New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-06
ANOTHER TELh GRAPH SUIT
THE GOLD AND STOCK COMPANY INVOLVED.
AN EFFORT TO HAVE ITS LEASE TO THE WESTERN
UNION DECLARED VOID.

Frederick Bill, of Groton, Conn, filed bill
Of complaint yesterday in equity su in the United
States Circuit Court against tho Western sUnion Tel
egraph Company and the Gold and Stock Telegraph
Company, and Norvn Green as president OF each OF
the corporations James o. Green John Van Horn, Will
lam NJ. Bliss. Edwin ID. Morgan. James H. Banker
Augustus Schell. Jay Gould. and Thomas I. Eckert
Tho complaint sets forth that she complainant has been
a stookholder In the Gold and Stock Telegraph Company
1870 and since 1880 has beenl the owner of 20
shares of the capital stock of the company He brings
suit in his behalf and also in the behalf oil Gil
the other stockholders similarly situated He says that
the Gold and Stock Telegraph Company, which was
organized in 1867, made large profits which were IN
vested IN various securities. The individual defend
ants were tie directors OF the company In JanuarylsoZ
when the Western Union Telegraph Co, which owned
Is905 shares OF the stock OF the Gold and Stock Company
and had many OF the directors leased the heS'
business and property of the latter company for ninety
nine years This executed under the law OF
1870. which required the assent OF three-hits Oh INC
Board OF Directors and three-hiths oil the stochhou'rs
present at the general meeting to any saie OF ieaso
The consideration given was an undertaking u! '"c
Western Union to pay rental sum equivalent 10 per
cent year upon 1891 400 of stock and per cent IN
erest on si3i7OO of the bonds OF the God ana Stock
Company making the aggregate amount OF annual
rental about 1924 900.
The complainant further alleges that the defendants
other than the God and stock Company claim that they
have the right sell and are now selling some OF inc
propery Transferred under the lease on the ground that
lease Of personal property for so long time amounts
IN n valid sale Of the property. Among the property
alleged 10 have been transferred by the lease were
various stocks OF other companies held by the "o M"
stock Telegraph Co. These stock assets are gwen "S
100000 Of the stock OF the Philadelphia Local lele
graph Company $50 GOO stock of the Central Dis'flct
and Printing Telegraph Company Of Pittsburs S2S12Vo
stock OF the Gold and So;k Telegraph Company OF
California sos 90 stock of the Telephone and Telegraph
Company OF Michigan. $4,000 stock OF the Ben Iee-
phone Company OF Philadelphia Sl20OO00 stock oil the
American Speaking Telephone Company, AMI SlOo'Ooo
stock of the Metropolitan Telephone and Telegraph
Company. The complaint asserts that the Inarkeihoe
value OF these stock assets was more than sooOoO'
and the marketable value OF the other property trahs
ferred by the lease over S306oOOO ana the o'ai
value Of the property 80 900 600 and that the gross
income received by the western Union is largely In cI
ce OF the rental pail II il charged that the lease was
not made for any legal purpose, but 10 enrich the
Western Union Company at the expense Of the other
Stockholders OF the Cold and Stock Telegraph Company,
and that the lease not properly 'Iatlhrd ny inc
necessary thfceiths of the directors ana stockholders
n /. furhc ayerTed that the Gold and stock Telegraph
Company does moi IN law or fact SIN exist n5 thc dSc
tors only meet tO declare dividend when tr ftnh II
mid tn. complainant, declares that the dircctors ~
The company have not been called h" u LE the Tult
because remedy could De- obtained through them h.d
he does think that return oi the property 70 the
Gold and stock Telegraph Company would furnish any
relief, II w0lid he administered by thrih nlN ,''' 10
the interests of the stockholders other than the western
ruf Tel
Wpn this complaint Sir. Bll prays the Court that the
defendants may be restrained rom dispo ms 81 tnr prop
crfv acquired ndrr the lease or from making any new
lease conveyance Of H. TINT he rase may DC otcIe'
~ be- nu, and void, that % ma! DE drcitrd That '' &c
i, or transfer the property that may DE dcoreed
that the Western Union had no rieht Ia receive me
dccrred that the Gold and stock Company Is not ne"
lawful corporation. that receiver may Zee .llohiid Ior
t y. rr. f H. conp,uy anil tat a accounting bc
Il Q .. lad not
Gr,enoue rs Ia The existence OF the lease, copy of
which j., asked for ard the other a. ~ the officer. an!
