New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-10-31
MUTUAL UNION STOCK IN TRUST

UNEXPECTED ACTION OF LEADING STOCKHOLDERS
HOW 1T AFFECTS THE WESTERN UNION.
Some of the principal stockholders OF the Mutnai
Union Telegraph Company. supposed 10 DC geheianS
the original promoters Of the enterprise and their
friends. have agreed to place their STOCK
in trust for five years to pro ect UleH
Interests against rvalries and combinations that
might deoreciate the value of their property. The
trustees are George T. Baker president OF the FIRST
National Bank; Asa 7. Potter, president OF th'
Maverick National Bank of Boston. ana george
William Balou. 1t has been agreed that the V0'-
ing power on the stock deposited with these trustees
shall be vested in them exclusively ana tnat ruSU
certificates destitute of any voting power, shall be
issued by some trust company IN place OF the pres
ent stock certificates. These trust certificates are
10 he dealt in when placed Oh the Stock Exchange
list. and are. therefore. to be Transferable. lhey
will be entitled TO all dividends paid on the stock
for which they are the substitute but the dividends
will be paid out by the trust company, which VIII
receive them from the telegraph company
The result of this agreement, if 1t Is carried INTO
effect will be to place the absolute control OF the
company in the hands of the three voting trustees
for five years The friends OF the project sand yes
terday that sufficient stock had been dep0Slaed
with the trustees to Justify the assertion that
the agreement was practically an ac-
complishod fact 1t was said by some that an abso-
Int majority of the stock had been already de-
posted while Others declared that tho success OF
the scheme was almost certain. III
was not understood by them that
the existing relations of the company with the
Western Union would be disturbed by this agree
ment The project has been under consideration for
n shOr5 time only, and, by one of It's WarmesG adj
vocates II was called Boston idea
IL. G. FahnesOck, vice-presldent OF the Firat Ma
tiOpal Bank, who has been active IN promoting the
interests of tue Mutual Union Company, said
Yesterday: "The stockholders seek merely 10 pro
tect their own Interests against any possible com
blnatiOns We did not THINK IT Wise u subject lie
company 10 the danger or beng controlled ny ne
Western Union. That company owns a large
amount of our stock, and there was no knowing
when il might get enough TO secure the ahspiute
control By this movement we make that llnpOSSl-
BILE As to the previous arrangement VITA Mt
Gould can say only that there was no rea' pool
In March Jay Gould, who had bought $500
Baker and George S. Scott made an
agreement by winch the company was
to be operated In complete harmony with the West
en Union. The younger company became IN ms
way a part of the Western Union SYSTEM for tno
three men owned an absolute majority OF the stock.
Mr. Gould some time aiIerward transferred ms
stock and a small part OF Tho bonds, when
he had bought at the same time, to- the
securities the Western Union still holds, and III
addition IT has since acquired a considerable
amount of bonds. 1t Is UNDERSTOOD that the west
ern Union mas not become par to the present com
pact and one of its chief officers said yesterday that
The arrangement breach of faith. Ihe
stock held By Mr.. Baker and MIR. Scott has been
deposited with the trustees IN accordance with the
terms of the present agreement.
To avoid legal questions IN regard to their voting
power, the trustees pay 50 on each hundred shares
of stock deposited with them