New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-03-20
THE TELEGRAPH SUITS.

Aaron p. Whitehead, as the opening of the
shpeor cour yesterday morning. began toe argument
on che part CT 1r Hatch upon the motion for continu
Of sbe temporary Injunction against the execution
By the Telegraph coVars Of the agreements of conso-
tdaaon. witch had been granted bg Judge speir. he
commented upon the siatae law OF this State, and
claimed that 1te telegraph companies eeild draw no
authority from il with wh 20 justify their intended
ac5ion Bat canceAing that the Law OF NewYork pre-
scented obstacle 20 ghe consolidation, the laws OF
ReDasylyaniR and OHIO within which States yery con-
siderable part o hc properly Of the dsendaHt is siEu
ned declared In direct and positive teFns that rival and
composing TELEGRAPH companies sbouid pot unite their
tateests consolidate hnee Tie law Of Congress
equally positive IN ts prohibition Of the eonsoda
tioa OF IiYal telegraph companies.
Bobers SeyelI when Mr. W5tehead had concluded hls
argurnsnt read two s lsys by Nj Hatch, the one IN
opposition 70 the Of jay Gould OF March ~ and
the other In opposition that george s. Scott In she
first AFFIDAVIT III. Hatch says: " have known Jay
Gould since his connection With the Erie Railroad ~
1867. 1 he'd conversation with Jay Gould 10 regard
She consolidation ~ The American Union and Western
Union Telegraph Companies a. be alleges in his adayt
ltwas some tsa,e IN December 1880. Imay have ssEd
thar the Interests s the stockholders Of the American
Uasoa Company would De sabserved BY is consolidation
with tke Western Uaon Company, but never tod him
that they EonId be suberyed by the increase Of the
western Uyi0u Compsny's stock to tho extent OF
e20e00.O00 before the consolidation effected" Mr.
q Ihaa several conversations With George g. Scott
pser March B. lssl III references to the Iron Steam
boat Company OF which fac Is president aud am vice.
president. Russell eages and Sidney Dlion's views
hare never been IDsnuowsd eithcr By myself or any
other party in conversation with 9eerEes Scott IN re-
gard 70 the Troa Steamboat Company, Cor have lever
saia March Is. any other dste. that SAGE aEd
Dillon Orany other parties ~oald buy out BY interest In
that or any other company and give me my price,
would discontinue my niSafiou against the telegraph
companies have said his solicitation that should
not begin suits that n the Western Union Company
would give me stock for stoek for my Central EQnstruc
ton Company certificates and American Union Com
Papys stock before the the watering Of the Western
Unicn ConpaDP's stock, would not begin suit This
caBxQFsaon was had before papers the salt the
sapreme Court before Justice Barrett were served"
Haeer 6Rayne then opened the Argument on the part
OF the companies Mr.. Hate's acs.oa, he said. had
tailed groatand trrepsrabe injury many innocent
persons, sfthoat any Justification growing out OF
Eeeesty 80 protect his Interests Mr. sEaJne read
nom else decisions and declarations OF maDy eminent
Judges aud taxtwEsteEs to shOw the dangerous eharae
Ger Of The remedy b. injunction asd that 10 never should
granted BY the Court except in case not only OF clear
right bnt also Of absolute necessity. Nh Hatch had adj
itfed In bis complaint that tns agreements OF CONSOLE
datlOn had formally executed and that delivery OF
the property under them hal taken place. 10 undo this
Or would be 70 cause great and useless expense which
the stoehodes Of the eopsnes ought not 70 be COM
oellod u bar The WeEtsra Onion Company had gone
on TO complete purchase and take possession OF the
property OF American Uaion Company The faith OF
syndgmsnE In the Supreme Court rendered after an ex
harlstye argument, upon which every nght /
when Mr. Hatch had or could have had been
fully and s1sctTgely urged. To the objeeiiOn
nov made by Mr. Hatch that the meeting Of
tire stockholders Of TIE Western Union Company
ha3 b6sn held without due notice, Mr. swayne replied
that esea 1t she notice insufficient the stockholders
hy
their Swu acis 1t seemed to the speaker tina. tho
laws Pennsylvania and 0ho and the act OF Congress
YET up the part Of &r. Hatch prohibiting the
,olidaon did not necessarily have the operation aud
fleet claimed for them. aud could therefore afford
basis for an injunction. mr. Hatch had complained In
1is bill that the Western Union Company had received
he surrendered certificates for the American Uni1n
tock Tbis was yeIy peculiar ground OF complaint ON
ne part Of Mr. Hatch. who had brought his suit in the
capacity Of stockholders OF the former company, for
V, In efreh complained that HIS company not only
cesved tho properly whseh It had bought butt some
tber property. Mr. swayne c0Rclnded his argument
nth reference the deeSt0n Of Justice Barrett IN the
orner sn Ia which It was held that the law OF 1870
clearly aud explicitly authorized tls consolidation Of
he companies a. II was posSibls conceivable for
aw 10 do.
