Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-27
&1C0,Co0 COO DAMAGE
INVOLVED III DECREE
IN TELEaRAPHoNE SUIT

Continued from First Pagel
after due and timely notice of such
meeting to the stockholders, the meet
ing to be held under supervision OF
election officials to be appointed by the
court 1t should provide for the con-
cellations of the assignments of the
defendant Ballard Of the mortgage to
the defendant Rood; provisions to car
~ out the foregoing determinations by
the court ON the exceptions and suS-
sestions of the court and in coniirma-
ton otherwise, the diSalloWance OF
salaries paid to Rood and Ballard and
the rejection of all claims for salaries
by said defendants. Rood and Ballard;
a provision for a special auditor to
inquire into and report TO the court,
with his conclusions and recommends.
tons, the damages to be assessed
against the defendants. Rood and Bal
lard such auditor to proceed with
promptness and report to the court as
soon as this can be reasonably done
and without delay"
The court found that unexplained
and ineXcusable delays in producing
telegraphones ordered and in repairing
machines that had been ut out cook
place. and the mismanagemont Is
clear and established by the evidence.
The court stated that it is not sur
prsing that suspicion and dlstrust
arose FOR the reasons for it.
Trustees Are Accused.
In brief. the case involved accusa-
tons that the defendant trustees were
not overanxious to market the instru-
ment because of the effect that 1t
would have on the American Tele-
phone & Telegraph Co. The instru-
ment is one for recording sound and
reproducing it, the court pointing out
that one that was set up in court
showed that il was practical. 1t
could he attached TO q telephone so
as to record incoming messages VIXEN
a person was not there to answer the
telephone and repeat them when the
person came IN.
Justice Siddons took the case under
advisement on June 20, 1925, and, dur
ing the interim has studied 1000
pages of written testimony aside from
other documentary evidence. The
company was capitalized at $4,000, 600
and 1900 persons scattered through
out the world owned the stock
Rood, who was president Of the
Hamilton Watch Co. became connect
ed with the company in July. 1908.
The books of the company, the
court held, We're poorly kept. The
court found that by May, 1911, the
company had produced an efficient,
practical direct current telegraph0ne.
The evidence established. the court
said. that unexplained and inexcus.
able delays in producing and deliver
ing telegrarhones ordered and repair
ed took place.
Some Defendants Have Died.
The court failed to find that Rood
was connected with the American
Telephone & Telegraph Co. or that he
was in the pay of this company in a
sense which was detrimental to the
Telegraphone Co. but the opinion
said that the evidence at this point,
at most, might engender suspicion
that such a relation existed, but at
the most mere suspicion.
1t is inconceivable that the Amer.
ican Telephone & Telegraph Co. might
nave considered that as to some of
the possible uses of the teegraphone.
the Telegraphone Co. would be a rival
or the American Telephone & Tele-
graph Co" Justice Siddons said.
1t was urged that such rivalry in
marked degree would exist in con
nection with the supposed use of the
teiegraphone in connection with the