New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-26
THE AFFIDAvlTs AND ARGUMENTS.

plaintiff in opening the argument, said that as the
afidavits and complaint upon which the application
for a temporary injunction had been granted were
before the Court he would not read them again, but
would simply present additional affidavit OF Dir.
Hatch in which it asserted that. after the es-
tablishment of the American Union Company, the
rates Of the Western Union Company were reduced
from 80 to 90 per cent in order to meet the compe-
tition created by the new company, but that TINS
reduction made only to those points reached by
the lines of the American Union. MIR. Sewell then
submitted the on this AFFIDAVIT and the papers
already before the Court.
Wager Swayne on behalf of tho American Union
COMPANY then read the affidavit of Thomas T. Eek
ert. the president Of the American Union Company
the affidavit of David II. Ba5es the first vice
president of the company. Russell Sage, Sidney
Dillon. Washington f. Common. j. j. Slocum. Ma
thanel W. Wiles and Jaw Gould. all of whom are
stockholders and directors OF the company; also the
separate afidavits of David IL. Bates, jay Gould.
Washington f. Conner q. 7. MorOslni and Russell
Sage and also the AFFIDAVIT of Thomas +. Clark. the
secretary of the company, accompanying an exhibit
showing the vote of the stockholders by which 1t
appears that the holders OF 73,30f3 shares out of
total of 100000 authorized the proposed consolida
ton. Mr.. Eckerts affidavit simply sets forth a de-
NAL of any transfer of the rights property of the
Company except with the assent of the stockholders
and directors, and in accordance with agreement
exhibited with the affidavit. Nr. Bates. In his
affidavit. denies any Conspiracy or combination"
on the part Of the directors Of his company to de-
fraud the stockholders, and asserts that the CONSOLE
dalton would inure to the benefit OF all according to
their interest. and to the public at large. He said
that The stock of the American Union Company had
considerably advanced as soon as the agreement for
consolidation had become known, and that the eff
feet of the temporary injunction had been to depre-
ciats tbs stock. Mr. Bates shows that there
were only three original subscribers 10 the stock
If the American Union, Of whom hs was one; that
all of the stock of the company. amounting to
$4,000 900, had been issued in pursuance of the
three original subscriptions and that all the pres
ent stockholders derive title 10 Their stock from
these original subscribers.
The alldavi,s of the directors Of the American
Union Company named above. assert that the pro-
posed consolidation was made with tho consent of
the stockholders first legally obtained, and deny
the conspiracy or combination TO defraud the
stockholders imputed to them or any knowledge OF
II.
JAY GoULps AFFIDAVIT.
The AFFIDAVIT OF Jas Gould stated his position in
the suit as defendant and director Of the American
Union TELEGRAPH Company, aud continued as fol-
lows
Prior to the commencement OF the necotlatons which
have resue i tbs agreement Of Jlnn ry 10, ISL by
and between W AmrT'can O1ioh ler trIph Oom
the western Union Itlcgrhph company q thr Alhuuc
and Paclfc Telegraph Company, which j. e1'Di'cd IA
this suit Kns Hitch, complainant In THIS suii. repre-
sented to aian that he wasa large stock.odrr III the
American Union Telegraph CImpauy thd tho best M
rangeIncnt be mace tor the consolidation ~ said
paIy with The Western Union Telegraph Company. at
Complainant further stated inst be had already taken
slcs tua direction and thai 10 aud ms friends were
cru Union stock which they expected
to realize large profits from Tie increase In value
between said cOIDpanIcs-in which pool complainant
urged afiant TO participate The suggestions ~ com
from any arrangement seemed To atian to he
wen founded. and largely Influenced arlnt IA director
and a stakeholder IN tue American Union Telegraph
Company ~ vote for and consent 10 tho Arrangement
which has since been made.
equal benefit and advantage Of all the shares IN the
stock SAID company aud Of LIS sockhodes equally
IN proportion 10 their intereBt-and afiant has
with thai understanding consented 10 the Anant
eape oeS S' he Amecsu W%an to s
Company David II. Bates, Charles Tinker aud
afNnt These three subscriptions togr Amounted 10
aud absorbed the entire capital stock OF said company
Each Of said subscriptions was duly paid, aud stock is
formed and believes all other persons who hold stocK in
the American Union TeeRrapn Company derive title
tions. No agreement whatever was made by
the American Union Telegraph Company with said
original subscribers. anv OF thom, Is in any
degree infringed by at all conflicts with the
agreement now exhibited in this suit or by which said
ferrng IT'S rights prOperty privileges and In
any manner authorized by law
Mr.. HATcHs ADVANCES
Mr.. Conner, in his affidavit asserts that within
the last week he has had three interviews with Mr.
Hatch in regard to the action begun by the latter
that at the first interview Mr. Hatch declared his
intention to prevent the intended consolidation of
the companies, and that papers for this purpose
were preparing under his direction.
Mr. Hatch, at the second interview, January
10. told Mr. Connor that he had begun an action to
prevent the consolidation THAT he was dsplensed
at being left out OF what he (Mr. Hatoh) called the
deal"; that no was "short" some 500 shares of
Western Union stock; that if Mr.. Conner or Mr..
Gould, or some one for thep would take his Ameri-
can ion stock of his hands at the price Western
Union stock was then selling at in the market. he
would stop all legal proceedings.
u. I. MorOsini states In his affidavit that Mr.
Hatch. intended TO make trouble about the
consolidation unless Mr.. Gould or some OF tbe
contracting parties" bought his American Union
stock at ITO share, or unless he was allowed 10
come into the Arrangement with that value on his
In December, 1880, or January 1881 stated to MIN
that 1t would be well il consolidation of the com
panles could be effected provided that the manage
ment could be taken away from Mr..
Gould and that he had written or would
write to William IL. Vanderbilt suggesting the ad-
vantage of uniting with him IN buying Western
Union and American Union stock with that end In
yiew.
Everett Z. Wheeler after the reading of the affi-
davts by Mr.. SwGyne for the American Union
Company, offered those of Albert b. Chandler
and William H. Baker Oh the part of
the Atlantic and Pacific Company Mr..
Chandler, who. since January 1875, has held
the Offices Of secretary. treasurer vice-presdent
and finally that of president of the Atlantic and Pa
cic Company, says in his affidavit that at the time
of the incorporation Of the American Union Com
pany. his company and the Western Union Company
did not have monopoly Of the business Of teegaphy
within the United States and that the effect of the
establishment Of the new company was
Lot to lower to any considerable extent
the rates previously charged by the other compan-
lea and he daniea that the main object of the