New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-09-12
THE TELEGRAPH POOL.
APPLICATION FOR AN INJUNCTION.

SUIT To RESTRAIN THE C0NsUMMArIoN OF THE
SCHEME BEGUN BY sTOCKnoLDER OF THE
ATLANTIC AND PACIFIC.
Rumors have been In circulation for several
days. on Wa-s, that legal steps were to be taken 10
prevent the two telegraph companies from completing
their arrangements to pool their earnings, as recently
ayr ed upon The officers Of the companies were served
Yesterday with notice of proceedings which had been
begun in the Supreme Court Of Kings County for the
purpose Of restraining the consummaon OF the proposed
arrangement.
The plaintiff in the case is Jesse
Johnson Assistant Corporation Counsel Of Brooklyn.
The complaint rectos that Mr. Johnson Is the owner OF
twenty shares OF Atlantic and Pacific stock, which he
has held for five years that the Atlantic and Pacific and
Western Union are competing lines, aud that the SUIT Is
brought in the of himself and other stockholders
that III August last the Truseesof the Atlantic and Pacific
arranged Western Uuion that the receipts of the
companies for twenty years should be "pooled," and
the Atlantic and Pacific receive one-eighh and the
Western Union seyen-eigbths; but they made
no arrangements as TO dividing the expenses
of the business ana that the Western Union should nave
entire control; that the Western Union should take
200 shares of Atlantic and Pacific STOCK NJ 80
share and pay FOR in Western Union stock The com
ulain irther leg,s that the Western Union has no
right to hold this stock authority 10 vote on Atlantic
and Pacific stock; that this arrangement was made TO
give the Western Union troll Of tine Atlantic and Pa
cuff and to prevent the Atlantic aud Pacific from com
u,tng aud to control the entire business in the interests
Of the Western Union and practically to swallow the en-
tire Atlantic aud Pacific Company without purchasing
more than about half the stock other portions OF te
complaint are follows:
That said contract as dividing the earnings Of said
companies Illegal inl contrary TO public policy, "ni
was well known 10y the officers Of holh c'mrmics' az"
that this arrangement arrieioui in order that tbe
western Union Telegraph Company, 10y coufoIh- uo.h
comp,d might manage tnai the Atlantic ana Fafhc
shot a bear the gre3tr portion Of the expenses OF nlh
no slen juiu. earning, and relieve the Western union
there rom, and in ordr That toe officers 81 the Atlantic
and Pacific mi prof. lar ely tlercbr.
r. a The transaction made ~ aforesaid very in
furious to the Atlantic and Pacific ana greatly depIe-
That the officers OF tle 3ntic and Pacific are about
ten agreement TO dividing tue cuuh-s OF the two
comranic and 10 maze is agreement IN every rrsWct
Ne oI wa, am nj me election of tn ir own sue
crssors IN of .e aud Y the urther Ict That Their u-
forests and properly in Atlantic and Pacific has been
converted uto interest and property IN the western
ina; the oace Of said Atlantic and Pacific or mum
her sufficient 10, ana who DO control tue Alahtic an
Pacific are the persons have done aforesaid, and
that they VIII not commence aay suits to prevent such
That the arrangements and agreements here set forth
are fraudulent and Illegal conspiracy between me Two
Dr'i s. whereby tie officers ~ the Atlantic ANA Pacific
v.ror gully counyiug with the officers OF The western
Union. sacrificed the nights or tine stockholders Othcr
than the Western Union on It's treasurer
Nh refore the p amtif demands IL judgment and de-
cree OF the Count restraining the AtHuic ana fdCllt
and ITS officers aud AGENTS 'rin proceeding amy uftncf
with or recognizing any manner Of asserting to the
contract AS to dividing the earnings OF the Two cOpd
MICS and adudgug the agreement 80 to DO NOld; alS1
restraining tine officers and agents from carrying ont the
contract or ia any proceeding TO sign any pa
eTs V.f unsigned giving evidence OF such agreement
and also restraining and CIJOmuS the weston mon
Cpmpanv its officers aud agents, ana part cnlAuF me
Treasurer o lhc Atlantic aud Pacific Company from Yot-
linz on any OF he stock Of the natter company Wdcu had
een purchased by The Western Union Company
The complaint accompanied with the usual sum
mons for the defendants appear and answer IN twenty
DAYS from date Of service.
The stock OF the Western Union Company which sold
On Monday az sll4 ana closed So experienced fur
ber1ccue Yesterday under heavy sales the closing
M e1l with 81 bid Atlantic and Pacific stock closed a
% Mr. orion President of the Western Union Company,
said to TRIBUNE reporter that he Thought anything
which volld prevent the contamination Of the pooling
scheme would be misfortune 20 the Atlantic and Pa
citc stockholders. Under the proposed arraugement
tcv would he able to better dViden thal Oud
oc possible n the competition 'cre 10 continue. lie
tboupt tie plan agreed upon was better for both COM
pans thau pTOlOugatOn OF the bitter strife that had
v's ed for some time. The suit of MI Johnson he re-
aried as OF little importance. In any case the western
Union Company owned "a majority OF the slocS bt the
Atlantic and Pacific and II was question OF a snort
time when latter would De under the control OF the
Western Union officers. go .
Mr. Chancellor. secretary of the Atlantic and Pacific
Coupauy was also Of The opinion that the best interests
OF the stockholders Of the company would be subserNcd
by the pooling arrangement. gentleman IN crested In
the telegraph pOOIug scheme stated 10 IlIBUNE re-
porcr tnat AT the last meeting of tn committees OF the
Two COMPANIES every thing moved along smoothly until
Mr. Syms insisted upon written guarantee from the
Western Union managers That they would not Increase
tbe expenses OF the Atlantic and Pacific Company, and
without taking any action tine committees adjourned