New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-30

nf @ The pool agreement set up IN the complaint
Ma ITuon Company could not lawfully enter into
any such agreement But even II tue company naS nt
over 10 enter into specializing scheme IL couu no.
Ask court Of conscience TO help out ~ case 'ne
agreement broken by the other parties 70 ~ q,
cnurf Of law for relief Another why the agree
ment could not be enforced by court Oh equity Nus
spt vas not nishe yesterday aud the counsel
agreed not to finish 1t but to hand up preis " INC
THE CHARTER OF THE MUTUAL UNION
THE ACKNOWLEDGEMENT GRANTS THE APPLICATION
FOR LEAVE TO BEGIN AN ACTION OR ACTIONS
TO yAcATr IT-rExT OF THE DEcisIoN-CoN
MENTs IN THIS CITY.
ALBANY, N. Y, Nov. 29.-ln the matVer U,
ths application OF William H. Cameron sochhoue' I'l
Law Gould director and claiming to be socA'ouo' y
the Mutual Union Telegraph Company 10 '"e A'oi"'
General for the beginning Of an acton OF ac"'n " "
a,a the charter of the Mutual Union Telegraph Conf
,aDv the Attorpey-General this morning decideu W
Grant the application. The following 10 'no W W Wv
decision Of the Attorney General:
before the Attorney -General-In the matter OF ane
n 'sstocSnoder and Jay God director and claiming
20 mo socknolder OF the Mutual Union ieesfdpn O'
n,ny which Is corporation created under the laws 81
yors make a complaint 10 the Attorneys snetai
that the company has substantially Nolaleu I con,
tagy law of the state by the unlawful increase OF It's cap
III iock az thai n has 20 valid stock OF any issue ana
by the giving away and DIVISION OF tat ~ INV snb
sntal Consideration and institution of suit
bv Tho peope OF the state to vacate the char'er
notice @st being give given the to t0f
sSs' oeHea It's TO the ,o PrG sSs
rompany appear upon the hearing with rbt we %
papers defend upo the grounds and second
Thst The com paiDt should be dismissed because lrO
te pcation is made from Interested motives and
that tney are estOpped from eonIeslng the 'Shu Vi
' ro The documents presented it appears that the
NIutna Union Telegraph Company was osazeu 49,
md assoeates which certificate stated the caplta s9oa
to be S6Oo,0OO divided INTO 6Ooo snafds that
nv vote Of the trustees time 10 time the capl
stock might be increased by the Issue ol made ON
the 18th OF September 1881, ana the 1otn uay " 90
uary 1882 the arsgsS S fw ~ Executions Certify that
Tue cop al stock has been increased 10 20
INV no law of TINS state, and was in direct dc
ance az the statute allowing the 1ornlaIoD vi
companes which only allows increase OF the capita
,{ sbera no nroysIon is made i'll the certificate Oh
INCORPORATION for uture increase IL 10 usu pso
81 noiTer in direct hostility the letter OF the statute'
a. wel n. lis scheme for the Incorporation and imta
ton of power OF elegrapbc companies, az ,,ts stcS
To 500 600 900 and it the market II app ars
that some, IL not all. OF the 9oOo sna's f wa snrrn
fore the Increase. and that all Issued s'GcA Wa
dered the new being ia Hen thereof IL 3oes nor pSat
that any cash was ever psld i0r any win nearly
nearly The whole of the $1,000 900 oi ssocA; win
the whole OF issue OF $5OOooOO OF oonus, W. pau
10 Jonn q. Moore Co. tor the t oI a,e
Prom what l can infer the whole plant cost some
s4'75ooJo. n,oo .. n. M v.,,o ~.
10
cept control the company ior snarc " ' ond re
oere,I Ia each bona same amount taKth ana ing
shs tss"e of STOCK was 10 be Tor genuine Legal pur-
noses was the capital increased 10 SlV'VVO,oVV'
was Ia be paid the Construction COMPANY US selu
& ion for the construction Oh The lines, way
nof give the creditor besides tao DOHuS tho same pr
pa nj Se capral stock Ia defiance OF law Fne y1lno
of the consideration would nave Deeh Iust tno saio-
or part OF the increase 0een made
il Il Tar infer that MourefS Co arrhsei wiz. 'Ae "
sna
greater amount of stock OF nominal put hcItoos rue
Tor which other consideration was ever Ei'n ~, ' t1
fbe construction contract. Inus III APPEARS lnie tn
whole cauital ock vi this company. tAe nrss o,Voo
shares being surrendered ls Invalid as l'suI luz tht
void increase winch Affects every share issued 30 toat
A mas no stock, body OF vitality (ccoIe aeL AnyeI'
sIn and the issue was hollow unsuostanta with
ont consideration ana intended TO Dc usea without The
gntest need to The policy meniate OF the aW. Inc
increase of the capital stock and the manner issue
were usurpat0ns ol francnises never sNc ~ ~, &C.
