Savannah morning news. [volume] (Savannah) 1868-1887, 1882-12-27
WESTERN UNION.
Further Proceedings in the Charter Va
cation Suit.

cation Suit.
NEW YORK, Dec. 26.-The suit of VIM.
;. Williams on behalf of himself and 9TH
ers similarly interested against the West
ern Union Telegraph Company and others
was up in the Superior Court to-day. This
suit was brought to set aside the agree
ment made between the Western Union.
the Atlantic and Pacific Telegraph Com
pany, and others. Counsel. in his open-
ing, SAID he would ask leave to embody
IN ms complaint the fact that the West
ern Union Telegraph Company was now
about to declare a dividend to its stock
holders, and that this fact came to his
knowledge from a circular which the
western Union Company had just issued
COunsel Tor the company said he would
make no objection to this being put in the
complaint, as he knew nothing of its con-
tents. Counsel for the plaintiff then read
the complaint, setting forth the facts of
the grounds of the charge made against
the directors of the defendant company in
relation to the agreement complained of.
Counsel for the Western Union Company
contended that his client had entered into
the agreement in good faith, and the com
pany was fully capable, he said, of paw
ing any judgment that might be had
against it.
Counsel for the plaintiff said with refer
ence to the dividend that the company now
seeks to pay, that it was not due until
January 10th, and yet the company at the
present time issues certificates to stock
holders stating that the dividend will be
paid. This, counsel claimed. was nothing
more than a trick on the part Of
the defendant company. He claimed that
the payment of the dividend should be
stopped, as he did not see that its stop
page could be injurious to any of the de-
PENDANTS. He insisted that an Injunction
should be granted to restrain the payment
of the dividends Immediately after the
close of the agreement. If this iniunc-
tlon was not granted Immediately he de-
clared that all the dividends would be
paid out before three O'clock this after
noon. Counsel for defendant read an
affidavit of President Green. of the Wes-
tern Union Telegraph Company. stating
that if the dividend should be restrained
the holders of stock would suffer great
loss and damage by reason of the iniunc-
ton, and far greater loss would result
by reason Of the depreciation of stock held
by various stockholders. Counsel affirmed
that Williams only purchased Western
Union stock for the purpose of making his
complaint in this action. Counsel for the
defense read an affidavit of the Secretary
of the Western Union Company. to the
effect that transfers of stock on the COM
pdny DOCKS were so numerous that 1t
would be impossible to make a distinction
between that stock which it was said was
legally issued and that claimed to be ille-
gally issued. Counsel contended that the
stock was valid, and that the court could
not restrain the company from
paying dividends upon it.
The contract entered into between the
three companies was binding on all par
ties. Even if it should be set aside, the
dividend having been declared, each stock
holder could begin an action to recover it
if it was pOt paid. Counsel for the plaintiff
argued inreply that the plaintiffhad shown
good cause of action, and that the court
should interfere in his behalf and grant
a preliminary injunction. Counsel for the
defendant read an affidavit by President
Green, of the Western Union, alleging
that all the actions of the defendants re-
garding the consolidation were legal.
Relying upon the decision of Judge TruaX
the whole number Of shares of the capital
stock as increased were issued except
about four hundred. Shares had been dis
tribUted and were now in the hands of
numbers of persons. He also AYERS that
the company is about to appeal from the
judgment rendered by the general term.
On both motions the papers were submit
ted and the decision was reserved.