Court filing for Montreal Telegraph Company liquidation

Canadian Telegraph Lines.

MONTREAL, March 9, 1888.

A suit was taken here to-day in the Superior Court in the name of the Attorney General of the Province for a writ of quo warranto for the appointment of a sequestrator to the Montreal Telegraph Company in order to liquidate and wind that company up. The object is to follow up as closely as the law will permit the judgment of Judge Rainville, which some weeks ago declared the agreement between the Montreal Telegraph Company and the Great Northwestern Company ultra vires. This agreement gave the control of the Montreal company's franchise and business over to the Great Northwestern, upon the Western Union guaranteeing that company's promise to pay the Montreal company's shareholders eight per cent. per annum. As matters stand at present the hope of the prosecuting litigants is that the appeal taken against Judge Rainville's judgment will be dismissed. They want the sequestrator to stand ready to act for the shareholders in such an emergency. Meantime the Great Northwestern Company is seeking Parliamentary legislation to legalize that which Judge Rainville's decision has declared to be illegal. Many regard the new litigious movement as taken in the interest of the Canada Mutual Company, but the authorities of the latter deny this. However that may be, Parliament will likely refuse to interfere in a question awaiting judicial decision. Should the appeal be dismissed an entirely new deal will be necessary to give the Western Union control over the Montreal Telegraph Company.