Los Angeles herald. [microfilm reel], October 15, 1907, Image 1

About Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911

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All the News
VOL.. XXXV.
NUMBER 13
PRICE: SISMgS® 40 CENTS
PUBLIC FOOLED BY OIL
TRUST, SAYS WITNESS
STANDARD
IN GUISE OF
INDEPENDENT
OCTOPUS REAL OWNER OF
SUPPOSED RIVALS "
PROSECUTION FORCES AN AD.
MIBSION
Vice President of One of John D,
Rockefeller's Concern Reveals
Manner in Which Buyers
Were Trapped
By Associated Press.
NEW YORK, Oct. 14.— Hempton G.
Westcott, vice president of the Stand
ard Oil company of Kentucky, testified
today in the hearing of the federal suit
against the oil combine that in several
of the southern states the Standard had
found it expedient to sell much of its
product through companies which tho
public believed to be Independent.
The practice of selling through so
called independent companies, which
were owned by the combine, was discon
tinued two years ago, according to Mr.
Westcott. I
Mr. Kellogg, counsel for the govern
ment, drew from the witness that tho
Standard Oil company of Kentucky, which
acts as the selling agent of oil in Ken
tucky, Georgia, Mississippi, Louisiana,
Tennessee and Alabama, had purchased
numerous small Independent selling com
panies and through many of them sold
oil to the consumer. Some of the plants
of these independents were dismantled
and the business taken over by the Stand
ard.
Mr. Westcott threw a side light on a
business department of the Standard
concerning which the federal counsel had
been seeking Information since the be
ginning of the inquiry.
Reports on Competitors
The witness said that each month the
main office of the Standard Oil company
of Kentucky at Coving- - sent to him
not only the reports of the hustiu'ps op
•rotiojia of the Slunli.iU. . •:
concerning freight shipments and sales
of oil by all competitors. These state
ments, according to Mr. Westcott, gave
the name of the consignor, the consignee,
the amount of oil shipped and any In
formation that might be available.
Mr. Westcott said that after examining
these statements he tiled them with the
statistical department In the Standard's
office In this city. This department, Mr.
Westcott said, was In Chicago, in charge
of W. E. Bemls, who kept computation
and a record of the business of both the
Standard and Its competitors.
Mr. Kellogg stated tonight that he ex
pected to call William G. Rockefeller, as
sistant treasurer of the Standard of New
York, to the stand when the hearing is
resumed tomorrow. It is believed that
at the end of this week the hearing will
be adjourned for several weeks to give
Mr. Kellogg an opportunity to go care
fully over the mass of Information he has
obtained since the hearing has begun.
Alfred H. Bralnard, comptroller of the
Standard Oil company of New Jersey and
many of Its subsidiary companies, was
questioned today concerning large loans
made to James McDonald of the Anglo-
American Oil company. Testimony was
given last week that the Southern Pipe
Line company had loaned over $20,000,000
to Mr. McDonald and that the books
showed that it had never been paid back.
Asked Concerning Loans
Mr. Bralnard said that he was Ameri
can secretary of the Anglo-American
company and that Mr. McDonald was the
managing director in London. He was
asked concerning loans made by the An
glo-American company of $1,260,000 in 1905
and $1,427,900 .n 190u to Mr. McDonald.
Mr. Bralnard said that the loans had
been ordered from London and that was
all he knew about them. Mr. Brainard
was asked concerning the loans made by
the Southern Pipe Line company of over
$20,000,000 to P. S. Trainer. Mr. Bralnard
said that It was likely that Mr. Trainer
reported his losses to the Standard Oil
.company of New York city and the
Southern Pipe Line company reimbursed
the Standard's losses and charged the
amounts to the account of Mr. Trainer.
Mr. Brainard said he thought the losses
•were incurred by Mr. Trainer In the pur
chase and sale of oil.
Mr. Bralnard said he knew nothing
about the loans made by the Standard
Oil company of New York aggregating
$32,061,020 in 1900 to "interests other than
Standard Oil."
He said the account came to him from
the treasurer's office. William G. Rocke
feller might know something of the loans,
the witness said.
OIL KING'S COIN KEEPS
MINISTER FROM POSITION
Special to Tho Herald.
LONG BEACH, Oct. 14.— Rockefeller's
money has coma between Rev. K. W.
Thornton and his acceptance of a lucra
tive position with the Standard Publish
ing house of Cincinnati. A disagreement
among the members of the Christian
church throughout the country over the
acceptance of a gift from tho oil king
has resulted in Dr. Thornton's canceling
his contract wltht the publishers, to sell
wnose books hfi resigned the pulpit of
the First' Christian church.
