Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-02
FIGHT FOR CONTROL
Keene and. Hartman After
Southern i 1t Pacific.
HEARING \ CONTINUED
JUDGE HUMPHREY AND MIR.
ESsAars SPEAK.
= az
Denial in New York That Mr.. Harri-
man Allowed Access to Stock
holder Lists.
HEARING CONTINUED

NASHVILLE, Tenn, April 2.-The strug-
gle for control OF the Southern Pacific be-
tween James r. Keene and the Union
Pacific railroad went on In the United
States court today, the second days session
OF the court which L. hearing the applica-
tfon for an injunction to prevent the vot-
ing Of certain holdings opening at $780,
Judge Alexander Humphrey of Louisville,
replying for the Hartman interests. to the
address Of Edward Lauterbach of New
York, representing Mr.. Keene. continued
his remarks begun late yesterday after
noon. He read largely from Mr.. Harri-
mans aff1davits, already made public, and
said he would leave the law to be discussed
later by his associates.
The speaker then adverted to the de-
velopment and improvement of both prop
critics and said there was no evidence to
show that the directors ever contemplated
turning over the Central Pacific to the
Union Pacific. Judge Humphrey discussed
the appointment of joint agents for the
Union and Southern Pacific and also the
to various points, and contended that no
discrimination had been practiced against
the Southern Pacific.
He traced the development Of the Cen
trail Pacific, and said the plans Of putting
the property in better physical condition
as inaugurated by Mr.. Huntington had
been carried out.
Earnings Held for All.
Judge Humphrey said that the appro-
priation Of earnings to the Improvement Of
railroad properties, instead Of paying divi-
dends to preferred stockholders, had been
held by the Supreme Court of the United
States to be for the best interests Of all the
shareholders, and that the complainant
thought the way to modernize railroad
was to issue securities.
Judge Humphrey said in response to a
question by Judge Lurton that there could
be no competition between the Union and
Southern Pacific. and therefore there could
be no possible grounds for the application
for an injunction.
Judge Humphrey was followed by Mr..
Evarts. who commended that the Union Pa
c1fc was not before the court, and the
court therefore had no Jurisdiction. He in
sisted that a court of equity could not
abr1dge the rights of a majority of the
bondholders or divest them of the manage
ment of corporation, and declared the
constitution Of Kentucky provided how the
election of directors should be held
Mr. Evarts, said it was evident that the
Dill had been drawn in 1901 and was held
until few days before the meeting Of the
stockholders, sand declared that the COM
pla1nants by their acquiescence in the cleo
ton of the board of directors were stop
ped from prosecuting the cause Of action.
Mr.. Evarts' Argument.
Mr.. Evarts then entered upon technical
and legal defense Of the right Of corpora
lions to purchase shares Of stock in other
corporations, and in regard to Withholding
dividends from the owners Of the stock in
the Southern Pacific. said that In order to
pay them it would be, necessary to borrow
great sums, and the result would be that
the public would be compelled to pay
higher charges
He insisted that no evidence had been in
troduced to show that competition existed
between the Southern Pacific and Union
Pacific in Kentucky. and that competition
between these lines was confined to certain
points outside that state.
Mr.. Lawrence Maxwell, who represents
the Union Pacific, followed Mr.. Evarts, and
said that this was suit in which in order
to obtain relief the complainant must show
that as a stakeholder in the Southern Pa
cif1c he has suffered or Is threatened with
some action on the part Of other stockhold-
ers injurious to his interests.
The court adjourned until 2:3O, when
Mr.. Maxwell will resume his argument.
Senator Foraker, representing the South
ern Pacific. will follow and make the clos
ing argument.
Mr.. Harr1man's Statement Denied.
NEW YORK. April I'm reply to the
published statement by E. H. Hartman to
the effect that every facility for inspecting
the Southern Pacific stock books had been
granted on request. and that "any failure
to obtain necessary Information was due
either to lack Of real desire or inefficiency,"
Talbot J. Taylor made the following state
ment today:
ION the I'd day Of March, 1903, I made
application for an inspection Of the stock
books Of the Southern Pacific Company to
Mr.. Alexander Millar, the secretary, and
thereafter almost every day until the 18th
day Of March, 1903, similar application
was repeatedly made by my representa-
Mves who were also stockholders Mr.,
Millar refused to allow me or NV clerks.
through whom the applications were made.
to examine the books. resorting to one pre-
text or another, In order to postpone any
inspection by US, until we found it neces-
sary to apply to the circuit court in Ken
lucky for an order compelling the Southern
Pacific Company to allow the stockholders
to inspect the books.
Meanwhile the representatives of the
Union Pacific Railroad Company who are
alleged to be now in control of the South
ern Pacific Company, had sent out all their
requests for proxies, after which they had
very little motive to prevent inspection by
the other Southern Pacific stockholders"
Mr. Taylor said 1t was not true that Mr..
Keene offered to sell his Southern Pacific
holdings at price higher than those held
by the pool, adding that such a thing
would mean ruin to him or any other man.
1t Is false to say that Mr.. Keene offered to