The labor world. [volume] (Duluth, Minn.) 1896-current, 1908-02-08
BILL TELEPHONE G..
Ialh!|silIR A l||i | |: lLLIGM
Must Return 400 Shares Of
Stock in Kellogg
Company.
Decision Is ,of Great 1mportaacs
to Independent Con
III Germs.

SANSVAAASAA
to Independent Con
t. ts Germs.
&. CHICAGO. Feb. s. Judge Thomas
G.: :Windes In the Circuit court yester-
day directed that the control Of tho
Kellogg Switchboard and Supply CONF
spany by the American Telephone and
telegraph company be set aside. The
decision; dscrees the, return OF 400
shares Of stock In the Kellogg concern
to its original owners. The monetary
value. Of. this stock Is about $1,200.000.
y lTne~ question Of most Importance
was the control Of the company, on
WHICH 1000 Independent telephone cons
Germs throughout the United States
fchiefy depend tor their supplies. The
alton cannot hold stock in another
cornpetilng corporation. &.
& The decree orders that the American
company, refrain from interfering in
the maragement Of the Kellogg CONS
pany and that the president OF the latr
ter remain in control as receiver Of
the court until the issues have been
passed on by the upper courts. In the
event.Iof the inability Of the principals
to reach terms, Judg Windes said,y the
shares OF stock, which now have a
value Of $500 each, will be sold under
decree of court.
!, Form ef keIlog Company.
The Kellogg Switchboard and Sup
ply company was organized In 1897. by
Milo 6. Kellogg, and capitalized at
100000. Clarence Buckingham, wat
lace De Wolf, H. J.. Hanford, Leroy J.
Kellogg, and J. Brush were named
directors. The corporation entered
upon the making Of instruments that
had until 1894 been covered by the
rights Of the Bell telephone interests.
From the first the Kellogg company
was known as an Independent concern,
and in time 1t shared with the Stronn-
berg Carlson Telephone Manufactur-
ing comp2ny>, practically all Of the
business OF the independent companies
ins2S cities. The capital invested In
these Independent concerns now is said
to be near $200, 200, 900. Sc. s..
= rIn@the fall OF 1901 Milo Kellogg went
to- California because of. i'll health.
When he returned to Chicago earlysin
1902 he learned that Ills bfother-in-
law, WallaeesDe Wolf, to #yphom he had
etyens aaad
ferreds 9,384 shares of KslIoexss stock
to the American hons and Tele-
graph company, toestlier with 10 of
his own shares and Bucaingh 262
shares. -
!. Suit Against Hell coneern. q
Kellogg Msapproyed OF this and
sought to have the .trnsfer set aside.
At the same time the minority stock.
holders, owning 4s5 shares, brought
suit to compel the return Of the Kel-5
logg stock held by the American COM
pany, alleging that It was against pub
lie policy to allow one corporation to
hold stock in a competing corporation.
A temporary Injunction was issued
by the late Judge Murray F. Tuley
June s, 1909: but later, after hearing
before Judge Mack, this order was set
aside and the demurrer OF the defend
ants was sustained. g The Appellate
court sustained Judge Mack's ruling,
but the Supreme court reversed 1t aud
remanded the case with directions to
the defendants to answer the bill of
complaint. - Ne.
Judge Windes' decision. closely fol- .
lows the opinion Of the Supreme court.
It deals chiefly with contract made.
between De Wolf and representatives
OF the American Telephone and Tele- 8
graph company in January. 1902.
Es contraet 10 Declared Void.
A general purpose to get control of
the largest telephone manufacturing
establishment Of the independent conn
panies is shown" Judge Windes said.
The court is of the opinion therefore.
that the contract is void as against
the law and the public policy Of the
state of Illinois in that. 1t. tends ts =
establish q monopoly, though not 8 IS
complete one. ..fs... 80 -
The purchase and intention OF the
American company are shown suffici-
emily to be to create . monopoly. IT
has been urged that the American
company is q foreign corporation, but
foreign corporations doing business In
Illinois are subject to all the rules and
regulation In operation In the state.
To permit the American company TO
control the Kellogg company would Be I.
against the law Of the state and public
policy. 9...,. 5s ss=.s
The transa ction In this case being
void no title aesed and Milo @. Kel-
loEg and Barton are ,stfh the owners
Of the stock, 10 protect the don1plain,
ants and do equity to them they are
entitled TO have restored as Tar as pos
sible. the .oondl II ionss that existed before
the tsfnsactiop. Z
hoN-uNlon st,oP THEORY YIN.
SOUND.
9=. - -.----.-.-e
. There 10 no such q thing as individ- !
ual liberty Ii q civilized community;
there can not be entire liberty IN
civ1llxed runity. or. somebody
would luRer. Liberty must be sre-
Strained, Tor the good Of the average
citizer. man may. be inpelled 81 .
certain motives which would infitct In
Jury upon others unless hes were re-