Savannah morning news. [volume] (Savannah) 1868-1887, 1881-02-04
THE TELEGRAPHIC CONSOLIDA.
TION.
An Injunction 10 Restrain the Come
panIes Denied.

New YORK, February 3.-Judge Barrett
has denied the Injunction asked for by Rufus
Hatch, restraining the Western Union,
American Union and Atlantic and Pacific
Telegraph Companies from consolidating.
The decision states that this relief is
claimed on several grounds In the first
place it is averred that the American Union
Telegraph Company was created and its
stocks subscribed for with a view to the es-
Enlistment and maintenance OF an indepen-
dent telegraph company, which should have
for It's principal object healthy competition
with other telegraph companies (then en-
joying practical monopoly of the business),
a lowering OF the rate and consequent
furthering of the public interest. The
plaintiff charges that this understanding,
inherent, he says, in the very structure OF
the company, is to be nullifcd by the pro-
posed action.
One difficulty with this position, and only
one, which need be dwelt upon, is the entire
absence Of any binding compact upon the
subject. What was in the mind of the
original promoters of the enterprise can
have but little bearing on the practical
question now presented to our considera-
tion, namely, the legality OF the pro- osed
scheme.n
Further, even the fact that the shares
upon which this action is founded were &C.
quired by plaintiff as an original subscriber,
and not by subsequent purchase, Is left to
vague inference. Allegations even as to
intent and purpose are equally indefinite
The defendants, upon the other hand. show
that the entire capital stock of
the company was originally issued
to and paid for by their subscribers, Of
whom the plaintiff was not one. They also
show that no restrictive agreement was
ever made, none which would prevent the
corporation, its directors and stockholders
from taking advantage Of the provisions of
the act to which we have referred. The
next question Is whether the agreement in
question is within this statute
The Judge then quotes the act regarding
telegraph lines, and proceeds: "We
have read and Teread this act with the de-
termination to acquire complete and abso-
lutte conviction before admitting that 1t
conferred the extraordinary power now
claimed for IT., but after much
scrutiny aud reflection We find 1t impossible
to resist it, plain, unambiguous, compre-
hensive, all-embracing language. The
legislative intent cannot very well be severed
from such legislative language, nor
can the power be denied without ignoring
the simple words expressive Of the single
pointed, well understood idea. In fact,
without substantially eliminating a
part of the act itself, it is also
| urged that the consummation of
this agreement will result In giving
the corporation vendee practical
monopoly of the business Of telegraphy in
this country; that competition, for the pres
ent at least, will be at an end, aud the
Western Union Telegraph Company will
have the power to increase its rates with
substantial impuuity. All this is vehemently
! denounced as contrary to public policy, and
in its tendency injurious to trade and COM
merce. Such considerations, however, are
more properly to be addressed to a legisla-
tivs body. Our duty begins with the aseer-
tainment of what the law is. 1t ends with
its application and enforcement"