The morning journal-courier., 1908-03-27
DIRECTORS SUIT OFF
Connecticut Stockholders of Union Pacific Fail to
 Get Action.
3oup ISSUE IS COMING
ircctors Approve Mortgaging of Road for Amount Reported to be
 S5O.OO0,G00.

New York, March 26.-Stockholders of the Union Pacific Railroad com pany will meet on May to authorize an issue of bonds to be secured by a mortgage on all the lines of the Union Pacific which are now unmortgaged' These lines aggregate 1850 miles, ac- cording to an official announcement. The amount ana purpose of the propos~ ed bond issue were not made public. but il was currently reported that II would be s40.G00,000 or S50,O0o,0OO. This, it was said would be sufficient to cover the company's financial needs for some time and it was expected that only a portion of the issue will be made ill the near future.
 To facilitate this bond issue the stockholders will be asked at the same meeting to ratify the taking over by the Union Pacific Railroad company of the physical properties of the Leayen- worth, Kansas and Western Railway company and of the Topeka and North western Railroad company which are already from ownership of stock part of the Union Pacific system These roads taken together have about 200 miles of track and are unmortgaged. It is proposed to include them with the other unmortgaged lines by which the new issue of bonds is to be secured, and to do this it is necessary under the laws of Kansas by which the two com panies were incorporated that the transaction be ratified by the stock holders
 The directors by q vote declined to grant the request maue by certain stockholders that the board of direc- tors bring a suit against l.. II. Harri- man, H. II. Rogers and James Stillman to recover profits which they were al- legged to have derived from a sale of the stock of the Illinois Central Rail road company the Railroad Securities company and the St. Joseph and Grand Island Railroad company to the Union Pacific system, The suit was requested | by l., A. Storrs and Henry E. Buck of Hartford, w. A. Arnold of Willi- mantle. and \. C. Rates of East Gran i by, Conn In giving tnelr reasons for refusal 10 bring the desired action the 1 directors stated the interest of Messrs. i Hartman. Rogers and Stilman in the stock of the Illinois Central and of Mir. | Hartman in the stock Of the Railroad Securities company and the St Joseph Cropd leland pno1nopv urac fullN
 disclosed to the directors before the
 transaction and the purchase was
 unanimously authorized by the other
 members of the board while Messrs Rogers. Hartman and Stillman were excused from voting on that subject. II was also stated by the directors that the proposed purchases were investi- gated by committee Of three disinter- ested directors who knew the facts and advised the purchase. The directors de- clared this action has been approved by the stockholders of the Union Pacific and that it would be unwise, unwat- ranted and detrimental to the interest of the company to attempt to cancel the purchase or to question it's validity
 Furthermore the directors declare tha, the board Is opposed to it as a matter of business policy.
 The directors stated also that they had no knowledge that any director of the Union Pacific had any interest in the lo5,o00 shares of tho Illinois Cen. tral stock purchased py the Union Pa cifc from Kuhn, Loeb X company and that they were informed by that firm that no director held any such interest