New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-27
LOCAL MISCELLANY.
TELEGRAPH CONTESTS.


ARGUMENTS IN THE BENEDICT sUIr-THE POOLING
ARRANGEMENTS OF THE WESTERN UNION AND
ATLANTIC AND PACIFIC COMPANIES ATTACKED
RIGHTS OF TELEGRAPH CORPORATIONS.
The suit of Elias c. Benedict against the
Western Union Telegraph Company and the Atiahuc
and Pacific Telegraph Company. came up yesterday
before Judge Lawrence in Supreme Court CHAMBERS
On a motion enoin the continuance OF the poohhg
arrangement between the two defendant companies.
The plaintiff sues as OF 100 shares OF western
Union stock. He claims in hts complaint that inc
arrangement would be improper even II all the Stock
holders of both companies concurred since IL Is against
public policy to allow competing companies TO comohe e
to form monopoly after August ey ,ne
Omaha Chicago and other distant conpe'lhg POLLS , ~
AMI even higher The average increase to such points
was 2S212 per cent. Tho gain to the companies WAS
But this scheme was not assented to by the stock,
holders, the complaint said further Inc os ea
item The notices for that election were IN the oonny
FORM to be sent three
without therefore any notice 70 the ~ t and
the directors to confirm pooling arrangement win inc
Atlantic and Pacific Company was rass onaro my
to tho Western Union Companys stockholders. Inc me
settlements for the eleven days OF A1gni o ' an
average Of payments of o0oo month by the Western
ComnaSv. $50 600 year So 60OO 600 for the twenty
years the contract to III December the anonn
l paid was vcS GEo kent the average high
The answer OF the Atlantic and Pacnc Teiesr rGn
and win probably continue to be So, bui SAYS bys
this is accounted for by the iact tha noo a h%s
TO yet rid of all the expenses of them especially the
rents The January net recepts of the Western Union
1877 mero thnp The answer also
part OF tic bargain was the purchase OF I2VV VI
for which the Western Uuion Company gave l2ooo
shares of ts own stock and some money
he Union Telegraph
dent that though there has been an increase OF
been such reduction to other points, that the aver
age of telegraphing is now lower tnan peore the
combination that the combination has been sdvaDta
geous to both companies and that Western Union stock
has risen since 81, standing at one tune at 81 anu
and Augustus sche affidavit that the contract
is advantageous to the Western Union Company .,
g. p. Lowrey, for the Western Union Company, argued
that il was good arrangement for all concerned ana
the only question that OF the power of the company
graph companies stood entirely distinct from other com
panies the fostering their union. and The Statute OF
1870 giving them the broadcast power TO convey ease
or purchase the property of other companies. .,
The argument Will be continued to-day James i.
worthington appears for the plaintiff g. r. Lowrey for
the Western Union Telegraph Company, and Everett T.
Wheeler for the Atlantic and Pacific Telegraph company
IMPORTANT DECISION TO TELEGRAPH COMPANIES.
TIE decision Of the Supreme Court OF the United states
IN the case Of the Telegraph Company against
the Western Union Telegraph Company was the subject
of considerable comment IN Wall Street yesterday Inc
Cont for the Northern District OF Florida The contest
between the Western Union IeleGIaphd O. IN
pany and the Pensacola Company, under the
law of the State granting exclusive telegraph
privileges to the latter company. The
Supreme Court held that the business OF teegraphmg
Congress right TO regulate commerce. that the tee-
graph become Indispensable TO the business OF inc
world both private persons and governments, ana
that it be thus limited or restricted 10y state aw
The law in question is attempt to regulate commerce
on the part the State ana such Is clearly lncOinpe
tent on of the action OF Congress on the SUBJECT
by the Act of July "a 1866, with which it Is III conflict
1t was frequently remarked yesterday, that II the Az
lantic and Pacific Company had been in possession OF
such decision two ago. II would nave Deeh ape
to avoid much legal controversy In the extension OF us
lines over the country at the time 1t was competing ac
lively with the Western Union
At the office OF the Western Union Company, inc de-
csion was regarded having very Important bearing
upop the proceedings instituted in Pennsylvania
10 test right of the company 10 carry on business III
correctly reported. the officers SAID it proper to in
fer that competent for any State to exclude
company had accepted tho Act OF Congress OF Juy
1866 from carrying the telegraph business within
the limits OF that State.