Omaha daily bee., 1906-11-08
Retiring President is Accused Of Violstiug
an Agreement.
AseE OF DOUBLE DEALING MADE
This Mr.. Fish Plstly Denied, Raising an
Issue Of veraOity.
GREATEST RAILROAD SYSTEM IN WORLD
Move Means McrRer of Lines from
Atlantic to Paciae and from Great
lakes 40 Pacific via Gulf
of Mexico.

NEW YORK. Nov 7.-By the election to- /
day OK j. r. Harahan as president OF the |
Illinois Central Railroad company to sue !
coed stuyvesan, Fish. It Is believed that |
y. II Hartman has at last realized the |
fulhllment Of his plan to coutrr' a railroad |
line from the Atlantic to the a, oceans !
In this great plan the Hin ~ n was
the one link missing TO COM p. 8, = OF
track from New York to sa. feSN. 70
and Portland, Ore, from the Gr <
to the Gulf Of Mexico and from T. n
to the Pacific again. Until within q,
months eastern terminals OF the Harrm
system we're at Kansas City. Omaha ant
New Orleans.
The FIRST important step in the direction
IN securing the desired outlet on the At
lantic seaboard for the Union Pacific and
Southern Pacific railroads is believed to
have been taken by Mr.. Hartman several
weeks ago. when It was reported that one
Of the roads under his control had taken
over the control Of the Baltimore & Ohio
by the purchase OF block Of 10000 shares
OF the Baltimore 4 Ohio company. which
was sold by the Pennsylvania Railroad
company. This would give Mr. Hartman
a route from Chicago and St. Louis to Bal
tlmore and New York To complete the
ambitious proposition for continuous line
FROM ocean to ocean II was necessary only
20 connect the western terminals Of the
Baltimore & Ohio with the eastern termi-
mails Of the Southern Paoihc and Union Pa
aiic. and this purpose the Illinois Central
serves amply. Its line from Omaha to Chi
caso ties together the Union Pacific and
baltimore & Ohio. while the Illinois Cen
tral branch from Chicago to New Orleans
gives the Southern Pacific entrance into
Chicago and the seaboard
Taken together, this system. II unified.
puts under one control more than 2S.OOO
miles OF track. capitalized at more THAI
$l7OoOOO.oOo
No Votes Against Harahsn.
James r. Harahan vice president OF the
Illinois Central was elected president OF
the company at meeting OF the board OF
directors in this city by a vote OF to o.
the adherents of President stuyvesant Fish
not voting. The meeting is reported to
have been stormy one The directors who
voted for Mr.. FIarabgn were John Jacob
AStor, John W. Auchineloss, Robert W..
Coeiet James ~r. Harahan. u. W. Harri-
man. walter Isuttgen. Charles A. Peabody
and Cornelias Vanderbilt.
The following. directors did not vote:
Stuyvesant Fish, Charles NJ. Beach, j.
hewitt Cutting and Charles s peneen,
member Of the board.
Tohn G. Welling, a director. was not pres
ent owing to illness. No successor to Mr..
Harahsn was chosen. but the other officers
~ the company whose terms expired were
.re-elected by vote Of 10 TO 0, Messrs. Fish
and Beach not voting.
Directors Explain Action.
shortly before the meeting the eight di-
rectors who voted for Mr.. Harahan sent \
letter to President Fish giving their rea-
for raftfefur IN vote for HE e-alacfio,
The letter declared that in June last with
out consulting the other members OF the
board of directors, Mr.. Fish issued circu-
lar 70 the stockholders requesting proxies
for the annual election. At the next meet.
ing of the board 1t was declared Mr.. Pea
body offered a resolution that a COMMITTEES
of directors. including Messrs. Astor. Auch
incloss, Goelet, Duttgen and Vanderbilt b
appointed to request proxies from stock
holders for the animal meeting II was de
clared that Mr.. Fish defeated such action
by leaving the room and breaking qlo
rum. The board then adjourned and durini
the following week Il was declared Messrs
Fish, Peabody and Hartman signed al
agreement that the successor to w. Mortoi
Grinnell be selected by a majority Of tn
directors. that Mr. Peabody's resolution b
Withdrawn ana not revived and that Mi
Hartman asked that the Hartman Kuhn
Loeb proxies be given to Mr. Fish. Tli
agreement is said to have been made t
secure peace ana provided that MIR. Fls
was 10 vote all proxies The letter con
tinued as follows
At the meeting held Immediately afte
the, signature Of the paper, Mr., Peabod
withdrew his motion. all proxies whic
could be controlled were subsequently de
livered to you and YOU were relied on {
carry out this agreement We feel wal
ranted IN saying that but for the agree
appointed by the board which would hav
obtained a majority OF proxies and 70
iy.
RFeach Of Faith Charged.
shortly before the annual meeting Messr
Auchineloss, Goelet Harahan, Harrimal
LuttEen. Peabody and Vandefbilt- a m1
1ority OF the directors, notified YOU
writing Of the selection of Mr. Henry v
De Forest as successor to Mr. Crime
In strict conformity with the agreemeI
and requested that the proxies in yot
hands be cast for him. as agreed by yol
which you absolutely refused TO do an
instead used the proxies 20 elect your PEI
sonsi ipdiyid9al nominee. You were n,
satisfied 10 decline TO vote for Mr..
Forest on the ground that no selection ha
actually been agreed on, and 80 leave
proceeded 70 appropriate the proxies an
convert them TO your personal purposes.
Moreover. you seized the occasion. in
written statement read at the meetinR an
afterwards published 10 reflect upon
majority OF your fellow directors and
mating MT De Forest, and arrogated
yourself alone the duty and function res
ing upon the entire board Of protecting HI
stockholders and serving the interests
the public.
In violating the agreement and electlI
YOUR own personal nominee you assum,
to treat as a personal ahair the proxi
gven 20 You upon the faith of the agro
ment furthermore Notwithstanding ii
, positive agreement that the three director
Messrs. Beach, Harahan and yanderbi
whose terms we're expiring should be +
elected. We have good season 70 belle
that up 70 the last moment you serious
planned a breach OF that provision als
Among other things. there appeared
the Chicago Tribune and in some OF 4
New York papers, on the morning of 4
election. a statement 70 the effect IN
you proposed 20 elect your new directo
entirely OF your own choice and not 70 I
elect three outgoing directors.
Before the meeting III. Htrthal. one
the outgoing directors, called upon YOU a
asked you whether that statement was o.
Continued on Third Pase)