The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1912-12-20
ASK A DISSOLUTION
DECLARE NEW YORK CENTRAL
HAS BECOME AN ILLEGAL
COMBINE.
OPPOSE BOND ISSUANCE
Claimed Road Would Compel Subsi-
didiares to Pledge Credit
Action Has Been Long
Planned.

Columbus, Ohio Dec IA protest
! has just been filed here with the state
utilities commission of stockholders
of the New York Central railroad
against the application for an issuance
of $24 900, 600 Of bonds by the railroad
for Improvement in Ohio. 1t is declar-
ed that the railroad is trust and
suit will be brought for its dssolu-
tion under the provisions of the Sher-
man law.
The letter of protest was signed by
c. II. Venner & Co, bankers. 33 Wall
street, New York, as stockholders in
the New York Central & Hudson River
railroad and the Michigan Central rail
road and also by the Continental Sc.
curty company of New York, by its
secretary, Charles f. Robinson, as
stockholders in the Michigan Central
Representatives of the protesting
stockholders are expected here on
Monday when the application for the
issuance Of the certificates will be
heard by the utilities commission
In the letter, the stockholders of the
]
leading toward a dissolution would
have been instituted sooner, had not
the Union Pacific case, in which a de
cree dissolving the Hartman merger
recently was given, been pending in
! the United States supreme court.
The delay Is further explained by a
communication from Wade H. Ellis,
| former attorney general Of Ohio which
was endorsed 1t set forth that the
government itself would have brought
suit against the New York Central
system three years ago under an alleg-
! ed violation of the Sherman antitrust
law, but that the Union Pacific case
embodied the question of legality Of
one road to control the stock of a
competing line.
Agreement is Made.
Under application for the issuance
| of the equipment certificates. which
was filed with the public utilities
| commission last Monday, the New
York Central & Hudson River. the
Lake Shore & Michigan Southern, the
Michigan Central and the Cleveland,
! Cincinnati, Chicago & st. Louis agreed
to maintain said equipment and pay
| rs rental therefor an amount sufficient
% meet taxes, expenses and dividend
warrants. and the principal of said GER
ificates as they mature"
In protest, the Venner company de-
,lared;
THE New York Central company, by
reason Of its ownership Of about 90
per cent of the stocks of the Lake
Shore, which ii acquired in violation
If the Sherman act controls the dis
.inct competing lines between Buffalo
md Chicago. BY reason of the domi-
aating control which the New York
Central exercises over the several
corporations above named, it has in
he past compelled, and now is seek
ing to compel such corporations to
pledge their credit for the benefit Of
he New York Central & Hudson River
.ailroad. AS stockholders of the
Michigan Central. we object to that
company assuming an obligation of
s24,000,000 of which probably seven
sighths is for the benefit of other cor
)orations in which the Michigan Cen
raj has no financial interests whatso
sver.'
Venner Brings Many Actions.
New York..-Clarence II. Venner has
,een involved in much litigation with
arge corporations, going back to his
;uit against the New York Life In
surance company in 1905. In 1906 he
began an action to prevent stock is
sue by the Great Northern railroad
and in 1907 he sued to invalidate the
Great NorthernLake Superior COM
)any trust agreement
In the same year he based suit
against James j. Hill and the Great
Northern on the acquisition of the
Burlington road. This last was car
-ied to the United States supreme
court, where Venner lost it in 1908.