New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-17
AsUIr BY A FOREIGN COMPANY.

| American Union Telegraph Company anu the
| Union Trust Company of Now-YOrk by the Direct
| United States Cable Company The bill asks FIR
perpetual injunction against the carrying into effect
of the agreement OF consolidation entered into by
| the defendant telegraph companies on January ID,
| 1881. The bill also seeks to restrain the Union
| Trust Company from receiving or delivering any OF
| the shares of the telegraph company III accordance
with the agreement of consolidation.
The bill Is vOluminOuS being composed oil aD NJ
| fifty pages of printed matter 1t bears the sigma
ture of George Gray Ward, agent in this country for
| the Direct United States Cable Company. Lewis
| L. Delafeld appears as the solicitor for the COM
painaut, the counsel being Senator George +. Ed
| munds Clarence A. Seward and Charos NJ. Da
| Costa.
| ALLEGATIONS OF THE COMPLAINT.
The bill AYERS that the Direct United States
Company is subject of the Queen of Great Britain
and that the defendants citizens of the United
States. 1t is then shown that Ill April, 1874, the
| Atlantic and Pacific Company entered into an agree
ment with the plaintiff whereby 1t bound itself TO
! deliver promptly and exclusively to the Gable
| Company all messages originating in it's ter
| ritory and destined for place Oh the line of
/ the cable company, or which could be Reached
| through its European other connections. The
| Atlantic and Pacific Company, it is alleged. also
agreed TO maintain in good working order and CON
dlCn all of the lines of telegraph then belonging TO
| or worked by It, and all extensions of its system
| which should lie brought into operation while the
agreement should be in force. This agreement was
| renewed in 1879, and was extended for seventeen
| years from September or that year. In 1877 the
| Cable Company was reOr0al'Zcd. and the contract
was ratified and confirmed by both the Intercs I'd
| companies under date of September. 1873 BY this
| agreement the Cable Company secured connections
| from and 10 all parts of the UHited States and of
| America, 50 far as the Atlantic aud Pacific
| Company's system extended. and enjoyed
large and prOfla business i'll con
| sequence. Similar arrangements between tn"
| Western Union Telegraph Company and the Anglo
| American Cable Company. and between the Ameri-
can Union Telegraph Company and the French Cable
Company set forth, and it is asserted that there
was active competitors for business between the
companies
Ii is next avtrred that on January 10. 1881, the
three land telegraph companies were consolidated
and that the stock of the three 2ancs WAS dcliv
cred to the Union Trust Company, ofNew-York II is
then shown that by tue agreement Of consolidation
the Western Union Telegraph Company became the
assignee of the agreements between the Direct
Gable Company and the Atlantic and Pacific Tele-
grauh ConpauY, as we'll as OF the agreement be-
tween the American Union and the French Com
pany The Western UuIon still owns the AGREEMENT
! with the Al glO-Amcrcan Cable Company, bu' has
| not it il charged. the abIIlty. noi Is IT bound
bv anv corr latIve covenant on his pat 10 observe
| and tuf these agreements. 1t ~ declared that
these agreements are In hostility 10 rach other
| that each of them ~ exclusive III liz nature and
requires the Western UniJn Company IN deliver ali
| its cable business TO the cable company named IN
| each of tne agreements: that II ny The
| tine agreement OF consolidation the Western Union
| Company, assignee, Is III dutY bound u Keep
| and observe all Of the three eXclu i've and hostile
apreeeuts 1t Will be utterly Impossible Tor II 10 do
so I'm no event will 1t he possible Tor ci her OF the
other defendants TO perform their agreements for
fI.nvV utlpU
| of and will have transferred to the Western Union
Company IF the ,iIdai0n Is carried INTO etrcO
all their property iIancn , pant book
extinct except in name, leaving nothing
against which any redress, Ell her ~ law or III equity,
| could be obtained by the Plaintiff 1t ~ nrXt set
| forth that even if the consolidation agreement
| should he construed as binding the Western U"lon
Gomuauy could not carry out ibe agreement between
! the Atlantic and Pacific Company ana the DIect
Cable Company with the same benefit
to the Gable Company as If the CONSOLE
datlOn had not been made, and that 10
damages would furnish an adequate remedy Tor the
loss sustained by the breach OF contract. IL is also
charged that the transfer OF property mas oeen mate
without authority, IN an irregular ana Unlawful
manner for the purpose OF PREVENT ng inc IntepO5
ton of the courts in behalf Of the plaintiff and
Others whose rights have been injured or threat encd
The act passed by Congress on july "a, 1866. ell
titled An act to AID III the construction 0i tclc-
graph lines and TO secure to the Government the
use of the same for postal, military and other pur-
poses" IL next cited. THIS act provides among
other things, that " any telegraph company now or
Ranized or which may hereafter DE organized under
the laws of State, snail have the right to con-
struct, maintain and Opera,e lines through and over
any portion of the pubic domain of the
United States over and along any OF the military
or post roads of tne United State. which have been
or may hereafter be declared such by law, and over
under or across the navgable streams waters of
the United States" 1t s therein further provided
that the rights and privileges" granted under this
act "shall be transferred by any company act
ing Hereunder, to any other cOrpOratiOn assOca-
vided that " before any, Telegraph company
shall exercise any OF the powers OF ply-
ileges conferred by law, such company
shall file ts written acceptance by the POsnlSer-
General Of the restrictions and ODligatIons required
BY law" The fling OF sucn al agreement ~ the
Atlantic and Pacific Telegram Company IL avrlfcd
| to have been made on March ., 1867; b. tie We,'-
ern Union Company on jane .. 1867, and by
tho American Union Company June 30,
1879 the agreement OF the cOmpan - TO cOnaO.I-
date is charged 10 be tho result Of an unlawful
combination and confederation with tie obj ct OF
preventing competition III the DsIness3I teltg apr
ing, and thereby enabling the Western Union Cum
pany 10 charge what tolls 1t plea g. 1t Is also alleged
that par of the scheme Is To eInotrrass aud defeat
the right OF TIE Direct Unled States Cable Com
pauy under its agreement with lac Atlantic and
Pacific Telegraph COMPANY, TO the end that It's BUSH
ness may ne diverted from II and conferred upon
new corporation, tue American Telegraph and
Cable COMPANY, which Is owned by the pcr'ons WAC
cOncOcie ed tine consolidation agreement. Inc plain
TIFF advised that the pretended agreement Tor the
consO iidation null and VOID, and III VOCATION OF
the pr0vIsOns of the acts OF Congress herenbefOre
referred to- and OF public policy. aud il also III 1raud
Of aud in violation OF, the nights Oi your orators as
bercInbeiOie more particularly SET tJrth.'
The bill asks that the Court declare the agree
ment for consolidation null aud vOid that the
Atlantic and Pacific Company may, during the
tendency of tins SUIT. De eiJJlned by preliminary
Injunction from parting with Its property franchises
ana contracts to the Western Union Company. or. III
case guch delivery has tkrn place from delverngto
the Union rus Company any shares O or certificates
for It's stock; that the Western Union Company
be- similarly restrained, and tiat the Union Trust
Company be restrained from receiving or parnng
viii any of the stock of either tho Atlantic aud
PacI lie or OF the Western Union Telegraph C0npan.
les that the Western Union Company be restrained
from Using. dlsDOsing OF or Ia any manner hcricr-
- and ali nf 1he pLnIerlY