New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-16
WESTERN UNION LITIGATION
TIE CONTEST OVER THE CHARTER.

THE CONTEST OVER THE CHARTER.
.,crwENrs BEFORE THE ATIoRNEY-GENFRAL FOR
Avn AGAINST THE APPLICATION TO BEGIN
SUIT TO ANNUL THE CHARTER.
Albany Dec 15.-Arguments were heard
nv Russell this afternoon on the APP
p,catiou Of Joseph P. Greaves. JOhn G. Moore and
others for permission TO bring action TO annul the
charter Of the Western Union Telegraph Company. H.
hubbard ofButler. stillman & Hubbard, ex-Attorney
General Francis c. Barlow. of New-YOrk and Mathew
Hale of Albany. appeared iu favor of the application
Aaron j. vauderpoel, General Wager swayne Clarence
Cary aud ]. Henry Work, OF Nev-York, appeared for
the Western Union Company
Mr. Hubbard made the opening argument He de-
cared the value o: the property upon which
stock to the amount Of $4,000 600 had been issued
amounted in New York TO only $4,000, and assuming
that the company owns the same amount III the other
states the total value Of les plant would not exceed
Ills poibt Attorney Russell stated that the
Controller OF the state had already sent 10 him an app
Sny 70 recover state taxes from the company, and TO
determine the amount upon which henceorth the vest
The Attorney-G asked Mr. Hubbard IL thi' suit
was brought under the conditions as the Mutual
Uaion suit; and lift was brought on tue supPoSiuoh
that the decision IN that case was correct MI huoDau
replied: " Yes"
General swayne addressed the Attorney General
against the application The principal parts of his ar
sunient were as follows:
First-The statute OF limitations cuts OF all those
matters planned 81 which TOOK page pIio 70
Sccond-Tbe act OF 1870 gives me teleeraph cO
Of tnis ae fu power WY, sell or lease the proBS
o. other te egraph companies uoh , f f"re afb OF
yb,rf"Ai tho transactions complained Of when took
The American Uaion and the other companies name
were fu authorized By this statute ana sdHe'oDeuOJ
directors and stockholders as required. -, , ,,,t
totf, fb-The more important Of them have been sun
cctei 10 test OF severe ltgation' "IilC.i ia" '
confirmed taeir good faith and beneficial results: .
iySo ,.JjSi nr,es being steadily reduced and
Inc service tue most efficient in the "9Iu. me OILY
point IN waica III inpAiH s oSTn , heii nc 81 5'v
Co.. blsed Ipon uet earnings, which the com ANY might
Ses ied bHt preferred to invest. These investment,
mo III me DIVIDEND constituted an actual surplus
il; inc Va ne o! the cOmpanys property over ana ADo'e
re- ar of It's "a ll stock and equal 10 The amount OF
'a SsThe legality of this dividend is nov pending in
fla, 1lir. Of Appeals and review OF the litigation pre-
sons no occasion Tor tine Attorney Oehetal 20 'a'c 'e
II l,sr The act comforting these powers up9n tele
erl,acsunaucs has been several times pronounced 70
BE- the ninaou OF dcLDer4 eAFAIodns I'A.Sa ~"
policy. founded upon nc oeces'l'1 lol 30
o( intei BY single process 10 the enc- OF me
earth, If nee0 DC. IL j. tue aa-.l - -. ,et
one Post Once Depa iiheni ana tAerr II iv"Cl
81 lin nnnic 10 rel owe itself fTOm the evils OF monopoly
II sc snoud ever rise by taking charge OF the teIe-
Jos-TLe validity Of the stock dividend - believed
Hopeais upon when the Special Term founded lis de
clsOu. company expects thai INC ltuEiHeut 81
tine General Term To the contrary VIII % presently V'c
uisinh-Tbe General Term coucurs with the Special
Term IN nndin2 that all those trausac ions VINE nave
been the subject OF litigation done IN good !a!h by
oil concerned. liz, +;,.. 60
The amount OF the capital sock OF telegraph company
il thai il shall exceed the actual value OF TIE asse"
az the corporate estate az tAe ulnc luc
stock put forth. Any ten men may
organize a c0mpany OF SSOOOO.OOo tomorrow ana
auother Of Ike amount the next day. me only re
ouirement is tina the STOCK itself shall noJ ne 4aIse
pretence If value paid into capital ana the requirement
lie company has uily met in every pafuciiaE a.,
EA-At,orney- Barlow, iOr the Application sl
hat there haa cen too much aXity in allowing corpora
tions 10 violate the law; that Wien the Mutual Union
Compapv which is struggling for exatenc, proceeded
AGAINST for violating Law, large company like
tbr Western Union he hoped, would not be Above 10
go free He SAID the llCrcaee or capital without the
autl.ority OF law made the ac Illegal
m. Attorney q enera here SAID he saw no reason 10
change his mind relation 10 the Mutual Union case
Continuing General Barlow said that IN the articles OF
associatOn the amount Of capitol stock, orig
inally fixed al S56OOOO. may be increased when
eyer the Board OF Directors think u "a 1Or
me iofes OF the company to 40 So elt1er for me re-
air an their lines or In constructing new Hines with
which IL may cooperate Inc western On1oh po"sn' o'
right. did not construct
General Swayne interrupted and said There are
numerous prectdeuts TO sustin tde point thar ne rSAt
10 buy pIecemesl and 10 pat together cT the Isu1 10
bus Outilgut.' .,--. ,
Before General Barlow flushed, the nearing was au-
j0ugncd unui 10 morrow al y 4. ~.