New-York tribune., 1907-07-09
W. U.-POSTAL PACT UP.
STATE ASKS INJUNCTION.
jackson Would Restrain Rate In
crease Until Final Hearing of Suit.

As a result of a searching investigation made
by his office Attorney General Jackson yesterday
filed petition in Part III of the Supreme Court
alleging a rate combination between the Postal
and Western Uni9n Telegraph companies. In
his petition Mr.. Jackson asked an order restrain
ing the companies from putting the increased
rates and other terms Of the alleged agreement
into effect pending a final hearing He also
asked for a referee to take testimony in the
matter.
After hearing the petition Justice Platzek ap
pointed as referee r. Burnham MOffatt, lawyer
of No 63 Wall street. Deputy Attorney General
De Ford appeared for Mr.. Jackson in the court,
and in handing in the papers asked that Nathan
Nidaver be appointed referee. The court seemed
-astOUnded by the request and gave the attorneys
% understand that tine selection of tire referee
must he left 10 the discretion of the court itself
When the appointment OF Mr.. Moffatt was an
nounced no reference was made 10 Mr.. Vidaver
In his petition the Attorney General says that
his department has made a complete inVestlga-
tion into the pact between the two companies
and that they have found among the peculiar
things that the rates to and from Albany have
not been altered have the rates from any
other state capitals been altered Other rates.
however. in many instances have been altered
The Attorney General alleges that on January
l. 1907. the two companies agreed that Ihey
should establish and enforce tariff OF rates or
charge for the receipt transmission and deliv-
erv Of messages by electric telegraph in the
state of New York and for messages received
bv agents thereof in the State of New York and
transmitted therefrom 10 points in the United
States and elsewhere.
II is held by the Attorney General that at the
time of the alleged agreement the two companies
were competitors I'm this state and elsewhere
and that they were the only companies ehsaseu
in similar business in this country. and ne
asks that they be eujOined from making OF NV
ing IN To- any agreements 10 establish rates uhtl
there has been a final hearing In the matter
u g alleged that by the contract the rates oL
sending messages have been greatly increased
and that the increase in many cases mas Oeei
over 2O per cent
The state alleges that the testimony or Gar
once II Nackay John q. stevens, Edward -
rl,+t Albert b. Chandler, Isaac smith. Minor
NJ Davis Edward q. CoChrane. William H.
TaLar Robert c. Clowry. Abijah r Brewer
Nvron T. Wilbur. George W. E Atkins. John
:, Ro~clay William Holmes. Belvidere Brooks
I r Van Every and E NJ. Milford George j.
C,ouId Jacob H Schiff Morris X. Jesup anu
Edward H Hartman. and each or then Is ma
,artor and necessary 10 the establishment OF the
unlawful contracts. agreements. arrangement
and combination whereby the above deScrloed
/ nonopoIv in the receipt transmission ana de-
livery by electric telegraph within the state o'
New York and elsewheres vas created and es-
tablished and has been, and Is being. maih'aliie"
as aforesaid
None of the officials o; either company Nh'
yyouId discuss the suit could be found last night
II was thought that the suit was not surprise
TO many Of them. but they refused 70 taiN OF l"