Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-12-28
RAEAsH Of CONTRACT
Western Onion Telegraph COmpanss
Sued for Over Half a Million.
An Ageeementto Send Press Dis,
patches Which Was Alter
ward Repudiated.
New YorE H.rnIa.

- lAAA AGALAluHAN
Company. Action vas begun last July
IN the Superior Court By Miller &
Savage, attorneys for James Il. Good
sell, plaintitt, against that company for
breach Of contract. The claim IS for
$612, 000-S650,0 900 for breach Of con-
tract, and SD 600 claimed TO be due
Goodsell as having been paid the
Western Union company aud not
turned over to the plaintiff according
to contract. Answer was made BY the
telegraph company ia August. TIE
case is now on the calendar for trial,
and it is likely to come upnext month.
The complaint on file is in substance
as follows
First-That the defendant is a cor
poIation doing a telegraph business
under the laws Of the State Of New
York; that for several years prior to
the LIST Of February, 1881, the Atlantic
and Pacific Telegraph Company was
also such q corporation carrying on
the same kind OF business.
Second-That about January /.
1881, the plaintiff was engaged in the
business Of collecting, Transmitting
and distributing to newspapers in
different parts of the country news
tor publication ia such papers; that
plaintiff assumed and adopted in his
business the name and style OF "Thp
National Associated Press. james H.
GOOdsell. President" and his news
was known as THE National Associ-
sted Press dispatches all Of which
was we'll known to the Atlantic and
Pacific Telegraph Company and its
officers.
Third-That on January 81, 1881
the Atlantic and Pacific Telegraph
Company entered into a contract with
the plaintiff to transmit news and
dispatches according to the following
terms:
THE CONTRACT.
Goodsell was to furnish for trans.
mission TO certain points all news
gait cred by him which from time tC
time he might desire to forward. The
telegraph com pany was to perform il,
work in the best manner possible. TIL,
regular service OF the party Of the
second part (GoodselD was not to ex
eesd, on che average, $3.50 words pei
day, or 1880 words per week, aud fol-
this service he was to pay the tele
graph company $1,000 per month
After entering upon many details, mo-
OF general interest, the contract pro.
vided that in case Of broken circuits
or failure to transmit the news on tn,
part OF the telegraph company a pre-
rata allowance or rebate wa:
to be made, based on the
amount payable for service
over that circuit. The collection Of
all moneys due from papers or sub.
soribers coming under the operation
OF the contract were to be made BIS
the telegraph company for the account
Of the party Of the second part Good
sell), and a full and detailed account
Of all such collections was to be duly
kept and at all times be open to the
inspection Of the party of the second
part, and the same was to be rendered
aud furnished to the party Of the sec,
ond part monthly; ald payments Of
balances we're to be made before the
18th Of each month. Ia the event Of
any differences OF Interpretation OF
the terms Of the contract the ques.
tions of dispute we're to be submitted
to three arbiters, each party to choose
one and both parties the other. the
decision Of a majority Of these 10 be
binding. This agreement was TO CON
tinue in force and operation for and
during the term of ten years from the
first day Of February. 1881, and wal
TO bind for that time the parlie,
thereto, and their or either OF tbeil
legal representatives, Successors OF
assigns.
The complaint then goes on Il
state: That the said telegraph com
pany entered upon the performance Of
the contract and duly rendered .
monthly statement of the FIRST months
collections aud receipts, and a settle
ment in accordance Herewith wa,
made, and the balance found to be
due the plaintiff was paid over n dim,
that on or about February 3, 1881. thu
Atlantic aud Pacific Telegraph Com
pany sold, assigned, transferred and
set over to the Western Union
Telegraph Company, the defendant.
its telegraph lines and ap~purtenances
thereto existing 10 the United States
and Canada. This sale and purchase
included the property of the Atlantic
and Pacific Telegraph Company, such
as poles, wires, Offices, leases. real
estate, stocks, moneys, credits, bonds.
patents, contracts aud securities Of ali
kinds and privileges and franchises OF
every nature except the franchise "a
be a corporation. The defendant
the said Western Union telegram
Comparatively undertook and as
sumed the performance Of all such
contracts OF the said Atlantic and
Pacific Telegraph Company, and par
tieularly the contract hereinbefore
set forth between the Atlantic and
Pacific Telegraph Company and ne
plaintiff, and to render the service
therein provided for, and 10 collect
from the different newspapers SO
served with tbs plaintiff news report,
the various sums so agreed upon be.
tween the said newspapers and the
plaintiff, to be paid weekly or monthly
And the said Western Union Tele
graph Company continued for many
months SO to do, as provided by the
seventh paragraph Of said contract
which sums so collected in eaci
month exceeded largely the sun
agreed to be paid by the plaintiff fol
such ssservice Plaintiff is informed
and believes the amount so collected
and received by the defendant priol
to the LIST of April, 1882, amounted t
the sum Of $3.50, 1872 50; that during
said period and from month to month
the defendant made various and nu.
merous payments to plaintiff on &C
count OF the excess due and payable
to plaintiff, over and above the
amount which defendant by said con.
tract was entitled 10 retain, out O
such collections as its pay and com,
pensation for the service rendered
under said contract, which payments
amounted in all TO S45, $50 in money,
besides about $4,000 which defendant
was entitled to retain on account oil
extra words transmitted and for good.
and materials furnished plaintiff, and
for rent