New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-04-14
HOW THE POSTAL COMPANY ORIGINATED
THE HISTORY OF TELEGRAPH SCHEME REVEALED
BY A SILT IN MASSACHUSETTS,

THE HISTORY OF TELEGRAPH SCHEME REVEALED
BY A SUIT IN MASSACHUSETTS.
BARNsTABLE, Mass, April 13 (SpecidD. The
trial OF in which great fraud is alleged was begun
here to-day before Judge Thompson and jury 1t is
an action brought Chester snow Of Harwich against
John B. Alley, cx-Congressman and millionaire. Of
Lynn rhe involves the inside history OF the Postal
Telegraph Company. The plaintiffs declaration alleges
that the defendant has converted to his own use 80
shares of the Postal Telegraph Company Of tho par
value of $1,000. tho property OF the plaintiff" The
defendants answer is a simple denial
Judge Hartman opened the case for the plaintiff.
lie stated that Mr.. Snow the owner of patents
issued to Moses g. Farmer for combination copper and
steel wire Mr.. Snow Ia 1881 became associated with
the OF the American Electro-Graphlc Company,
and n project was conceived of organizing the Postal
Telegraph Company. The American Graphic Company
controlled invention for manifold teegraphy
over ono wire Tho wire by Snow
wa. Just what would do their work
syndicate was formed to the wire and build the
lines In June. 1881. The factory making the re WIS
that of Wallace & Sons. at Ansona. Conn. Mr.. Snow
having bought the factory entered into compact with
the Posta Company sell the factory and the patents
to I. The consideration asked WAS 100000 in bonds
and So 900 600 10 the stock Of the Postal Telegraph
Company. The American Graphic Company sold It's In
yentions to the Postal telegraph Company for $500 600
In the bonds OF the company.
At that time the harmonic system OF multiple tel
egraphy by Professor Elisha Gray. OF Chicago
appeared Mr. Alley. the defendant In the present suit.
ale ged that he had mortgage on Professor Grays in-
venon having advanced MIN abont 600 to make his
experiment. Professor Gray thought his system
would work well on SHOWS combination wire Mr.
Alley Informed tho Postal Telegraph Company that they
could control OF the Cray harmonic system only
through him Mr. Snow opposed tue adoption OF the
Gray system. but he urged to consent because II
would bring MI Alloy man OF immense wealth and IN,
fuence. into the company: meeting OF the Postal
Telegraph Company held and George J. shOrey.
representing Mr. Alley offered 20 sell the company four
rtths OF tha Gray invention for S55OO00 In the bonds
aud : 81 9. 600 GOO In the stock OF the Postal
Company. The proposal was referred TO a
committee consisting OF George ID. Roberts. Henry
Cummings and A. NJ Mitchell. Tnev reported
n favor OF offering 1000 in bonds and Sl5OO0OoO
stock for the invention. The oner was acccpteu anu
the transaction completed
snow In need OF money and he ofered 10 give up
1000 I'm bonds II Alley would advance him $4,000
cash to take up loan on some OF mis- bonds III me
Farmers Loan and Trust Company, and would buy o,
him S32 900 In bonds OF the company at oo whch
Alley Snow charges that Alloy failed 10 keep
bis agreement m the payment OF money and that Alley
Roberts and Cummings organized a conspiracy 10
defrand him He accepted offer Of S25OOO Tor the
last OF his bonds, but never got 4 cent