New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-27
THE MERCHANTS UNION EMPRESS
QUARREL.


This case brought to prevent the C0ns0llda-
ton of the Merchants Union and American Express
Companies, up before the supreme Court on mo
on 10 continue the er pare injunction before granted
Judge Strong on behalf the plaintiff lead the com
plant the substance Of which mas Deeh .lreauS pun
dav OF Charles Graas sets out the organization OF the
company and upon belief states that the o. so
private gain Of the officers that In the Spring OF $780, the
Executive Committee directed TO be PAID 10 eac VI 10
members, and to Goodwin and Il NJ rOnle Iar
tOrney of the company $500 per month, from January
%, 1866 that about August following tney
directed the payment TO the attorney Of 5000 20 be
charged to the expense OF securing riI9au TO-
the purpose and about month later Of the payment OF
5000 the draft Of W. H. Seward r tor siIaa 20
of the Committee OF $500 as COMPENSATION
for services That about May so 1noy their stock
OF SIS 900 firm OF brokers 10 prOtect t
from assault in the interest OF other companies Oe t
June they ed the 9o xeS the future salary Of
the trustees at $500 per annu ana the sataay % c n
President was fixed at sOOG Oh I nnd o the members Of
the Executive Committee and Attorney AT SoVV ~ oeP
10000 was drected that about November further pay
ment TO the members OF the Executive committee Oh
5000 each was directed; few days after 900 to NJ Is
White for extra services Soon $4,000 to each mem
Der OF the Committee, and the Attorney, On %
they should invest the amount IN stock In May 1885, TINS
latter grant was repealed loan Of $4,000 was made TO
member OF the Executive C0umlltcej lnaI ~ In"S
1863 the Secretary required TO prepare dupncao
the minutes omtng repealed aud rescinded orders and
resolutions that August, 1865 the Committee liked the
so for past services t that in November S6 they
rected the issue to Henry w slocum and John A. Green
ir shares, and f. G. Stokes 500 shares, on the
pretense Of remunerang theln for their retirement from
the Committee, in order to tho consolidation that the
Hon. George FComstock was made trustee In May ana
that In October November they voted MIN SOOO lor
@ S e Vg rYiees About Nav 1853
they purchased 1900 shares OF stock from COmSOck at
S5 the market price being s23 per share that IN Decem
be 1863 they sold about 1000 shares at from Si OF fS
about per cent OF the assessments levied ON he ot
stock; that the Committee has allowed SoZOVo as 'ei
Mr. Pomeroy read on behalf OF the defendants the Joint
affidavit OF Ross, Seward Beardsley, Knapp, sOcnl'
Backus, and himself in answer 10 MI Grass atndavt,
affirming that they cannot find his name IN the Dlteetoi
that he Is a shareholder; that they believe ShI ne
plaintiff and VIM g Williams and others entered INTO
combination for purposes OF private specuat1h uu
sodaton OF the Company with the American; that the
plaintiff has had during tho past year 1ull access 10 u
correct by examination Of the books They deny that
the increase OF the stock was rauduenty made ana re-
fer TO their for the contradiction OF much OF the
above affidavit and the complaint; they say that no
moneys have been paid out to any officers except Ior
services actually rendered. White the General supern'
endent was paid extra services actually rendered
They say that the 600 voted TO be taken n stock was
lie loan OF $4,000 They say that Mr. Comsocks last
professional services well worth the $4,000 pad 70
him. and that they did purchase OF MN the 2 SHARES
but they say that this for the benefit OF the STOCK
holders.
the plaintiff 3 stock purchased by INN from one
Keyes who had before selling consented To the consOl'
chants Union does not exceed the sum OF Sb0o Ihey
deny that they have speculated In the stock OF the Com
pany. They deny that they have received any money
from the Company except In legitimate way Tor ser
vices rendered They say that before consolidating they
sent circular TO all their stockholders stating their rea-
sons for urging such consolidation. and asking their as
sent They then 20 that the consolidation mas
been actually made and that 10 will be impossible 70 undo
IT, except at EXPENSE that the lines OF
transportation exclusive OF stage and water routes are
i2OOO miles Ia eugth that since tine plan Of consoda
ton has been fully canyassed and published at the last
election, votes ut all were given for ot1ecrs OF the
Company which they claim absence OF dissent from
the cOusuldatOn that absence OF necessary
parties iuasmuol the American Express Company is
"A purity deeply interest d IN It. ~
Mr. Van Worst, OF counsel for tho new consolidated
company read Mr.. FargO's answer TO the complaint
Connected with this affidavit, among others, OF
one Jebb who sWears that he owned LEO shares OF
Merchants Union Express stock that he was approached
by Mr.. LoycjUv Superiutendent OF Adamss Express
Company, who suggested to him the idea OF bringing
"A suit against the Company and obtaining an Injunction
Several other afidayits were produced by the de-
PENDANTS.
Among the papers read by Mr.. sewc order
made by Judge ugraham on the 2Jd instant IN the case
Receiver OF all the property Of the Merchants Union EX-
pres Company not heretofore conveyed TO the new con
sOlldatcd company.
At the close the reading exJudge Strong said he de
sired introduce andats In reDutta OF the new mat
ter. ....... -.
Judge IngahRm did not think that any really new mat
ter was Introduced by the adavit and stated that az
rule be was opposed TO allowing counter adaylts 10 De
brought la by tire moving party, a. IL only tended To pro
duco Wrangllug among the counsel
After further discussion the court put the case over
TO to-day at ~ O'Clock.