New-York tribune., 1882-02-16
4 SUIT AGAINST THE MUTUAL UNION

SEEKING To RESTRAIN THE ISSUE or CAPITAL
STOCK BEYOND ~ 100000.
p. II. Babbitt began yesterday in the Superior
Court q suit in equity against the Mutual Union Tcle
graph Company George W. Ballou and others TO restrain
the issue n stock beyond ~ 200 OOO the Of cap
al stock limited by the compays articles Of association
Judge AruouV -rautoda temporary injunction the suit
and an order show retunac Friday lie also
granted order directing the officers Of the company
to produce In court certain books and papers.
At the office of the Mutual Union Company yesterday
no copy Of the complaint the suit could be- obtained.
and the attorneys for Mr. Babbt also refused b. make
it's contents known II is understood, however that this
SUIT based substantially on The same ground. o. h0ss
on which similar suit brOu yht in the United states
Circuit Court last December by william H. Cameron, Of
Providence Rhode Island In ,he Cameron si, 1t al
Legged tnt the plaintiff Of tle original -'ockholt
er- of the company, and thai his interests were injured
hy the increase of the companys capital stock from
~ 100000 to Slo,00O,0oO in last septem
ber It was charged that the defendants
bad made fraudulent contract with John G.. Moore ~
co. for the building oi the companys nes agreeing 20
nay the In bonds and stock ~ 80 cents on
fudaut-, in Offering the 10000 IN DOuas ana hoVD "a
stock for every $1,000 received from Subscribers
10 he company, bonds we're committing fraud IN
the pnbic The bonded debt of the company -
~5OOOOOu aud Yesterday Was the da.e oi thJ pay mems
of the las insialnent on the pubhc o me
bonds I'm the Cameron suit the plantn poie-sd q %
ignorant OF the terms Of the contract between
The company and Moore 4 Co., bnt tho
contract was subsequen ly obtained aud published by
Erastus Wiman, Of tho subscribers 70 the Mutual
Unions bonds tho tiiIe director Of the Western
Union Telegraph Company.
Toa TRIBUNE reporter, last evening, George Niliam
Ballau sad: Mr. Babbitt Is partner with MI Cam
Cron, whose suit against thu company Is now hanging
up I'm the calendar Of the United States Court Ihey
are believe, agents OF Il. G.. Dun Co, IN Iroyf
defce, and member Of that firm rs Mr. Wiman who was
prominently connected with the controversy over Ine
publication Of construction contract mo
suit is malicious one. designed 10 pre-
vent subscribers 10 bonds from paying up tneir
subscriptions It practically the Cameron suit worked
The tenth instalment from our suhs rhers Nas
due yesterday, but the money has been paid, alhongh
the delivery of stock 10 them T. prevented by the
Injunction. 1 expect the injunction viii DO 20
moved on Friday without doubt The whols
SIO.OOO,OOO OF the cOmpany's stock has been
issued Mr. Babbt claims 10 be one OF the original SUD
scribers 90 STOCK bat Of the original @l2o0W
: ock was ever issued. Ia regard t0 the S5,Oc0eV
stock to DO given TO the bOndhodnrs were oarfulto
protect Our position legally The suit VIII cause vs.
temporary annoyance; but that IL all"
George ii. Holt, the treasurer of the company,
sa Il he did know what the brought for OF
what the papers contained. lie Thought thai Mr. bao-
butts attorneys did not know definitely whot the suit ~s
Intended 10 accomplish