New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-02-25
THE TELEGRAPH LEASE.
ARGUMENTS IN THE REIFP SUIT TO ENyoIN IT'S
EXECUTION.

EXECUTION.
Josiah G.. Reiff few days ago obtained .
temporary Injunction from Judge Freedman In the Su
perior Court Chamber restraining the Western Union
and Mutual Union Telegraph Companies from carrying
into effect the lease Of the Mutual Company's lines by
the Western Union Company entered into by the direct
ors Of the two companies. The motion to continue the
injunction argued yesterday before Judge Freed
man. who re erved his decision Mr.. Reif brings bis
action stakeholder of the Western Union Company.
and seeks the injunction the grounds that the carry
Ing ont OF the lease would have the effect to prejudice
his rights stockholder. In the first place. IL 10
stated the property Of the Mutual Union Company not
worth anything like what Is to be paid for It, and,
moreover, the laws Of some Of the States In which
part OF the cOmpany's property is situated
prohibit such lease, and subject the property
Of tho company attempting to violate the
law to forfeiture.
Wager swayne appeared for thewestern Union Com.
pany aud Ashbel Green for the Mutual Union Company.
Simon sterne and George Bddle, OF Philadelphia, rep
resented Mr.. Ref. Mr. sterne opened the argument.
Thelease In question. he said illegal in every par
ticular. The only object Of the lease rid the
Western Union Company OF its only rival aud compet-
tor. The Western Union Company, had no need OF tho
lines Of the Mutual Union Company and even II ID
needed the lines It had paid about times as much
for them as they were worth The lease ALSO void
because the stockholders had not ratified It,
Perhaps said Judge Freedman, they would have
done so II It had not been for our injunction ORDER
ought Q have been calird before The Injunction was
granted The laws of Pennsylvania prohibited the
soidatOn OF rival telegraph COM anies and snbec
the company which ds0beyed the law TO forfeiture.
The lease had nimsde secretly in great haste to
the possible prohibition II the Court and ought
tnere TO he treated actually made in violation Of
| the order OF t1e Court.
General Swayne read the opposing papers Of the de-
iendants, among which was the afdavlt or John q.
Moore. the president of The Mutual Union Company Who
denies thar large par Of the OF the Mutual Union
Company Illegal that its bonds are Illegal He SO
denies tnat the price paid by the Western Union Company
for the property OF the Mutual Union Company In
Of real Most OF the other material alio
In regard to tue alleged prohibition In the laws OF
\ tain States ID regard TO the consolidation
o. rival telegraph companies Mr.. Moore
excepted all property OF the Mutual Union Company
which might be situated In such States any rted.
Mr. Moore also declares that the lease extended and
perty OF the Mutual Union Company turned
to l. Yves Union CON pany before temporary
real question In the whether lease
permit the statute OF 1870 In the Rufus Hatch
Court decided that the consolidation OF tee
| graph companies Wal legal The Western Union Com
Union Company because IL needed the wires. The price
PAID was tue lowest which the Mutual Union Company
would take for Its property, and IL was believed Dy
persons able to judge that tue income from the
property would b. Sucn that the western
| Union Company would prove made q good bar
gam. In making the lease the forms prescribed by law
uad been most scrupulously observed Ex-Judgc Green
covered In his argumen TO large extent, tue same
die closed the the plaintiff He spoke tor
the question or the legality OF The lease
under laws OF Pennsylvania and certain other states
ana I'D that Ia PeDnsy especially aud also
hibton OF the consolidation OF riva telegraph compar