The Miller press. [volume] (Miller, S.D.) 190?-current, 1912-12-19
ASK A DISSOLUTION
DECLARE NEW YORK CENTRAL
HAS BECOME AN ILLEGAL
COMBINE.
OPPOSE BOND
Claimed Road Would Compel Subsi.
didiaries to Pledge Credit
Action Has Been Long
Planned.

1865 -
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. 600, 900 of bonds by the railroad
for Improvement in Ohio. 1t is declar,
ed that the railroad is a trust and
a suit will be brought for its dissolu.
ton under the provisions OF the Sher.
man law.
The letter OF protest was signed by
G.. II. Venner a. Co, bankers, 33 Wall
street, New York, as stockholders in
the New York Central &c Hudson River
railroad and the Michigan Central rail.
road and also by the Continental Sc.
curity 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
subsidiary lines asserted that action
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. II 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 &c Hudson River, the
Lake Shore & Michigan Southern, the
Michigan Central and the Cleveland,
Cincinnati, Chicago & st. Louis agreed
ito maintain said equipment and pay
as rental therefor an amount sufficient
to meet, taxes. expenses and dividend
warrants, and the principal of said GER
tificates as they mature"
In protest, the Venner company de-
clared:
THE New York Central company, by
reason Of its ownership of about 80
per cen of the stocks of the Lake
Shore, which it acquired in violation
of the Sherman act, controls the dis
tinct competing lines between Buffalo
and Chicago. BY reason Of the domi.
mating control which the New York
Central exercises over the several
corporations above named, 1t has in
the past compelled, and now Is seek
ing to compel such corporations to
pledge their credit for the benefit of
the New York Central G Hudson River
railroad. AS stockholders of the
Michigan Central. We object to that
company assuming an obligation of
$24, 00o, 900, of which probably seven
eighths is for the benefit of other cor.
porations in which the Michigan Cen.
trail has no financial interests whatso-
ever"
vcnner Brings Many Actions.
New York.-Clarence II. Venner has
been involved in much litigation with
large corporations, going back to his
suit against the New York Life In
surance company in 1905. In 1906 he
began an action to prevent a stock is
Il by the Great Northern railroad,
and in 1907 he sued to invalidate the
Great Northern-Lake Superior COM
pany trust agreement.
In the same year he based a suit
against James j. Hill and the Great
Northern on the acquisition of the
Burlington road. This last was car
ried to the United States supreme
court, where Venner lost II In 1908.