The New York herald., 1876-07-15

decree Of the Court Nsppsalsd rom, TO close for,
ever the concerns of the once famous American Ex-
press Company.
WESTERN UNION DIVIDEND.
Instead of the anticipated long drawn out arguments
yesterday IN the injunction proceedings Instituted by
S. A. Dowley, In the Supreme Court, to prevent the
Western Union Telegraph Company from paying Its
dividend announced to be paid to-day, and probable
postponement of such payment, the matter was
brought to a speedy determination by Judge West
brook, In Supreme Cour, Chambers before whom the
matter for hearing. AS will bc seen, he allows
the dividend TO be paid u bond OF indemnity against
damages to Mr.. Dowley being ed As TO the injunction
asked for by Mr. Case, tho particulars OF which have
been tally published In the HERALD, the hearing Was
postponed till next Tuesday, when argument is also
to be heard on the merits of Injunction sought by
Mr.. Dowley AT two =. NJ, the hour fixed for hear
ing tho argument In the Dow.sy suit, there was a
large attendance In the court Mr.. Dowley was rep
resented by Mcssrs. }. NJ. Guitau and william Red
field and the Western Union Telegraph Company by
Messrs q. I. LUwrey and William A. Beach
In opening the case Mr. Lowrcy read TWO aiidsvits
one OF Ehakm /. Bowcs and the other OF William
orton, President OF the Western Union Telegraph
Company The former states that, shortly after the
closing Of the transfer books OF the company IN June
last, he met Mr. Dowley at the Union League
Club when the latter offered to bet him that the stock
the company would sell at sixty before sold at
Mr.. Dowcy told him he had no Interest IN the CON-
pany. Mr.. Orton states in his affidavit that at meet
OF the Board OF Directors, held on the 2oth OF last
June resolved 10 pay the 18th OF July div
dend OF $500 100; that such dividend was TO be paid
from the profits OF the company that II such dividend
paid It would cause serious Inconvenience to
many OF the stockholders and would involve the COM
pany in difficulties, and that II would create
con in the stock and prccatc the value
OF the stock, OF which the company owned over
1000, 900. Mr. Lowrcy then went on 10 state
that the order OF reference provided that the referee
haf.,r ,ofnr
tho Court to-day, and such testimony he asked that
the injunction be dissolved.
Judge wcsibrook said that he had granted order
the application of Mr.. Case, which, perhaps, might
Affect the present motiou
Mr. Redheld stated that bird had flown and could
be found in his usual haunts, and the papers IN
not having been served the order was In
operative.
Mr. Lowrey reviewed tho action heretofore taken In
the before Judge Donohue. As to the reference,
which was set down Tor eleven O'Clock. they
ready begin at O'Clock If necessary. All their
witnesses in attendance. more dilatory exami-
nation he never witnessed, most OF the questions being
irrelevant II remained Tor the Court to determine
whether the examination was properly ended: as to
the present he felt anxious to have II concluded
as speedily possible There were certain scandals
connected with the case Persons holding responsible
positions in the company had been charged with iaslty
ing statements
Judge wes,brook said he should require time to
examine the testimony before the referee, and he
thought it best TO postpone the present motion till
next Monday to give him such opportunity.
Nj. Guiteau defended the dlatoriness OF tho
animation before the referee. Most OF the time. he
said occupied by the opposing counsel IN objectng
questions In regard TO the present matter he
the proceedings till SO late time In this
motion the point urged IN the moving papers
that the plaintiff IN the original proceedings had
been guilty OF an illegal act IT was, he insisted,
which no security could be taken
Judge westbrook said that this question had been
decided he Court of Appeals IN "A in which he
engaged ns counsel Tho plaintiff claimed that
the act was illegal because the money had not been
earned, and the defendant insisted that the act
legal tho money had been earned
Mr.. Gu,eau said that the amount OF dividend pro-
posed TO be paid $685. 72O, and the bond should be
double this sum-
Mr. Beach suggested that If without hearing them,
the order of Judge Donohue, the course urged
the other side was TAKEN great injustice would be
done to the company. He asked that hearing might
be had This order next Monday, to see II the
Tor its continuance. Tho referee, under Judge Dono-
hue's order, thought he bad no power To curb tho
range OF the examination. He hoped that under tho
circu instances some Instructions should be given
the referee As the there serious i'm
putation upon the telegraph company TO the
management OF It's affairs
Juare westbrook said that both sides had rights in
the premises which the Court must regard Before
hearing the its merits 1t was necessary to de-
termne other preliminary points as Tor instance, the
range be gwen to the referee As the stood he
why the injunction should be continued
would be great disap ointment to the stockholders
not TO he laid the dividend, and with n bond being
gwen for damages he saw no objection to the payment
The injunction would, therefore, be so modified TO
permit the payment of the dividend.
Mr.. Lowrry said they had a bond all ready and
passco the up to Judge Westbrook for his ap-
prova who approved it, suretics being accepted by
the opposing counsel He added that he did
now the alleged damages could exceed the amount of
the bond
After some further discussion the hearing in the
Dowley case on the order of Judge Donohue,
postponed iii two p NJ next Tuesday, and the order
modifying the injunction duly entered
Mr. Redneld asked that the return IN the suit OF Mr.
Case he adjourned TO tho same hour, which was
granted Meantime tho examination before the referee
the Dowiey suit directed to be stayed till tho
hearing next Tuesday. Tho bond gwen the
Dowley Tor $35 1000, being twice tho interest
OF Mr. Dowlcy. Tho suretes IN the bone were Messrk
Oliver II. Palmer and Frank Work.