directors Of the Western Union Telegraph Company Hnl
M tbe cod and stock Telegraph Company in ls~ aud
Is.3 LIKE a. Lockwood appears a. solicitor for the
complainant aud Clarence a. seward Is one oi MS
Judge Addison Brown Of the United states District
Court granted yesterday upon the hinF OF me Wy on
coc Yhv the mnncon nskcd for should be
E',de ret r on January H. The deicndnui- in
the meantime are restuiued from transferring ur ca
numbering tne property OF executing any ne" o"'s OF
lease.
WHAT DR. GREEN SAYS.
Dr. Green. in conversation with TEinrNE reporter
said yesterday: The proposition 70 lease the Gold
and stock Telegraph Company came 10 the western
Union from the former and the lease o matter of
discussion for months before Il WIS concluded The
causes tina, bror ht about hcsc: Tho Gold end
stock Company had been payne annual dividend OF
per cent for several years. but considerable portion
OF the profits % the company came from the sale o COM
mcrcial news 10 exchanges board, OF trade AMI ndl-
vidul subscribers This business nud been made very
profitable by large concessions from the West
ern Union In the rates of toll charged for
it, transmission below the prices h1ri Ih
written agreement between INC two con-
pahic-. Those concessions were made py ltfuM ar
ran-cmrnt and with understanding thn' the! wore
moi % affect the rights of either party under the written
n0tice Ia Inc spring of 1881 thr Western Union de-
cdel 20 give notice the Gold and stock Company that
tho verbal arrangement which We called the share
agency should bee terminated aud the written contruct
enforced. The management OF inc Goa ana stpca
Company at once "a" ihai the payment 81 ."tllh'i
rates would absorb al.thc profits on the c"nln'Ichl
they had contracted 10 furnish The form ot concession
In rates was take hall 81 all the receipts OF tue
Gold and stock Company from commercial new. nS Tie
tolls for transmission undcr ms concession tc inu
ayers of the Commercial News Bureau OF the Gold ana
stock Company seeing that they would nave no more
tolls 10 pay II heJ doubled the WORK OF ihc wires eon
tIaccd FOR very large Increase ~ the service MS
the Western Union considered gross abuse OF It's
agreement 20 tnke oncait oi inc revenue of ls 2s'
since called for two three timc' as much Work with
ont any increase In pay, and hence the notice to ter
inmate the share agency plan ana revert TO contract
This induced the large stockholders OF the Gold and
Stock Company 10 propose lease 10 te western Union
and the subject under consideration and discus Ton
nj least four five months before 1t concluded
Western Union guaranteed the interest and principal
ON the Gold and bonds and annual dividend OF
@ per cent rs stock for ninety mine years thnk
thf very fair contract aud equitable 10 both pnres
and never knew telegraph lease 10 be made where
there little dissent on the part OF thr Sl",k
holders. We sent out the contract and secured the
assent only Of three hs OF the persons In Interest
ns the statute directs, but OF three hs outside thr
Western Union. The stock which was In the treasury
of the company was distributed - dividend ana In
creased the holding OF the Western Union tn niue over
81 900 which is still short Of wo-hfils OF the entire
capital stock of the coinp!ny As for MI Ell he i ms
without protest aud rccciptinS for them once before
suit OF this kind was begun. but We bought the mans
stock and that ended it,
MANHATTAN BEACH COMPANIES LANDS.