The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-02-08
Public NOTICE.

for their guidance.
The plan Of the company simple
one. WV aaS 4sis
The Hudson Teleplsane Company WAS ~
corporated, had 4 public franchise and
some pole and wire construction and un-
issued stock: at this point I represented
parties having telephone and switchboard
patents and other appliances to conduct a.
telephone business, and for 100000 OF
| stock Of the company these rights were
acquired; the $2oo. 600 of stock was issued
for property purchased and when this ar
raneement was made $l00,00 of treasury
stock remained in the treasury of the
company.
Any treasury stock issued to me has
been paid for in cash at par.
A mortgage ofthe franchises and prop
erty Of the company was made in FAVOR
of the State Trust Company of New
York in the amount of 100000 with the
consent of every stockholder of the com
| pany. under which mortgage, bonds from
time to time are to be issued as work is
done upon the plant. At this time $4,000
have beer issued. This mortgage is record
cd in the County Registers office. A con-
tract in writing for the building of the
plant was made with the New York Tele-
graph and Telephone Construction Com
pany. and his mpan is to be paid IN
$3.50 ~
bonds secured by mortgage referred 10,
stock of the company or in cash.
TO prevent the Bell Telephone Company
from acquiring the property, and as a
guarantee to the stockholders and SUD
scribers of the Hudson Telephone Com
| pany. an agreement was made to deposit
| the majority of the stock in the name of
five trustees and place the same with the
New Jersey Title Guarantee and Trust
Company until January 1, 1902, which trus-
tees cannot dispose of it except by their
unanimous vote, and their action must be
ratified by the vote of 5000 of the stock
holders when presented to them at a
stockholders meeting; while the stock is
deposited with the Title Co. each share
is represented by a certificate of benefi-
cial interest.
The plan above outlined enables the
Hudson Telephone Company to spend its
| energies on the local management OF the
| company's business. it incurs no obliga-
lions except for the payment of salaries
to its clerks and operators, and the MAIN
tenance of the plant as it receives 1t from
the Construction Company.
| publish this as an advertisement be-
cause the following appeared in the
Evening Journal of February 4, 1898.
GEORGE H. ATKINSON.
Jersey City. Feb. 8. 1898.
ut is also charged that the Hudson
Telephone Company issued blocks OF
stock as much as ssoo,ooV, Wl hnols
of the company show, and that the
! owners of this stock, in order TO sell
the same for their personal benent en-
same in the name of the Hudson Tele-
| phone Company. That a large amount
of the stock subscriptions was taken lot
treasury stock to develop the company,
4 dIl1 lil1 IN hoRA
ed to the purchasers instead, the holders
| of Individual stock taking the money,
thus disposing of stock which the COM
pany's books show they never paid.
6 The bill charges that 5000, 900 in stock
was paid to w. j. Atkinson, a brother
of Manager Atkinson, for certain patent
rights, for which w. ]. Atkinson only
paid the inventor $4,000. 1t is charged
/ that the money paid the inventor was
the money of the Hudson Telephone
bCompany, and that w. ]. Atkinson paid
Sc 1000 of the company's money Tor
4 patent rights, for which he charged the
4 company $500, 900, which stock, it is alleged
was in part sold to subscribers. as
| treasury stock. 1t is further charged
that w. =. Atkinson sold the use OF
4 these patents to the Newark Telephone
Company and to the Home Telephone
Companies of Trenton and Wilmington.
Del, receiving in stock close on to
100000. It<is charged that the owner
hin of this patent is the subject of a
| suit in the United States Circuit Court,
RE inventor claiming he had never as
/! signed the patents, not having as yet
received the full purchase money. The
| hill prays the Court to declare the S200,0V0
stock issued to w. j. Atkinson illegal on
the grounds alleged.
..The bill further charges that the af-
fairs of the Hudson Telephone Com
Many are so involved with other COM
panies that even the directors cannot
get al its affairs without the Intervention
of the courts