New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-10
WESTERN UNIONS CHARTER
SEEKING TO HAVE 1T VACATED.
THE ArToRNEY-GESERAL ASKED TO BEGIN A
ACTION FOR THAT PURPOSE.

he should begin a suit I'm behalf OF the people TO
vacate the charter OF the company. In general, the
application was based upon the recent opinion OF the
Attorney-Gener given the application OF William
Hen Trey Cameron and Jay Gould have the charter OF
the Mutual Union Company vacated. The &C
non is considered retaliatory. aad has
been foreshadowed for than week by friends OF
tie Mutual Union COMPANY
Inc applicant Joseph p Greaves, who is said TO be
pa clerk In Stock Exchange house His
attorneys arc Butler stillman Hub
bard, OF No. Ill Broadway, and the action
Is understood TO be entirely in the hands of Mr Hub
pard' who personally presented the papers to the
Attorney General at Albany The application made by
MT Greaves I. as follows
TO me Attorney General orhs State Of Berc- York:
Application IL hereby made tor the commencement OF
anu JUS to vacste the cnarter and annu the
istenee OF said company and TO remove the directors
otnce anu compel them TO account Tor Their O1claI
conduct In the management OF the funds and property
vi us ctnilors tue money ana the value OF me
properly which they have transferred to Others lost and
wasted oy violation OF their duties
The grounds upon which is requested to vacae
Tue quarter aud aunu the existence OF said corporation
are IN substance: That said company has offended
ssanst we provisions OF the act under winch II was
created aud OF the act under which il altered or
newed ana OF the acts amending the sameby unawfuly
Anrii TSS2gVVO OF caPltal STOCK DetWeSn LS1t IA
hPrn 1876 10y unawfuy issuing Sl9,G33, 500 OF can
ana May 1864 by unawfully Issuing S20,s5230O cap
ia stock or the greater part thereof between May,
the year 1881 separate amount Of 9l5,526j90
OF eaPital stock, ana also separate amount OF
So4VOOOO OF capital stock and also separate amount
OF Sio-OoOO OF capital stock. being "a part OF the
%s4OOOOO above mentioned. aud also separate amount
OF $I0'OOOOOO OF capital stock; by nnawfuy guaran
eelng dividends upon me stock OF other companies BY
a"uy, ana for purposes OF speculation purchasing
stock In other telegraph companies by entering into
unawu agreements in the 1881 for the absorption
OF the telegraph companies known as the American
Union and the Atlantic and Pacific.
Ihat the said company has violated the provisions OF
law which prescribe that 1t snail be lawful for the
directors or managers OF any incorporated company in
this state to make dividends excepting from surplus
pohs sing from the business OF such corporation;
and IL shall not be lawful for the directors any such
company to divide withdraw In any way pay to the
stockholders or any Of them, any prC OF the capital
OF the legislature"
AS instances OF SAGA violation, it Il specified aud APP
pears In the annexed papers, that In the year 1881 said
company paid dividend OF $l5.526,59J, In tts own
stocS and another dividend OF Si32O,6OO, in It's own
stock, and that said dividends made from
surplus profits arising from tue bushes OF said corpora
Also, that in tho year 1881 the directors OF the said
company divided Withdrew and paid the stockholders,
wNLOut the consent OF tue Legislature, Sl032619O or
i.' sock and further amouut OF 9i32OoOO OF Ito
mat the said company has exercised privileges or
franchises not conferred upon 1t by law in unawuly
and for legal equivalent either cash property;
In uuaWfully making stock dividends aud Withdrawing
ana paying out It's sOcK ~ hcrellDeiOre and ia the
annexed affidavit menuOned; in unluwfuily entering
ntO the agreement Le .enDeOre mentioned for the all
agrptlon OF the companies Anown as the American
Union aud Atlantic and Pacific; IN unidwfuly suarau
teenG dividends upon u other cOmpanies
fore mentioned: i'm unIawIuIy paving dIyldeuds uon
Illegal i5Ises OF stock
that SAID company has abused Its corporate franchises
and pOwt rs by absorbing ryl an1 competing com "a
MES. by obtaining and unlawluly holding monopoly OF
the telegraph business and by means OF suc monopoly
putting upon the public issues o. stock made unlaW-
iuy, and without any legal equivalent in cash Or
property. aud b. means or is monopoly ieyyins upon
the public VINO ~ necessity Its customers, taA ia
the form OF unjust ana extOrtOAate charges.
The grounds upon which an action Is requested to re-
"a
directors have abused their trust aud been guilty OF
misconduct IN entering into and attempting carry out
the agreement OF ISL Tor the absorption Of the Amer
eau Union Atlantic ana Pdcho Companies,
aud III issuing stock under sand agree
mrnt, and pay ing diyldenus on said stock;
also IN unlawiully guaranteeing ana Payins dIvl-
aud MAXIM the agreement with the Great Northwestern
Telegraph Company, OF Canada, as mentioned In the
stock OF the Mutual Union Telegraph Con-
p-ny mentioned IN the annexed AFFIDAVIT; ;
in unIaWfuly making stock dividends,
aud Withdrawing and paying out 10 stockholders tue
capital stock OF their said company to the extent Of
Sl5 $40 $50 and the extent or the further sum OF
"A, 1000 and upward.
Tle undersigned offered to furnish security satisfac
tory TO the Attorney to INDEMNIFY the people OF
the state OF NewYOtk against costs III any action or
actions brought upon this Application. ,,...
BUTLER, SrILLMAN HUBBARD,
Attorneys Tor Joseph L. GrcSyes.
Ee,e- York December. 1882.
In his affidavit Mr.. Greayes recltes the history Of all
the increases OF the capital stock OF the Western Union
Company it organized under tho act
o. the Legislature passed In l54S. In
1854 the capital OF the company was $4,000,
but Il was Increased 70 100000 In April 1896. before
the original OF corporation changed to its
present title. lie alleges that between tina, date and
Nav 1864, the capital had been enlarged TO
S2Ol33 500 and that tie increase was used chiefly
in the acquisition OF competing lines Of telegraph in
tie payment OF stock diydeud' aud not AZ all Tor add
ng TO the number for the construction OF new
lines to be operated In connection with it. Following
the different increases the last which made
ia January 1881 Nj Greayos alleges that the company
haa no authority under existing las 10 maze the
mon ases OF the ca pal stock. aud directors Of
tie company had Lawful ngIt To pay dividends upon
the stock tie also refers 70 wna he alleges was
sueculIon in inc stocA o. the Mutual Union Company
by purchasing 10000 SHARES, whlca were tHeH ncd II
pool CONTROLLED Dy jay Could ANA George T. baker lie
charges thal the purchase was approved by legal
vote " ,Ac Western Union Company