New-York tribune., 1878-02-20
THE TELEGRAPH pOoL AGAIN ATrACKED.

SUITS BY Z. c. BENEDICT AGAINST THE WESTERN
uNIoS-THE POOLING ARRANGEMENT ASSERTED
TO BE ILLEGAL.
Suit has been begun against the Western
Union Telegraph Company to restrnin II from carrying
ont the terms Of the agreement with the Atlantic and
Pacific Telegraph Company for pooling OF the earnings
ndexpenscs Of the two companies which WAS made last
August jane 7 WOrbngton counsel for the plaintiffs.
Elias C. Benedict ami other stockholders served upon the
Western Union Company. yesterday the necessary legal
papers, with the order OF judge DonoEue requiring the
company TO show cause, February y, why 1t should
not be forever restrained from carrying out the terms Of
the combination and especially from paying over 10 the
Atlantic and Pacific Company part of the receipts OF
the Western Union Company In pursuance Of the agree
mcnt.
The complaint states that the defendant, for many
years has been able 10 pGy dividends varying from TO
per cent and te value Of its shares is derived princ
pllly from its ability to dividends by the just aud
nropcr management Of its business. The company
was urgamzrd TO operate such lines OF telegraph
"a MIGHT be constructed, owned leased and con-
trolled by g. FOR the sole and account Of
shareholders and It's directors authorized 10 manage
the affairs Of the company for such pnrpos and Tor no
o,her Tue directors have 10 power authority
w. cycrcisr its corporate PRIVILEGES for any pur-
pos whatever, "Othcr than inan@!ng ahd operating
such property aud lines of telegraph as may belong TO-
h by and be IN The possession and under the
arrc the defendant or It's officers az trustees oI Hc
sh@r.hodrrs" The Atlantic and Pacific " In all re-
eurcts a separate corporation, not controlled malagcI
or operated by the Western Union officers.
Compgint asserts tat the resolutions adopted NJ
the windsor Hotel, August 90 1877 have never been
stockholders for their approval Falsely
assuming bc authorized 50 10 do the deiendnt has
rendered 20 the officers OF the Atlantic aud Pacific Com
pany since August 30, 1877, monthly statements 0i inc
rross recrIs has accepted kc monthly siatencnts
from Tie Atlantic and Pacific merging them into JOINT
account From these accounts Il appears that the cx
ncuss OF the Atlantic AMI Pacific have largely exceeded
II. cross receipts, sequence of which the western
Iuiou paid out its revenues over %l2OOOo o the
Atlantic and Pacific. II tie ratio rs tnat men
Toned shall continue during the twenty lc'rs ot the
il j. stated The pay }menis made Oul o thc re-
coins belonging the shareholders Of the Western
Union 10 the Atlantic and Pacific VIII amount To 3d.,
100000.
Of dirrCtOr.Of the defendant that iHy sia
refuse 10 enforce the provisions OF the windsor lOieI
rose utons hut they have refused To comply win thc
demand and have taken any steps To protect the
.harenoders OF the Western Union, becahe ~ Inc PLAIN
IN Is informed ana believes, large majority 81 te
directors and Executive Committee II composed
~ ihc same persOns,v hO adopted he resolutions.
Mr Benedict stated yesterday that he had Deeh y
harl-woiking friend % the company ana tiht Hc nlu
held lai gc OF ITS STOCK since 1870 uni aitct
the adoption Of the pooling resolutions JIG sun hciu
stock and represented persons no Dg
several thousand shares. Mr. Benedict Is prominent
positively that the present movement was not ia any
way designed for stOckJobblng purposes. Inc
contract WAS wrong and unlawful and. ~ lie cOuld sue
cecd In hayiu3 IL ainu ed he would again invest Ia tle
securities of the company. IL was intended Tor le-
poraiy Injunction restraining the Western Union nom
paying any To the Atlantic and Pac ne on aceon.
Of any balance claimed 20 be due i0r DECEMBER Dit IL
was learned Monday evening that the money had Deeh
paid that day. Consequently only the usual apphea'o"
made.