New-York tribune., 1869-01-18
Committee.
Sunday, Joa. u, 1869.
THE MERCHANTS UNION EXPRESS COMPANY
AND ITS STOCKHOLDERS.

TIE MERCHANTS UNION EXPRESS COMPANY
AND ITS STOCKHOLDERS.
In the Court of Common Pleas, on Saturday,
before Judge Brady, James II. McVckors through his
attorney Joseph Gutman Jr entered complaint against
the Merchants Union Express Company, Of the stock Of
which 100 shares. The following is the substance
Of his complaint In the month Of January, 1862 the de
fendaus EB0re T. Ross, President Of the Merchants
II. .'' seward jr William G. Beardsley, John \.
and IiiGi Others, formed tho Merchants Union TX
press Company, ageeing that Interests OF TIC various
constituents should be represented by shares Of 500 each
the whole amount Of stock to be $l50OOcO The number
OF shares according 10 the agreement might be increased
by ateefourhsv vooof tlc associate managing partners
After the organization OF the copartneshp the shares
therein were exposed for sale and rapidly appreciated in
market value The deiendants increased by their own
votes the whole amount OF shares from $5o00 10 so
35 per cent or EVOoO were actually pad IN cash into
the treasury OF the association or this 100000 shares the
for the price OF $40 per share; and for this
NAL price the defendants gave TO the association their
memorandum check checks and retained the shares
until they had adNanced IN the market TO $40 per share
at which price they sold them, aud Individually apprO
pated the difference between the cost and the price
thereof which difference of right belonged 10 the asso
citation The defendants invested 100000 O the moneys
OF the eopartnerhp In United States bonds at time
when the same were selling at low rate m the market
ard subsequently sold the same az large advance and
themselves appropriated the amount thus realized
The defendants early In the history Of the coparnershp
voted themselves large salaries and have since charged
OF the Executive Committee i0r extra services, aud for
what they pleased 10 term damages to reputation"
To Glict Complaints OF lDa.dlDlust iley
occasion paid S%0W 10 certain party who threatened 10
prosecute them' and procnre their removal and
the winding up Of the Association. Their business
has been conducted at a daily loss, and the
paid mp capital has been infruCed upon, $7,O0OOOO
having been expended The assets Of the Company now
consist OF certain rolling stock, equipment, and real
tate and itis hOpcessy ins0yent Seeing this the dc
PENDANTS without consent Of the complainant and other
stockholders. consolidated with the American Express
Company and transferred certain property thereto. The
latter Company has not the ability 20 continue the bust
ness without assessment Of per the
the Union Express Company, aud should heavy lOes
by fire robbery fail HpOn either Company. 10 could not
be- paid without additional assessment. The plaintiff
therefore prays that the Merchants Union Express
Company bo dissolved; that receiver be
appointed 10 take charge of Its effects;
that the defendants be forced to der ~ said Ieccy
er AL property m their hands belonging 10 the company
benefit OF the Shareholders that the defendants be forced
10 account Tor and pay over all monies or profits realized
Dy eh from sales of tho stock Of the company or Un
yea states bonds purchased with the money of said com
pany, ana All monies received account OF salaries
uaNeilng expenses aud damages 70 reputation that
they De prevented from cvyng sscssnens, carrying
on the business On otherwise interfering with the
receiver, and that the said consoldaflon agree.
ment be declared void. He also asks that
VIM @. Fargo, President Of the Union Exuress Com.
pany, (whO is nado Of the defendans be decreed
to account and pay Tor the income use and prds OF an
such property OF the Merchants UnOn Express Company
MS may have come TO ms hands and been used by him as
President OF the American Merchants Union Express
Company aud that he be compelled transfer 10 such
time, belonged TO the Merchants Union Express Com
pany. The complaint wac dny verified and accompanied
by several vouchers sueh AZ notices OF elections Of the
consolidation, &c.