Omaha daily bee., 1908-02-21
FISH LOSES POINT
Hartman Interests Have Right to
Vota Stock in Dispute.
COURT D1ssoLyEs M s;T1oN
No Law Against Outside Cor. 'Ew
Holding Illinois Stock. r z
CONVENTIONS ARE NOT PRO, Z
Union Pacific and Illinois Central MOI
Competing Lines.
MEETING WILL BE HELD MARCH 2
Board of Directors Dominated by
Hartman win he EIected--Case
TO De Tried Later on Its
Merits.
Union Pacific and Illinois Central No,
Competing Lines.
MEETING WILL BE HELD MARCH

-
superior court today dissolved the injunc-
tion secured last October by Stuyvesant
Fish by virtue Of which the Hartman in
terests wefe restrained from voting 81, ,2Sl
shares OF the capital stock OF the Illinois
Central railroad at the annual meeting Of
the company. The theory on which counsel
for Mr. Fish based their arguments in
support OF the injunotion--thRt 1t was con
trary TO the laws and public policy Of the
state Of Illinois to allow foreign corpora
tions to own and vote the stock Of do
mestic corporations-was denied by the
court.
Under the ruling Of the court the pre-
viousIy enjoined stock, which is held by
tho Union Pacific Railroad company and
by the Railroad Securities company Of New
Jersey. can be voted at the annual meeting
of the illinois Central which is to be held
In this city on March
There is no appeal from the decision
handed down today by Judge Ball. but II
Is considered probable that Mr.. Fish will
take further legal steps to regain posses
sion of the Illinois Central. Judge F. b.
Farrer Of New Orleans. who has acted as
leading counsel for Mr.. Fish throughout
the controversy, said today after the rem
dering OF the decision that the case will
now be tried on its merits, but declined to
.
tuted.
Harahan IL Pleased.
None Of the principals in the case were
in court. both Mr. Fish and Mr.. Hartman
being In New York. All of the attorneys
on both sides and many other lawyers and
business were present and filled the
court room to overflowing. President Har-
ahan of the Illinois Central came in while
the decision was being read and heard the
latter portion Of 1t. When the conclusion
had been reached he said:
my head is too full of that decision
TO allow me TO say anything but to say
that am highly pleased and more than
highly pleased Is putting It mildly"
Judge Ball. who is of somewhat frail
physique. turned over to his son the task
OF reading the decision, which contained
almost 10000 words As sOVn as It was
concluded there was veritable stampede
in the court room, brokers, lawyers and
messengers making q rush for the doors
in order to announce the result They
ran into various rooms seeking for tele-
phones and many tore headlong for the
elevators, while others fled wildly down.
the stairways. So much excitement and
confusion has not been witnessed In the
county court house for many years.
Contentious Are Not Proven.
not been able to prove any of his con-
tentions that the domination of the
Illinois Central by Mr.. Hartman would
be to its detriment and had also failed
to show that the interests OF the stock
holders would be injured thereby. The
Union Pacific and the Illinois Central,
he said, were not competing, but are con-
Meeting lines, and the one could not be
a commercial rival OF the other in such
a sense TO fall within the scope of
legal decisions against the alliances be-
tween competing railroads. The two
roads, the court declared. were not 30
situated as TO make it possible that they
would combine TO monopolize traffic In
any section OF the country.
The court further declared that II the
name OF Mr.. Hartman was not a name
to conjure with. many Of the allegations
made in the case would not be considered
seriously. He was compelled to act, he
said. on facts alleged and proved. and
not fears "or supposed prophecies" The
record Of the case, he declared, failed to
substantiate many OF the declarations
made against Mr.. Hartman.
Findings OF the Court.
The decision was, in substance, as fol-
lows:
1t is urged that the complaiuants. under
requested the officers and directors OF the
Illinois Central 70 bring this suit-that
sueh request ana refusal oy the cor
right to begin this action. This suit might
have been brought by the Illinois Central
Its subject matter IL one in which all the
stockholders OF that corporation are
equally interested. Before a stockholder Is
entitled IN his own name to institute and
conduct litigation which usually belongs
TO the corporation he should show TO the
sausfaetlon OF the court that he called
their neglect or refusal TO comply with
his request or he must show that an ap-
plication TO them would have been useless
Rights of stockholders 10 Sue.
The bin as amended alleges that COM
plainants made no application TO the. com
pany 70 bring this suit first because they
believed they have the Individual right as
sseSaa ha IL mos s hsH. as SesS lane and
have made such application because eight
OF the thirteen directors OF the Illinois
The Railroad Securities company have the
rlght 70 hold and to vote the stock sew
these directors have participated in the un-
lawful acts complained Of, and five others
would have been advised By Hartman not
to allow the bringing OF such suit and
would have followed such advice, and be-
cause Of the personal hostility Of eight OF
said directors to Fish they would not have
permitted such suit TO be brought
Tne first reason gwen may be passed as
Il Il a legal conclusion, and the alleged
facts stated as the basis for the second rea-
son are vigorously denied in affidavits filed
by said eight directors
The only thing aNerred and proved In this
case as TO the future actions OF the de-
yfendants is that at the coming election the
Union Pabifio and the Railroad Securities
company Will vote the stock they own and
control Tor the reelection OF three OF the
present directors each OF whom has served
the Illinois Genital acceptably for many
years, ana for a fourth director, In place
OF Mr.. Fish a competent man. who Is not
in any way connected with the Union Pa
cific, no act preiudicial TO the Illinois Cen
tral or 10 It's stockholders, is shown TO have
been done unless the mere fact that the
Union Pacific and the railroad securities
company own 20 per cent Of the stock Of
the Illinois Centrel be considered TO be so
Courts Aet Upon Facts. Not Fears.
Since tho retirement OF Mr. Fish from the
presidency the policy OF the company has