New-York tribune., 1907-01-05

railroads. Then there the Morgan Line,
owned by the Southern Pacific, which ran steam
ers between New Orleans and New York.
Ar. Severance took the witness long enough
to PIT in evidence a resolution passed April
10. 1906, by the Union Pacific directors adding
the soutflern Pacific as a road on which "the
service Of any employe with this company will
be considered as continuous from the date upon
which he has been continuously employed upon
such railroad. whether prior or subsequent to
their acquisition by the Union Pacific Railroad
or the Oregon Short Line or the oregon Railroad
and Navigation Company This resolution, Mr.
severance said, was evidence that employees of
the Southern Pacific had been placed In the
same category with those of the roads actually
owned by the Union Pacific
PURCHASE OF ILLINOIS CENTRAL
MT. Miar was then directed TO read from the
minutes of directors meeting Of the Union
Pacific held on July 10. 1906, the following:
Director Hartman called President Cornish
stance thai he believed it to be to the interest OF
the illinois Central Railroad 10 compaay
That while the Union Pacific line served a large
territory to the Gulf or to Chicago and into the
ports Is kew n the export Of corn by the the Gulf
f 1o importance OF the system of railroads extend
and. and as far norh Minnesota and Wisconsin and
orleans as daes aa f I LNns no on low grade & to o. New
hanced by the construction of the Panama Canal
:. .na the importance and value OF such connections
70 10 tne Union Pacific will be very great: that while
an important ena MAS generally as
ne believed its strategic value and Importance
those ae9Te 10 IN its and ny a
at prevang pcg he eeEs II De sc9a c01d m ad
S sna N time was bound TO become very much more
boE For these and many other legitimate reasons
@ o Eo to prss pa stock @ a f 9o 1he n9n PA
nov nov 70 be had at fair price He said, however
stoek Of he Illinois Central which he thousht the
not sc for 9 the sPG Tnon s He said
he sought 70 procure the attendance this meet
might 5 the boTd the
consideration cons It's Importance deserves and that
think the interests Of the Union Pacific require.
upon oon s9y afeSsin 81 sRSs foo
Resolved That Dreotors Flick. Wilcox and VAL
entine be ana they are hereby appointed a special
Of pRss 2 RRa s6S R6S a6f o a GSHds5 no he
Ra15oad oDnMpa1y M with power to contract & for s the
4 they deem such purchase advisable, and report
Directors Hartman, Rogers and stillman an
nounced that they were interested in the subject
matter, and upon request were excused from Voflng
DEAL PUT THROUGH
Mr.. Millar then read from the minutes of July
81 the report made by Messrs. Frick. Wilcox and
Valentine follows:
We have inquired into and considered the expe-
dlsney Of the purchase by this company OF capital
and are Of the opinion that closer relations by this
pny Win be rhe interest," Of bo5 copanie and
mat the purchase @ by this company OF the capital
hereinafter; mentioned. at. the price hereinafter
assuming M sc prcbas ts G he OF wbn Hi fs
SorpoIaie powers of this company and otherwise
Msssrs: Kuhn. Loeb Co; hold control lo5
james stiilnnan, members Of this board each hold
500 ShaIes Of the capital stock Of The In0s
WITH these gentlemen: they have offered TO sell 10
eating $500 shares out of total Of sSolo6 shares
sseS sgsa Inf I nss1 ss vssSs @ s share as
s eoss s sasd Pse as s fair s ssd Ts
g closely held that no considerable amounts
9a pe t Upon s maTt a l NE
believe the stock is intrnsicaily Worth more than
~sn oompans IS Suns the 40s csn nd
and IS OF s Rdea has R Raf the m rate ey Of
per cent per annllrh ana is earning considerably
the essIng asca % Year ended ehded
ss have sIrely neIs%h @ VT ana It's earn
non @ has substantially improved during the fiscal
rded e Of the tn fp tf above I'VE
powers of this company and is otherwise lawful,
Into and advise Pespecns e eayy e of a pune
done in the light ef such sdTaa and OF this report r.
S1nr committee R,1n has made en- agreement with
rnen n II Rogers and James stiiman whereby
purchase the above inentoned stock Of the Illinois
Central Railroad Company held by the said Kuhn
Rogers and James stilman at the price above
named with interest st the rate of per cent
Your committee has been informed by Mr. Harri-
nan that he owns q majority of the stock of the
Railroad Securities Company, which owns (as its
only asset other than CASH $4,000 shares OF MI
nois Central Railroad Company stock. subject to
the pledge OF $4,000 shares to $4,000, 900
Jos and interest NJ Hartman has furtfer stated ed
chases the Illinois Central Railroad Company stock
offered by Messrs Kuhn. Loeb & Co, Dir; Hartman
and the other gentlemen above named he thought
that the company should have opportunity to
purchase his stock in the Railroad Securities Com
pany at price based upon the price which Illi-
nois Central Railroad Company stock had been Of
cered TO The company by Messrs Kuhn. Loeb &c
named and We have taken from him option to
that effect for fifteen DAYS.
Mr. Mar read further that counsel for the
Union Pacific had advised that the purchase
of stock within the corporate powers Of the
company and otherwise lawful. He also read
from the minutes that the report OF the COM
nittee had been approved and that the officers
of the company had been authorized to make
the purchase, Messrs. Hartman, Rogers and
Stilinen refraining from voting.
Mr.. Severance had the witness turn to the
minutes Of the Union Pacific executive commit
tee meeting. at which Mr.. Hartman had
brought up first his offer 10 dispose Of his shares
Of the Railroad Securities Company. At that
meeting, according to the minutes. Mr. Harri-
stated that he had bought the stock by
surrendering S.769 shares of Illinois Central
stock at SID share amounting TO 81 ,534, ,575.
and paying for the rest in cash. amounting TO
1857 020.
PURCHASE OF B. & o. STOCK
Mr Malar was directed TO the minutes
fS -nfo parG &c tnrz' r1pe ~ Oo4oL