New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-21
OBSTACLES IN THE Way OF UNION.

which il is proposed to unite the three principal
companies They decline to make public the ecadi-
tions OF the proposed consolidation until after tho
meetings of the stockholders which have been
called to take action on the plan. In the mean
while public curiosity TO learn the terms Of tho
proposed consolidation 10 very great and the con-
lectures that have been made are innumerable. Noe
ono of these guesses could be verified yes-
terday at the offices of the three companies di.
rector Of the American Union Company said, how
ever that the proposed increase of the capital stock
of the Western Union was to be divided as follows:
scrip dividend Of Sl5,5s5,445 was to be paid to
Western Union stockholders. while the American
Union Company was TO receive $16. 600 600. tho
full amount Of its capital and bonded debt, and tho
Atlantic and Pacific Company $S. 400 600, which Ia
60 per cent of its outstanding stock. It was said
also that no further information in regard to the
agreement could be given atthis time. These sanas.
with the present outstanding stock Of the Western
Union, amount to the proposed capital Of the con-
soldated company.
The figures were shown TO DR.. Green, president Of
the Western Union Company, and be said that they
we're not right. He refused positively to make pub
lie the correct figures or auy details in regard to
the proposed union. One OF the officers Of the
American Union Company. TO whom the figures
were shown, declared that be did not know whether
they were correct or not Moreover. he could not
furnish the correct basis Of consolidation, because
he did not know precisely what it was. President
Chandler of the Atlantic and Pacific Company, re-
marked briefly that the precise terms of the union
had not yet been guessed.
In regard to the suit brought by Rufus Hatch
against the three companies notice OF an Injunction
had not been received at the Offices Of either OF tie
corporations late yesterday afternoon 1t was said
by friends OF the companies that the suit would
amount to nothing. Mr.. Hatch. referring 10 this
suppositiOn. said last evening that tho suit no
childs play that since the injunction had been OBJ
tained Dir. Vanderbilt himself had not money
enough to buy him Off
A TEMPORARY INJUNCTION ISSUED.
Rufus Hatch, in behalf of himself and all other
stockholders of the American Union Telegraph CON-
pany who might come in and claim the benefits Of
the suit has begun an action in the Supreme Court
against the Western Union, American Union and
Atlantic and Pacific Telegraph Companies to prevent
by injunction their proposed consolidation. An
application for q temporary injunction was made
Wednesday 70 Justice Barrett, at Chambers ON the
affidavit of Mr.. Hatch and on the complaint. II Is
set forth in the complaint that the American Union
Telegraph Company. of which Mr.. Hatch IS a stock
ho der was established for the purpose Of prevent
ing the monopoly witch the Western Union Tele-.
graph Company had acquired by the absorption Of
open up new lines, whereby healthy competition
would be created which would inure TO the beuett
of the general public.
pany has obtained monopoly of telegraph business
In the country BY purchasing tho controlling inter.
est IN each telegraph company tiat has been estso
stock to about $40 OcO O00 that such capital stock
dues not represent absolute payments in cash TO the
company, but that 10 IS largely Inflated and con-
ssts of issues upon issues different times III order
to obtain control of rival companies ~; that the
Western Union intends to increase its capital stock
to $780, 600 900. was also stated that this increase
was purely fictitious, and had not been con-
sented TO- by three-iourths in interest Of the stock
Sy uas " sboSd PSt be i;G nfo t "
the company therefor, but the stock 10 he is
sued aud gwen away for the purpose of procuring
the consolidation, without any legal consideration
and in excess of the powers OF the corporation and
that sucn increase of capital was fraudulent
and void The Western Union, the complaint
COmpanys stock and controls its movements
and operations; that the success of the American
Union seriously iDterferes with the previous m0nOp-
oily of the Western Union that the American Union
Is now in successful operation, and enjoys and has
the sympathy of the commercial public Of the
United states, It's patronage and custom, and with
une-fOurth the capital of the Western Union Tele-
graph Company, Is capable oil earning as large an
Income as ~ ls -
the proposed consolidation, with tho view, as it al
eRes OF TeestablisiBg the higher rates for telegraph
messages which were obtained before the American.
Union was founded. and reestablishing the
monopoly of the Western Union Telegraph Com
pany the entire business OF teegraphing through
out the United States"
taine6. Mr. Hatch sets forth the extended lines ard
CONNECTIONS of tue American Union Company aud
then AYERS: That no company ever had better
and br9hter prospects than the Amerlcsn'Union
Telegraph Company fof the earning of large diyi-
dends upon its capital stock as we'll as for corferrns
upon the community the blessing OF cheap telcg-
raphy that it possesses the sympathy and Will
rceiys tSe patronage of the great Of business
men IN tho limited States in consequences of the fact
that il is looked upon by such business men the
engine with which to break up the monopoly which
heretofore existed IN the telegraph business; that.
its capital stock, being only $10,OOO00o. repre-
sents with less eyactness the actual OF
its lines appurtenances and business; and, whereas
the capital stock uf the Western Union Telegraph
Company Is 100000, representing its lines and
business appliances which are no better to-day as
this deponent IL informed and believes, than the
American Union Telegraph Company, aud not worth
IN the market any more, 1t Will DO seen at glance
that the American Union Is able to earn upon the
business dividends four times rs large as those Of
the Western Union; that the stockholders in
the American Union will be greatly
ssSrieyed by any consolidation or arrangement by
which tie monopoly will be reconstructed, because
the people tho United States are determined that
they will not submit to monopoly, aud the wiping
out OF the American Union, no matter what fayoTa-
BILE terms may lie granted TO 10 by, the Western
Union upon consolidation; and no matter how greae
NAV be issued to the stockholders OF the American
Union Telegraph Company, nevertheless, the unpop-
ularlty hch attaches TO Inonepolles will Ia the end
ruin the Western. Union Telegraph Company Tie
complaint tiieh continues US follows:
IL Is only question Of time when other c0DpeRies
will be started Under lhe auspices OIL the boafas CT
Trade herenbeore mentioned, aud OF the i1dapeadent
mrrchants again to break the monopoly Z. Thai the
preaept Is carried by certain directors
Of tne Western Union Telegraph Company aud tis drf
tors Of American Union largely Tor ter own private
gans and profit that opposition OF the American
UnOn made use OF hy large number of the stecf
holders ia the Western Union as q pfetext for ce-
pressIng the stock OF the Western uslon from
SIO5 u snare down 20 $50 share ~ which
nrce the said directors and others bought 20 such
Nm extent that in few days at The Stock
Exchange the whole capital stock Of forty millions Of
collars of tire Western U1iOn whs o0ught hld Solo
Haylng thus purchased the stock At such low prices
win the preconceved idea OF sroppirg the coieion
ami reesiabisnng the monopoly, IL sud0elily aIr
noueed there was 70 be consolidation OF tho sew
eral comPanies, whereugor the stock melket zge.n
s.iyanced ana Western un0n sold nigh al ~ Der
SNARE; that the profits made BY the directcrs of lhe