Omaha daily bee., 1903-03-14
FILR. UNION PACIFIC ROAD
Ksere Pool 0btain lem sOrary Irjunctisn
Agsirst hartman Interests
ks CONTROL or SOUTHERN PACIFIC
. -sent Directors PurpOseIy
Crt. Eystem to Aid other Lines
and Would Restrain Their Not-
ing at Annual Meeting.

and EouId Restrain Their VOt-
ing at Annual Meeting.
CINCINNATI. March l3.-In the contest
between the Ke7ne and Hartman interests
in the Union. Central and Southern Pa
cihc railway the former today secured
from the federal court a temporary re-
straininE order and notice was served on
the Hartman representative that at Nash
Vile on April /, there would be a hearing
Of cause why an INJUNCTION should not b.
Issued as prayed fer. AS the date for the
Southern Pacific annual meeting is April s,
It was desired TO have the petition heard
before the next election Of directors
Chartered in Kentucky.
The Southern Pacific company has a Ken
tucky charter although Il owns no prep
erty In that state. Its legal headquarters
are al Beechmont. Ky. a suburb Of Louis
VILE. where its legal representative resides
and for this reason the bill Of complaint
was sled in Louisville yesterday. but the
attorneys found no federal judges there
and came here, where Judge Horace L.
Larton Of the United States circuit court
heard them in chambers
The hill filed by the complainsnts, Talbot
J. Taylor and James B. Taylor. forming
the wall street Arm Of Talbot J. Taylor
/ Co, and one OF whom is son-in-lsw OF
I James r Keene, diseloses an alleged con-
! dition Of affairs in which the Union Pa
Z cife interests in the Southern Pacific COM
panys directorate have Systematically man
aged the latter company in the interests
! Of the former.
] During 1900 AMI 1901 the Union Pacific
acquired 100000 Southern Pacific shares,
I valued at 81. .OOO. 600. These we're used, it
/ is alleged. to elect directorate. each mem
/ Der OF which was and is interested in the
I Union Pacific IS against the Southern Pa
cifc The new directorate, ii is charged.
united all departments OF the two roads
I wherever possible, subject 10 a dominating
I and controlling influence in favor OF the
I Union Pacific company. whereby the inter-
ests Of the Southern Pacific are endan-
gered and pre1udiced by determinations in
favor Of the Union Tactic
Keep Business for Road.
Among other things II is alleged that the
Southern Pacific was required to charge so
excessive a prorata on through tariffs that
It was virtually excluded from much bust
ness. 1t is declared that large betterment
expenses have been charged against the
Southern Pacific operating expenses,
whereas the custom is to fund such ex-
penses in bUnds and distribute the cost
ove- q series OF years.
The bill declares also that the operating
expenses accounts Of the road either show
a true state Of excessive operating expense
I or an erroneous system Of bookkeeping, and
/ that immense improvements have been un-
dertAken for the Central Pacific. which af
fords the Union Pacific an outlet from
Ogden. Utah. into California, and errone-
ously charged TO the Southern Pacific oper-
ating expense account, with the ultimate
purpose Of greatly improving the Central
Pacific at the expense Of the parent system
buying IT. and then purchasing the greatly
impaired and deprecated Southern Pacific
itself.
1t is declared that during the eighteen
months ended December. 1907, the Union
Pacific made improvements amounting TO
nearly 81. coo 900 in the Central Pacific.
charging the amount against the operating
expenses OF the Southern Pacific system
and creating a deficit Of s3.o73 s2s.
The biIl asks for an order restraining
and enjoining the Union Pacific from voting
its ESQ coo shares in the annual election to
be held on April s and decree requiring
both companies TO come into court and
make answer to the particulars of the com
?laint
The Keene faction is said 10 hold about
$50 OO0 900 worth OF Southern Pacific stock,
having bought this amount through a pool
some time ago. in the hope OF an early
dividend,
Judge Issues Restraining order.
After considering the complaints made
Judge Lurton issued the following restrain
ing order:
express no opinion upon the merits of
the .prima facie case made on TINS olll ana
70 me that the complainants are Untitled 10
have the status preserved until they can
give notice and be heard upon an appllca-
II is therefore, ordered that the defend
ant show cause on April ! 1903 before me ne
in my chambers at Nashville, Tenn, al 10
a. N Of said day, vSV an Injunction pen
dente lite shall not De issued as prayed and
in the meantime let the defendant the
Southern Pacific Railroad company. be re
strained from in any manner transferring
or disposing Of the lease Of the Central
Pacifc road heretofore made to the South
/ ern Pacific company, OF Of any OF the
rights Of the said Sol thern Pacific company
! hereunder, and from disposing Of or trans
( ferrinE by sale or otherwise the shares OF
Pthe capital stock OF said Central Pacinc
company. owned or had by the said South
ern Pacific company. and that the said
/. I Southern Pacific company. its officers,
agents and attorneys be restrained from
permitting the defendant, said Union Pa
cihc railway, its officers, directors. agents
I CT attorneys. or proxy, 10 vote upon any
B capital stock OF said Southern Pacific Rail
Z roac company standing in the name Of the
] Union Pacific Railroad company. or In the
. name or names Of any person or corpora
Z don for its usc OF bsnent. OF in the name
y OF said Mercantile Trust company. rs Of
hcers, directors agents or proxy gr 10 IN
+ anyWise participate a stoCkholder in
+ any meeting Of the stockholders Of the said
T Southern Pacific company or election Of di-
i Tectors OF the said Southern Pacific CON-
( pany and that the said Southern PacihC
1 company, its directors. officers, agents etc,
( be restrained from in any way alIering &
z changing OF amending the bylaws OF the
I said company 20 az 10 change the time or
! place for the election Of a new board Of
directors or from in any way changing
: existing regulations ir respect Of the an
I nual stockholders meeting or for the eler-
! tlon Of directors, and that this restrsining
Z order stand until the rlls 10 show cause
1 shall be heard and disposed Of
Let a copy Of the bill ana its exhibits
and OF this order be served pom the -
, PENDANTS or or before March y. 1913. al 70
ne or