New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-16
The COURTS.
WESTERN UNION LITIGATION.

QUESTIONS AS TO The STOCK ISSUED AT THE TINE
OF CONSOLIDATION.
William S. Williams yesterday obtained from
Judge ngraham, in the Superior Court an order direct
ing the Western Union Telegraph Company and others
to show cause January "a why the Injunction order
formerly granted the sut should not be restored aud
why the defendant shall not be restrained pendente lite
from permitting the transfer of any OF the
$15,526,590 OF stock issued under the
agreement OF January 10, 1881, and also why
the defendants should be restrained from opening
the books OF the company until the said stock
shall have been separated from the genuine stock and
the holders Of shall have been ascertained The order
also provides that the books Of the company
shall have apened before the service OF the ORDER
the defendants shall be restrained from allowing them 10
remain open In another action brought by Mr. Williams
against the pany and Others order was also OBJ
tanned yesterday from Judge Ingraham directing
the defendants to show why they
should not be restrained from opening the
transfer books of the company permitting any trans
stock until they have separated the alleged spur
ous from the genuine stock and from transferring
during the action any Of the alleged spurious STOCK
Both orders were accompanied with temporary injunc
tons until the day January pa Later In the
day Judge ngraham modified the orders so as TO make
them returnaDe late yesterday afternoon. Aaron j.
vanderpoel and Wager swsyne appeared in opposition
the motions to continue the njnnctons, and Robert
seweu I'm support OF the motions
The order in the first action based upon en- aflds-
Wit by Mr.. Williams, in which he sets forth briefly the
history Of the telegraph litigation. Mr.. Williams also
alleges that the books of the company are now closed
that no attempt has made spurious
from the genuine stock that the defendants are con
stanty asserting that the spurious stock has already
been transferred and that the doctrine OF estOppel
they are responsible for tho stock TO bona nde holders
II the transfer books allowed TO be opened the ndl
yidual defendants will transfer their spurious stock,
ff., lg..I
for IT, on the ground that It had passed
into the hands OF innocent purchasers for value. Since
the trial before Judge TruaX, Jay Gould had caused or
permitted to be published that he owned $2toO0O00 Of
tho stock OF the company" Mr.. Williams In the am
dav in the second action upon which temporary in
was begun to prevent the company ana lts
directors from paying dividends upon S3s,926,300
OF the capital stock OF the company Issued under
the consolidation agreement Of 1881. The
AFFIDAVIT tnen recites the action OF the directors
ciiun Of the Court had been prevented in advance by
paying me dv drnds before they due Tue AM
ddv also contains many allegations similar those In
the affidavit In the hrst action II concludes with tho
averm mt that there IL 40 nsuperable difficulty In the
way OF separating the spurious the genuine
Stock and tnat IN the of large part Of the shares
ns :'iOu' sock there Is no 0ii'uy at all IN Identity
r sewe in arguing in support OF the motions to con-
tuue the Temporary iuIuncOns insisted manly that the
alleged difficulty OF parang the stock which had been
declared mega from thtt whlch was admitted To be
further transfers of Western Union STOCK until the de-
PENDANTS hHd made an earnest ana serious effort TO
separate toe kinds OF stock the confusion of the
two kinds Of stock which either did asserted
wound deepen with every future transfer OF stock
Mr.. VaDdcrpOc replied 10 Mr. 5~wc. He declared
tuat the pandG had praodsed imposltion the
Court. He nad oh aned orer restraining the trans
fer OF all OF the stock NJ the company although Idge
had cid that 81 900 Of tho
stock invalid. IL was IN he art degree oppressive
upon the holders of cOufcsscdy valid to prevent
tnem irm Transferring aud disposng OF IL at pleasure
Mr.. sway also made brief argument IN benaf OF the
defendants. lie main, aimed that the question raised by
motions uad been set led by judge ArnouX mad de-
cdcd that tae only stock the transfer OF which could be
properly prohibited euch part Of the SijUOODOO OF
alleged illegal stock hal been transferred ON
tie books OF the company.
Judge In rAbam said lac would temporarily modify the
order that the company SHOULD restrained from
transferring any OF the Sl5 100000 Of sOck watch
stands IN thename o. the persons To whom IL Org
nsy transferred, or in the name Of any NJ the udiy
dual defenuants win regard TO the remaining portion
Of the stock he would reserve his decision.