The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-01-29
THE TELEGRAPH TROUBLES.
Plenty of Work in Prospect for the
Courts of Illinois.
A Shrewd Trick Played on MIR. GOuId--In-
corporation of the western Union
Telegraph Company"

ST. LOUIS. Jan. 27.-The Republican,
Springfield, ILL.,, special says: This evening
Secretary of State Dement, issued q license to
Harvey d. Colvin, Harvey s. Hayden and
Charles ]. Hurlbut, of Chicago, to organize
the Western Union Telegraph Company
with $1,0O0,000 capital, and the principal
office located in Chicago. This matter has
created much excitement in telegraph cir
Giles in this city and Chicago, to-day As is
known, war has been raging some time be-
tween the Western Union and Board of
Trade telegraph companies, doing business
in this State. The Board of Trade company
has been endeavoring to enter st. Louis by
the bridge, but has been thwarted at every
point by the Western Union The
Board of Trade company finally examined
the records in the Secretary of States office,
and, to their delight found that the Western
Union Telegraph Company had never been
incorporated under the law of Illinois of
1872. which requires all corporations doing
business i'll this State TO be organized under
this law. Quick as wink Colvn and his
associates yesterday filed an application with
the Secretary of State for license to organ
ize the Western Union Telegraph Company,
for, although there was company doing
business in this State under this name it had
no legal existence, and any one had a right to
organize the Western Union Telegraph Com
pany II they saw fit This brilliant move of
the Board of Trade telegraph folks was
quickly communicated to the Western Union
authorities in Chicago and New York when
protest against issuing the license was filed,
and Secretary Dement, was requested
to hold the license until Western
Union counsel could be heard. As
question had been raised as to his right to
issue license, Mr. Dement, referred the matter
to Encouragement Mccartney for his opiii-
ion. This morning the Acknowledgment
heard the arguments by Hon. A. Orendorff,
of this city. counsel for Colvin and his asso-
cates, in favor of issuing the license and
Hon. Norman Williams, OF Chicago. counsel
tor the Western Union Telegraph Company,
against it, This afternoon the Attorney
general filed an opinion with the Secretary
OF State Sc ting forth that the Secretary of
State is a ministerial officer, and that when
an application for license of incorporation
is in regular form the only question for him
to determine is whether it assumes 10 be for
lawful purpose, and if the records show
that no company bearing its name has been
licensed he has no discretion, but must issue
the certificate of organization Upon the
receipt of this opinion the license was issued,
as above stated.
PIECE OF HISTORY.
There is a bit of interesting history con-
nected with this failure of the Western
Union Telegraph Company to become ncor-
porated under the laws of Illinois, While
this noncompliance with the laws of Illinois
benefited the company by enabling it to
escape taxation, it is likely in the end to
prove more disastrous and expensive than
was anticipated In 1873 an attempt was
l.
per cent. tax upon the capital stock of the
Western Union Telegraph Company. The
payment of the tax was resisted and finally
landed i'll the State Supreme Court, where
the State was beaten by the Western Union
Telegraph Company showing it was not in
corporated under the laws of Illinois, had no
corporate existence in this State, and was not
liable. Its capital stock was assessed ut
S1.l6S, 394. Since then the capital stock of
the company has been largely increased, so
so that at a low estimate the State of Illi-
nois has lost $3.50 per annum, or, in round
numbers, 100000 in taxes from this great
corporation alone during the last ten wears
much litigation will be occasioned by the
chartering of this new and only Western
Union Telegraph Company in this State and
as the old Western Union is an organization
which lives by fighting Illinois courts are
likely to be kept busy for some time to come
in settling which is and which is not the
new Western Union Telegraph Company will
undoubtedly at once set up the claim that it
alone is entitled to the use of the name and
that its employment by another set of people
is Illegal and unauthorized, and they can an
ply for an injunction to restrain the old COM
pany from using that name. There is also a
provision in the law relating to telegraph
companies. The power of eminent domain
is given TO telegraph companies moor
porated under any general or special
law or which may be INCORPORATED
under any general law OF Illinois
for the construction or operation of
any telegraph line through or
in the State. 1t will be claimed, doubtless.
that the Western Union not being incorpor.
ated in this State. cannot avail itself of any
of the provisions of the telegraph act, and its
officers may be called upon to show cause
why they should not be committed for con-
tempt of court in building lines of wire on
the Belt system at East St. Louis, where the
right of way has been condemned by the
Board of Trade Telegraph Company. The fol-
lowing clause from the Illinois criminal
code may serve to complicate matters The
law says: -e4i
eft any company puts forth any sign or
advertisement and therein assumes, for the
purpose of soliciting business, a corporate
name, not being incorporated, such company,
association or person shall be fined not less
than $40 nor more than 5000, and like sum
for each day he or it shall continue to offend
after having been once fined. ~
q