The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1895-05-08
PH0N0GRAPH War.
Chancellor MeGilLAsked to Pre-
vent the Receiver Selling
the Machines in New
York.

Another phase of the trouble among
the monograph companies was presented
this morning by a petition to Chancellor
McGil on behalf Of the New York Phon-
ograph Company asking that the rece.v-
er OF the insolvent North American
Photograph shall be stopped from sell
ling monographs in New York State be-
low the market value. Counsellor Al
bert &C. Wall, acting for the New York
Company, said that on February 6, 1888,
the North American Photograph Com
pany entered into an agreement with
John p. Haines whereby the company
granted to Haines the exclusive right
for the use of the '~tphonograph or phono-
neutrality-suspicious., or Photographic
or phonograph-graphophonic" supplies
in the State of New York except the
counties Of New York, Westchester,
Richmond, Queens, Suffolk and Kings.
These rights were acquired by Wal
ter Cutting and others, who in turn
parted with them to the New York
Photograph Company. Thu New York
company then. ON July /, 1893. entered
into an agreement with the North Am
erican Photograph Company by which
the New York Company granted to the
former corporation the exclusive right
to lease, sell or otherwise dispose of the
monograph and all appliances therefor
throughout the territory then operated
by the New York concern. The condi-
tons for such a transfer were that the
business so transacted was to be at
the cost of the North American Com
pany which was also to pay the New
money equal to ten per cent. of the
selling price to the public of all phono-
graphs. The North American Company
Q,x~ 1N~ n n IN - * nnr nnnf Of
ali the rents s1aseI paia bby lessees Of phono-
graphs, and a sum equal to ten per
cent. of the gross amount received by
hibitions and .automatic machines car
New York State.
such was the state of affairs prior to
the in~solyency-of the North American
Photograph Company and the appoint
ment Of John r. Hardin. receiver.
alleges now that since Mr.. Hardin's
phonographs and Photographic, supplies
value of over twenty thousand dollars.
the New York Photographic Company
f Eo'sh the has receiver net ,aeee aeeerd Iay P e fheir
agreement. with the North American
Photograph Company.
On oct9oer r., 8, 49, Seu when Terk the sbd 3aee Msa
QlScONGItQ, tilC NEW 1OAAA
Company wrote to Receiver John r:
Hardin, telling him that the ompany
would take immediate steps to protect
ilege to deal in Photographs and phono,
graphic supplies in New York State, and
the agreement between them n the
North American. Phonograph
and the New York Phonograph Company any
would repudiate the agreement. Ine
receiver refused to stop selling the pn non
declares it h assuffered great pecuniary
loss and damage thereby. .
Consequently they G na fronp
Selling the Photographs in New York
Territory, and that the Court shall set
tie the sum due by way of damages m
Cured By gyE ses Tssa5ysr- DENIAL.
Receiver John R. Hardin, after MT.
wall had finished. read a long answer
t t. th he Sss nof br n mn ANY e ns peetss or
Il the any New way York Rrs pSonegra aas cosmpany.
but s'5tv that "a r he has' ii IN apdm ranaaes e! the the
assets Of an insolvent corporation, made
what sales have been made Of property
in the State Of New YORK; he aen aen,ed
amounted to $4,000, as stated by the
New York P~honograph Company IN their
petition: On the contrary, ne sai 9 o rhe
to $3,211.66 and this amount Is now on
deposit with the New York Security and
Trust Company.
contracts, as by the petitioner alleged,
have been broken, then t the damage = Sa TO
ing been occasioned by the insolvency
the company and being .unliauidated
damages, must be ascertained by an issue
supreme court and certified by the Clerk
Of the supreme Court to the ean receiver sn.
fertain the prayer Of the New York
Company for an ascertain
ment Of damages. Further, Mr.. Hardin
made from the receivers Office in New
ark and not made within the territory
of the New York Phonograph Company.
chancellor McGill. at the request of
counsel, referred the matter to Vice
Chancellor Emery. who at once fix Re
as the date for a thorough Investigation
the New York Phonograph Company's
agreements with the North American