The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-18
Hartman Fails in Effort to
Get Illinois Central.
BITTER FIGHT at WHEELING
William y. Cromwell Accuses Presi-
dent of Violating PrOmise-Repiiea
That Line VIII not be Run I'm In
tercst Of Wall Street-State to
Waive s3,OOO,OOO. Claims.

vesant Fish, of the Illinois Central Rall-
road Company. came out victor over f.
II. Hartman at the annual stockholders
meeting to-day. after a sensational scene,
in which Mr.. Fish was openly and bitter
" accused of violating a promise.
The fight was over the election Of
director to nil the vacancy caused by the
recent death Of w. Morton GriuneIl Mr..
Fish's candidate was James ". Cutting.
Of New York while Mr. Hartman wanted
Henry ". De Forest.
1t was a struggle between the Illinois
Central and the Union Pacific interests,
according 10 President Fish, who directly
accused the Hartman interests Of at
tempting TO secure control Of the policy of
the Illinois Central and make it subsidiary
TO the interests of the Union Pacific
Mr. Hartman himself was not at the
meeting. but was represented by William
Nelson Cromwell, the New York attorney
At one point in the proceedings the
language became almost violent. Mr.
Cromwell declared that no man of honor
could divide promise, and called on Mr..
Fish not to violate his agreement. This
was the alleged compromise made be
tween the Fish and Hartman men at
directors meeting in New York some
time ago. when, as Cromwell asserted,
Fish agreed TO support De Forest.
RePudinted by Fish.
Mr.. Fish. on his part, repudlated De
Forest, saying lie had since learned that
the latter was a director in the Union
Pacihc.( and man who would throw
the balance of power in favor Of that
road and against the best interests of
the Illinois Central. Cromwell in a heat
ed manner. said that such talk about De
Forest was mere sophistry, and that his
election could not turn the scale in IA
vor Of the Union Pacific.
However, when the eletion Of a direc-
tor came 70 a vote, il was shown that
Mr. Fish had control of 6So,s57 shares.
and that Mr.. Cutting had a large ma
jority. The other new directors chosen
are:
Charles n Beach. and J. c. Hanrahan.
Cornelius Vanderbilt was reelected.
President Fish in his opening state
ment to-day, drew instant attention by
saying that the Illinois Central had al
ways been operated as a railroad. and
not in the interest Of Wall street. Ii had
policy. but had been run IN the inter
ests Of most Of the stockholders, rather
than for the select few
For year or more. said he. "it has
been q matter Of common nOtoriety that /
those connected with the Union Pacific
have been attempting to secure control I
OF the policy Of the Illinois Central. The /
issue before US to-day is whether this |
road shah continue 10 be operated as ar /
independent road, or shall it be operated |
in the interests in the Union Pacific"
The struggle which ended to-day has 4
been one Of the most sensational in re- 1
cent railroad history. Since Mr. rish /
hrst learned that Mr.. Hartman was NOV
ing every interest he could bring TO bear
TO secure enough Illinois Central stock
10 control the situation, he has been ac-
tive in a campaign for the possession OF
stock. Without notice 10 or approval of
the board Of directOrs-of which he was
not sure--he issued a statement
to the shareholders. showing the progress /
Of the road under his management.
Approve Present Control.
Reliable fnanciers over the country ap-
proved Of his showing. and declared
change would be detrimental to the best
interests of the road Mr. Fish's efforts
were suddenly aided by Harriman's
coup in Union Pacific. That stock ex-
change deal sent the wavering stock
holders in large numbers to the side Of
Mr. Fish, and his tremendous majority of
holdings to-day settled the affair
This settlement VIII also cause the /
State of Illinois to waive the adjudica- /
ton OF its s5,00e000 back tax claim against |
the Illinois Central Railroad until the I
inc aF II
will be IS uncertain.
The annual report showed that with a 1
main-track mileage of 434 the ILL I
nois Central has earned during the pre- I
ceding fiscal year So, SIS, 400 gross, with an
excess of SIS, 4a5.S2f over expenses of oper- /
alton and taxes. There was deducted for 4
interest on the funded debt and rent Of 4
subsidiary roads S7,593,5S5. The net in /
come for the year was SO. So 80