The San Francisco call., 1906-08-28
FEDERAL ND MAY
BE INVOKED.
Stockholders of Road
Consider Plan to Put
a Receiver in Charge

Great public interest seems to CEN
ter around the question as to the pos
sibility of the United Railroads in
voking the aid of the Federal Govern
ment to further its plans for defeating
the Carmen's Union. Yesterday it was
stated by one who is well acquainted
with the inner secrets of the corpora
tion that such move had been care
fully considered by lie directors OF the
roads and had received the attention
of the corporations counsel, both in
this city and New York. where the
representatives Of the heaviest holders
of United Railroads stock reside
1T may be one of the earliest
moves" said this man yesterday. and
if undertaken 1t would probably pro-
woke one of the bitterest strifes ever
witnessed on this coast. Patrick CAL
houn is anxious that bloodshed shall
not grow out of the present difficulties.
but his anxiety in this direction will
not interfere with his determination to
operate his streetcar system unmo-
Tested by the union men.
PLAN FULLY CONSIDERED.
The plan in its entirety for carrying
the existing troubles into the United
States courts has been gone over and
has been definitely settled as one
longed to point where it will mate
rally interfere with the operating f
the electric cars. To secure Federal
protection will simply necessitate
suit for receiver. one mat can be de-
pended on. and upon him will devolve
the responsibility OF getting the cars
under military protection.
1t is claimed that the stockholders of
the United Railroads. or rather those
who control the stock in the holding
company. have ample material upon
which to build suit for a receiver.
Their position is this:
The United Railroads Is controlled by
the United Railroads Investment Com
pany of New Jersey, a foreign corpora
tion, in which the principal stockhold
ers are Ladenburg, Thalmann & Co of
London, Berlin and New York; Patrick
Calhoun and Brown Bros. 8; Co. of New
York The first named firm represents
principally English and German invest
ors. Calhoun. who is credited with be-
ing the largest individual stockholder
in the United Railroads Investment
Company, is in reality a holder OF the
majority of stock. which is owned by
small concerns that have permitted
him to represent them and, by giving
him this power, have insured the per-
manency of his present position OF
president of the local corporation
RIGHT AS FOREIGN COMPANY.
Brown Bros & Co, formerly the
largest OF the shareholders. disposed OF
the bulk Of their holdings two years
ago to Ladenburg, Thalmann & Co. and
Calhoun, but they are still of sufficient
/ importance In the directorate OF the
holding company to have weight in the
adoption of any policy for the local
corporation
/ The fact that the New Jersey hold
! ing company is q foreign concern gives
I 1T the right to seek relief in the local
branches of the Federal courts if it
I should decide that its interests here are
/ not being properly cared for, and those
who pretend to be enjoying the con-
/ fdence of the United Railroads people
4 here insist that to prove this claim
would be an easy matter.
WOULD CALL FOR TROOPS.
/ Naturally the revenue OF the big in
vestment has been seriously affected by
/ the recent disaster. fact that the
/ stockholders, as well as the bondsmen.
4 have been quick to appreciate. For the
holding company, acting under the in
spiration of its own shareholders, to
appeal TO the courts for the appoint
nlent of a receiver on pretense that
its interests are not being properly
1 safeguarded, would not be unreasona-
bic from a business mans viewpoint.
f, especially in view of the fact that the
interest on the bonds of the company
year.
With the suit before the court the
next move would be the appointment
| of a receiver. and with this officer of
I! the court duly qualified he would pro-
ceed with the work of operating the
car system. Then the crisis would be
| hastened for the first show of resist
| he of trilr
force the court to give the receiver a
means of enforcing order, which would
| undoubtedly mean Federal soldiers, af-
| ter it had been demonstrated TO the
| satisfaction of the court that the
| United States Marshal's forces were
| inadequate for the difficult and ever
perilous task.
With the Federal troops in charge of
the railway lines the influence of the
strikers would be expected to wane
| rapidly.
4 LEGAL PHASES STUDIED.
President Calhoun has thought care
fully over all the phases Of this affair
and he is prepared to say just when
/ the Federal courts should be appealed
to. In fact. 1t is no secret among his
friends that the lawyers representing &
the different interests behind the
! United Railroads have laid before him
written opinions on all the legal
4 phases Of such a move and he and the
| directors of the United Railroads, as
sured of cooperation from the chiefs
of the other street railroads. which are
as deeply interested in the present
strike, although they have not yet be-
come as deeply involved in the trouble
as the larger company, are ready TO go
into court IL no other way lies open
for them to stop the strike.
1t is admitted by the officials of the
United Railroads. as well as the busi-
ness men of San Francisco, that the
solution of the present difficulties by
means s-of military force Is not