Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1882-11-30
RIVAL TELEGRAPH COMPANIES.
New York, Nov %.

| NEW YORK, Nov 90.
| In the supreme court today Judge Barrett
is hearing an argument on motion to con-
tinue injunction in the suit recently brought
by the Western Union Telegraph Co. and
Jay Gould against John G. Moore Co.,
Geo. F. Baker and others and the Mutual
Union Telegrs phi Co. and Central Trust Co.
of New York, to restrain defendants from
carrying cut an alleged conspiracy to thwart
! the fulfliment of an agreement entered into
between plaintiff and the firm of John c.
| Moore & Co., acting on behalf of all the de-
PENDANTS in July last
Roscoe Conkling, Wager, Swayne, Burton
n. Harrison and c. C. Cary appear for the
plaintiff, and exJudge Green, Robert Sew
all, F. A. Baker. J. W. Simpson and VIM.
{. CULVER represented the defendants.
| Mr.. Harrison recited the fact of the COM
plant. II charges that Geo. F. Baker con-
tracted to purchase from Moore & Co. 1000
shares of Mutual Union stock at So per
share. and it was afterwards agreed between
| Baker and Gould, who was acting for him
self and the Western Union Co., that he and
| Gould should buv Bakers interest in the
contract, and he took and paid for number
| of shares.
| He and Baker contracted with Moore &
| Co.. acting for all the defendants, for the
| purchase Of $500 other shares, when an in
| junction then operative should be removed
at S5 per share, and TO- 900 other shares at
| $40 per share.
1t was further agreed between all parties
that Gould and Baker as trustees shall hold
| 80, 900 shares of the Mutual Union and those
interested in the trust should buy 80, 900 of
Mutual Union bonds at 80 per cent of par
each party contributing in proportion to his
| interest. Gould purchased 1880 shares of
| the stock, the Western Union buying $751;
| 900 of the bonds. The object of the agree
ment was to control, under the trust ma
jOrity of the stock.
The counsel contended that the defendant
in Goulds absence conspired to defeat the
agreement and place the control in the hands
Of Baher, Ballou aud Potter, as trustees SO
thar they could borrow money on the stock by
hypothecatng 1.-THE money to be used not in
the interest of the plaintiff. He demanded
| that Baker be removed and a receiver ap-
pointed.
Mr.. CULVER read an affidavit of John G.
Moore in reply, in which he denied the agree
ment, and charged that Gould was acting for
himself and not for the Western Union and
he did not know that the company was in any
way interested He claimed that the Union
was not purchaser of the bonds. but that
Gould bought them himself.
Mr.. Conkling suggested that reference be
ordered to enquire into the facts. Judge
Barrett replied that if reference were needed
he should dissolve the injunction and then
the case would go to special term.
The Attorney General says from the docu-
ments printed, it appears that the Mutual
Union Telegraph Company was organized
October 2, 1880, by certificate filed by FIVE
shareholders and associates, which certificate
stated the capital stock to be 5000, 900, d.
| vided into 60, 900 of Sis each The certif-
Gates further proved that, by vote of the
trustees from time to time, the capital stock
might be increased by the issue of 5000 addi-
tional shares of 500 each. By certificates
made the 9th of September, 1881, and the
18th of February, 1882, the directors, who
are the same as the original associates, with
two exceptions, certifying that the capital
stock has been increased to Sl0,000,000,
divided into 100000 shares of 500 each
This increase, in the opinion of the Attorney
General, was justified by no law of this
State was in fact, in direct defiance of the
statutes allowing the formation of telegraph
companies, which only allowes an increase
of the capital stock where no provision was
made in the certificates of incorporation for
future increase.
The defendants in their answer aver that
after $1,000 shares of the Mutual Union Com
panys stock had been deposited in the First
National Bank in accordance with
the agreement and subject of the
control of Gould and Baker,
that Gould drew out &c, 900 shares standing
in his name and then defendants Withdrew
the shares standing in their names. After
Gould had sold his stock to the Western
Union Co., the defendants then considered
the agreement had ceased. After hearing
the arguments. the court took the papers and
| reseryed its decision.