The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-09
SUIT BEGUN
in ELECTRIC
MERGER
Action Against Public Ser
vice and United
Directors.
ASK VOIDANCE OF LEASE
Seymour, Preith and Walsh
Claim That Public Service Is
Acting Ultra Wires.
ASK VOIDANCE OF LEASE

Judge Thomas L. Raymond, counsel
representing James M. Seymour. Jr.,
Benedict Prieth and Philip c. Walsh.
jr., filed his bill today asking Tor an
injunction against the merger of the
United Electric Company of New Jer-
sey with the Public Service Corpora
ton. The bill is voluminous one,
covering thirty three closely type
written pages, and is a very carefully
prepared document, presenting to the
court the rights and privileges of the
various corporations involved as set
forth in their charters and certificates
of Incorporation. 1t also sets out the
terms of the 999 years lease executed by
A. B. Carlton. Vice-President of the
United Electric Company on July IL.
The injunction of the court is prayed
for on the ground that the complains
ants have had no opportunity to ex-
anime into the affairs of the holding
company; that the latter corporation,
under the terms of it's charter, has no
right to conduct business similar to
that conducted by the United Electric
Company: that the directors We're le-
gally incapable of arranging and con-
summating the terms of the lease for
the benefit of the stockholders Of the Z
United Electric Company; that such
action was tainted with the personal
and wide outside business interests
which were and are opposed to the
interests of the stockholders of the
United Electric Company; that the
lease is void and of no effect for the
reason that all the directors of the
United Electric Company, who author-
ized tho lease, were also directors OF
the Public Service Corporation.
The bill asks that the directors OF
the defendant corporation be required
to appear in court and answer the fol-
lowing allegations:
81 That the said lease bearing date July
l. 1907 may be declared to be absolutely
null and void and of no effect
- That the Public Service Corporation
of New Jersey was without power or
right to enter into the said lease and that +
its doing so is ultra wires and void
"S That United Electric Company was
without power or right to enter into the /
said lease and that its doing so was ultra
wires and void
"a That the delivery of the property Of
the United Electric Company to Public
Service Corporation by the officers and
directors of United Electric Company was
n wrongful use of said property and
breach Of the trust reposed in such officers
and directors and Of the contract between
said United Electric Company and the
stockholders thereof.
''5. That no title or right to said prop
erty passed to Public Service Corporation
under said lease by such delivery thereof.
'6. That the title to said property and
the right to the use thereof be decreed to
be still vested Notwithstanding such
wrongful use thereof, in United Electric
z. That receiver be appointed to re-
cover back said property from Public
Service Corporation for United Electric
"S rhat an account be taken of the
value of such property as shall not be re-
tion and of the loss and damage sustained
by United Electric Company by reason of
the deprivation of said United Electric
Company under the order and direction OF
this court
80 That whatever shall be ascertained
to be the loss and damage of United Elec-
trio Company as aforesaid be decreed a
debt due from the said defendants. Thomas
c. Barr, John j. Burleigh, Albert b Carl
ton, Mark T. Cox, Anthony r. kuser,
Thomas n. McCarter, Uzal Il. Mecarter
ment of such debt by such defendants be
directed by the decree of this court and
enforced by the process thereof.
10. That this honorable court may tn-
quire into the fairness and Justice of the
said lease and the ability of Public Service
Corporation TO perform the terms thereof.
ana 10 tnat END tnat eacn OF Sdld cOtu-
panies be compelled to produce before your
honor or one of the masters Of this courts
all their minute books, books of account,
cash books, stock books. transfer books.
ledgers, evidences Of indebtedness of all
sorts; and all other papers or documents
the examination of which will in any way
tend to disclose the relative situations of
said companies and the fairness and Wis
dom of making the said lease.
II. That the costs of said examinations
whatever the result thereof, be deereed
TO be paid by the said defendants, Thomas
C. Barr, John j, Burleigh. Albert B. Carl
ton Mark T. Cox, Anthony K. Kuser,
Thomas n. McCarter, Uzal IL. McCarter
and Charles A. Sterling.
"12 That an injunction issue out Of and
under the seal of this court restraining
and enioining the said defendants
from asserting any claim right. demand
or property under or by virtue of said
lease and Public Service CORPORATION from
using. managing. controlling or in any
wise Interfering with the property, rights
or franchises mentioned and set forth In
said lease and that a mandatory inJunc-
ton issue compelling the performance of
the final decree herein. y