The Savannah morning news., 1903-04-07
INJUNCTION DENIED
kEENE FAILS TO MAKE HIS POINT
AGAINST HARTMAN.
WILL APPEAL HIS CASE
ELECTION OF DIRECTORS, IN
MEANTIME. is STAYED.

United states District Court Judge
Does Not See Why Hartman In
terests should Not Vote the Tn
ion Pacific Holdings in the south
ern Pacifc-DecisiOn Was That
Union Pacific Is Neither an Ac-
cessOry Nor Actual Party to the
Suit.
Cincinnati, O., April 6.-Judge Lur-
ton this morning refused the injunction
asked for by the Keene interests to re-
strain the Harrigan interest from vot-
ing the Union Pacific holdings at the
Southern Pacific Company's election
next Wednesday.
The opinion, which was quite lengthy,
was against the contention of the COM
plainants that the Union Pacific was
an accessory or actual party to the
suit, even though Chairman Hartman
of the Union Pacific Board of Directors
had made an affidavit in the case. Be-
ing mere witness in the cases did not
amount to an appearance by the Union
Pacific as a party in the suit. AS to
L
was expanding the receipts of the
southern Pacific in betterments on the
Central Pacific, with view to the uti-
mate purchase of the road, the court
held that all this was specifically de-
MED by the defendants, and that even
II true, it could not be sustained, ex-
cept on showing that the action was
ultra-vires On the whole, the court
heid That the case be dismissed.
senator FORAKER, who represented
.he compartments, the minority stock
noluers or the Southern Pacific, gave
Aolce or appeal to the United States
court of Appeals, and asked that,
pending the hearing of this appeal,
me election of directors of the South
erh Pacific set for April be stayed.
Lawrence Maxwell and Judge Hum
phrey, representing the defendants,
agreed to that order inasmuch as TO
40 otherwise would render the appeal
lhetective. 1t was agreed that the
stockholders may meet as arranged and
eject chairman and then adjourn I'M
III called by the chairman, after the
appeal has been disposed of by the
Court of Appeals.
Stockholders May Vote.
After reciting the facts in a history
OF the contention the affidavits, argu-
Hehts and claims in support of both
me Dill and application for an injunc-
Ilon and the answer, Judge Lurton
said:
The right of a stockholder to vote
upon his stock at all meetings of
shareholders is right inherent in the
ownership of the shares and as such
a property right. If the right of the
gQoOoO shares beneficially owned by the
Ilon Pacific Railroad Company to
Note De denied, 1 should have to hold
ailu adJudge either that the Union Pa
vilic Railway Company was incapa-
pIe OF legally acquiring and holding
SIdfes in the Southern Pacific Com
Pdny' or that, if competent to own and
noid such shares, it ought not to he
suffered to exercise the right of par
uclpating in the election of directors
such participation may result in
pacing the Union Pacific Company in
d position where it would be capable
~ controlling and dominating the
management of the defendant COM
pdHy. The effect of any such decree
D Dould be to deprive the Union Pacific
I.dllroad Company of one of the most
1dluable of the incidents of it's owner
aiIp OF Its Southern Pacific shares, the
aisht to vote for managing directors
." "a meeting of stockholders.
IS therefore, according to every
o5L. itlon, an indispensable party to
,iS Dill which challenges it's right 10
81. Twn or vote upon it's Southern Pacific
acti, eS; The Union Pacific is neither
co,,,tl NY nor constructively before the
nave Been Loyal to Trust.
MI ~ must not be overlooked that the
tbro,,ssiIl s agencies which have spoken
Pacifie d the answer of the Southern
dieIn,,o,u eIy that they are or have been
rIiraoS$ al 10 their trust as officers and
49,, tieo'ors of the Southern Pacific Com
&c ces ana deny that in their character
na,o1, i t1s OF the Southern Pacific COM
OH 'ley stand for and represent the
I've coihpany. They deny that the
ti,.o iodus We're in any sense COMPETE
nue,,o,t mat there is the slightest re-
for ho4il IN their acting as directors
~, ooLh COMPANIES, and we cannot ig-
more the fact that while thare nav be
~ r identity of interest in some particu-
Irnion me question of the right OF the
49, Facific Railroad Cor1panv to
is - iu vote the shares owned by it
nro+o,qi! ueSt lon which deeply affects it's
fbo S " rights, and in respect of which
HIS T 90 n Pacific Company as such
"5,i no interest whatever.
ines, Ihese are two wholly distinct COR
.ties i,s: having each it's own Lroper-
ana r ahd It's own body of stockholders.
for for ne neither has any legal right to stand
In MI OF Represent the other except as
|of nay tb be duly constituted the AGENT
|abe ns suggestion has been made that
hbe ullluaVlts and exhibits show that
eific PIg SO owned by the Union Pa
h. hailroad Company stand in the
IL h. OF e; H. Hartman. and that,
"'S made an affidavit, which has