San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1894-10-24
STORM BREWING
BETWEEN RAILROAD FACTIONS.
QUARREL OF THE STOCKHOLDERS
OVER THE SPOILS
In the Santa Fe Railway Threat
ened to be Aired IN the Courts.

pOnQonG: Inc controversy Do-
tween the two committees which
are trying to reorganize the Atchi-
son, Topeka and Santa Fe Railway
company may be carried into the
Kansas Supreme court. The pres
emit bond directors, working in har-
mony with the general reorganiza-
ton committee, controls about 700,-
600 shares of the 100000 shares of
stock. This being a large MAORI
ty the board naturally wants to
run the national meeting Of stock
holders in this city tomorrow to
suit itself. But the stockholders
protective committee, which con-
trolls about 100000 shares wants
minority report on the new board
and insists on the culminative sys-
tenn of voting in order to get it..
The protective committee will de-
mand it's rights and will fight
for them if it becomes necessary.
Newman Erb, the attorney for
the committee here, is ready to
institute a mandamus proceeding
in the state judicial tribunal il the
majority of representatives agree to
refuse to grant the request OF
the minority. The majority re-
port shows however, that they will
stand pat. 1t begins to look as if
there will be a storm with Thurs
days meeting, notwithstanding the
reports which have been tele-
graphed from Topeka that all de-
tails had been arranged and the
annual meeting would take place.
There are knotty law points in
volved in the quarrel over the Gull
minative system OF voting. The
protective people claim the right
to vote in this manner under Sec
ton l,1SS5,of the general statues Of
Kansas, which says: ain all cleo
tions for directors or trustees Of
any Incorporated company each
share shall have the right in the
aggregate as special equal the
number of shares 80 held by him
multiplied by the number of
directors or trustees to be elected,
at such election either holder may
cast the whole number OF votes
either in person or by proxy for
one candidate and such directors
or managers shall not be elected in
any other manner.
In order to shut out the protec-
tive people the board produces the
territorial charter of the company
issued in 1859, which says: GAIL
the separate powers Of said COM
pany shall be vested in and exer-
cised by a board of direct ors and
such agents as they may appoint.
The board of directors shall consist
of thirteen persons, stockholders,
three Of whom, at least, shall be
residents of Kansas, who shall be
chosen annually by the stockhold-
ers, each share holder one vote by
person or proxy and continue in
office until their successors are
elected and qualified vacancies in
the board may be filled by vote
of two-thirds of the remaining
directors" The board says the
law referred to does not apply to
the charter having been issued
prior to its passing. The protec-
tive people make answer that the
Santa Fe company has practically
discarded its charter and urges
that the company after having &C
copied the benefits under the
states laws for years cannot now
hide behind the provisions Of ter
ritorial charter.
In a conversation with the Times
reporter Mr.. Gleed said:
"The Protective committee may
report to the court, but doubt it.
have examined the law thor
oughly and am confident the COM
mittee cannot force the culmina-
tive system of voting upon us. L do
not think there will be compro-
mise, nor do look for any trouble.
The protective committee is pl ain
ly in the minority, and will, in my
opinion submit gracefully. The
present board Of directors will be
rec lected, with the exception Of
Alden Speer, who will not be a
candidate for reelection. Several
gentlemen are mentioned for Mr..
Speer's place, among them Bayard
Cutting, Walter L. Oakman and
F. r. Duval, all of New York. Gen.
Tracey stated that he believed
compromise would be effect
ed. "The protective committee
represents minority Of its in
dividual stockholders and a ma
jority Of the stock" he said, land is
entitled to representation on the
board. II we are denied the exer-
else of culminative vote we will
probably seek relief in the courts.