The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-12-01

Union FAtAuG NWulCu ~ y CuuuoCbAus anu uOb
competing linel he has allied himself with q
rival system. competing throughout almost
the entire territory from Chicago TO New
Orleans, by becoming a director and member
Of the executive committee OF the Missouri
Pacific. which. through its relations with the
Texas and Pacific. Iron Mountain. Wabash
and other companies. IL one Of the strongest
competitors of the Illinois Central.
. The most recent example Of his recklessness
in serving his own interests at the expense
Of the stockholders. FOR whom he Affects 40
much concern. was the recent commencement
and present prosecution OF a suit In the courts
at Chicago to establish the proposition that
no corporation has the right to own stock In
any Illinois cOTpOratiOn--a proposition which
IL finally established will necessarily work
great injury to the stockholders of the Illinois
Central Railroad Company. as well NJ other
large systems Incorporated under the laws Of
that State. and may jeopardi2e the integrity
OF the Illinois Central system itself. which
was formed 30 largely through the acquisition
and ownership OF stocks In other companies.
The signers are J. T. Harahan. Charles
A. Peabody. Robert Walton GOelet, John
w. Auchincloss. Cornelius Vanderbilt, j. j.
Aston. z. II. Hartman and A.. q. Hackstaff
When MIR. Fish saw the circular he said
in answer:
This. desperate and ViciOus attempt to
get proxies for. the avowed purpose OF re-
electlng r.. II. Hartman and perpetuating
the Union Pacific control of The Illinois Cen
trail il in fact a confession Of defeat. Men
do not resort TO calumny and deception
until they have exhausted all legitimate
means for attaining their purpose. II IL
be Mr.. Harriman's purpose to divert stten-
tion from the bad eminence" he attained
through the Chicago and Alton disclosures
and his investments" for the Union Pacific.
a. shown by the Int erstate Com
missions report No. s4S. by striving to throw
mud nj me. he has misjudRed the intelligence
Of the stockholders OF the Illinois Central.
All of the calumnies in the circular Of Mo-
ven Der "a we're also contained in a circular,
dated September "a and signed J. I. Hsrahan.
president. As soon as / saw it's false charges
replied to them in great detail in an answer
ing interview which was given to the press
and mailed TO the stockholders on Sep
TENDER "a.
That the stockholders we're not deceived
by The false statements in the circular Of
September - was demonstrated by the
result Of the canvass Of votes in Chicago on
October 10. which gave me a substantial
majority Of all the stock legally entitled TO
be voted and counted, That the present
repetition Of these false statements will fail
Of the purpose intended I have not the slight
est doubt.
Nor will the stockholders be deluded into
believing that this last effort of Mr.. Harri-
mans has the sanction Of the board OF d.
rpctors or even Of all its members. for the
signatures Of Ave members Of the board
Hon. Charles $. Deneen. Governor of Illinois;
Mr.. Walther Luttgen. Mr.. Charles M. Beach.
Mr.. }. Dew. Cutting and myself-are absent
from that paper.
The charge that | ignored the board and
attempted 10 exercise authority Independently
thereof il absolutely and totally false. As
the records Of the com pany abundantiy show.
! urged the board in season and out to meet
more frequently. and always laid everything
before them. Indeed. when the Union Pacific
party in The Illinois Central board proposed
to delegate its powers to an executive COM
mittee IL was my efforts that prevented this
device. which has pro we'd 40 profitable TO
certain directors OF the Union Pacific. from
being also saddled on the Illinois Central.
The talk now being put out about the Mis-
souri, Pacific Is pitiful. As | have already
stated. my whole interest in that company
consists Of 500 shares. which are now worth
less than S25. 900. On the other hand, ! hold
and own the same certificates for T.. l52 shares
Of Illinois Central stock which / held when
depOsed from the presidency in November.
1908. These are now worth upward Of a
million and a half dollars and were we'll
worth over ", 900, OOU when Mr.. Hartman
and two other directors OF the Illinois Central
being also directors Of the Union Pacihcl
secretly HOl0 MS anu J ptllNNcs a EOON VIII
OF their interest ia Illinois Central 10 The
Union Pacific in July. 1905. and concealed the
fact from their associates in the Illinois Cen
trail, until il was brought out in the Interstate
Commission Investigation in jan
uary. 1907. 81 far as | know no one con-
nected with the Missouri Pacific owns a share
OF Illinois Central.
The suit of Edmunds ri al. vs.. Union Pacific
Railroad Company ct al. vas brought for
the sole purpose of freeing the Illinois Central
from Union Pacific control. and has thus far
succeeded. and will. l believe, succeed to the
end. IL the proposition that no railroad cor
poratiOn has a right to own stock In any
other railroad in Illinois should be thereby
established IL will not AFFECT the Illinois Cen
trail adversely. As those OF its directors who
signed the circular Of November % ought to
know, il they do not. the Illinois Central long
ago bought outright the railroads and fran
chises Of every railroad corporation in Illinois
OF which it owned a single share. excepting
only the South Chicago Railroad and the Blue
Island Railroad. The former Is five miles
in length and the latter is four. and the IL
linOis Central owns, as Il il expressly author
lied BY law 10 own, all the shares and
all the bonded Indebtedness of both.
This repetition OF ISLANDERS. misrepresenta
tons and idle tales will not conceal from the
stockholders the real issue. which Ia the re-
election or the rejection OF +. II. HsrTi-
man. Nor can the stockholders be induced
TO turn their property over to the hooters OF
the Alton.