Rockefeller recently presented tho mis
sion board of the church with a substan
tlnl sum. The head of the society, who
accepted the gift, was so harshly criti
cised in the Christian Standard, Issued
by the publishing company, that many
prominent in the affairs of the sect took
umbrage. -v.
The members of the Ministerial as
eociatlon of Southern California, of which
Thornton is president, held a meeting at
which li was absent und passed resolu
tions condemning the Standard, and urg
ing Dr. Thornton \o sever his connec
tion with it. This he has done
Los Angeles Herald.
"THOU SHALT NOT STEAL
SERVANT" PROPOSED LAW
Mayor of Fresno His Plan fcr Solv
ing the I roblem of Keeping
Cooks and Housce
maids
By Associated Press.
FRESNO, Oct. 14.-Mayor W. Parkar
Lyon Is considering the advisability of
presenting to the next meeting of the city
trustees an ordinance aimed to prevent
servant stealing. The suggested law Is to
put a stop to a person enticing the cook,
housemaid or other domestic and em
ploying them In another family.
In taking this lead in household reform,
Mr. Lyon holds to the bellof that such a
law Is sorely needed. It would, he thinks,
go a long way toward solving the perplex
ing situation of keeping servants. If suc
cessful, householders throughout the
country will doubtless Insist on their
authorities passing a similar regulation.
TELLS PLOT TO
KIDNAP RUEF
ATTEMPT FAILURE, BUT GRAND
JURY INVESTIGATES
Former Political Boss of San Fran.
Cisco to Have Been Spirited Away
in Auto and Detained i.i
Miner's Cabin
Hi Associated Press. .•' ' ' ¦¦ ' .
; SAN FRANCISCO. Oct. 14.— An alleged
plot to kidnap Abraham ' | Ruef some
months ago Is a matter under investiga
tion :by the local grand Jury. ..'•'¦ V >
According to the story told by one Of the
witnesses, E. T. Newsom j who resided in
Newman, ' Cal., was asked last June If
he i desired 2a • position wltht the ' United
Railroad oi this city. He .was introduced
to a man named James McDonald, who Is
said to have ' been .In ; the employment of
J. C. Brown, an alleged r detective of the
United. Railroad forces. ,'.;'.:«'-: ". .^*|«
¦'¦ It is said a plan was set on foot to
get Ruef away from the city in July, last.
, Fiv* armfMl "m.enl were tp ¦ go t<> the t FUl
was confined, overpower the guards and
take their : prisoner .' to the bay and place
him 'on a launch. * Ruef was then to be
conveyed to ' a ' point up : the Sacramento
river. and overland to Chlco. Near there
is the cabin ¦• of ' W. R. Montgomery, a
miner. :In this log cabin Ruef was to be
kept under guard. ;,' J. , v
\ The plot, however, did not develop any
further but the graft prosecution . forces
heard of. the scheme and the present in
vestigation is i the ; result.- Newsom' ap
peared before the grand Jury today to tell
his stories and v Montgomery was J also
summoned. He waited in the ante room
but was. not called. . ' ¦ . ; " ";:
BRITISH HOME FLEET
IS MIGHTY POWER
SURPASSES RESOURCES OF ANY
TWO EUROPEAN NATIONB
Battleship Dreadnaught Is Not Taking
Part in Maneuvers, Owing to
Installation of Ma
chinery
By Associated Press
LONDON. Oct. 14.— There Ib now as
sembling In the North sea and the Eng
lish channel for maneuvers under the
command of Admiral Lord Charles Beres
ford a fleet of British warships repre
senting an aggregation of naval power
surpassing all the Immediate available
resources of any two olher countries o?
Europe, and yet not a single ship of this
fleet has been drawn from the reserves,
the Mediterranean fleet, or the Davenport
and Portsmouth division.
The home fleet which Is now assembling
consists merely of those ships maintained
In the vicinity of the British Isles, and
which throughout the year have been en
gaged in war training. It numbers 110
pennants and Is composed of twenty-six
battleships, fifteen armored cruisers, sev
eral protected cruisers, various auxilliary
vessels and forty-eight torpedo vessels.
The battleship Dreadnaught is not tak
ing part in the meneuvers, as she is being
fitted with a new steering engine before
being subjected to a series of sea trials,
which It Is hoped will prove of assistance
in determining the design of future large
battleships.
The first section of the coming naval
meneuvers, covering four days, will be of
a tactical description, and the final days
will be devoted to studying the problem
of defending ships against torpedo at
tacks. With the mosquito fleet attacking
the large warships and all the land sta
tlons manned the coming operations aro
expected to be most interesting.
Transport Logan Arrives
By Associated Press.
