New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-05
adopted there has been much less trouble from
offensive accumulatiOns.
WESTERN UNIONS SOUTHERN LEASES.


WESTERN UNIONS SOUTHERN LEASES.
IMPORTANT ACTION BROUGHT BY STOCKHOLDERS
OF THE PEOPLES TELEGRAPH COMPANY.
An action which the counsel for the plaintiff SAID
involved the validity of the leases of all the West
ern Union Telegraph lines south Of Louisville
came before Judge Wcstbrook. In Supreme Court,
Chambers, yesterday, a motion for an amend
meut OF the summons. The plaintiff is Mrs. Marcia
b. O'Rielly, the wife of Henry O'Relly. She
asscr's in the complaint that she has
been the owner of 760 shares of the cap
iral stock of the Peoples Telegraph Com
pany, whose lines ran from Wheeling to New
Orleans In 1853 this company was consolidated
with the New Orleans and Ohio Telegraph Company,
and the latter company. the complaint AYERS, was
enabled to control and monopolze the whole toie-
graphic business of the South. In July, 1851,
Norvin Green. George l.. Douglass and James ID.
Reid leased for fifteen years the consolidated lines,
and assumed control of them. They bought up, the
plaintiff alleges at discount various claims of the
two companies. and used the possession and assign
ment to them of these various claims and judg-
monts as nm Offset against the liabilities
which thev as such lessees, had assumed unuer
their lease. The earnings in succeeding wears
great, but no portion of these receipts ~ Is
aVerrcd, were ever turned over TO the corporation
or its stockholders but were converted Dy the CO..
lessees their use. The further claims OIL inc
plaintiT are as follows: In 1859 Messrs Green,
Douglass and Reid allowed the leased lines to De
sold at sheriff. sale in Louisville and 10 be Dough,
in by their agent. who subsequently TRANSFORMS
thom to the three co-essees, under the maine o. .ne
Southwestern Telegraph Company. III was lhc9I-
poreted December, 1893, under tins name ny .ne
Kentucky Legislature. The captaI stOGh M"o
raised 10 100000, and Norvin green Deca"'c
Tn 1S6s Messrs. Green and Douglass got posses
sion of Sl.O00,OOO of the stock of tue American
TELEGRAPH Company, aud so controlling II, brought
about "a temporary combination OF ~ Win .no
Southwestern Telegraph Company Inns cViip' I
ton continued few mouths uhtl ON V,en
tween Messrs Green and Douglass ana Tue western
Union Telegraph Company Iesllteo III w Pf hotb
bv the latter company OF the control OF pom
tho American Telegraph Company ana inc
Southwestern Company. In ORDER TO cIect
this arrangement the Kentucky Legislature
Increased the capital stock of the last
named company 10 $40 100000 and permitted IL 10
consolidate with other companies hut II was es-
pecally provided that the company with when tne
Southwestern Company should be merged should
assume ITS liabilities aud obligations. A majority
OF the cap tai stock Of the Southwestern Company
was transferred TO the Western Union Company.
which delivered in compensation S3.UOO,OOO OF us
Is stock and elected Norvin Green director and
vice-pTesldent. The plaintiff claims that ali the
and Reid arc void that they are bound 70 account
to the stockholders Of the New-Orleans and ONO
COMPANY for all the profits they realized from the
transactions and that the Western Union Company
is responsible Tor all the habihtieSOI the South
western Company Oh its own transactions ana tiat
of It's predecessors. The following Judgment Is
therefore demanded by the plaintiffs
That she be declared the owner OF $50 shares OF
the Peoples Telegraph Company ond entitled 20
her proportion OF the consolidated stock that the
lease executed by the New-Orleans and OHIO Iele;
graph Company TO Messrs, Green, Douglass ana
others he declared void; that receiver be mp
pointed for the New Orleans and Ohio Company, 20
whom Messrs. Green and Douglass shall account
for all moneys received by them under the lease
- stockholders of tins company. and for any con-
s;doration they may have received for making the
transfer of this cOmpanys stock and finally, that
an Injunction issue, restraining the eseru Union
COMPANY from using any of the lines Of the Peoples
Company or OF the New-Orleans aud ONO Company.