The daily morning journal and courier., 1903-06-20
COMPROMISE NOT EFFECTED
KEENE AND HARRIMAN INTER- ESTs STILL AT LoGGERHEADS.

A Brief Containing Sensational Anesn-
 tions Filed Yesterday by the Appel
 lants-Twonty-six Arguments Ad-
 from Voting the Union Pacific Hold
 ings in the Southern Pacific Election.
 Cincinnati, O., June 19.-Contrary to the report that compromise has been effected in New York between the Keene and Hartman interests and that the Southern Pacific railroad suit had been settled, a brief containing sensa- tional allegations was filed to-day by counsel for the appellants.
 > The original suit involved the question of a right of the Union Pacific directors to vote in the stockholders meeting of the Southern Pacific. The Hartman in- terests, which, represented the Union and Central Pacific roads. had secured a controlling interest in the Southern Pacific road and at the annual election, which was to have been held last April, expected to control the meeting and elect their officials. Suit for injunction was begun by the Keene interests, rep resenting the Southern Pacific, the &C., tion going to the United States cuort of appeals here from the Louisville dis trict.
 The brief filed to-day was prepared by Senator Foraker of Cincinnati, Angus tus E. Wilson of Louisville, Edward Lauterbach of New York and Eugene Treadwell of New York.
 Twenty-six arguments were advanced in behalf of the appellants to restrain the Hartman element from voting the Union Pacific holdings in the Southern Pacific election. Included in the argu- ments are allegations among which are:
 The Union Pacific and the Southern Pacific roads, being competitors it was violation of public policy, and hence tllGSdl SuI IllG OIllUH IU dCuulIC control of the Southern Pacific by pur- chasing and voting its stock. The proof shows thatit is within the power of the Union Pacific to practice abuse and discrimination against the South ern Pacific. The proof shows that dis crir1ination has been practiced in malz- ing expenditures on the Central Pa cific. From the affidavits it appears that twice as much money has been ex- pended from the earnings of the entire Southern Pacific system of about 5000 miles, on the S71 miles of tine Central Pacific railroad between Ogden and San Francisco, as has been expended on the remaining 5000 miles and that the in- mediate purpose of such expenditure is to make the Union Pacific line direct through route from Chicago to San Francisco by way of Omaha and Og- den, for the purpose of making it the main competitor in Continental business of other trans Continental lines. The result win be to give the Union Pacific a haul over its entire line between Omaha and Ogden, and the Southern Pacific only the short haul between Ogden and San Francisco, instead of the long haul over its main lines from New Orleans. This would apply to all business originating in the Atlantic seaboard, as we'll as business diverted from its main line to the Union Pacific, or direct through line with corresponding advantage to the Union Pacific. In figures the pleadings show that since the Union Pacific man. agement has assumed control of the Southern Pacific, the system previously in vogue of keeping accounts of dis bursements has been discontinued and that 1t is impossible to give figures &C., curately. It is estimated, however, that out of about $43,465,000 expended for betterment S2S,O0O,O0O is now being ex- pended on the S7O miles of the Central Pacific between Ogden and San Fran cisco; $6,650000 on the Southern be- tween San Francisco and Portland, Ore; s2,200, ,o0O on the 277 miles between Sacramento and Bakersfield, branch of the Southern Pacific CT total Of S36,s50,oG0 out of S4S,465,00o on 1920, ,OOo miles of Southern Pacific system in which the Union Pacific is directly in- terested."