New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-03-19
THE CoURTS.
THT TELEGRAPH SUITS

IHI1 TELEahAfH COl1c III.
HEARING IN THE ACTION BROUGHT BY RUFUS HATCH
A hearing was had yesterday before judge
epeir on the motion for continuance Of the temporary
injunction granted 10 the suit brought by huiaA
Hatch the Superior Court against the telegraph com
panes directors of the Western Union Company ana
che Union Trust Company, eectto restrain the exc
cuon OF the agreements of consolidation maoe Dy inc
directors and ratified by the the teerap"
companies stte j.
ExJudge Fullerton, Robert sewell and William a.
Beach appeared AS counsel for Mr.. Hatch, wager
swayne exJudge Dillon. A. J. Vanderpoe and Everett
r. Wheeler for the telegraph companies, and George H.
Miller and John Parsons for the Union Trust Com
pany Aaron p Whitehead, of the Arm OF Martin q
Smith, Mr. HacRs attorneys made brief statement OF
the plaintiffs case contained I'm the complaint ana
affldavits which were already before the Court Mr.
Whitehead in concluding bis statement expressed the
hope that personal alusions to his client would not be
INDUCED in by counsel the other side, as ne In
ferred was their Intention aud called their attention 10
the maxim that those who live in glass houses should
not throw stones" Mr. Wheeler then read the answers
adavits and other papers prepared on behalf OF the
defendants In opposition TO the injunction asked for by
Mr.. Hatch
In the answer Of the Western Union Company. which
in substance corresponds with the Of the other
defendants alleged that 100 OF the 500 shares OF
Western Union stock owned by r. Hatch we're bought
by him only day prior TO the date OF the hrst agree
menb OF consolidation ana Win the knOWlouBo tnhS ~
was 10 contemplation and substantially agreed to- ana
the other 400 shares three days after the signing OF the
agreement The Western Union Company It is averred,
viii he able under the contract Of January 49, 1881 TO
preserve the American Union Company in its fun cor
porate life and being aud thait It's intention so TO oo
The American Union Company can continue TO own, use
and operate telegraph lines fully as II could have
before the sale sought TO be noned The statute
of tho United States set up by Mr. Hatch as an
obstacle to the consolidation did not confer the
authority under which the American Union
Company erected or maintained It's lines
nor does the Western Union Company intend to hold and
manage tho property purchased from the former COM
pany by virtue OF this statute, but bases It's authority
20 do 80 upon another Of Congress, approved July
o. 1865 Il is further alleged that the capital stock OF
the Western Union Company has actually been Increased
to 600 600 and that MI Hatch has exchanged GER
tain OF his stock the American Union Company for the
stock Of the former company, as provided Tor In the
agreement Of 49, The other allegations In the
answer consist substantially Of specific denals OF those
contained In the complaint Mr. Wheeler read the deposit
ton of George s. Scott No. % West Fifty seyenhst
Mr. Scott refused to make an affidavit and was
had 10 the Court for an order 10 take ms otposiu0n
He SAYS be had conversation with Mr.. Hatch at NO
"a BrOadst, Tuesday last, March 10, and mat MI
Hatcn told him that Russell sage, sidney DhlOu huu
sOue others would buy his interest in certain COM
paDy and give MN his price he would discontinue ms
itigatiOns against tue telegraph companies MI Scott
said that was his understanding that the declaration
OF Mr. Hatch made 10 him " uee AZ IN inuucement
10 Mr. ana Otnbfs UO pufCHaSc
In the company IN regard which the cOnVersatlOn
had Mr. Hatch also spoke OF suit OF his AGAINST
the American Union Telegraph Company, ana SAID ne
going follow 10 up for fun During the pendency
OF the suit Supreme Court against the American
Union Company Mr. fla Gu told Mr.. Scott that he mao
offered to sell out his interest ln that company.
The deposition James b. Houston. IorE1er partner
OF Mr. Hatch. who also refused 10 make an AFFIDAVIT
except upon an order Om the Court was also read He
said he had cOnversed great many times with MI
Hatch IN regard the consolidation Of the companies
aud thai Mr. Hatch had always advocated IT, On the
morning the temporary injunction was granted by
Justice Barrett, Mr.. Hatch went to the house OF Mr.
Houston and declared him hts intention OF serving the
order unless the persons arested would pay him tue
price OF Union stock then current (whlob was
about 11O) for his American Union stock the pce OF
which was Al time so or 3d. and mat no had
the day before delivered tins ultlmatum to Washing
ton f. Conner Mr.. Wheeler also read the a1daylts OF
Henry II. Truman. Bi aytOn Ives and Henry Graves,
showing that effect Of tue temporary injunction
granted by Judge 5per had been to embaras the nno
cent holders OF the stock OF the companies Ia the man
ageen Of business and 10 depreclate the value OF
their stock. $3.50
Mr. sewel rend an affidavit for MI Hatch, IN which
the statement the that lie had caused his
American UuOn stock exchanged Tor the new STOCK
of tue Western Union Company denied Giving TO the
ateness at which te reading OF the papers
was completed impossible to 20 on with the aTgu-
uenI pRoper. adjournment taken until this
n.H.s