Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-18
NEARING THE CRISIS
The Keene-Harriman Fight
to Control Southern Pacific
IF INJUNCTION HOLDS
KEENE WILL HAVE LARGE REP
RESERVATION ON BOARD.
Michigan Central to Have Competitor
TO Build Engines and Cars
Other Railroad News.

The Keene- Hartman contest for control
of the Southern Pacific railway is rapidly
nearing the crisis stage. The keene in
terests are backed by a 100000 share pool
which, rumor says, has been added to by
10000 Shares more, to be used for voting
purposes at the forthcoming annual meet
ing Of the company on April 8. The date
of the expiration Of the Keene pool has
been extended from April to April 10.
The Hartman interests are Just now
somewhat embarrassed by the temporary
injunction by the Kentucky courts-the
home Of the Southern Pacific Company
restraining them from voting the OOO(
shares of stock held by the Union Pacific
are competitors and that the control OF
one by the other is restraint of trauspor-
tation facilities by the terms Of the inter
state commerce law.
If this injunction holds on the date Of
the meeting of the Southern Pacific stock
holders, the Keene interests, it is claimed,
will have an equal footing with the Harri-
man people. This will insure Mr.. Keene a
large representation on the beard of d.
rectors of the road.
Another point which has been raised in
the contest was settled yesterday by the
could not invalidate the election Of officers
by staying away from the meeting should
they be restrained from voting the shares
controlled by the Union Pacific.
Under the Kentucky law the election will
be valid, as this law provides that such
of the shareholders as actually assemble
at a properly convened meeting constitute
quorum for the transaction of business,
and a ma jority Of that quorum have author
ity to represent the corporation.
If Mr.. Keene succeeds in getting control
Of the board of directors he will. it Is I'M
derstOod, at once 1naugurate the policy OF
diverting the earnings of the Southern Pa
ciflc system to paying dividends on the
stock of the corporation. On the other hand
the continued control Of the Hartman in
terests means that the present policy OF d.
verting the earnings TO extensions and i'm
provements Of road and equipment will be
continued.
Want Bonds Declared Illegal.
The minority interests Of the Central Pa
cifc Railway Company have brought suit in
the United States circuit court to have de-
clared null. void and fraudulent $120,OOO.OO0
of bonds issued by the Southern Pacific
Company and the Central Pacific Company.
The court is also asked to discredit in the
same way $2O,OOO,O0O of preferred stock Of
the Central Pacific Company. which is Sc
cured by liens upon the property OF that
road. Both the stock and bonds were Is
the purpose Of making money through their
sale. The amount is declared to be many
millions of dollars in excess of the author
lied capitalization Of the property.
Michigan Central to Have Competitor
The Pere Marquette railway is just con-
GLIDING arrangements for terminal facilf-
ties in Chicago, and has negotiations I'M
der way for an entrance into Buffalo. The
official announcement Is made by Mr. New
man Erb first vice president of the road,
that before many months competing line
to the Michigan Central would be In opera
ton between Chicago and Buffalo. The
road extends through Michigan and INTO
Canada, the tracks of the road having
already been laid as far east as st. Thomas,
Canada The road will undoubtedly en-
ter Chicago over the tracks OF the Illinois
Central road. No definite arrangements
have as yet been made regarding the Buff
falo terminals.
To Build Engines and Cars.
One of the developments of the past year
In the railroad situation Of the country
has been to demonstrate that there are
not locomotive factories enough in the
country to supply the demand for motive
power. For this reason the arrangements
of several of the great railway systems
of the country have decided to build plants
tives and cars.
The first of these plants is to be built
at South Louisville by the Louisville and
Nashville road, which Is now confronted
by the Atlantic Coast Line. 1t Is the pur-
pose of the road to make its new plant
the most complete in the country, and to
do this the expenditure of several million
dollars is contemplated.
An official of the company is authority
for the statement that inside Of a year the
great system controlled by the Atlantic
Coast Line would be in a position to man
ufacture all Of it's own locomotives, freight
and passenger cars and keep them in re-
pair In the meantime the company has
been compelled to give orders for seventy
five locomotives, at cost Of over 81 10000
and several Thousand freight cars with but
little hope Of getting them before fall.
The Rock Island company has let con-
tracts for a monster locomotive plant at
Moline. to cost $500, 600. This plant will not
turn out all of the equipment necessary for
company, but 1t Is beginning in that direc-
ton, and the plan is to make engagements
until this end is reached
The same problem has been taken up by
the Pennsylvania Railway Company and
the announcement has been made that
within one year this company will be in a
position to manufacture all Of it's locomo-
tives and rolling stock. Orders have been
placed by the Pennsylvania company for
several hundred new locomotives, or enough
to make new engine for every day in the
year. Freight and passenger cars have
been ordered in proportion. and the policy
is being pursued Of getting an adequate
equipment to handle the greatly increased
passenger and freight traffic which has been
the phenomenal record Of the past year.
Rates for g. A r. to San Francisco.
Transcontinental Passenger Association
lines have fixed the rates for the national
encampment Of the Grand Army, to be held
in San Francisco August II to o. From
Chicago, Peoria, Milwaukee and surround
ing territory the rate will be $50 for the
round trip, with the privilege of going and
returning by diverse routes. All the privi-
leges usually given on a nine months tourist
ticket will be accorded to holders of tickets
sold for the occasion. From points east Of
Colorado common points the dates OF sale
will be August to IA. inclusive, and west
of there from August to II. The final re-
turn limit Is October 10.
Escaped From st. Elizabeth's.
The police have been aeked to look ont