Savannah morning news. [volume] (Savannah) 1868-1887, 1881-01-26
TELEGRAPH CONSOLIDATION.
The Case of Rufus Hatch vs.. the ~.
W. A. and p. and American Union
Telegraph COmpanies-A Perma-
Dent Injunction RestraIniRg the
OnsoIidagEon Asked For.

New YORK, January 25.-The case of
Rufus Hatch against the Western Union,
Atlantic aad Pacific and American Union
Telegraph Companies, to prevent their con-
solidstion, was called in the Supreme Court
chambers by Judge Barrett shortly after
the daily recess. The matter came up on
an order to show cause why the temporary
Injunction granted last Friday should not be
made permanent. The chambers where the
argument was held were crowded with
spectators. Mr.. Sewell In opening read the
affidavit of Rufus Hatch, IN which the lat
ter said tbat the Western Union Company
charges less than the American Union Com
pany TO those points where the latter COM
pany had wires, but had maintained them
at the same rates to points where the
American Union did not compete with
them. Counsel also said that II these two
companies were consolidated telegraph
rates would be raised.
General Wager Swayne, counsel for the
American Union Telegraph Company, In
responses gFead q statutory act IN relation to
the consolidation Of telegraph companies,
and went on to read the atfidavIts OF Presi-
dent I, t. Eckert and Secretary T. T,
Clarke, OF the American Union, stating the
proceedings OF the meeting OF directors at
set forth that twelve directors were present,
and only one was absent; that seven-tenths
OF the stockholders were favorable to the
consolidation, representing 1854, and
three -fourths out Of 500, 600
They denied that there was
any conspiracy between the stockholders
and any other company to 6efraud any Of
the stockholders OF the company in any
way, or that such conspiracy ever existed.
The joint sflidavits of Rnssell Sage, Sidney
Dillon, Jay Gould and Washington E Con.
ner, were also read, denying the existence
OF any conspiracy in the consolidation
agreement. The affidavit of David II.
Bates, first Vice President OF the American
Union Company, was slso read, Ia which he
said he believed the consolidation would act
for the good OF all the shareholders of the
company, and denied that the public or any
OF the stockholders of the American Union
Company would be injured in any way.
The affidavit OF Jay Gould was read, In
which he sets forth that Rufus Hatch, prior
to the negotiation for the consolidation of
the telegraph companies, had suggested to
him that an arrangement should be made
for the consolidation of the American
UGion with the Western Union, or at least
for their working 10 the Joint interest of
both properties. The complainant, he said,
and bis friends had taken steps in that d.
rection, and were getting up pool of one
hundred thousand shares OF Western Uuion
stock, In which they expected to re-
aize large profits from an In
'eascd value, which would result
from the harmony Of interest between
said companies, In which the complainant
asked him Could to participate. Gonld's
afffdavits says the suggestions of Rufus
Hatch seemed to be we'll founded, and
largely influenced him as a director and
stockbolder in the American Union COM
pany to vote for, and consent to, an arrange
ment which had been since made.
The affidavits OF G. +. Marisini, Treasurer
Of tbs American Union, and from Russell
Sage, were read, setting forth that the con
sOlidation would be for the good OF the
American Union, and that public interests
would not be injured thereby.
MIR. Wheeler, counsel FOR the Atlantic and
Pacific, read an affidavit of President Al
bert d. Chandler, that the company in
which he says he learned Of
the Incorporation OF the American
Unicn Company In '79 and that the Western
Union aud the Atlantic and Pacific did not
then have monopoly Of the telegraph busi-
ness OF the United States, but there were
then other telegraph companies existing.
He never heard, and did not believe that it
was any part of the intent of the creation
of the American Union to maintain or es-
tablish telegraph company which should
always be independent of any company
then existing, and the effect of its estab-
lshment had not been TO lower to any con-
siderable extent the rates heretofore charged
by the Western Union aud Atlantic and Pa
cifc Telegraph Companies.
A separate affidavit was read from
w. E. Conner. in which he said he had an
interview with Rufus Hatch on the 18th OF
January In which the latter stated he was
the owner of a quantity of the capital stock
Of the American Union Company; that he
was displeased at being left out in the deal,
as he called it, and that he ought to have
been taken into 1t. He suggested that his
shares of the American Union stock
should be taken by them at the
price at which Western Union was
selling. He also said he was short 5000
shares of Western Union stock He had no
Ill feeling towards Gould, but he had
towards Vanderbilt. He also threatened IL
he was not taken into the combination he
would make trouble for them, and prevent
the consolidation. He denies that the con-
solidstion was to establish a monopoly, or
higher rates, or to increase the profits
Of the Western Union at the expense Of the
American Union or the public. Such con-
solidstion would beneftthe stockholders of
such companies and the public.
An affidavit Of President Norvin Green,
Of the Western IIni0n was then raad