SAN FRANCISCO, Oct. 14.— The trans
port Logan arrived today off me Faral
lones shortly before noon in the midst
of a dense fog. Great precaution was
taken in ( navigating the vessel toward
the Golden Gate— and. as the haze con
tinued to thicken, the Logan was brought
to anchor off the lightship. She remained
there during the rest of the afternoon
and all tonight. The Logan has on board
the Thirteenth infantry and a large cargo
and passenger list.
Have Trouble at Culebra Cut
By Associated i ros«.
PANAMA, Oct. 14.— The American en
gineers are having trouble with the Cu
characha slide at the south end of the
Culebra cut. . This point of land, always
a source of trouble to the French when
they tried to dig the canal, is again in
motion and will proVe a hindrance all
during the wet season.
TUESDAY MORNING, OCTOBER 15, 1007.
JAPANESE
ATTACKED
BY A MOB
RIOT IN SAN FRANCISCO; MANY
HURT
ORIENTALS DEFENDTHEMSELVES
WITH GA3PIPES
Police Charge Crowd and Use Clubs]
Freely — Row Is Caused by In
toxicated Man — Build
ing Is Wrecked
By Associated Press.
SAN FRANCISCO, Oct. 14.— As a result
of an attack on a Japanese laundry to
night tho proprietor and one of his em-
ployes are in the emergency hospital,
many wL.ies are nursing bruises caused
by the clubs of the police and the exterior
of the laundry Is a wreck.
The trouble was occasioned by Joseph
King, an intoxicated logger, who crashed
into the window of the laundry con
ducted by T. Umkekubo at 422 Fell street.
The proprietor and H. Omura rushed
out and dragged King Into a rear room,
where he was placed In charge of a young
Japanese, who stood guard, armed with
a section of gas pipe, while the -other
Japanese hurried to summon the police
to arrest King. Three Intoxicated com
panions of King witnessed the Incident
and they planned to rescue their friend.
Other whites were called in and there
followed a combined attack -on the
laundry. The street was soon filled by a
large crowd and a dozen Jupaneze on the
Inside sought to repel the invaders.
Policeman Thomas Collier wns soon on
the scene and attacked the crowd single
handed. Another officer soon arrived In
an automobile, and the riot call which
was sounded brought strong reinforce
ments. The police qharged the crowd
with clubs and many were hit.
Umkukubo and Omura were conveyed
to the hospital, where It was found the
former was cut about the head while
Omura sustained a ffacttre of the shoul
der.
King was found asleep in the rear room,
innocent of the trouble he had caused.
Attorney Walker of the Japanese So
ciety of America tonight was securing
evidence of the affair..
Appoints Missionary Bishops
Py Associated Press.
RICHMOND, Va., Oct. 14 ( — At the pro
te&tant Episcopal convention Bishop Tut
tle announced today that he had tempo
rarily appointed missionary bishops, to
preside over the missionary jurisdictions
In the west as follows: The bishop of
Idaho to preside over the district of Wyo
ming; the bishop of Sacramento to pre-
Blde over the district of Nevada; and the
bishop of Utah to preside over the district
of Western Colorado.
King Edward to Meet Czar
Bj ABsoclated Press.
COPENHAGEN, Oct. 14.— A meeting be
tween King Edward and the Czar has
been arranged to take place here, accord-
Ing to the Berlin correspondent of the
Politikens.
THERE IS A LAW FOR
PUNISHING REBATERS
.¦: Reference to the lending rilitorl.il
In The. Herald thin morning; trill con
vince the ;¦; mont ; ¦keptlrnl .iiinn i Hint
there In a nay, provided by ,the or-
U'linlc law of Cnllfornln, by which the
rnllrondm 'of .thin ", Mate ' may ' be?nde
qunteljr punished ,: for the (trim lliik of
rbnte* within the Ntntc reKardlc**
of the lack of statutory' enactment. :1: 1
• » >
NO DELAY OF WEDDING,
SAYS MRS. VANDERBILT
Young Heiress Will Become Bride of
Austrian Count on Date Originally
8et — Prospective Groom
Has Been 111
By Associated Prfss.
NEWPORT, R. 1., Oct. 14.— Friends of
Mrs. Cornelius Vanderbilt today declared
the report thnt the wedding of Gladys
Vanderbilt to Count Szechony had been
Indefinitely postponed, to be groundless.
Friends who spoke for Mrs. VanderT>llt
said the story had originated probably
from the fact that the date of the wed
c'.lng had not yet been formally an
r.ounced.
Miss Vanderbilt and Count Szechony
were driving together In this city today,
the count appearing for the first time In
several dayF. He has been Indisposed at
the Vanderbilt farm In Portsmouth with
slight symptoms of ptomaine poisoning.
