The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1907-11-13
U.S,EXPRESS HEARING
On Complaint Of Shareholders
Who Ask New Legislation.

Held Since 1862 and Directors Per.
petuate Themselves-Seven Direc
tors Receive $500 a Year.
Albany, Nov 12.-Albert B. Board
man, representing the United States
Express company before the public
service commission in the Second dis
trict, questioned the right of the leg
lslature to regulate the powers of the
seven directors of the United States
Express company, joint stock cor
poration. He contended that the du.
ties OF the board were prescribed in
the articles of association. Briefs on
this and other questions involved are
to be submitted to the commission
within 80 days.
The question was raised by Mr..
Boardman at the beginning Of the
hearing requested by certain share.
holders in the United States Express
company, who claimed to represent
more than one-half of the stock and
asked that the commission determine
the advisa5ility of recommending TO
the legislature certain amendments
to the law relating to joint stock cor
porations conducting the business of
common carriers, so as to bring about
the election of directors when desired
by majority Of shareholders.
Mr.. Boardman suggested that before
the commission took up the complaint
it should first secure the views OF
Governor Hughes and Attorney Gen.
eral jackson as to the constitutionality
of the legislation requested but the
suggestion was not favorably received
by the commission.
Directors Self-PerpetuatIng.
Eugene Kramer of New York, as
sisted by S. S. HIATT of Albany, repre-
sented the petitioners. Mr.. Kramer
said that the board of directors of the
United States Express company was a
self-perpetuating body; that no meet
ing of stockholders had been held
since 1862 that although the board Of
directors had been requested by ma
jority of the shareholders to call a
meeting Of the shareholders for the
election of directors, 1t refused to do
so: that the United States Express
company is controlled by the Adams
and American Express companies, al
though they are all supposed to be
business rivals, and that neither one
of the last two companies has had a
meeting of stockholders in years for
the purpose OF electing officers.
Mr.. Kramer also brought out that
the following seven directors of the
United States Express company are
being paid $4,000 year for serving as
directors: United States Senator T.
c. Plat, who is also president, receiv-
ing an annual salary of $25,000; H.
Crosby, vice president and secretary,
at an annual salary of $4,000; e. T.
Platt, treasurer, for which he re-
ceives annually $4,000; F. H. Platt,
who Is also counsel to the company;
Francis Lynde Stetson, L. c. Weir and
]. C. Fargo.
Chairman Stevens referred to one
section of the articles of association
which provides that no director of the
United States Express company shall
be interested in a rival company. 1t
was admitted by Mr.. Boardman that
Messrs. Fargo and Weir are officials
of the American and Adams Express
companies. respectively, and hold
Jointly 10000 shares of stock of the
United States Express company.
Community Of Interest
Mr.. Boardman said that all three
companies had community of inter
ests and insisted that unless these
conditions existed the stock Of the
United States Express company and
the other express companies would be
almost worthless, contending that it
would be almost impossible to con-
duct the business OF the companies at
reasonable profit.
"The profits of the express compan-
les" said Mr.. Boardman, "are yearly
decreasing and with the threatened
government parcel post the outlook
for them Is not a happy one"
It also developed that according TO
tho articles of association no trans
fers of stock could be made without
the consent of the directors and that
the board had the right to dissolve
the association II It saw At.
Mr.. Kramer said that since his
clients filed their complaint with the
commission the United States Express
company had increased its dividends
from to G per cent.
The commission ordered counsel on
both sides to submit briefs within 30
days on the legal Interpretation Of the
articles Of association. Mr.. Kramer
was also directed to file specifications
as TO facts, If an investigation is de-
sired on particular subjects, give
proof or submit evidence, either oral or
written, so as to guide the commits
sion II 1t deems it advisable TO so
further into the subject
The complaint against the United
States Express company of alleged
discrimination against shippers be-
TWEEN Elmira and Delhi was adjourned
until later data when Vice President
and General Manager Crosby is ex-
pected to be examined.
o.l r.z.L -. %.uisi..