The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-14
Which Is Held by the Union Pacific,
and Which Is Controlled by Har-
riman and His Friends.
DIVERSION OF EARNINGS
WHICH ARE ALLEGED To HAVE
TURNED A SURPLUS INTO DEFICIT.
Nearly $4,000, 900 of Southern Pacific
Money Said To Have Been Spent
the Central Pacific.

CINCINNATI, March 13.-In the contest
between the Keene and the Hartman in
terests in the Union. the Central and the
Southern Pacific Railways, the former to-
day secured temporary restraining or
DER and notice was served on the latter
that at Nashville. on April /, there would
be a hearing of cause why an Injunction
snail not be issued as prayed for As The
date for the annual meeting of the stock
holders of the Southern Pacific is April s.
IL was desired TO have the petition heard
before the next election of directors The
Southern Pacific Company has a Kentucky
charter. although it owns no propertv I'm
that State. Its legal headquarters are at
Beechmont, KY, suburb of Louisville
where its legal representative resides and
Tor this reason the bill of complaint was
filed in Louisville yesterday, but the at
torneys found no circuit Judge there and
came here, where Judge Horace H Lurton
heard them in chambers The Kentucky
charter of the Southern Pacific Company
is for steamship lines. ferries terminals
and other purposes as well as for railways.
Taylor. the complainant is a son-in-law
OF James r. keene. The attorneys on both
sides held conferences here this afternoon
before they left for their homes to meet
again at Nashville two weeks from next
Wednesday. Senator Foraker and Judge
Harmon were in conference after the other
attorneys left. Harmon, as attorney gen.
eral during the second Cleveland adn,fn.-n,
tration, had much TO do with the Pacldc
railway cases for the government
The bill filed by attorneys for the COM
plainant, Talbot ]. Taylor and James r.
Taylor. forming the wall-street firm of
Talbot Taylor & Co., relates the history
of the Southern Pacific Company and dis
closes an alleged condition of affairs in
which the Union Pacific interests in the
nave Systematically managed the latter
company In the interests of the former
During the years of 1900 and 1901 the Union
Faclnc Company acquired holding of
Southern Pacific shares amounting 10 s75-
100000 or 10000 shares. These were used.
IL is ueclared TO elect a directory. each
member of which was and is interested in
Union Pacific as against the Southern com
pany.
ALLEGED DISCRIMINATION.
The new directory. it is stated united an
departments Of the two roads wherever
possible. Subject TO a dominating and con-
trolling influence in favor of the Union Pa
citic Company" whereby ''the interests OF
the Southern Pacific are endangered ana
prejudiced by determinations in favor of
the Union Pacific" adopting policies. aiso
that tended and do tend to direct traffsc
from the Southern Pacific Company which
would without the adoption of such poll
things 1t Is charged In the bill that the
Southern Pacific Company was required 20
tariffs that it was virtually excluded from
large volumes OF business IL Is declared
that large betterment expenses have been
charged against the Southern Pacific op-
Grating expenses, whereas the custom Is to
fund such expenses in bonds to distribute
the cost over a series OF years, thus avoid
ing burden on the present stockholders
The bill declares also that the operating
expense accounts OF the road either show
a true state OF excessive operating expense
or an erroneous system OF bookkeeping and
that immense improvements have been
dertaken for the Central Pacific, which af-
| fords the Union Pacific an outlet from Og-
den. Utah into California and erroneously
charged against the Southern Pacific oper-
ating expense account, with the ultimate
purpose of greatly improving the Central
| tenn, buying IL and then purchasing the
| greatly impaired and deprecated Southern
dnrnS t5e eigbteen months endins nsS1ea that
| Der. 1902. the Union Pacific had made i'm
provements amounting TO nearly 81 900
against the operating expenses OF the
Southern system and creating deficit OF
| $s073. .s2s q. The bill asks for an order
restraining ana enJOlning the Union Pa
| cific Company from voting its 10000 shares
| i'm the annual election 70 be held April s
and a decree recurring both companies TO
come into court TO make answer TO the
particulars of the complaint.
JUDGE LURTON'S ORDER.
| Following Is the order issued by Judge
| Lurton:
81 express no opinion upon the merits OF
| the prima facie case made by this bill and
To af he icf ants
| titled 10 have the status preserved until
they can give notice and be heard upon
application for a preliminary Injunction
| IL is therefore ordered that the defendant
show cause on April 1. before me I'm my
chambers at Nashville. Tenn, at 10 a m.
of said day. why an injunction pendente lite
| shall not be issued as prayed and I'm the
meantime let the defendant. the Southern
/ Pacific Railroad Company, be restrained
| from In any manner transferring or dspos-
| ing OF the lease of the Central Pacific road
/ heretofore made to the Southern Pacific
Company; or Of any OF the rights of the
and from disposing OF or transferring by
sale or otherwise the shares OF the capital
/ stock of the said Central Pacific Company
owned or held by the said Southern Pacific
| Company. and that the said Southern Pa
| cific Company. its officers. agents and at
| torneys be restrained from permitting the
| defendant the Union Pacific Railroad Com
| pany, its officers, directors. agents or at
| torneys or proxy 10 vote upon any capital
| stock OF said Southern Pacific Company
standing in the name OF the Union Pacific
| Railroad Company or I'm the name or names
| OF, any person or corporation for IT'S use
| and benefit or in the name OF the Mercantile
| Trust Company. its officers. directors.
agents or proxy. or 10 In any Mise particle
/ pate as stockholders In any meeting OF the
/ stockholders OF the said Southern Pacific
/ Railroad Company. or any election os said
Southern Pacific Company. and that said
Southern Pacific Company. its directors. Of
ficers, agents, be restrained from In any
way altering, changing or amending the
/ bylaw Of the said company 30 TO change
tie time or place for the election of . nsU