St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-09-06
FISH is BEING FRIED.
Illinois Central Stockholders De-
mand q Change in GOYernment.

lhaHu d ShanSe HI government.
New YORK, Sept. 5.-An evening pa
per publishes secret petition which,
1t states, is now being diligently circu-
lated among the stockholders of the lii
nois Central railroad, urging them to
rise in rebellion against the present
management of the company, at whose
head stands President Stuyvesant Fish,
OF New York, and who. until recently,
has been assisted by E. II. Hartman.
also of New York. The petition states
that the company is practically on the
verge Of ruin through the mismanage-
ment of its affairs. The petition re-
views the present financial condition of
the company, and then says:
1t is clear that crisis in the affairs of this
company is rapidly approaching, and that if
1t is not promptly met heavy losses will en-
sue. With the facts before us, we must III
slst that the. present management is not a
success. and that the owners should demand
change. The best interests of the stock
holders, in our opinion, require that its presi-
dent and vice president should he practical
railroad men, who have demonstrated their
| ability to successfully manage a great rail
road Like ours. We believe that the highest
ava1ldBie talent for these positions should be
secured and that the men selected should be
known to have the confidence of the patrons
and employees of the road We further urge
mat mat mo not only friendly put cordial
agents of the road and the people along its
lines are necessary to its financial success.
we regret to be compelled to say that these
relations cannot be established by the pres
ent management. The great mass of the
people from whom the road must secure it's
business now regard its administration as
alien. Tne result is, and must continue to
be. condition of unfriendliness bordering
| upon commercial hostility and provoking
adverse legislation, both state and munich
PAL
| The petition then calls attention to
the violation of the law of the state of
Illinois, which requires that a majority
| OF the directors of road Incorporated
by the state of Illinois shall be resi-
dents of that state. In conclusion the
| petition says:
| To secure the objects sought we earnestly
| request all of our fellow stockholders in this
| country and abroad to send their proxies 10
| any responsible person not connected with
| the road who will diligently inquire into the
! present situation, and will attend the stock
| holders meeting at Chicago, Oct. g. 1890.
| prepared to vote intellgently. We urge that
| every stockholder have q fresh proxy to
avoid the improper use of those sent manv
| years ago. The officers of the road have
| since retired. And we are satisfied that all
| stockholders who seek the best interests of
our property Will cooperate to accomplish
| the following purposes:
FlrSt-The election of citizens and bona
| fide residents of the state of Illinois to fill
| Inc Two existing vacancies in the board of
| directors, and to take the places of the three
| members whose terms are about to expire.
Second-A change in the management of
the company by the election of experienced
railroad men as president and vice president
| residing on the line of the road and possess
| ing the confidence of its patrons and en-
| ployes.
Third-The substitute of fiscal agency
for the expensive organization at New York,
| and the requirement that all other officers
| and the place of meeting of the board of
directors shall be at Chicago
Fourth-The establishment of closer and
more cordial relations between the company
| ana the public, the patrons of the road and
| its employees.
Fifth-The reduction of expenses by the
enforcement OF practical and prudent econ
i omy and the prevention of an increase of
liabilities without proportionate increase
| of net revenue.
The petition quotes from the report of
w. Nj. Osborn in 1882 upon the delivery
to the Illinois Central directors of the
Chicago, st. Louis q New Orleans rail
road, which he had rehabilitated, to
show the wise words and prudent adj
vice of Mr.. Osborn concerning the prop
erty." A contrast is therefore made be-
tween the prosperous state of the COM
| pany in 1888 and the state In 1888, after
five years of FiSh-Harriman manage
ment. 1t is shown that with all in
| crease in debt and stock of S34, 1913, 600
| there has been decrease of 1921. 55i 81
| IN the net earnings from the operation
of the road when the results of 1888 are
compared with those of the fiscal year
ending June so, 1890, the latter year of
| heavy traffic, owing to the prolific yield
| of grain in 1888 and 1889. The divi-
dendS have fallen from per cent i'm 1888
to per cent in 1889, and the
market value of holdings in the
same period has fallen from AS to 116.''
The petition further states that sit is
believed that since the report of 1888
was published the debt OF the company
has been increased by several millions
os dollars. and that debt and stock are
approximately SSS, 100000 in excess of
| 1888. And there are strong reasons for
| believing that at the present time the
! company has also floating debt of
from 81, 100000 to 100000. 1t must be
apparent that after paying the annual
charges the margin for per cent divi-
| bends is now very narrow, and that
| further issue of 100000 of stock, as
recently proposed by the present man.
agement, or any considerable increase
in the debt and interest account will
| force reduction of dividends and
| serious decline in the market value of
the shares" Neither Z. FL. Hartmann
| nor Stuyyestant Fish are in the city to-
| day. Attic Office of the former, i'm the
| Equitable building. younger brother
OF the first mentioned gentleman said
ne knew nothing about the above cir
| cular.
| SETTLERS SQUELCHED.