New-York tribune., 1907-11-12
QUESTION RIGHT TO ACT
United States Erpress Company
Opposes Legislature Regulation.

Albany. Nov. 1l.-Albert Boardman repre-
,enting the United States Express Company be
roro the Public Service Commission of the I'd
District. questioned to-day the right of the
Legislature to regulate the powers of the seven
directors Of the United States Express Com
many a joint stock corporation He contended
that the duties Of the board We're prescribed in
the articles Of association.
The question was raised by Mr. Bosrdman al
tce beginning of the hearing requested by
,aiu shareholders in the United States Express
company. who say they represent more than
one-half of the stock. and ask that the com
mission determine the advisability of recon-
,7lending 10 the Legislature certain amendments
% the law relating 10 joint stock corporations
conducting the business of common carriers So
rs n bring about the election OF directors when
desired by majority of shareholders.
Nr Boardman suggested that before the COM
mission took up the complaint. it should first
secure the views OF Governor Hughes and At
torrey General Jackson as TO the constitution
aHty Of the legislation requested hut the sug-
gestion was not favorahy received-by the com
mission.
Fueene hraemer. of New York assisted by :.
s HIATT of Albany. represented the petitioners,
Nj Eraen1er said that the board OF directors 81
tho United States Express Company was
self perpetuated body; that no meeting of
stockholders had been held since 1862: that al
though the board of directors had been re
uuested bv = majority OF the stockholders to
can meeting for the election Of directors II
refused 10 do SO: that the United States En-
press Company is controlled by the Adams and
American express companies. although they
are all supposed TO he business rivals and that
lleither one Of the last two companies has had
? meeting Of stockholders in years for the pur
pose Of electing officers.
Nfr Kraemar also brought out the fact that tho
following seven directors Of the United States
Express Company are being paid 5000 a year
for serving as directors: United States Senator
= g Plat who is also president receiving an
annual salary Of $4,000; II. Crosby. vice-pres-
dent and secretary, at annual salary OF
$4,000; L. T. Platt treasurer. for which he
receives annually $1,000; F II. Platt. who is
also counsel TO the company; Francis Lynde
Stetson, /. {. Weir and ]. c. Fargo.
Chairman Stevens referred to one section OF
the articles of association which provides that
10 director of the United States Express Com
pany shall be interested in a rival company. It
was admitted by Mr. Boardman that Messrs.
Fargo and Weir are officials Of the American
sud Adams express companies. respectively. and
hold jointly 20o0O shares of stock of the United
States Express Company
Mr. Boardman said that all three companies
had community Of interests and insisted that
unless these conditions existed the stock OF the
Tinted States Express Company and the other
express companies would be almost worthless,
contending that il would be practically impos
sible otherwise to conduct the business of the
companies at a reasonable profit. THE profits
of the express companies said Mr.. Boardman,
are yearly decreasing, and with the threatened
government parcels post the outlook for them is
not a very happy one"
II developed also that according to the articles
of association 10 transfer OF stock could be made
without the consent Of the directors and that the
board had the right to dissolve the association
II il saw fit. Mr.. Kraemer said that since his
clients fled their complaint with The commission
the United States Express Company had in
creased its dividends from 20 per cent.
The commission ordered counsel on both sides
20 submit briefs within thirty days the legal
INTERPRETATION OF the articles OF association Mr..
Kraemer was directed also 10 file specifications
as 70 facts II an investigation IS desired on any
particular subject, and to give proof or submit
evidence, either oral or written, az TO guide
the commission &c II deems It advisable to go
further into the subject.
The complaint against the United States EX-
press Company of alleged discrimination against
shippers between ElTn:ra and Delhi ad-
journed until a later date, when Mr.. Crosby, the
yice-president and general manager, may be
examined