The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-04-03

Afidayits Were Filed in the Case.
Nashville, Tenn, April 1.-The case
of Talbot ]. Taylor and Company, YER
sus the Southern Pacific and Union
Pacific railroad company came up be-
fore the United States Judge H. H.
Lurton here today, Judges Wilson and
Barton of the state circuit court of ap
peals, sitting with Judge Lurton by
invitation.
There were present United States
tSenator JOS. B. Foraker, of Cincinnati,
Edward Lauterbach, Eugene Tread
we'll and Evarts of New York; Judge
Alexander Humphrey and Augustus E.
Wilson, of Louisville, and Laurence
Maxwell of Cincinnati
The Union Pacific, or Hartman in
terest in the Southern Pacific was rep
resented by Messrs. Humphrey. Max
we'll and Evarts and the Keene or ma
jOrity holders interest by Senator For
aker and Messrs. Lauterbach, Tread
we'll and Wilson.
Affidavits in support of the bill OF
cific answer, with affidavits were filed
during the day. Mr.. Harriman's affi-
davit was read when the hearing be-
gan and upon it's conclusion, Mr.. Lau-
terbach representing the Keene inter
ests, presented his argument. He was
followed by Judge Humphrey for the
Hartman interest. Judge Humphrey
had not completed his argument at q
O'Clock, when an adjournment was
taken until tomorrow.
New York, April 1.-The affidavits in
the answer of the Southern Pacific Com
pany to the suit of Talbot J. Taylor &
Co, against the Southern Pacific and
Union Pacific deny that the Southern
Pacific is operated in the interest of
the Union Pacific.
The most important of the affidavits
is made by z. H. Hartman. In it he
sets forth that a mutual friend of him
self and Edward Lauterbach, told him,
Hartman, that James r. Keene repre-
sents a pool holding 10000 or 1000
shares of Southern Pacific and that Mr..
Keene himself held about 10000 shares;
that they contemplated action which
says the affidavit would make us d
great deal of trouble, unless we pur-
chased said shares from them; that he
would sell the pool shares at about 20
and his own shares at about 49," Mr.
Hartman declares he replied that he
would not be forced by fear into any
thing that would be adverse to the in
terests of the general body of the
stockholders Of the Southern Pacific.
Otto H. Kuhn. of Kuhn, Loeb & Co..
a director of the Southern Pacific, says
in sworn statemen that Edward Lau-
terbach told him there were only two
ways to avoid hostile proceeding, either
to buy the holdings of the Keene pool
at the price of about 20. or to start the
payment of dividends on the stock at
a rate of not less than 4 per cent per
annum.
Other affidavits by J. Kruttschnitt,
fourth vice president and General Man
ager: ]. c. Stubbs, third vice president
and other officials are presented to
show that the Southern Pacific is oper-
ated in the interest of its stockholders
and not for the benefit of the Union
Pacific.
Mr.. Harriman's affidavit relates that
in the autumn of 1901, Edward Iauter-
bach introduced David Lamar to him.
Hartman, and that Lamar said he had
II lSIiulS IGldlIOIlS WIN James IL.
Keene. a large Stockholder in Southern
Pacific and that Mr.. Keene was con-
templating some action against the
management of the Southern Pacific
He. Lamar. stated that he would like
to work with me-" continued Mr.. Har-
riman, ''and that if l would make an
alliance which would be of some ad-
vantage TO him, that he had such in
1uence over Mr.. Keene that he could
induce him not to instigate any ad-
Verse action against myself and allied
interests. This proposition Mr.. Harri-
man did not accept. Several inter-
views with James r. Keene followed.
On this point the affidavit says the fol-
lowing:
MIR. keene stated to me that he had
large holding in Southern Pacific
Company stock, that he would like to
Join with me in purchasing the shares
in the market: that he believed there
could be great deal of money made
thereby and that he would act for me
either in purchasing for us jointly OF
for myself if I wished it"
To this Mr.. Hartman replied that he
believed lit would be a mistake to
create a speculation in the shares OF
stock and advance their price to a
basis that would justify the buyers in
expecting a dividend in the near fu-
ture." Mr. Keene then gave assurance
that he did not want to act in any way
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