National Republican., 1882-12-29
WESTERN UNION TELEGRAPH.
A Number OF Decisions Against the Conn
pnuv i'm New York.


NEW York. Dee. 2s.-.tudge Arnoux to-
day rendered his decision upon the motion
heard by him yesterday in the suit of Josiah
c. Rciff against the Western Union Telegraph
company and its directors to restrain alleged
intended issue by the company of bonds with
which to pNrchgsc and retire the St5,b29.5V0
of stock, which was issued under the consoi-
dation agreement to the then stockholders of
the company The Judge denies the motion.
Counsel in the suit of William =. Williams
against the Western Union Telegraph COM
pany and others, which was decided ycstcr-
day, appeared before Judge ArnouX to-day in
regard to the settlement of the order upon
the decision. Judge Arnoux said that he
would so far modify the order made yesterday
as to allow the payment of the dividend to be
made upon condition that the company give
bond for the absolute repayment of the
money, which it might pay out in
case the Judgment of the case should
be affirmed by the appellate court, and
if the court of appeals should affirm
the Judgment then the money paid out should
be returned to the treasurer of the company
Mr. Scwcll remarked that ii the defendant
acted in good faith and did not pay out the
dividend upon the adiudged illegal stock
then he would not ask for any bonds. If they
only sought protection from any mistake that
might be made then he would not desire any
bond to be given.
Mr.. Swayne said that fifteen-eighteths of
| the stock the court holds the company has
no right to pay out, and it is impossible TO
distinguish between the so called illegal stock
and that which it is claimed is legal.
| Judge ArnOuX stated he would modify the
order so far that it would not interfere with
the payment of the dividends upon stock
which could not be distinguished from the
old and new stock. The injunction does not
apply to any payment that may be made
where the company may not be able to distin-
| guish the stock.
Mr.. Sewell declined to accept short notice
of hearing of the next general term, and
handed up bond for $1,000.
In the suit of Rufus Hatch against the
Western Union it was claimed that the stock
in question should not be transferred from
| hand TO hand, because it would greatly in
crease the present difficulty. Mr. Wander
pOel for the company, said that he supposed
it made no difference to the company how
the order was made. Judge Arnoux decided
that if the company would give bond to re-
place the money they might pay out then
they would take all risks. This security re-
lates to the particular dividend in dispute.
! The orders are not signed.
In the Western Union telegraph company
litigation in this city to-day, upon the settle
ment of the orders which embody the results
of the recent hearings in the suits of Hatch
and Williams against the company, the appli-
cation of Hatch and Williams for iniunctions
against the further transfer of any of the
company's shares and the payment of any
and all dividends, was denied as to all fea-
lures of their several applications, except as
to the payment of the dividend Of Ii per cent
lately declared. This dividend the court
held could be lawfully paid upon all except
the S15,000000 of stock which had been dis
tributed to the old stockholders of the Western
Union telegraph company Upon the com
panys representation that by innumerablt
transfers and retransfers this Sl5,000,00O o
stock had become largely indistinguishablC
from the balance, the court ordered that upon
the filing of a bond equal in amount equal t.
to II per cent. upon this %l5,0O0,0OO, con
ditioned that if the court of appeals should
finally hold that the Sl5,0OO,00O of stock wa
itself illegal or void the treasury of the com
pany should be made whole, the company
upon the filing Of the bond should be a
liberty to pay the dividend upon the $4,000
600 with the rest.
In the suit of Josiah c. Reiff against th'
company for an additional injunction, thu
motion was wholly denied.