
by for the Merchants Union Express Company was or
Is less than the ordinary railroad fare for freight
And these defendants further answering say that the
said Merchants Union Express Company or It's managers
or officers are ut for the present reduced rate or
express charges that ut about the time of the COM
ucncement Of business by the said Merchants Union
Express Company, the said three existing express com
nanes acting In concert and combination reduced their
tariff OF charges and upon all routes which could IN
any way come In conflict or competition with the sad
Merchants Union Express Company, 10 n point which
would give the express companies no pon put rather
result loss hoping and intending thereby TO rum the
said Merchants Union Express Company, and to destroy
the value it, stock and incapacate from serving the
were driven 10 somewhat further reduction OF their
tariff and rates OF charges but they never have pat their
fixed and acted upon by the said other companies
Aud these defendants, further answering say that IN
10 it, siipertcndents and agents private and eont
denal" circular in the words aud figures following to
"rRrvArR AND coNFrDEs1aL)
UNITED STATES EXPRESS CoIPAsr,
To srp.-ir,s,ai, Asp q &c 6n'f si'''' Express Ca"
ger,o,Ization known az the Merchants Union Ex-
prss COMPANY has commenced an Express business over
Some of tr rones occupied by this Company. our super
inisndens aud asonts are Instructed under no crcum-
stances TO have business relations with this organization
directly or Indirectly. express Of any deserp
ton is 10 be received from them, delivered to them.
whether paid or unpaid. consigned or unc0nsigned ~
You Are asO instructed 20 retain the business OF the
United States Express Company at whatever reduction
i'm price may be necessary Oh routes where The Mer-
chants Union Express Company comes IN contact with
mis- COMPANY 10 accomplish this, you will, from time
time reduce the OF transportation on all express
ccur the business but prrserye the friendly rea
tons with the patrons OF the Company anu inc puDc
= TpoS roues ,chers there is competition you viii
pianai racs unless otherwise Instructed rom thus ONCE
LUNG HENRY KIP, General superintendent"
And these defendants are Informed and believe that
each Of the other express companies naineu ~ o
Ia.
spcrnendents and agents and thoy aver that ne icts
that such circulars had been lssned anu wre c h d
plaintiff aud tie other ckholders OF the said Mereht
iulon Express Company ana several 0f the calls maui
upon The Stock OF said Company were thereafter paid by
Ird rhe said den.ndaits further answering say, that
the d TIM e companies are doing business aud all
that they get at rates lower than me SsTs d tS
~ the said Merchants Union Express Company
were driven 10 the alternative OF abandoning thet Du
ness and their organization. which would have resulted
~ loss 10 the stoc shoders and the permanent reestab
lshment OF the mopCpOes before mentioned orto reuoe
their rates ard charges 10 something near the point az
which the other competing express companies were car
And These defendants in further answering say that
d the time they commenced tGe business OF carrying
vnTss matter the lines and routes covered by them
were about 1000 miles in extent that from that time
which vas some time In October. 1885, to the present.
they have extended their lines and routes by about
IL 900 niles and are now covering and cSrryins express
matter over Ines ad routes nearly $4,000 miles IN exent;
that this extension a! III business was necessary 70 give
nhain ar,l carr cylHcS- matter the roites ana
lines first csiisaId. md hsa been attended WIN very
And the said defendants. further answering say that
the pid extension ol their Ines and routes is atoresu'
was the persistent reIusa OF the ou En-
nrrss Conpaues AS common carries 10 receive from the
sId Merchants Union Express Company, or 20 denver 10
N ana express or freight matter thereby involving on
The mart of tho said Merchants Union Express company
much larger and rapid expenditure OF moray man
wa- contemplated could possibly have been ioreseth
nt the fine of the organization OF the said company
Bt these defendants deny that the said company mas
snce commenced business transacted the same t loss
OF several hundred thousand dollars per month"; Ihe
admit that the business has not resulted IN proht; pt
they aver upon their belief that II has nor pee as us
a.os or % so great loss has been the busless Oh
the other companies during the same period , -,
These defendants further answering deny tHat II VIZ
LII worn now Wonnd md lis cOntrncts win