The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-08
IMPORTANT INJUNCTION.

RUFUS HATCH SEEKS 70 RESTRAIN THE ISSUE
STOCK BY TIE ATLANTIC AND PACIFIC TEL
EGRAPH COMPARATIVELY HE KNOWS OF IT'S
FINANCIAL CONDITION.
Shortly after meeting Of the stockholders OF
the Atlantic and Pacific Telegraph Compfhy,
held on Saturday afternoon, at which 1t was
decided by very close VOTE TO raise tho capital
stock from $40 00o 600 TO $15 600 0o0 the initial
papers in an injunction BY Mr. RUFUS Hatch to re-
strain the company from issuing the proposed addi-
tional stock were served The answer is called Tor
within twenty days. and If It be then not forthcoming
the plaintiGwi apply 10 the Court for the relief de-
manded In the complaint
THE COMPLAINT.
The complaint to which Mr. Hatch subscribcs his
forth that the capital stock of tho defendant
and in its certificate OF Incorporation, is 49, COO 0O0
that the said capital stock divided into shares of 800
each and that these shares with the exception Of 100
held by the company ITSELF are now IN the hands OF tho
public Mr. Hatch states that the business OF tho
corporation, according to tho best OF his in
formation and belief ID now In exceedingly
embarrassed circumstances, and Is largely indebted to
certain OF its directors aud To diverse railroad CON-
panes and other individuals 10 amount, tho
plaintiff informed and believes OF over $500 009 and
as the plaintiff believes aud is informed 1t has little
no available with which pay the same that
It's current receipts do not amount TO It's current ex
pcndturcs and the business OF said company being
done ut positive loss Mr.. Thomas I. EcKert Prcs
dent of the company. in his report made the 10th
OF April fSsG 10 the 'ockhodcrs OF the company
recommends that arrangements be made for the con
structlon Of line OF telegraph from Albany, y. Y.
to Boston. Mass. from Rye Beach " H.. to Portland
Nc IRON Bristol. n. H., to Willis River. W. ; from
Washington to New Orleans and t;alvcston from
CINCINNATI to New Orleans VIA Louisville, Nash-
vile and Memphis; from Cincinnati via Indian
npolis, and Tcrrc Haute. TO St. Ions, and thence
10 Omaha, Ncb and Tor the purpose OF the construc
OF such lines he recommends that the capital stock
Of the company be Increased the necessity may
TO make extension OF the said lines. The com
plant further forth that tho defendants, the Board
OF Trustees OF this docndant corporation, adopted
resolution Mt their last quarterly meeting, held tho
18th OF Apri recommending TO the shareholders that
$40 900 to $4,000 900 The purpose OF extending
the lines and operations of the company in accordance
with the Recommendation OF the President for the i'm.
proycmcn,s hercinbciore detailed.
Mr. Hatcn further that the issue OF this addi-
tonal stock will be aga his wishes aud against
his protest; that the capital stock already issued,
amounting 10 $40, 600 600 regularly dealt in nj the
New York Stock Exchange; that the price of
tho said stock during tho last three months
has exceeded go per share and the said S. 900
oil stock proposed to be issued cannot be sold
price exceeding that ut which the present Ia
quoted; that whole Of s. 000 will the
company over 100000, thus being positive loss OF
over $400o,000.
That the corporation defendants be forever restrained
from issuing tho said s., 600 900 Of stock from
the capital stock Of the said defendant
ton without the consent OF each and every stock
holder that The defendant corporation he restf aimed
from selling or parting with any Of the said additional
sued at for less price than tho entire par value
thcrcof-$l00 per share