The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-03-14
THE KEENE-EARR1MAN STRUGGLE.
A Temporary Injunction Secured by the Form
er Against the Latter.
(By the Associated Press.)

tBy the ASSOCidleu JTGSS.J
Cincinnati Ohio, March 13.-In the
contest between the Keene and the Harri-
man interests in the Union, the Central
and the Southern Pacific Railway Com
pany, she former to-day issued a tenn
porary restraining order and notice was
served on the latter that at Nashville
on April 1st, there would be hearing
of cause why an injunction shall not be
issued as prayed for. As the date for
the annual meeting of the stockholders
of the Southern Pacific is April Sth, 1t
was desired to have the petition heard
before the next election of directors.
The Southern Pacific Company has
Kentucky charter, although it owns no
property in that State. It's legal head
quarters are at Beechmont Ky, a SUI
burb of Louisville, where it's legal rep
resentative resides, and for this reason
the complaint was filed in Louisville
yesterday, but the attorneys found 10
circuit Judge there, and came here where
Judge Lurton heard them in chambers.
Taylor, the complainant is son-in-law
of James R. Keene.
The bill filed by attorneys for the COM
plainants, Talbot j. Taylor and James
r. Taylor, forming the Wall Street firm
of Talbot j. Taylor & Company. relates
the history of the Southern Pacific Com
pany and discIoses an alleged condition
of affairs in which the Union Pacific's
interests in the Southern Pacific dircc-
torate have Systematically managed the
latter company in the interests of the
former During the years of 1900 and
1901, the Union Pacific Company acquired
holding of Southern Pacific shares
amounting to $4,000, 600 or $750,OO0
shares. These were used, it is declared
to elect a directory, each member of
which was had is interested in Union
Pacific as against the Southern Pacific
Company The new directory it is
stated, united all departments of the
two roads wherever possible, subject to
a dominating and controlling influence in
favor of the Union Pacific Company .
whereby, "the interests of the Southern
Pacific are endangered and preiudiced by
determinations in favor of the Union
Pacific" adopting policies also "that
tended and do tend TO direct traffic from
the Southern Pacific Company. which
without the adoption of such policies
would have come to that road" The bill
declares that immense improvements
have been undertaken for the Central
Pacific, which affords the Union aPcific
an outlet from Ogden, Utah, into Cali
fornia and erronously charged against
the Southern Pacific operating expense
account with the ultimate purpose of
greatly improving the Central Pacific at
the expense of the parent system buy
ing it, and then purchasing the greatly
impaired and deprecated Southern Pacitis
system itself 1t is declared that during
the eighteen months ending December
1902 the Union Pacific had made i'm
provements amounting to nearly $22,000,
600 in the Central Pacific charging the
amount against the operating expense of
the Southern system and creating a de-
felt of 3,073, ,S29.21.
The bill asks for an order restraining
and enjoning the nUion Pacific Railway
Company from voting it's 100000 shares
at the annual election to be held April
s, and a decree requiring both companies
to ccme into court to max answer to the
particulars of the complaint Judge
Lurton issued a temporary restraining
order in accordance with the complain
ants petition. The restraining order pre-
vents the Southern Pacific from trans
ferring its lease of the Central Pacific
and from disposing of the capital stock
of the Central Pacific owned by it. The
roder restrains the Southern Pacific from
permitting the Union Pacific to vote
upon any stock of the Southern Pacific
standing in the Union Pacific's name or
in the name of any other person or cor
pora ton.
The plaintiffs represent the Keene-Tay-
lor element in the Southern Pacific
The Keene faction is said to hold about
$50, 000, 900 worth of Southern Pacific
stock, having bought this amount through
a pool some time ago in the hope of an
early dividend. The Union Pacific people
who are in the Southern Pacific board
of directors, it is said oppose a dividend
at this time, figuring that the money
would be more wisely expended in the
shape of improvements ard betterments.
The Keene people believe that they
will be able to create such changes in
the directory of the road at the annual
meeting as will be favorable to the de-
claration of a dividend.