The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-28
CREDITORS WHO WANT CASH.

STORY OF THE CONSOLIDATION OF THE AMERr-
CAN WITH THE 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 u
will obtain prominence In day or two upon motion,
notice OF which was fled yesterday, requiring the
receiver OF the old Merchants Union Express Com
pany 70 show cause why he should not render an ac-
count The case is that Of the executors OF Daniel
Pratt and it has been litigation In ways snce
$685. the appeal from the judgment, 30, being DIS
missed for second time At the Ian: General Term
Il involves two nice questions Of law, which
will be developed In tho future, and the 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 as the "old" Merchants
Union Express Company will DO remembered on &C
count OF tue great blast OF trumpess which sounded
its fame simultaneously with its BIRTH Il was one OF
those magnificent enterprises which promise to sweep
everything before them. Its Offices on the ground
floor OF what once Tayors famous saloon wore OF
the most sumptuous kind, and they even ouistared
the staring and gaping muitudcs in Broad
way who looked IN upon all this magnncencc
al The outset had capital OF sls,o ,Oo0 and lis
dividends were expected to be enormous II was not
long however, until all these visions faded INTO thin
air. and so u camo about IN 1868 that the great
another known as the American Express Company,
and the new company styled by tho still grander
title Of the American Merchants Union Express CON-
pany
When the consolidation was made the Mcrchants'
Union reduced Its capital about nifty per cen-taat Is,
50. 600 OOO--and each company put IN as capital
S. $50 900 in real estate, rolling stock cash, nc.
SIX OF the Board OF Directors and Executive Commit
tee OF the Merchants Union Express Company were
chosen directors OF the consolidated company, and II
continued TO do business without further inter-
.ttouo Int
title was eliminated. and IL was called simply the
however, not to be disposed OF by simple con-
solidation, and SO 10 wind ihcm up cncc'uay tho
Merchants Union had receiver appointed, while Inc
old American committed lis affairs TO an assignee
This gnee has paid and satisfied al claims upon the
old American Express Company and distributed
about $1,000 600 among The soc*hq nno h oa
spent hundreds OF thousands IN NEUTRALITY-SUSPICIOUS.
iu enc retainer iee--and has distributed nothing.
Some of It's debts still remain unpaid, the Pratt Claims
among thcm. Tho creditors are determined to get
their money. and IL is in this effort that the impend-
ing TO compel the receiver TO account mas It's
significance.
A BOOMERANG FOR THE NEW COMPANY.
The actions upon which these judgments were OBJ
tanned were begun prior 10 the consolidation ana me
appointment OF the receiver Ihe receiver Is mr. n,.
father, Mr.. Emorc +. Ross, is President OF tho
American Express Company. In order TO obtain their
remedy the plaintiffs IN these actions seek 10 go even
behind the receiver and hope to find their money IN
the company over which the elder Ross pre-
sides II u IS not to DC iound IN sne
keeping of tho Younger Ross 70 THIS MS. r ena
company order to get at their assets The plaintins
cannot understand why Their money was not In the
which were turned over to the new
Wellesley N. Gage, their counsel, Is trying 10 ma
1t. 1t is this which gives tho present aspects OF the
their Importance, and the novelty OF inc cailn
will attract attention, for no other reason than its
novelty,