The Montgomery advertiser., 1903-03-14
MANAGEMENT OF PACIFICS
Discrimination Against the
 Southern Alleged.
A Temporary Injunction is Secured by the Keens Interests Which Will Be Argued in Nash
 vile April l.

Cincinnati. March 13.-In the contest bes tween the Keene and the Hartman inter- ests in the Union, the Central and tfs Southern Pacific Railways. the former today secured a temporary restraining or< der and notice was served on the lattexl that at Nashville. April 1. there wouldl be hearing of causes why an injunction 1 shall not be issued as prayed for. The bill asks for an order restraining and enjoining the Union Pacific from vot- ing its 75o.0o0 shares in the annual elec- ton to be held April S. and decree res quiring both companies to come into court to make answer to the particulars of the complaint.
 As the date for the annual meeting of; the stockholders of the Southern Paci1UI was April 8. it was desired to have they petition heard before the next election oNl directors.
 Bill Filed in Louisville. The Southern Pacific has a Kentucky charter, although 1t has no property in that State. Its legal headquarters are at Beechmont. Ky, suburb of Louisville where It's legal representative resides and for this reason the bill of complainN was filed in Louisville yesterday, but the attorneys found no circuit judge there and came here today where Judge Lur~ ton heard them in chambers.
 The Kentucky charter of the Southern Pacific Company is for steamship lines, ferries, terminals and for other purposes as well as for railways. Taylor, the complainant, Is a son-in-law of Jamez R. Keene.
 The attorneys on both sides held confer. ences here this afternoon before they left for their homes to meet again at Nash vile. two weeks from next Wednesday. Senator Foraker and Judge Harmon were | in conference after the other attorneys | left.
 The bill filed by the complainants, Tal- bot J. Taylor and James B. Taylor, form- ing the Wall Street firm of Talbot J. Taylor & Co.,. relates the history of the Southern Pacific Company, and discloses an alleged condition of affairs in which the Union Pacific interests in the South- ern Pacific Company's directorate have systematically managed the latter conn., pany in the interests of the former
 During the years 1900 and 1901 the Union Pacific Company acquired a holding of Southern Pacific shares amounting to $75,- 900. 750,0 shares. These were used, is Is declared, to elect a directory, each member of which was and is interested in the Union Pacific as against the South ern Pacific.
 To Defraud the Southern. The new directory. 1t Is stated, united all departments of the two roads wher- ever possible, Subject to a dominating and controlling influence in favor of the Union Pacific Company, whereby the in- terests of the Southern Pacific are en- dangered and prejudiced by discrimina~ tions in favor of the Union Pacific adopt. ing policies also that tended and do tend to direct traffic from the Southern Pacific Company which would, without the adop- ton of such policies, have come to thas road"
 Among other things, 1t is charged in the bill that the Southern Pacific Company was required to charge so excessive e. pro rata on through tariffs that 1t was virtually excluded from large volumes of business. It Is declared that large bet. torment expenses have been charged against the Southern Pacific operating expenses. whereas the custom is to fund such expenses in bonds to distribute the cost over series of years, thus avoids ing burden on the present.
 The bill declares also that the operat- ing expense accounts of the road either show true state of excessive operating expenses or an erroneous system of book- keeping, and that immense improvements. have been undertaken for the CentraR Pacific and erroneously charged against the Southern Pacific operating expense account. with the ultimate purpose of im- proving the Central Pacific at the expense of the parent system. buying 1t and -thenS purchasing the greatly impaired and de- preciated Southern Pacific system itself.
 It Is declared that during the eighteen months ending January 1. 1901. the Union Pacific had made improvements amount ing to nearly $22 900 in the Central Pa cihc, charging this amount against the operating expense to the Southern system and creating a deficit $3. .O7S.s29.a