Omaha daily bee., 1905-10-04
RANSEY'S FIGHT ON COULD
Wabash BmbrOglio Reaches Injunction
Stage of It's PrOOsedingL
SUIT TO PREVENT tLECTloN STARTED
Petition FILED in Sc. Louis Names
other Gould Lines as Core
spOndents and Asks for
Restraining order.

was filed in the st. Louis circuit court by
Joseph Ramsey, jr., president OF the Wa
bash, against the Iron Mountain and Wa
bash railway companies, the Mercantile
Trust company of New York. Walter s.
Wilson, II. NJ. Walker and George j. Gould
In his petition Mr.. Ramsey asks the court
to grant him an injunction preventing the
proposed annual meeting of George J..
Gould and his associates at Toledo. o..
where It is proposed to elect board Of
directors and president to control the
wabash road for the next year.
AS a reason he alleges that the one re-
suit of this meeting would be to stihe COM
petition in traffic between the wabash and
Missouri roads between st. Louis
and Kansas City. Ramsey sets out in
his petition that he is a resident of Mis-
souri,, while the defendants are nonresi-
dents. lie 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
others similarly situated. The Missouri
Pacific railroad. he says, holds 10000 shares
of Wabash stock, the Iron Mountain holds
5000 shares of preferred stock and s., i35 900
par value of debentures, these shares be-
ing held in trust by the Mercantile Trust
company Of New York, Wilson. Walker
and Gould. Gould, he says, owns and
controls a majority of the stock of the
Missouri Pacific and controls the majority
of stock of the Iron Mountain railway.
F. w. Lehman, attorney for Mr.. Ram
sey, says: THE Importance Of this suit
to the public is in that 1t is a suit to en-
join rival companies OF the Wabash from
voting its stock and debentures.
Judge Taylor to whom the suit was as
signed, ordered the defendants to show
cause at 10 o'clock Friday morning next
why a temporary Injunction had not been
issued.
what OmciaIs Say.
Wells II. Blodgett, general solicitor, and
T.. B. Pryor. assistant to the president of
the Wabash, both declined to discuss the
| matter without first throughly acquaint-
ing themselves with its details.
This suit will make little difference in
the outcome of the election" said Mr..
Blodgett. 'It seems to be the custom for
one road to hold bonds or stocks of
another, as part of it's assets. This is a
general custom and l can't see how II
can be classed as a combination in restraint
\ OF trade"
| Mr. Pryor said "The stock transfer
| books are now closed until after the
election. October 10. On the 11th the new
list Of stock and debenture bondholders
will be given out. The debenture bonds
\ of the Wabash have voting power the same
as stock, but how they are distributed
among the holders do not know
I Alex q. Cochran vice president and gen.
eral solicitor of the Iron Mountain, said
| I'VE had no knowledge the suit would be
filed until few minutes before court con.
vened, when an inkling reached us. We
! were on hand in court when the petition
was filed.
''It is very remarkable that Mr.. Ramsey
should suddenly become aware OF the fac
that competition in traffic between the
Wabash and the Missouri Pacific might bt
stified as a result of the meeting to be helC
in Toledo when Mr.. Ramsey himself know
that the stock and bonds have been thu
voted for the last ten years and there hai
been no suggestion on his part that com
petition might be stified.
Questions Ramsey's Ownership.
There may also Do a question raised a
the trial of whether or not Mr.. Ramsey ac
tually owns the stock which he claims
Regarding the Iron Mountain there is n
allegation in the petition that it Is a com
peting line with either the Missouri Pacifi
or the wabash, and as the entire petition /
founded upon sitting of competition, ther
|
to be made defendant. The only nllega
ton regarding the Iron Mountain is tina
the Missouri Pacific controls majority o
its stock and II makes no difference whethe
this is true or not.
There may be another question as t
whether the real purpose of the suit is I
prevent the sitting of competition or be
cause Mr.. Ramsey fears that II the stoc
was voted it might prevent him from re
tanning his position as president of tn
Wabash. Mr.. Ramsey has never befor
made any complaint and this question onl
arises when there is a fight on"
Edwin Gould, president of the Cotto
Belt road and brother OF George ]. GoulC
who arrived last night to attend the annus
: meeting OF the Cotton Belt today decline
, TO make any statement concerning the sui
= Ground for the Injunction.
NEW YORK, oct. 3.-President Ramse
said that application for the injunction
: made on the ground that the Missouri Law
prohibit a railroad running through ths
: state from selling ownership or control {
y parallel line. The Missouri Pacific, NJ
Ramsey said, owns IS 900 shares of Wabasl
preferred, while the st. Louis, Iron Mour
, tain & Southern owns s., 435. 900 OF Wabas
debenture bonds.
Asked as to the truth OF the report thj
the Gould holdings of Wabash amount
40 per cent OF the whole, Mr.. Ramsey sal,
Il doubt very much that George ]. Gou
and the Gould estate own more than
4, per cent. In fact. l believe that son
:. OF the Wabash directors hold scarce
more than enough stock to qualify the
;, as such. Russels Sage is probably n
most notable exception"
Mr.. Ramsey expects a decision on h
application for injunction on Friday
II was announced at the ONCE of GeorJ
]. Gould that nothing would be said the
:, concerning Joseph Ramsey, jr.'s, stateme