Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-13
Gets Temporary Injunction
Against Southern Pacific.
FIGHT FOR DIVIDEND
MINORITY STOCKHOLDERS oP-
POSE HARTMAN INTERESTS.
Hearing on Merits of the Case Set for
April l in Gin
cinnati

CINCINNATI, March 13.-Judge Horace
II. Lurton of the United States circuit court
this afternoon issued a temporary restrain
ing order in the suits pending between the
Hartman and Keene interests relative to
the Union, Central and Southern Pacific
stockholdings. The order follows:
II express no opinion upon the merits of
the prima facie case made by this bill and
its exhibits further than to say that 1t
seems to me that the complainants are en-
titled to have the status preserved until
they can give notice and be heard upon
an applica don for preliminary injunction.
Text of the Order.
''It Is, therefore, ordered that the defen-
dant show cause on April 1, 1903. before
me in my chambers at Nashville, Tenn,
at 10 am. of said day. why an injunction
pendente lite shall not be issued as prayed,
and in the meantime let the defendant, the
Southern Pacific Railroad Company, be re-
strained from in any manner transferring
or GispoSing OF the lease of the Central
Pacific road heretofore made to the South
ern Pacific Company, or of any of the
rights of the said Southern Pacific Com
pany Hereunder and from disposing of or
transferring by sale or otherwise the
shares Of the capital stock of the said Cen
trail Pacific Company, owned or held by
the said Southern Pacific Company, and
tHaI the SalG southern racine company, lis
officers, agents and attorneys, be restrained
from permitting the defendant, the Union
Pacific Railroad Company, is officers, di-
rectors. agents or attorneys. or proxy, to
vote upon any capital stock OF
said Southern Pacific Railroad Company
standing in the name of the Union Pacific
I.aiirodd Company, or in the name or in
the names OF any person or corporation for
KS use and benefit, or in the name of said
Mercantile Trust Company its officers, d.
rectors, agents or proxy, or 10 in any wise
participate as stociholder in any meeting
of the stockholders of the said Southern
Pacific Railroad Company or any election
of directors OF the said Southern Pacific
Company, and that the said Southern Pa
cfic Company, its directors, officers, agents,
etc, be restrained from in any way alter
ing, changing or amending the bylaws OF
the said company so as to change the time
or place for the election of new board of
directors, or from In any way changing ex-
listing regulations in respect of the annual
stockholders meeting of the election of
directors, and that this restraining order
stand until the rule to show cause shah be
heard and disposed of.
To Be Effective March II.
LET copy OF the bill and It's exhibits
aad of this order be served upon the de-
PENDANTS on or before March II. 1903, 1t II
noon.' a.-.zsae+-.s q.
. Senator ]. B. Foraker, Edward Lauter-
bach Of New York and Augustus Wilson OF
Louisville represented the applicants. Har-
mon, Colston Goldstein & Hoady appear
ed for the Hartman interests.
How Suit Originated.
The Southern Pacific being chartered in
Kentucky, suit was brought yesterday
in the United States court at Louis
vile by Talbot ]. Taylor and James b.
Taylor of New York, representing minority
stockholders, asking an injunction agains.
the Union Pacific and the Southern Pacific
r.iA a,;G
the stock 1t holds in the coming annual
election of directors of the Southern Pa
cifc Railroad Company. The application
alleges that the Union Pacific having Sc
cured control Of the majority of the stock
of the Southern Pacific the two roads have
been practically under one management, to
the damage of the interests of the stock
holders of the Southern Pacific. 1t alleges
diversion of traffic and other acts for the
benefit Of the Union Pacific and to the in
jury of the Southern Pacific.
After this action had been taken In Louis
vile the attorneys for the plaintiffs came
to Cincinnati to lay before Judge Lurton
Of the Kentucky circuit a motion for re-
straining order to be issued until the ap-
plication for an injunction can be heard.
This motion has been signed before Judge
Lurton in chambers and will be decided
soon.
The plaintiffs represent the Keene-Taylor
element In the Southern Pacific. The keene
faction Is said TO hold about $3O,OOO,OU
worth of Southern Pacific stock, having
bought this amount through pool some
time ago in the hope Of an early dividend.
The Union Pacific people who are In the
Southern Pacific board of directors, ii Is
said oppose a dividend at this time, fgur-
ing that the money would be more wisely
expended in the shape Of improvements
and betterments. The Keene following has
resorted to the courts in an effort to pre-
vent the Union Pacific from voting the
$50 OO0, 600 worth of stock which 1t holds
in the Southern Pacific against a dividend
for the latter company.
The Keene people believe they will be
able to create such changes in the direc-
tory Of the road at the annual meeting
will be favorable to the declaration Of a
dividend, instead, as they allege, Of having
the earnings Of the Southern Pacific di-
verted to betterments on the Central and
Union Pacific railways in the interest Of
other Hartman holdings "--
RETURN OF CONSUL SAWTER.