ana IN no sense merely technical VIOLATIONS OF Hs
policy ami legislation. - - ...,o,
This state OF facts has been brought 70 my attehton
BY one gentleman Mr.. Cameron, VINO Is d We
under tie increased issue to small amounts anu " an
Otaer gentleman, Mr. GOa1, "lo Ho'aS IA
corporafion and who is also director
OF the company These gentlemen are nhd1noed iner
compaint enforced by state acdJn Such complaints are
ta nI+..ion of corporated Iranchiscs IMMORTALITY OF
Illegally such abuses are tolerated by lhuHiolIs
tn they PRICK their own ntere, tS ana lheh oS ac1 w
Cameron ami Mr. Gould have the same rlsht 10 nave
Their complaint iary treated as wOud cOmpitlnants
company ana conducted this action. - 49,, ,,,
snail then. the state act, TO withdraw the o 9
frauc 40 silnaly dissed Is there even cause tOr ac-
tiof tic inrn gemens do not give lti h aPpncaos
like these the AuorneyGeneral Is arssy Dit1o ~ up,
1s,Js OF tue Code Civil Proc edur tle Attorney GeeI
= 6o0 h. bes good reason 70 b.lieve action can be
maintain ed must bring II it, IN his Judgment pnbhc 10
terests require This is where Ills attention ID ccu
10 the vioton law by persons moi interested IN tne
corporatjon Itself lie proceeds OF his own motion
But BY the same section where creutOf stOcAhOueI
director trustee OF the corporation applies au9
nlshes he security required Dy Jaw, the Attorney
era must bring the action, or apply TO me Curt iot
leave 10 bring ne mas good reason 10 believe .t ~
can be maintained That tae action can be maintained
seems obvious. Ii would b. mere evasion 10 deuy the
application on the ground that II epuil not o. o, ara
Insreiore II the Court approves ana Tue people ars
properly unidentified the action VIII DE- prcusI a,aa ~
judgmcnt be directed vacatlDg ne chafer VIC PopeI
viii be sold transferred 10 recohsfuct9u conPay
or succ ssor properly constructed as valid 81 sIhza
ron and fine proceeds divided among the creditors aud
other benefciares so that the loss VIII Do OH! Vi
violated charter
The news caused no excitement in Wall street
and the directors Mutual Union Company received
the announcement with apparent composure Ihey saio
that the action AorneyGeneral was ouy another
step In the progress of the conflict with the western
ITuion 1t was reported during the Gay that cut IL
ty.eraph rates had begun. but was deniedafter
ward that there was present any foundation for The
rumor.
John G. Moore, president Of the Mutual Union Com
MANY said 1.-The Attorney General has permitted th
plaintiff 10 bring the before the court and 1t Is only
aro,her fern, of the suit which Cameron brought and
argued before Barrett here to-day We would al
soon have several suits barring the expense III
tight Is simpiymade by the Western Union people
,o try 10 control our company and they are proceeding
,non the theory that suits they bring Tbs
more ANNOYANCE ii will give All questions must be
finally settled courts. LII the mean Time th ACTOR
81 me Western Union may lead a general telegraph
war ana cutting OF rates A large amount ma, ma
already been subscribed 10 extend ou lines
snd add greater facilities To the pres
emf plant That work Will go on; IAt
receipts VI company have increased steaiy sines
fbe majority OF stock pooled for protection a-alhs
lie Western Union Company and last week the revenues
were the largest We ever had -
AT the First National Bank IL was said we suppose
that the decided Ia favor OF begnn ing
she snii simply allow tie opponents OF our company
10 make kno Sn their complaints they have any We
III = ,,,v "a har - OF compaint they do have. 1t