The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1882-11-02
GENERAL NEWS
THE rELEGRAPH CoxPANIEs.
Kew Developments Concerning the
Pooling ArraAgemsnts-AOro
Trouble FOR the Mutual

AEOuOAc 4OE the AuGG01
Union.
NEW York, Nov, IA new turn
was taken this forenoon in the Mutual
Union telegraph affairs, which stops the
new pooling scheme, and creates some
excitement in financial circles. and DOS
sibly will disappoint the hopes of those
who expected to profit by it The pro-
posed arrangement, as made public yes
terday, was that the stock holders had
Eiaced the majority of the stock with
Geo. w. Baker, of the First National
Bank, Geo. w. Bolton and A Fl. Potter,
OF Boston, as trustees for five years with
full control of the stock for
voting purposes, but the stock
was to be deposited with the Central
Trust company of this city. The won
der was how this could be done while
there was previous pool in which Ba-
ker and Jay Gould were co-trustees of
the controlling stock.
The inner facts were developed this
morning by legal proceedings before
Judge Van Brunt. of the superior court.
Application was made by Norvin Green,
president of the Western Union Tele-
graph company and the holder of thir-
ty-one thousand shares of stock in
the Mutual Union, and by MIR.
Gould, one of the trustees of the original
pool, for an injunction. After reading
the papers Judge Van Burnt issued the
order of injunction. It now transpires
that the Mutual Union company finding
| difficulty to meet its indebtedness and
to pay its interest on the bonds, applied
/ to Mr.. Gould for help, through Mr.. Ba-
ker. There were ugly suits pending, in
| GLIDING the validity of the Page patent
| which the Mutual Union was anxious to
have disposed of. The result was an
agreement between Baker and Gould.
1t was arranged that Gould should pur-
chase of John g. Moore & Co. 1850
shares IF stock at the above average,
| Of eight dollars and that fifty thousand
shares should be put up for the pools.
In connection with this Mr.. Gould also
bought from Baker who had like
amount. thirteen thousand and five hum
dred shares, which with the other stock
held by the various persons named
amounted to more than the necessary
fifty thousand needed for the pool. Mr..
l Gould transferred to the Western Union
telegraph company most of his stock.
The money derived from this transac-
ton went to pay for the debts
incurred for construction. Subsequent
ly the bonds were taken by the Western
Union company and the money used to
pay interest due. Recently, and after
Baker had been elected director of the
Western Union company. an appllca-
ton was made by the Mutual Union
company for the money to pay interest
The committee of the Western Union
company refused to authorize 1t and
thereupon Baker put in the hands ol
Jay Gould, his resignation. This led to
an effort to form a new pool, which has
been stopped by the injunction.
How Baker is going to explain his &C.
tion to Gould, his company trustee, and
the court remains to be seen. As the case
now stands he and his associates are
bound in the original pool and are in
debted to the Western Union company
for the money paid
| Judge Van Brunt is familiar with tel
egraph law and affairs, having sat in the
hearing of the case of Benedict vs.. At
lantic and Pacific and Western Unior
telegraph companies in 1878, in which
case he decided to sustain the pool in
| volved.