New-York tribune., 1886-01-01
TELEGRAPH LITIGATION.
TnE CAUSE OF CONTENTION BETWEEN THREE BIG
COMPANIES.


SYRACUSE, Dec. 81 tSpeciaD.-Last summer
before United States Judge shipman, at Hartford in
the OF the Boston Safe Deposit Company against
the American Rapid Telegraph Company, an order
based express stipulation between all the parties
except two was obtained. commanding president
Edward Stokes, OF the United Lines Mr.. Farnsworh,
the receiver OF the Bankers and Merchants in NewYok
State. and James q. Smith and Richard g. Newcomb
the Ohio receivers of the company to turn
oyerI to tho Western Union, as agent for Gen.
eral Harland, receiver OF the American Rapid,
all property in their possession or under
their control and belonging 10 the last named corpora
ton The property in question, despite this mandate.
has been withheld in the face OF repeated demands for
It's transfer and the named appeared here to-day
before Judge Wallace to answer to order TO show
why they should not be punished for contempt In
refusing obey Ex-senator Conklng. Colonel Robert
G.. Ingerson and Edward Lauterbach appeared
for the United Lines Henry ]. Schenck for Receiver
Farnsworth; Angel j. Simpson FOR Receivers Newcomb
and Smith; Joseph Choate and william q. Wilson for
Receiver Hariand. and ex-Judge John f. Dillon, A. J.
Vandcrpoel. and Melville Eggleston for the Western
Union. The involved the past and present rea'
tions OF all the interested companies and com
picated that even Judge Waa"e had to admit when
the hearing that he had not been able to follow
1t through Its manifold Tamcatons, and that he wOnd
require the dneren, parties concerned to furnish him
with brief statement OF the most important facts in
chronological orl Ter.
Mr.. Nelson opened the case dwelling at length upon
the previous relations between complainants and d-
fcndants and rectng all the facts which had led to
present proceedings. lie laid great stress the con-
tract which tho Bankers and Merchants had made In
1888 with the American Rapid, and whereby 1t had
dertaken to construct for the latter company two
circuits, running from Cleveland TO Chicago,
and the other from Pttsburg to St. Louis.
Colonel Ingerso admitted the Hartford stipulation. but
said that he had honest efforts To fuln his
mcnt. and would have secured compliance with the
Shpman mandate had he not been prevented from car.
that there had been any wfu dsObedience. Mr.. COnk
the motion In contempt therefore Irregular
Argument for Receiver IIarland made by Mr.
Choate lie began with arragnment of the defend
ants for refusing to deliver the account books and
pers. which, lie said, vouchers for money paid out
by and In the name Of the American Rapid Company
and belonged without question to that com
pany's receiver He took the ground that Receiver
Harand and the Western Union have not per-
formed their part OF the Hartford stipulation
and therefore In contempt Themselves
lie cOntended that there was nothing In the moving
papers to show default the part OF his client OF
the defendants and dened tho opposing counsel to show
whore, how and when the demand had been made and
refused. Judge Dillon made the closing argument, his
particular contention being that the Bankers and Mer
chants In its relations with the American Rapid were
contractors. and had never acquired any propre
tary nterest in the lines constructed for that company
Judge Wallace ordered the atidavits I'm the 10 be
submitted TO him In print within five daJs.