New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-02
TELEGRAPH COMPLICATIONS.

Ia
~ rxurScr1oN GRANTED BY THE SUPREME COURT
THE RECENT AGREEMENT DECLARED TO BE
M VIOLATION OF A PREVIOUS AGREEMENT
prrwFyy JAY GOULD AND JOHN O. MOORE &
co.
Thu Western Union Telegraph Company AID Jay
nnuld obtained from the Supreme Court yesterday
.r Injunction restraining the officers Of the Mutual
fTnion Telegraph Company and the Central Trust
nomnany from carrying into effect the provisions
AZ the agreement recently made by some of the
stockholders Of the Mutual Union for placing the
outro of the company in the hands of three voting
tr.stees A majority of the stock had been depos-
tied with the trustees under this agreement but the
nlaintis declare that the scheme is in violation OF
preyious agreement, by which the control OF the
company was placed in the hands of Jay Gould and
George +. Baker as trustees. The Western Union
a. the largest owner of the stock of the rival COM
panv and il appears has not been consulted In re-
card to the new arrangement, the acknowledged
purpose Of which is opposed TO the interests OF the
older company.
The recent election of George F. Baker, president
Of the First National Bank. as director OF the
Western Union Telegraph Company was generahy
accepted as an indication that harmonious relations
existed between the Western Union and the Mu'u"i
Union Companies. At the meeting OF tne ne"
hoard ON the day following the genera meeting Mr.
Raker was present and took part in the election OF
executive officers of the company. uay VI wv
afterward il was reported in Wall street that MI
Raker's election to the Western Union board was
o,oolete surprIse TO him. and that he was in doubt
whether he ought to accept the office Al that tIue
Mr. Baker said that the fact that ms election was
surprise should not be made pnbhc, but ne ueclneu
70 intimate what his action would be- IL was
toorped then that while Mr.. Baker was not averse
10 naN
pressure bad been brought to bear on him by friends
If the Mutual Union Company TO prevent his ac-
.e,tance The pressure indeed, was so great that
he offered his resignation.
On Monday it was announced that stockholders OF
the Mutual Union Company had agreed to place
their stock in trust for five years giving the Voing
mower 10 three trustees-GeOrge F. Baker Asa L.
Potter president of the Maverick National Bank OF
Boston. and George William BallOu. vlce-presldent
of the COMPANY. and head of the banking house
which has been the company's fiscal agent. Oh
Tuesday it was announced officially that majority
of the stock had been deposited with the trustees
under this agreement. and that 1t had been placed
in the Central Trust Company, which would Issue
its trust certificates, destitute OF voting power as
soon as they could be prepared.
II was known that a somewhat similar agreement
had been made last spring. when Jay Gould bought
Hs boupht the stock of the original promoters OF the
Nutual Union enterprise. and in consideration OF
his taking this interest it agreed by stock
holders representing a control that the voting
nower should be vested in Mr.. Gould and
Mr. Baker as trustees The agreement put
nm end at once to the legal suits in which the Mu
fual Union was involved, and assured harmony be-
tween the two companies. Mr. Gould soon after
ward turned over his stock TO the Western Union
Company-for which it was admitted that ne had
been actIng-and that company for SIX months has
held in its treasury about 49, 500 shares of the capt.
tal Of the rval company. Persons fond OF arith-
metical calculations have wondered 1oI d Gay -ow
the new pool secured a majority OF the STOCK SO
quickly, but they hesitated when they 1ound out
that over 10000 shares were privy to the nrst
II was asserted yesterday by friends of
the Mutual Union Company that the
purposes of the first agreement had been &C
complished by the election of Board of Directors
in which the Gould interest was represented, and
that the agreement had virtually expired because IL
~ as made only for one year. Some OF the persons
interested in Mutual Union went so Tar as 10 say
that there bad been real pool and that the agree
ment between Mr.. Gould and MIR. Baker had been
unthinr more than a mere Ut understanding. They de-
rlare that there nothing strange IN the lacI
that d considerable amount OF the stock wnlch had
consented ID the first arrangement had been de-
posted with the trustees under the present pan
Following this theory, they argued that the ~
iuuctOn obtained by the Western Union ana MI
Gould would not hold. and that IL was merely an
expression of disgust on their part at having been
outwitted. =,
There is good authority for saying that the Mu-
tual Union Company has not earned the interest on
its bonds and that there is some doubt whether IL
has paid even its working expenses tor the pay
ment of the November interest on ITS bonds the
COMPANY applied. it is understood, 10 the Western
Union for aid. This application was refused, al
the recent ememt which is said by its warInest
advocates TO be melely for selfDrotecion, WAS the
result.