Los Angeles herald., 1907-10-15
COUR RULES
AGALNSTS.P.
PRESIDENT
ENJ0INED FROM VOTING BLOCK
OF SHARES
FIERCE FIGHT FOR CONTROL is
BEING WAeED
Illinois Central Stock Held by Outside
Companies May Be Of No Avail
at Coming Election of
Directors

Directors
BY Associated Press.
CHICAGO, Oct. IA. - Stuyvesant Fish,
! through his attorneys, H. w. Leman.
Frank w. Culver of Chicago and Edgar
| III. Farrar of New Orleans, today se-
cured q temporary injunction which will.
! ! if made permanent, restrain the voting
| at the Illinois Central meeting OF 2S6, 73L
| shares of stock Of the Illinois Central
| Railway company which would other
| wise be voted in the interest of L. II.
| Hartman.
The writ is directed against the Union
| Pacific Railway company, the Railroad
| Securities company OF New Jersey and
! the Mutual Life Insurance company of
/ New York, which, combined, hold this
| big block of shares.
| Aside from the temporary injunction
| sought final decree was asked declar-
| ing the Union Pacific and the Railway
Securities have no power, under the
laws of Illinois, to own stock in the
| Illinois Central. 1t was also asked that
i these companies be directed to sell their
stock in the Illinois Central within rea-
| sonable time.
The petition charges an unlawful
scheme of the Union Pacific Railway
| company to control the commerce of the
| States Dy puyluS large DiOckS VI
| stock in the present transportation COM
] panies. 1t also set forth the facts in a
recent report of the. Interstate COM
i merce commission in, regard to the
transactions of the Union Pacific Rail-
road company and E. H. Hartman.
| 1t sets forth the names of corpora
/ tions whose stock 1t is claimed the Union
! Pacific has bought, among them the
i ISChieago 81 Alton, Illinois Central, Chi
cago. Milwaukee & ST. Paul and the
Chicago & Northwestern. 1t charges
| these four companies own and operate
parallel and competing lines both in and
outside of the state of Illinois, and that
1t is unlawful for the Union Pacific COM
| pany to own and vote stock in such
parallel and competing lines.
Deal Concealed from Public
| 1t is also charged that the acquisition
of the Illinois Central by the Union Pa
| cific, which took place July, 1906, was
concealed from the public ant was first
brought to light by the Investigations
| of the interstate commerce commission.
| 1t is alleged in this connection that up
| to this day not one share of the Illinois
Central has been registered in the name
of the Union Pacific, but still stands in
the names of the clerks and brokers of
Kuhn, Loeb & Co.
1t is further charged that in the effort
to get as large a percentage of the stock
of the Illinois Central as possible the
Union Pacific violated its charter in
buying the stock of the Railroad Securi-
ties, which. held as it's only assets $1,000
shares of Illinois Central
The charge is made that 1900 shares
of Illinois Central stock belonging to
the Railroad Securities company were
transferred few days before the Illi-
nois Central books closed by a sham
transaction to e. H. Hartman and
eighteen officials of the Union Pacific
and Illinois Central who are under the
control of Mr.. Hartman.
The bill declares that Directors Pea
body, Auchincloss and Vanderbilt of the
Illinois Central are trustees o. the Mu-
tual Life Insurance company of New
York and have combined and conspired
with e, III. Hartman and the Union Pa
cific Railroad company to aid the Union
Pacific in getting control of the Illinois
Central, and to that end it is declared
they propose to vote the $500 shares of
stock owned by the insurance company
at the coming election.
1t is claimed the insurance company,
under the laws of Illinois, cannot vote
stock in the Illinois Central.
The bill declares that Directors Harri-
man, Peabody and Goelet of the Illinois
Central are also directors of the Union
Pacific and alleges that E. H. Hartman
nominates all the Union Pacific and all
of the Illinois Central directors, except
Says Hartman Sought Revenge
1t is claimed that Hartman deposed
Fish as president of the Illinois Central
because he defeated last year the cleo
ton of one De Forrest of the Union Pa
cific as director of the Illinois Central
and because he refused to let the Illi-
nois Central be controlled in the interests
of the Union Pacific.
1t is set forth in the petition that the
-l.4 - 4. TT..4~
uate its control of the directory of the
Illinois Central so as to have the Iili-
nois Central operated to it's irreparable
injury and damage, as a mere feeder to
the Union Pacific through its connec-
tions at Council Bluffs, Iowa, and at
New Orleans, by means of the Southern
Pacific company, which. the petition de-
clares the Union Pacific controls abso-
lutely
1t is claimed under the laws and pub
lie policy of Illinois neither the Union
Pacific or the Railroad Securities COM
pany, nor the Mutual Life Insurance
company can own and vote stock in the
Illinois Central.
The amount of the stock of the Illinois
Central to which the application of in
junction is directed is made up as 1921
shares bought by the Union Pacific by i1
H. Hartman, H. H. Rogers, James Still
man and Kuhn, Loeb & Co. in July, 1906;
$1,000 shares belonging to the Railroad
Securities company, all of which stock the
petition declares is owned by the Union
Pacific, and $500 shares owned by the
Mutual Life Insurance company, the
whole agsregating 2S6,7S1 shares, out Of a
total of $50, 400 outstanding shares IN the
Illinois Central. or a little over 80 per
cent of the stock.
1t is believed the attorneys for Mr..
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