New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-05-17
THE COURTS.
DR. NoRyIN GREEN ON CONSOLIDATION.

|
CALLED AS A WITNESS IN THE WILLIAMS TELE-
GRAPH suIT-HOw TIE UNION OF THE COMPA-
MES CAME ABOUT.
| In the suit of William s. Williams against
the Western Union Company and Others, Mr.. seweu I'm
shcd yesterday his presentment OF Mr. williams case,
and called IA his first witness DR.. Norvn Green the
president Of the defendant company. Dr. Green said
he had been a director OF the company contin-
nousy since 1865. The company boueht'
between August, 1873. and july 1879. 72,olo
shares Of the stock OF the Atlantic and Pacific Tee-
graph Company ut 25 cents, and arrangements were
made between the companies for "pooling" the earn
incs The Atlantic and Pacific Company was TO receive
22 per cent OF the gross receipts and pay ID l5loo
per cent OF the expenses The stock OF the Atlantic and
Pacific Company purchased by the Western Union Com
pany paid yearly dividend OF cent in addition to
investments for extending its llnes TO the amount
Of about 100000 The Western Union Company,
after the purchase referred TO. owned ma
iority ~ the outstanding stock OF the Atlantic
and Pacific Company. DIR. Green said that his company
did feel the effects Of the organization OF the Ameri'
Union Company until Juy. 1880 when the conprti
ton became serious and the Income 81 theteegraph bust
substantially divided between the competing
Companies 1T all important places on the trunk routes
IL Ind heard ANYTHING in regard to the consoida
ton OF the companies previous 10 January TO- 1881 He
called on William II Vanderbilt nj his house on the
morning Of that day. In obedience 10 q note from Mr.
Vanderbilt Mr. Vanderbilt told DIR. Green that he had
MT Gond who had nmated his readiness to enter
NEGOTIATIONS for the purpose Of ecctng union OF
the companies and putting end to the runons com
petition then going on. Dr. Green told Mr.. Vanderbilt
that In his opinion a consolidation OF the companies
would he advant grons 10 all concerned Mr. seWeh
called the attention OF the witness to the fact that he had
not asked for the general result OF the conference be-
tween him and Mr. Vanderbilt but had asked him TO re-
peat what had been said.
"wcll, replied Dr. Green, the frat thing Mr. Wander
bilt aad to Il have seen the Great Mogul.'"
"DhI Won know TO whom Mr.. Vanderbilt re'erredi"
81 knew ~ course that he referred 20 jaw Gould" .
Mr. Vanderhilts conversation with jaw Gond. the wit
ness stated further took place Sunday. January g.
Ieei Dr. Green cft Mr. Vanderbilt with the Under
evening Of the same day ~ Mr. vandcrlt's house Dr.
Green Aurrstns Schell and Mr. Twomhly were present
~ tl- pertng ~ ~ the former one Thr naSS o' 'he
proposed consolidation discussed and n was pro-
posed 10 increase the capital ~ III" conpany to seventy
on. ~ new .tock in pavmcnt OF - properfy aud
franchises The demand ~ re American Union wope was
ta' they ~honld receiv, h't"rn millions n',y
II was finally ncrred that conference should be had on
the evening ~ IN" next dav ~ me same parr WIN w
sons on the pari of the Union COMPANY were
present and with Mr.. Gould came Sidney Dillon and
Hus-cW s1ro The discussion turned principally upon
the prrc H. he p'id Or the American Union MI ,ohl
expressed himself willing 70 accent The proposition o
,hc W -.rn Apion directors h his friends positively
refused 10 i'Nc css than 80 NDOp. committee OF
four consisting Of Mr. Vanderbilt and Mt Sc"l on the
ono side aud Mr.. Gould ana MT p''."n Oh
the other appointed 10 ehect compro
] mise AMI report q pan OF fNnNtlilllllNil
The agreement as subsequently adopted by the com
panc- drawn mp by this committee ~ III" tine o
these NEGOTIATIONS il agreed that ~ soon ~ Nnran
cir- should occur 10 the Board ~ Directors of the west
I'm Union Company, Mr.. Gonlh Mr. HaHr Vt tckSr am
Mr. Dillon should he snccrs-ivey elcct" 10 MI Them
Dr Green said that the artna value "f the American
Union property entered hut slightly into 'hc caclati"ns
directors III his company in making Inc rlrrl'
The only thing which hr lonkrd ~ was what the prop
crt, wnn hr worth - his co'nrlny. and what IL would
H. worth get the American Union Company OUT OF the
way.
IL reply 10 n question bv Mr. Scwell. the witness al
| rn.ttrd thai the Nrsiem Union Company rhd anon,
twice a, much the property II originally cost ana
declare. In his opinion the directors "i MS company
! wrrr all A. we'll awArt ~ that fact ~ De- WA.
Mr. wand, rl,nrl the part nf the d"iendhnt-. began
m, cross nuinn nf Dr. Green, winch VIII 70" com
! frurd to-day .Dr Green said ihfi y the American
Union COMPANY had made general reduction nl rates
amt continued the wa-trfnl comrfiinn. The western
Union COMPANY would have been obliged. III has opinion,
| To- suspend paying dividends