New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-01
FIGHT FOR RAILROAD.
WISCONSIN CENTRAL 1T.
Preferred Stockholders Demand
Control of the Board.

Holders NJ nreferred stock of the Wisconsin Cen
trail appear intend assert their rights 10 eject
majority of the board at the coming annual e'ec-
ton in October. What seems concerted move
msnt of the preferred shareholders to compeI 'he
management of the company to live up 10 inc asiee-
ment entered into with them on the reorganization
OF the company two years ago is on 1oo'' anu '
fair to retire completely the scheme OF the majority
common stockholders who are in hlfhe"lues over
the formation OF voting trust
The previous voting trust was dissolved N 1874
and an agreement then made by the manage
ment OF the company that in the case OF a laiuo ~
declare dividend the preferred STOCK WITHIN '"'
after tho expiration of the trust. the pre-
ferred stock should elect a majority of the board
The period named expired m JuS. No dlVloehuS
have been declared on the preferred stock. though
many holders Of that stock declare that the actua
earnings are more than enough to Justify one.
Several members of the syndicate which at pres
ent controls the Wisconsin Central and is split
into factions the question or the new voting
trust members of the reorganization commit
tee which signed the agreement az to the rights
OF the preferred stockholders. Under that agree
ment. the bondholders of the old company sur
rendered their bonds for the preferred stock.
and of them protesting that. regard
less of techncalitieS. the management should ar
range TO give a majority of the board to the pre-
ferred stockholders.
The point has been raised that ruch provision
would be contrary the statutes Of Wisconsin.
Asked about this yesterday, of the large pre-
ferred stockholders referred the question to his
counsel Rose. Reed Charles. who represented the
minority stockholders in the fight to compel Wells.
Fargo & Co. to pay larger dividends Mr.. Reed
made the following statement:
l have not vet seen copy OF the articles Of ia
corporation charter. This drawn by able
counsel and doubt IN accordance with the
vision giving the preferred stockholders the right
10 elect majority Of the board upon the Contn-
gency that has now arisen While the general
statutes Of Wisconsin. adopted In 1898 prO9ide that
each share OF stock of railroad corporation shall
have vote In the election Of all directors later
statute was adopted very shortly after this reor-
g..nizaton agreement made. in 1899, expressly
legalizing and confirming such agreements made
with view TO reorganization. II carefully
drawn TO NJ this case, and would seem do so.
This would give the preferred stockholders the
right TO elect majority of the board the coming
election.
As the stock is now non dividend paving. probably
large part OF it, standing in the of brokers
and former stockholders, has never been trans
ferred. Any preferred sock holder who may wish TO
vote his stock at the meeting Of October should
not fall 10 see that il transferred to his own
closed on September s, otherwise it may be voted
by the stockholders of record defeat the interests
OF the real owners 1t is stfll possible, of course
Tor the directors to declare a dividend before OC-
tooer 8 but if they do not do effort will be
made by the independent preferred stockholders
to elect majority Of the board.