Western Union Telegraph Co. v. Pacific & Atlantic Telegraph Co.

In December, 1873, defendant Pacific and Atlantic Telegraph Company leased all of its telegraph lines to plaintiff, the Western Union Telegraph Company, for the term of 999 years from January 1, 1874. The rental stipulated was $80,000-per year, being 4% per annum on the lessor’s capital stock of $2,000,000. It was further agreed that the lessee, in lieu of making payment to the lessor through its treasurer or other officer, ^should “ pay the rental herein reserved to the several stockholders of the lessor ratably and in proportion to the number of shares of stock held by each stockholder…