New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-30
TO STOP S. P. DIVIDENDS.
BondhOlders of Subsidiary Road
Want to Collect Interest.

Chicago. March 29.-Henry Crawford. OF this city,
announced to-day that bill in equity on behalr OF
the Crocker Estate Company, Of San Francisco
and Thomas H. Hubbard Of New York, had been
MED In the Circuit Court of Austin, Tex. asking
/. that the Southern Pacific Railroad Company be
restrained from paying dividends. amounting 10
$+VWVN. upon its common stock.
me court is asked TO decree that the Union Pa
enc railroad controls and operates system OF
raiIFoad which is in constant and natural compe-
tition with the Southern Pacific between San Fran
cisco and New Orleans contrary 10 public policy
ana IN violation of the laws of the United States
and the laws of Texas"
The bill asks that the court enjoin the Union Pa
enc company and its officers agents from here
after voting any stock of the Southern Pacific Rail-
ROAD Company or exercising any direction or con-
lrol over the Southern Pacific road or over its
finances including the Galveston. Harrisburg x
San Antonio company
1t is asked by the commitments that to protect
iuiiy the liens and priorities OF the second mort
gage western division bonds the court will either
appoint receiver for the Western division or
oiIect the mortgage trustees enter into posses
the court. '''0' u"uei ''' -
50 df o compartments say that they hold more than
bo - OF me total OF $6254000 of second mortgage
Dohus or the Galveston. Harrisburg & San Antonio
SFonlipany. ana aver that the interest and sinking
Iund instruments past due amount TO s. 600 and
ga! mat lnasInuch as the Southern Pacific assumed
Instruments the bondholders have the right 10 en-
com9an 1Helr claims against the Southern Pacific
II Is charged in the bill that the railroad paid
sbctid b on oonds and declared dividends when it
oohos' and the court is asked to decree accordingly
At the Office Of the Southern Pacific companv. in
the Equitable Building II was said Yesterday that
the report had reached there that application had
peen made In Texas for an injunction restraining
.4e company from paying dividends on its stock,
oHt Ltte was known about the nature and grounds
Vi 'he proceeding. Neither L. H Hartman presi-
ueht oil the Southern Pacific company nor ex-Judge
IL . LoVett' who is general counsel of the Union
racine system and also president of the Galveston
HARRISBURG q San Antonio Railway Company. was
at the offices of the system.
General Thomas H. Hubbard who Is cornnIajnant
win the Crocker Estate Company in the action
brought against the Southern Pacific said:
,b Inc CTocker Estate Company and the interests
ahot 60 zoo IspIesent-the Hopkins interests-hod
OF the Galveston, Harrisburg & San Antonio Rail-
the original Southern Bcc rs 0%hea by
~ Huntington and Stanford estates. except for
lsS9 an agreement was entered into among the old
9ou5 iIn racine interests that interest should
De canned on these bonds until earned, This agree
lnent was in 1888 stamped on the bonds But now
think thai vi trcinc Is paying dividends We
Nestment IN the bonds. We object to the manage
bends on the stock and not paying its debts In
our appncauQn TO the court We waive all claim 20
interest Tor the fifteen years prior TO the beginning
OF payment OF dividends on the Southern Pacific
interest since that date Our claim, u has es1 o 2r 9
cussed by with the Southern Paciic manage
helt from time 10 time since January. 1895.
The southern Pacific officers take the position
tnat the Galveston. Harrisburg x san Antonio is
NOT the Southern Pacific and that the latter is not
obliged 10 see 10 IL that the interest Of the bonds is
paid he road is, however. practically a part OF
the southern Pacific system. The Southern Pacific
owns virtually all OF its stock. which for many
years mas been deposited with the Union Trust
company, OF this city, and against which about
Sb00eog0 OF Southern Pacific stock has been is
sued The southern Pacific also says that the
money necessary for paving the interest on tie
ponds mas not been earned. our contention Is that
Sc many charges have been loaded on The Gal
weston. Harrisburg X San Antonio as 10 make II
ihposslpe Tor the interest on the second mortgage
bonds 10 be earned.
, As far back as December 81 1889. the Southern
S2',0SSGl2 capital stock Of the Galveston. Harris
burg & san Antonio Tho amount ~ tho stool,
now deposited with the Union Trust Company
against the issue OF Southern Pacific stock is s27-
Vg2.ouv, according 70 tho fastest 'PooT's Aanua!
The Galveston, Harrisburg u san Antonio owns
IS part OF the Southern Plcidcs line from New or
leans TO California The total length OF the Gal
weston. Harrisburg & San Antonio tnctudiul,
branches. IS 1874 miles. The bonds owned bv tho
complainants IN the action just brought I'm Texas
are part or an issue secured by Ii second mortgage
on the West Division Mexican and Paci0c
extension They bear per cent interest ana
mature on July l. 1881
Dividends have been paid the Southern Pa
cifics preferred stock since the beginning OF 1895
Last August tho common stock was placed on a
per cent dividend basis and n semi-annual divi-
dend Of 2lg per cent Is payable next week. II Is
this payment which the bill in equity filed bv
General Hubbard and the Crocker Estate Company
asks the court 20 restrain.