The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-28
CREDITORS WHO WANT CASH.
STORY OF THE CONSOLIDATION or THE AMERI-
CAN WITH TIE MERCHANTS UNION EXPRESS

STORY OF THE CONSOLIDATION OF THE AMERr-
CAN WITH TIE MERCHANTS UNION EXPRESS
coMpANy-cLAIMs THAT ARE NOT SETTLED.
case involving the history OF the American Ex-
press Company Is now pending in the courts, and II
win obtain prominence in day or two upon motion,
notice OF which was nled yesterday, requiring the
receiver Of the old Merchants Union Express Com
pany TO show cause why he should not render an ac-
count. The case is that Of the executors OF Daniel
Pratt and has been In litigation In various ways since
1868, tho appeal from the Judgment 40. being dis
missed for second time At the Ian; General Term.
Il involves or two nice questions Of law, which
will be developed IN tho future, and tho hint OF which
gives point and piquancy to the history Of the COM
pany.
THE GREAT MERCHANTS UNION EXPRESS COMPANY.
The organization Of what very few years have
doomed 10 be designated the sold" Merchants
Union Express Company will DO remembered on &C
count OF the great blast OF trumpets which sounded
it's fame simultaneously with its birth. 1t was one Of
those magn enterprises which promise to sweep
everything before them. Its Offices on the ground
floor Of what was once Tnylors famous saloon wore Of
the most sumptuous kind, and they even ouistared
the staring and gaping mullitudes in Broad
way who looked In upon all thus magniacencc.
AT the outset II had capital oil SIS 900, and It's
dividends were expected to DO enormous. II was not
long however, until all these visions faded into thin
air and so II camo about in 1868 that the great
Merchants Union Express Company was merged with
another known as. the American Express Company,
and the company was styled by the still grander
title of the American Merchants Union Express Com
pany
THE CONSOLIDATION
When the con solidation was made the Merchants
Union reduced its capital about nifty per centtaa is,
50, 600 OO0--and each company put IN as capital
1850, 900 In real estate rolling stock cash, &c.
SIX the Board OF Directors and Executive Commit
OF the Merchants Union Express Company were
chosen directors OF the consolidated company and II
continued 10 do business without further intcr-
ruption except that IN 1872 part OF It's hIh-soundng
title eliminated, and IL was called SIMPLY the
American Express Company The old companies,
however, were not to be disposed o! by simple con-
solidation, and SO TO wind hcm up cncctualiy tho
old American committed its affairs to an assignee.
This gnee has paid and satisfied all claims upon the
old American Express Company and distributed
about 81, 900. 600 among the stockholders. On
the other hand the Merchants Union has
spent hundreds OF thousands In litgallon-S5O, 900
Ia enc retainer iec--and has distributed nothing
Some of It's debts still remain unpaid, the Pratt claims
among ihom. Tho creditors are determined TO get
their money. and IT is this effort that the impend
ing moon TO compel the receiver to account has IFS
significance.
A BOOMERANG COMPANY.
The actions upon which these judgments were OBJ
tanned begun prior 10 the cOnsold and the
Charles n Ross, tho Treasurer OF this State, and his
father, Mr. Eimore +. Ross, Is President Of tho
American Express Company. In order TO obtain their
remedy the plaintiffs IN these actions seek even
behind the receiver and hope to find their money in
the company over which the elder Ross pre-
sides II it not to be found in the
havo also been taken against tho new
company order to get at their assets The plaintiffs
cannot understand why their money was not In the
which turned over to the new organization
Wellesley N. Gage, their counsel, Is trying TO find
it, 1t is this which gives tho present aspects OF the
case their Importance, aud the novelty OF tho claim
Will attract attention. II for no other reason than its
novelty.