The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1882-12-28
rrIr3rrisi Es.punrrs.
rhe W. stern Union Telegraph Company
IN trouble Aboat Paying Div


NEw York Dec. Ia the suit
which was heard yesterday brought by
Vim. S. Wllliamsaagainst The Western
Union Telegraph Company ara its iii
.reetors to restrain the company from pay
ing dividends Gu $35, COG, 600 of its CAPT
ISL stock, which it was claimed was iile-
gaIly issued. Judge Arnaux to-day
rendered his decision ia the superior
court, special tara. He extensively
reviewed the case and concluded as fol-
lows: The motion for an Injunction
against paying any dividend upon the
$15, 5a6 800 of capital stock, being so
much Of the shares there as was distFi-
buted in the stock dividend In question.
is granted, sad il other respects the mo-
ton is denied. In the suit OF Rufus
Hatch against the same company il
which u motion was made for
| a renewal OF the original Injunction Oh
tanned several years ago, Judge Arnonx
also rendered 4 decision, granting the
motion for a renewal of the injunction
| against the declaration of the dividend
upon the stock specified. Notice of an
/ injunction has been served on the com
| pany to-day. but its effect IS merely
| nomin5l. The company had already
! tlIAA vi" lAt%AAAs tsi '-biANA
As this is part of scheme
TO influence stock. il is claimed that
further proceedings on eithe& side may
be looked for
The Commercial says: n reporter
called this afternoon at the Office of the
| Western Union Telegraph Co, and saw
the officers, who said leave had been
asked to make the motion before court,
which, if granted, will stay the
effect fof the injunction until
the matter can come up be
before the Court of Appeals. The argu.
ment OF this motion will doubtless take
place tomorrow. With regard to en-
joining the company against payment
OF the dividend on the $l5, 526, $50 worth
of capital stock, it WAS said that pay.
ment of the dividend began as soon as il
was declared, as is usually the custom
with companies, without any knowl
edge of the courts inten
tons to grant injunctions tC
prevent such payment. The payment
began about December 18th and by thiI
time $19,320 OF the amount has beer
paid. 1t would, therefore, be now very
difficult to select from the whole capita
OF $S0.O00000 the precise SO, 526, 59(
against the payment of which the com
pany has been inioined. When divi
0StiA 10 u oi1COAAG 1OA At9 PHS
ment is mentioned for the convenience
of book keeping, but it had yet to bl
learned that there was any law To pre-
vent money being paid at once, if con
venient, as soo1 as it had been declared
The declaration of dividend set
aside certain portion of the surplus
earnings to be paid 10 stockholders, ant
when not paid cannot be used il
! any other way, but belong
!. TO the individual stockholders. Its pay
ment to them is only placing in, thei
hands what is legitimately theirs an
if specific day is mentioned the objeC
! is to fix a time by which the none.
, shall be so transferred, but does DC
compel the company to hold it in thei
: hands until that specified period. Th
: payment of dividends in advance of
f specified day is therefore nothing neN
. as can he easily shown in court if nee
essary.