Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-11-30
THE MUTUAL UNION.

Suit Ordered for the Forfeiture of Its
Charter.
ALBANY, N. Y, Nov. 29.-In the matter
of the application of William H. Cameron,
stockholder, and Jay Gould, director
and claiming to be a stockholder of the
Mutual Union Telegraph company, to the
attorney general for the commencement
of an action or actions to vacate the char
ter of the Mutual Union Telegraph com
pany, the attorney general this morning
decided TO grant the application and tele-
graphed simultaneously to counsel for ap-
plicants and for the telegraph company
that he had so decided.
The attorney general says: The increase
OF the capital stock OF the Mutual Union
not justified by law, but in direct violation
OF the statute allowing the formation of
telegraph companies. It is fair to infer
that Moore ~ Go. arranged with FIVE direc-
tors tor an increase In order to receive a
far greater amount of stock of nominal
but fictitious value for which no other con-
slderatIOn was ever given than the con-
structlon contract. Thus it appears the
whole capital stock of this company, the
first 5000 shares being SURRENDERED, is in
valid as issued under a void increasewhich
affects every share issued, so that is has no
stock, no body or vitality, and the issue
was also hollow, unsubs.antial, without
. consideration, and intended to be used
without The slightest heed to policy or the
mandate of law. The increase of capital
stock and manner OF issue were usurpa-
tons OF the franchise, neyer given by the
state. and IT no sense were merely tech
nical violations of its policy and legisla-
ton. That the action can be maintained
seems obvious. 1t would be mere evasion
to deny the application on the ground that
it could not. Therefore if the court ap-
.. proves and the people are properly indem-
nlfed, the action will be brought. and if
Judgment be directed vacating the char.
| ter,the property will be sold or transferred
to reconstructed company, or a successor
properly constructed as a valid organiza-
ton. and the proceeds divided among
creditors and other benefciaries, 80 that
the loss will be only of the violated char
ter.
New York, Nov. 29.-In supreme court
chambers to-day Judge Barrett heard an
argument on the motion to continue the
Injunction in the suit brought by the West
ern Union Telegraph company and jaw
Gould against John Moore Il Co., Geo. F.
Baker, Geo. VIM. Ballow, A. p. Potter, C.
I. Peck, E. Schofeld, Geo. S. Scott, Harri
G. Fahnestock, the Mutual Union Tele
graph company and Central Trust com
pany, of New York, to restrain defendants
from carrying out an alleged conspiracy to
thwart the fulfllment of an agreement en-
te,ed into between plaintiff and the firm
CT John G. Moore, acting on behalf of all
the defendants in July last, the Judge took
the papers and reserved his decision.
/. NEW YOEK, Nov. 29.-The following is
the substance of an interview with officers
OF the Mutual Union Telegraph company
regarding the decision of the attorney gen
era1 ill granting permission to Jay Gould
and Cameron to bring suit against the
company on the charge that portion OF
its stock was illegally issued
The attorney general has permitted the
plaintiffs to bring the case before the court
as it is only another form of the same
trial that Cameron brought, and which
was argued before Judge Barrett here to-
day. We would as soon have several suits
as one, barring the expense. The suit is
simply brought by the Western Union
people to try and control this company,
and they are proceeding upon the theory
that the more suits they can begin. the
more annoyance it will give us. All ques-
tions must be finally settled in the courts.
In the meantime it may lead to general
telegraph war and cutting of rates. Quite
large amount has already been sub
scribed to extend our line and add great
facilities to the present plant. That work
will go on. The receipts of the Mutual
Union Telegraph company have increased
steadily. and the majority of stock was
pooled for protection against the Western
Union company, and last week the rev.
enues were the largest we ever had.