The sun., 1903-05-10
TELEPHONE TRUsTsTocESUIT.
JOHN ". MArK WANTS TO GET
BACK HIS 800, 400. .,
Also Asks to Have Set Aside HIS. Contract
to Btiy 10000 shares In the Telephone.
Telegraph and Cable Co. OF America
Says the PrOm0t ers Deceived Him.

Telegraph ami Cable Co. OF America
Says the Promoters Deceived Him.
The Appellate Division of the Supreme
Court has decided that John M Mack has
cause Of action against the Telephone
Telegraph and Cable Company OF America
In his suit to recover Sl00.OO0, which he
paid in August, 1900, on an agreement by
which Mr.. Mack subscribed to"iO,O 900 sharee
Of stock In the company, Of par value
Of $50 each, contracting to pay the balance
Of 100000 as the company might make
calls on its stockholders. The decision re-
verses Justice Davy OF the Supreme Court
who upheld the company's demurrer
Mack commenced suit against the COM
pany in April, 1901, to have his subscrip-
ton agreement rescinded. He made Will
liam j. Latta and Martin Maloney. two
directors Of the company, cod dants
in his suit, as he alleged that he had been
induced TO subscribe for 10000 shares on
their individual representations,
In his complaint Mr.. Mack. after setting
forth that the company. New Jersey
corporation, was capitalized at $40, ,00O, 900,
declares that in August, 1900, Latta and
Maloney as duly authorized promoters,
made representations to him which he sub
sequeptly discovered to he false. They
told him, he said that half the company's
paying. as he afterward did. fth OF
their subscription in cash and agreeing to
pay the rest on demand.
Latta and Maloney, he further says,
represented that the company had then
acquired controlling interest in the Erie
to be dividend paying concern. and had
also concluded negotiations by which the
Postal Telegraph Company had agreed to
consolidate with the Telephone, Telegraph
and Cable Company.
Mr.. Mack adds that the promoters told
him that the American Telephone and
Telegraph Company, known as the Bell
Company, had approved of plans for their
consolidation with the new concern. and
that the completion of these plans was
merely question of figures.
All these representations, Mack says,
We're false.
Regarding the Erie Telegraph and Tele-
phone Company his complaint asserts that
the new company did purchase 50,0l4 shares
of the stock, but in order to raise the So, 700.-
0C0 1t was compelled to borrow the money
and hypothecate the shares. He also
charges chat these shares were turned in
at an advance of 81 ESQ 900 on the price paid.
Mr. Mack further charges that the Postal
Telegraph Company was not ready to con-
solidate and that the Bell Company had
not approved Of any such plan.
In overruling the demurrers the Appel
late Division says that If Mack's represent
tations are true, he is entitled to the recs-
sion Of his subscription agreement and the
return Of his 100000, no matter whether
tho stock is or is not worth the amount he
agreed to pay for ii.
He cannot, however, recover against the
directors individually, since there nowhere
appears in his complaint any allegation that
the stock is worthless or of less value now
than it would be were all the represen-
tations made to him true. and therefore
those who made the representations can.
not be held liable for them. Besides, II
he RECEIVERS against the company. he cannot
expect to get additional damages against
the directors