Ez-Jadge Dillon followed Mr.. swayne the part Of
be companies he entered into minute and exhaustive
isSory Of this agreements Of consolidation and all the
he Western Union Company TO ratify aud carry them
alto execution, and showed that the consolidation was
ot only authorized by the laws Of York, bat had
cen effected In the stgictest conformity wth their
primal requirements. Tho law OF Congress set up
Mr. Hatch could afford him support for his caim
Dr reiieE Tbs Amcrieaa Uni0n COMPANY had never |
wned. built or operated any Of its nss under the |
nthority OF the United States The United States Gov
rnment never had, or claimed TO have, the power 10
reaie telegraph company, and when 1t wished to lay
shle from Governor's Island TO the mainland Of
he State of Hew-York. Il found It necessary
D obtain o special power for that purpose | [
rom the Ieelslaure OF the State so when the United
tates undertook the construction OF the Union Pacific
ailroad ss military route commanded w the Inpera-
We exigencias Of the Civil War; the Government con-
ned It's operations TO its public domains, and was
bged 70 apply authorities OF State CAor
for permission extend the road through fits terri
,ry to the Pacific coast II any persons sh0nd assume
act under the act Of Congress By Mr.. Hatch,
should organize telegraph company and erect poles
other mems land along railroads. although rhese
ad been declared by Congress to be peat military
,ntes the Of the hand the railroad company
apply to any court Of equity and obtain ijunc
this fact. aad been the experience OF
lin company. The temporary injunction obtained by
r. HATCH which he wished TO make permanent hal oper
ted most oppfesstyely upon innocent persons whose
ock was locked the Trust Company, and the
because he had LAIN by until large part Of the stock
the old companies had been deposited with The Trust
ompany exchanged for the stock of the West
rn Uaon Company. Tke speaker insisted that an In
melton matter OF absolute right opne OF
secretion with tue Court and that h should never be
taned WHARF not tOlcraby certain thai the CON-
lasnant would fnsy prevail III the suit which could
ardy be pretended for NJ. Hatch. !
The polnt he considered, Judge Dillon con- ,
nued was claim that there Was no power uuder the
Of Pennaylyane and Ohio 10 enable the A1aericau
m6G Company 70 make sueh sale OF Its property.
ppdBs the Western uni9n shOud into Ceurt with
bic plea land N0nd have last equitable right as
plaintiff, and ehOuld say that Il wanted the whole
ripped up because it violated the laws "
emREylganla 9ud ONO, what would he the fe5ultf |
mplY to show failure Of consideration Bat the | Il
nswer denied all injury IN this respect. Suppose &c
lOuld turn out the na heariHg that the laws OF
ennsgiysnia and OiIlO meant thing IA was =
AIMED By che piaintRl suppose IL SHOULD torn out ~
nc In fact the American Uaon bad such line IN
lct solal Tie answer denied All tse allegations OF a
10 f,nnlpaint point except that OF the q
nes that hal Seen " American Union were
the states 81 PenEsglyanis and Ohio Nothing had