New-York tribune., 1906-10-18

| resolution, Mr.. Fish entered into the agreement
of July o. and Messrs. Hartman ana Peaoooy.
| in turn, anxious to avoid public controversy
and injury to the credit and influence OF the
company that always come from q contest io5
control, surrendered their views ana ehtereu
into the agreement of July -
Mr. Peabody promptly fulfilled the agreement
by withdrawing his resolution Mt iarriindit
fulfilled it by turning all the proxies that
he had obtained amounting to over three hun
dred thousand shares, known as the hartman
Kuhn Loeb proxies, and those which therea1tef
came in A majority of the directors of the COM
pany, Messrs. Auchincloss, Hartman, Vanoer-
bilt Lutgen Harahan. Goelet and Peabody. each
separately signed and delivered written dec
laration addressed TO Mr.. Fish, declaring that
they selected Mr. De Forest as a director, and
requested his election. Accordingly Messrs. Har-
rinan, Peabody and their associates had turned
in to Mr.. Fish every vote and proxy they could
control or influence. They abstatned from per-
sonally seeking proxies in their own names or
behalf, and had recommended all stockholders
seeking information of them TO forward their
proxies to Mr. Fish. All their actions have been
taken with implicit reliance upon the agreement
of July % and the good faith of the parties to it.
When Mr. Fish this morning practically re-
pudiated the agreement and declared on every
hand that he would not be bound by IT or oy
the nomination of majority of his directors, he
was promptly served with the official notices
and protests such were subsequently read AT
the stockholders meeting. At the last moment
he fulfilled his agreement in part by the election
of Messrs Vanderbilt, Harahan ana Beach, as
agreed but only in part did he fulfil 1t, in that
he used the proxies received by MN unosr
specifc agreement to be voted for the nominee
of the majority of directors so as 10 elect NOM
inee Of his own personal selection
The suggestion of Union Pacific being in con
troll is q farce and a bugaboo. The board Of
directors thirteen in number with the GOV
ernor OF the state Of Illinois at their head 1t
is a board composed OF gentlemen OF strohS
individuality. and it is ridiculous to suppose
that three or four of their number would con-
troll the destinies of the Illinois Central. The
nresent election is not contest for control.
The issue is one Of honor. 1t concerns the fui-
hlment of Mr.. Ffshs pledge to secure the sup
posed advantage of another member Of the
board to support his falling powers. He chose
to break his written contract, made for the
peace and we'll being of the corporation
That Cornelius Vanderbilt always heretofore
classed as a supporter of President Fish in the
Illinois Central board, has recently given indica-
tions Of a probable change to af1liation with Mr..
Hartman has not been altogether news to Wall
Street. But that the of J. r. Harahan. who.
as second vice-presdent and general manager Of
the Illinois Central system, has been closely
ciated with Mr. Fish, should appear among the
signers OF the Hartman demand for the selection
of Henry W. De Forest successor TO the late
Mr. Grinnell is an unexpected development If the
agreement entered into in July between Messrs
Fish and Hartman provided for the election IN
Mr. Grinnelfs place OF g man accepta BILE to both
parties and not prominently identified with the
management of any other railway system as well
for the reelection of the three directors whose
terms expired yesterday. what could not be
derStood in the financial district why Mr. Fish,
having taken the ground as appears from the
Chicago dispatch that the agreement was violated
by the insistence of the Hartman directors on
Mr., De Forest, should nevertheless have cast the
vote which reelected Messrs Vanderbilt and Har-
ahan as directors, men who. II Mr.. CromwelTs
threat is carried out. will apparently next month
be among the majority of the board necessary 70
oust the present executive management
The suggestion heard downtown yesterday
that a reason for Mr.. Hartman reopening at so
early day the contest with President Fish may
friends have virtually obtained control of the Bal
timore & Ohio Railroad, and that control of the
Illinois Central, which extends from Chicago west
ward to Omaha, one of the Eastern terminals of
the Union Pacific, we'll as southwark TO the Gulf
at New Orleans, touching St Louis in IT'S course
and lntersecting the Baltimore g. Ohio. may seem
20 MIN now more desirable than ever before.
taetor IN the lining up of the Baltimore & Ohio
with the Union Pacific. IL was reported in Wall
Street yesterday, that Mr.. Harahan might be
eIected 70 the Illinois Central presidency, In
OF The retirement OF Mr.. Fish by the board al its
meeting next month for organization.