New-York tribune., 1885-07-12
FIGHT OF TELEGRAPH LINES
A TRUCE DECLARED BY A COURT ORDER.

Western Union Telegraph Company were not affected
yesterday by tho published charges OF highway rob
berry brought against them by The Herald and The Times
because they had secured control OF the American Rapid
Telegraph lines by contract with the and By
order Of Justice Of the Supreme Court. Persons
interested in the Bankers and McrchantS
were indignant at what they called a
"highhanded outrage" although II was committed
by explicit order OF the The bondhoders and
the holders Of receivers certificates recently issued By
the Bankers and Merchants. were particularly aroused
by the shrnkage Of their securities II IL understood that
Receiver Harand, Of the American Rapid Company,
had an order from the United States
Court to take possession Of the prop
erty, but that he was presented with
claim by the Bankers and Merchants for $250000
for losses in operating the lines Under these circum-
he decided that the better part Of vaor to
have another company made his agent In the practical
working the property The exact details Of the con-
tract have not been ascertancd.
Justice Donohue yesterday granted order restrain.
ing the Bankers and Merchants Telegraph Company
and all others from interfering with the Western Union
Telegraph Company in its possession OF the lines and
property Of the American Rapid Telegraph Company
The petition Of the Western Union Company, upon which
this order based forth that had taken possession
pursuant order of the Court and that order OBJ
tained by Receiver Farnsw0rh, directing the Western
Union Telegraph Company to show cause on the l4th
instant, why the order under which tho
company took possession should not be vacated, and
meantime directing stay Of all proceedings served
too late Friday to prevent the Western Union Com.
pany from obtaining possession 1t further asserted
that, under Of the order obtained BY
Mr.. Farnsworth his agents seeking to
repossess themselves Of the property and have In some
instances. reconnected the wires
Accompanying the petition was an ani-
davit by Charles A. Tinker. general SUPER
intendent Of the Western Union, IN which
ba hat ha Ivod
morning that the Bankers and Merchants Telegraph
Company reconnectng the wires there and prevent
ing the Western Union from making connections with the
American Rapid wires that similar reports had been
received from Conowings Nd, and Rochester n T. Tho
order made by Justice Donohue stay Of pro-
ceedings against either party Each required to
leave things just they and not interfere with tho
other until the matter before the court on the
14th instant.
The first order Of Judge Donohue exactly as fol-
lows
On reading and filing the petition % Of The The. western ss r.
July, 1885, and motion OF Dillon &swayne, attorneys
for said petitioner It is ordered that John o. a. fans
entitled action, wherein the Farmers Loan aud TInss
ss%@I cS%pa1Gy Guy " .as pna ana sS sSS,ersa Ssss
5th day Of May 1852 snd also Richard Hs,., =.
S9S 3; s%th a1S
the said Bankers and Merchants telegraph Company 20
and turn over to the said petitioner aud agent all tho
property OF the American Rapid Telegraph Company
particularly described in foos p to 40 inclusive of tho
against the BANKERS and Merchants Telegraph COM
pany and Others annexed to said petition and the said
pany, is hereby authorized and permitted
TO take possession Of the said property and eoy aud
the contract mentioned in said petition. Service Of this
order upon said receivers IN person or upon their at
torneys, or either OF them, shall bc sufncieht
nr Gree ID Western
egraph Company said that the receiver of the American
Rapid had approached him with offers to sell the prop
erty to the Western Union. While the negotiations
soms sasoooo ne for ''i ic.ss: in operating the lines.
1t is charged that we cut out some wires wires
pany We did not do so but il We did the Bankers and
Merchants has plain remedy There was no confusion
the Bankers and Merchants Company had no lines east
OF New York and none in the direction OF Albany
the lines to Washington. which were. however,
distinct aud on separate poles The Western Union has
simply been made the agent OF the receiver III ITO paI
teal management, and by the order OF the court whcn
The following order was issued by DR. Green yrster.
day the of all offices reached by American
Es gae. 9sa .nt the suit of the o
tee for the bondholders against the several American
receiver and ordered that take possession OF tho
properties belonging to these companies The BANKERS
nands OF receiver under proceedings Ia the supreme
Court Of New York, such receiver having or claiming
Merchants Company was limited to the properly 81 inc
the property OF the American Rapid Company. a con-
tract was made by which the Western Union Telc,
attorney spq c%%pAEsa Edward arau rscevcr Of tho
American Rapid Telegraph Company; to tase
possession was made TO the supreme Court, and an
order granted es sey' to- turf 1a oys: :
possession the Western Union Telegraph Company.
.t.nn NJ ha
COMPANY and under that order mo most 4 ,a p,Srsro,y
mas been taken q s on s Ea Of i e g
aud Merchants Company the supreme Court male
further order directing that 81! further n r.se step:
order stayed until hearing OF both parties set for tho
4 - , Is not amy srsn @ tne OF pG. .
receiver Of the American Rapid Company, 10 DC re-
jay Gould said In quiet way that the Western Union
had only taken possession OF its own preper'y Dy sgn
holders OF the Bankers ard Merchants. who never had
an, title 70 the property OF the American Rapa Ihs
about the Baltimore and Ohio. Mr. Gonld said "we
have received offers from that company but per.
haps would be better TO let It run while longer We
may money by doing 50. Certainly we shall nos
buy the property at The hays naioH nsSea "9s sas
the Western Union auditor might look the accounts
what had been spent In construction and untl tho
amount amount we we wonld be Wiling to pay"
mttee Of the Bankers and Merchants bondhotcrs sad
The failure OF A. W. Dmock 10 Ny issf .sS was tnS
primal cause OF all the disastcfS wulcn autnueu
the BANKERS aud Merchants system in the past year:
The majority Of the capital stock Of the American RAPID
Company was held by the Btnkers ard
paw the interest on the S3.000,o0o outstanding
bonds the Amerian Rapid Involved the foreclosure ot
the bonds and Judge shipman. in the United staies
Court at Hartford Conn. last April appointed Edward
Rapid lines The American Rapid system was improved
by the BANKERS and Merchants Company by the ex.
penditure OF 81 100000 at least When Receiver Usr-
iaud was appointed ths question Immediately ss
to what portion " the Amerc IN Rapid system
belonged To tho Bankers and Merchants.
General Harland served notice on the re-
ceiyer OF tho Bankers and Merchants OF ae
suit determine the question OF the relative ineresta OF
tho companies In the American Rapid property The
boniholders OF the Bankers aud Merchants Company
upder suit the sale OF the property
on Friday The Western Union got boodhotcr TO ~.
cure Justice Donohus postponement OF tho sale
a.arsh hadl