The Havre herald. [volume] (Havre, Mont.) 1904-1908, 1907-09-27
ISSUES A STATEMENT
President OF Illinois Central
Scores His Predecessor.
SAYS CHARGES ARE UNTRUE

SAYS CHARGES ARE UNTRUE
Denies That Accounts of the Railroad
Have Been Padded or Manipulated.
Says Fish Borrowed Money on Poor
Security.
Chicago, Sept. 25-The following
was given out Tuesday night by j. I.
Harahan, president Of the illinois
Central railroad, addressed to the
stockholders.
'tThe statement in the circular let
ter issued by Mr.. Fish to the stock
holders and published Tuesday that
the Illinois Central accounts have
been padded or in any way manipu-
lated is absolutely untrue. He knows
that there has been no change what
ever in the relations of the Illinois
Central with the Union Pacific and
Southern Pacific. The resolutions
presented by him some weeks ago to
the board Of directors making these
charges were referred to the account
ing, traffic and operating officers and
their reports, which were transmitted
by me to the board Of directors, show
that the charges were utterly ground
less and that the accounts have been
kept precisely as they were under Mr.
Fish's administration and that the re-
lations with all connecting lines are
the same as before his retirement
His reference to alleged domination
by Union Pacific is merely an effort
to play upon what he supposes to be
current prejudice to further his own
interest and should not deceive any
one.
The attack made by Mr.. Fish upon
the character Of his fellow directors
and upon the operating, accounting
and traffic officers of the company
warrants full statement to the stock
holders Of the reasons why Mr.. Fish
was not entrusted with the continued
management of the property. I en-
close herewith copy Of letter ad-
dressed by eight directors Of the COM
fpany to Mr.. Fish under date of Nov
z. 1906, setting forth specifically some
Of the reasons why they would not
vote for his reelection as president
There were other reasons of a con-
trolling character which were referred
to in general terms, but out Of con
sideration for Mr.. Fish were not
specifically mentioned in that letter.
Loaned Himself Money.
The most conspicuous of these is that
while Mr.. Fish was president of your
company and as such the virtual Gus
todian of it's treasury, he loaned to
himself as an individual about $780,
900 from the treasury of the company
upon security of his own selection,
which proved to be inadequate and
nnmarketable. Mr.. Fish being unable
to repay the loan or to satisfactorily
secure it, there were various consulta-
tions among his friends on the board
of directors and negotiations designed
for the payment Of the Indebtedness
and the protection of the credit of the
company as well as Mr.. Fishs reputa-
ton.
after it was demonstrated that Mr..
Fish was unable to reimburse the
company director individually loaned
him the money necessary to repay the
company In order to secure this
loan Mr.. Fish pledged not only the
unmarketable collateral above men
toned, but also conveyed his resi-
dence in the city of New York and his
OIL int -, 20 ~,
late Hamilton Fish. Out of considera-
tion for Mr.. Fish such conveyances
We're not placed on record The di
rector making the loan carried it for
several years until Mr. Fish was able
to liquidate it. Furthermore, Mr..
Fish, who was a member of the ex.
ecutive committee of the Trust Com
pany of the Republic and was very ac-
tive in it's affairs, deposited a large
amount Of money OF the Illinois Cen
ira! Railroad company in that com
pany after it's credit was seriously i'm
paired, and although this was ulti.
mately collected the process required
several months and during that time
the risk was cause of grave anxiety
to the directors. Moreover, he loaned
TO the president of the Trust Com
pany of the Republic individually
money Of the Illinois Central Railroad
company upon inadequate security.
y with the result that the railroad com.
pany was unable to collect the entire
amount and suffered a loss
1T is due to the officers and direc-
tors whose motives and conduct have
been impunged and to the stockhold-
ers &c whom Mr. Fish has addressed
an appeal based upon his charges
that these facts should be known +"
The letter appended to the state
ment of Mr.. Harahan was addressed
TO Mr.. Fish as president of the com.
nany 1t declared that Fish broke
faith with the other directors and pre-
vented majority rule in affairs of the
road and also that Fish violated an
agreement, arrived at for the purpose
81 pIryi, 4i,,rr Il ;ra =.