The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-03-01

FIGHTING FOR DELAY
The United Telegram Com
pany Controversy in
the Court Of
Chancery.
Mr.. VREDENBURGH's STRUGGLE
Wants the Directors Election Put
Off Until Someone Tells
Where 100000 Are.
Mr.. VREDENBURGH's STRUGGLE

The troubles of the United Telegram
Company. which occupied SO much Of
Justice Lippincott's time on Saturday,
We're aired again this morning in the
Court OF Chancery before Vice Chancel-
lor Stevens. The proceedings were on
the return TO show cause why the COM
pslny should not be restrained from hold
ing the annual meeting, which Justice
Lippincott ordered for tomorrow Two
bills were fled in the case: one by Francis
E, Higgins of Worcester against the
United Telegram Company. and the other
BIZ the United Telegram Company to re-
strain the stockholders from the meeting
aad to compel Robert F. Straine, the
president, and Charles A. Lamson, treas
urer of the company, to bring the books
OF the company into New Jersey and
make a statement of the company's af-
fairs.
Both bills are identical except in a few
ilnportant particulars Higgins says
that he is a stockbrolzer in the Telegraph
Company. owning $50 shares, and that he
has fled the bill in behalf of himself and
other stockholders. The company is in
ceIporated under the laws of New Jersey
with capital stock of $4,000, $3.50, 900 of
's-1A~-A Ia fS OCC1A aSSQCd slO StoShAOtoCiSs
and has debt of 100000. 1t was or
canned on November 8, 1895, with the
eiecuon of these directors: Albert B.
Chandler sS,handaer william H Bal Baker and John Q;
Secretary. respectively of the Postal
Telegraph Company: Kcb1rt F. Straine,
Frederick Taber. stra.ne was made
PRESIDENT and Lamson Secretary and
Treasurer
The bill admits that the regular meet
ing was not held at the time required. At
a meeting of the directors held February
u the majority of the directors adopted a
that Straine had refused to allow A.
p chandler to see the books of the COM
pany. refused to give any information
fairs and had used upwards of $50, 600
OF the company's money to acquire much
OF the stock he owned" Straine pro-
posed to hold meeting of the stock
holders tomorrow for the purpose of
electinS directors who would never in
quire as to what use he had made of the
In January. 1895, the firm of Lamson,
Iravers q Co., brokerage firm of which
!la ssraine IS member, sl issued circular
United Company, in which circular it was
stated that the company had surplus
of $50 coo.
The bill also charges that the company
was practically bankrupt 1t used to de-
post In the International Trust Company
and the Massachusetts National Bank.
that the company had no FUNDS in the
International and check drawn on the
Massachusetts National Bank for wages
OF the employees was not paid as it would
overdraw the company's account. The
Dill closed with the usual prayer for in
junction and an order to compel Messrs
pany's books into the State where they
can be examined The bill and accom-
pamnying m affidavits We're read by Mr..
Mr. William H Cnrb.n IN renlv road
an affidavit by Mr.. Straine. The AFFIDAVIT
said that Straine owned 6,oe5 shares, Lam
shares. to 236 shares owned by Stevens.
/ Chandler, Taber and Baker, who wished
to nay nave & the meeting postponed and them
the appointment of receiver in the
United States Court at Boston, but as soon
as Mas the st Judge ssig heard the case the order
he refused to let Mr. Chandler see the
book On the contrary he told Chandler
Snem, put Chandler said he had no time,
ne wanted to catch a train. The Treas,
urer would make report at the annual
ways done. He denied that he had an
prcpr-ated any of the company's money
I'm 19. nus own use and denied all the COM
statements as false and malicious. and in
fended to deceive the Chancellor He also
sad fhat the action OF the complainants
was part of a scheme to allow the Postal
Telegraph Company to absorb the United
Telegram Company
Mr.. Vredenburgh started to read aff
davis in rebuttaA but Mr.. Corbin object
ed. on the ground that he could NOT nm
der the rules of the Court read said aff-
davits at that time. After some arguing
the Vice Chancellor sustained Mr. Corbin, 1
Mr. Vredenburgh then began to argue
for the granting of the injunction The
weight of his argument was that the
bill charged Straine with being thief.
and zembezzler Of $4,000. and he should
not be allowed to hold the meeting at
which he could elect whom he chose di-
Tectors, until he told where that 100000
were. He knew very well where the
money was, and could tell IN minute.
I don't see how this court can put off
this election in order that some informa-
tion about $780, 900 can be secured said
the Vice Chancellor.
Mr.. yredenburgh argued at length to
show that his clients would lose their
share of the $4,000 If the meeting was al
lowed to go on and Straine permitted to
elect directors who would never make
why, your Honor exclaimed Mr..
yredenburgh in righteous Indignation,
"this man is accused of being thief,
and, and. you are asked to help him escape
That brought the faintest suspicion of
smile around the corners of the Vice
ChancellorSs mouth, and he told Mr..
Vredenbufgh that his clients had rem
edyI in the court If this money had been
squandered and he couldn't see any rea-
son. why to stop the election. Mr.. vre-
ii until. finally the Vice Chancellor said
that he would render decision tomor-
row
set down for two O'Clock, said MIR. Cor-
II win let you know my decision by
noon, replied the Vice Chancellor.
LEVIED ON THE POOL BALLS.