The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-04
PLANTS A SUIT
AGAINST GOULD
President Joseph Ramsey, Jr., of Wa
bash Files Action.
SEEKS TO GET INJUNCTION
ASKS COURT TO STOP STOCK
HOLDERS MEETING.

St. Louis, Oct. Suit for injunction
was filed in the st. Louis circuit court
by Joseph Ramsey, jr., president OF
the Wabash against the Iron Noun
tain and Wabash Railway companies,
the Mercantile Trust company of New
York. Walter S. Wilson. II. NJ. Walker
and George J, Could.
In his petition Mr.. Ramsey asks the
court to grant him an injunction pre-
venting the proposed annual meeting of
George Gould and his associates at
Toledo, O., where it is proposed to
elect a board of directors and a presi
dent to control the Wabash road for
the next year.
As a reason he alleges that one re-
suit of this meeting would be TO stifle
competition in traffic between the Wa
bash and Missouri Pacific roads be-
tween st. Louis and Kansas City.
Ramsey sets out in his position -
he is a resident of Missouri, while the
defendants are non-residents. He owns
$4,000 par value of the debenture
bonds of the Wabash class B and 100
shares of the capital stock He brings
the suit. he says for himself and 9TH
ers siimalrly situated. The Missouri
Pacific railway, he says, holds 10000
shares of Wabash stock the Iron
Mountain holds $1,000 shares of pre-
ferred stock and s.. 4S5, goo par value OF
debentures. these shares being held IN
trust by the Mercantile Trust company
of New York, Wilson, Walker and
Gould. Gould, he says, owns and con-
trolls a majority of stock of the Mis-
souri, Pacific and controls the majority
Of stock of the Iron Mountain railway.
Statements by Attorneys.
F. W. Lehman. attorney for Mr..
Ramsey, says:
The importance of this suit to the
public is in that il is a suit TO enjoin
rival companies of the Wabash from
voting its stock and debentures.
Judge Taylor. to whom the suit was
assigned. ordered the defendants 10
show cause Friday morning next why
temporary injunction should not be
issued.
Wells H. Blodgett. general solicitor,
and Z. 3. Pryor assistantto the pres
ident of the Wabash, both declined to
discuss the matter without first haV-
ing thoroughly acquainted themselves
with its details
This suit will make little difference
in the outcome of the election" said
Mr.. Blodgett. 1T seems 10 be the
custom for one road TO hold bonds oil
stocks Of another as part of its as
sets. This is a general custom and
cannot see how it can be classed as a
combination in restraint of trade"
Mr.. PRYOR said:
The stock transfer books are nov
closed until after the election. Oct 10
On the 18th the new list of stock and
debenture bondholders will be given
out, The debenture bonds of the Wa
bash have voting power the same as
stock, but how they are distributed
among the holders do not know"
Ramsey Awakes Suddenly.
Alex G. Cochran. vice president and
general solicitor, of the Missouri Pa
Cific, said:
We had no knowledge that the sui
would be filed until few minutes be
fore court convened. when an inkIins
reached us. We We're ON hand in cours
when the petition was filed. 1t is very
remarkable that %Ir. Ramsey shOulC
suddenly become aware Of the fact tha'
competition in traffic between the Wa.
bash and the Missouri Pacific might bs
stifled as a result of the meeting to b,
held in Toledo, when Mr.. Ramsey him,
self knows that the stock and bond,
have been thus voted for the last. ter
years, and there has been no suggas-
ton on his part that competition migh
be stifed.
There may also be q question ,aiseC
at the trial of whether or not Mr.
Ramsey actually owns the stock which
he claims.
Regarding the Iron Mountain there
is no allegation in the petition that il
is a competing line with either the Mis-
souri, Pacific or the Wabash, and as thu
entire petition is founded upon sti1ms
Of competition there is really no reason
for the Iron Mountain 10 be made a de
PENDANT. The only allegation regardins
the Iron Mountain is that the Missouri
Pacific controls a majority Of its stool
and it makes no difference Whethe
this is true or not.
There may be another question q.
to whether the real purpose of the sui
is to prevent the sitting Of competition
or because Mr.. Ramsey fears that j
the stock was voted it might proven
him from retaining his position as pres
ident OF the Wabash. Mr.. Ramsey ha
never before made any complaint, AM
this question only arises when there i
Il fight on"