Is It Fate's Cruel Decree?
ELOPERS IN
PARIS, RUMOR
MISS MALONEY AND CLARKSON
PURSUED
Relatives of Philadelphia Heiress
Trace Couple to London and
Learn They Went to'
France
Ey Associated Press.
NEW YORK, Oct. 14.— Martin Maloney's
efforts In London to locate his daughter
Helen and Samuel Clarkson, the young
Englishman with whom she Is supposed
to have eloped, have not yet been suc
cessful, according to William J. Fanning
of this city, Mr. Maloney's counsel.
Mr. Maloney is In London searching for
his daughter.
LONDON, Oct. 14.— Clarence Ritchie,
the husband of the sister of Helen Ma
loney, who is said to have married
Samuel Clarkson In Canada and to have
come to England on the steamer Empress
of Ireland, started for Paris late this
afternoon, apparently believing that Mr.
and Mrs. Clarkson are on the continent.
Mr. Ritchie stopped at the Hotel Cecil
over Sunday, but absolutely refused to
discuss the Clarkßon affairs beyond de
nying that he found the couple. He made
every effort to conceal his identity while
In London.
PARIS, Oct. 14.— 1t Is reported "Mr. and
Mrs. Samuel Clarkson" have arrived in
Paris from London, but their where
abouts In this city are not knpwn.
FORECAST
For Los Angeles and vicinity:
Cloudy, probably with showers
Tuesday; light northwest wind.
Maximum temperature in Los An.
geles yesterday, 80 degrees; mini,
mum, s<v degrees.
FISH WINS IN BA TTLE
WITH E. H. HARRIMAN
CONFERENCE
TO DISCUSS
THE TRUSTS
PROMINENT MEN TO TALK ON
CORPORATIONS
NATIONAL CIVIC FEDERATION TO
ASSEMBLE
Government Attorneys and Leading
Men from Various States Will
Meet in New York for
Consultation
By Associated Press.
NEW YORK, Oct. 14.— The conference
on trusts and combinations, which Is to
meet in Chicago Oct. 21 to 24, under the
auspices of the National Civic federation,'
will probably be the greatest gathering of
prominent persons ever gathered In this
country for the purpose of discussing
trade conditions. Delegates are being
appointed by the National Association of
State Railway commissioners, and by At
torney General Hartley of Missouri, the
latter being chairman of the recently
formed organization' of attorneys general.
Among those who have signified their
Intention of being present are Herbert
Knox Smith, commissioner of corpora
tions; E. E. Clarke of the interstate
commerce commission; F. B. Kellogg,
special assistant attorney general of the
United States, In charge of the govern
ment's case against the Standard Oil
company; Seth Low of New York and
Congressman Richmond Pearson Hobson
of Alabama.
The government officials who have been
probing big trade combinations and cor
porations are expected to have something
to say on the work they have already
cone.
Tho American Bankers' association will
be represented by a delegation of ten
men, among them being ex-Comptroller
of the Currency Charles G. Dawes of
Chicago and William Woodward, vice
president of the Hanover National Bank
of thl» city. The American Bar associa
tion will also tend a delegation of ten
members, among them John G. Mllburn
of Buffalo and Mooreneld Storey of
.Boston.
The National Wholesale Druggists' as
sociation will be represented by fifteen
delegates, one of them William Gay Sheff
ln of New York, while the National
Grange will send delegates, the Pitte
burg chamber of commerce two delegates,
and the United Brotherhood of Carpenters
and Joiners of America nine delegates.
Among the delegates who will represent
states are United States Senator-elect
Joseph F. Johnson of Alabama, John
Mitchell. George W. Perkins, Marvin
¦Hughltt of Illinois. Gustav C. Pabst of
Wisconsin and Cartlett Tripp of South
Dakota.
Leach in Charge of Mint
By Associated Press.
WASHINGTON, Oct. 14.— Frank A.
Leaoh, who several weeks ago was ap
pointed director of the mint to succeed
George B. Roberts, resigned, today took
charge. He was formei-ly superintendent
of the mint at San Francisco.
tiTiuriT I? /VYPIT?Q • daily, a cents ',, ¦ .;
OJLH UrljJCi l^Ul XJjiO . SUNDAY, 3 CENTS
JOHN D. SPRECHELS, JR.,
IS NEARLY ASPHYXIATED
Bath Room Heater Leaks and Son of
San Francisco Millionaire Becomes
Unconscious — Revived by
Family
By Associated Press.
SAN FRANCISCO. Oct. 14,-John D.
Spreckels, Jr., son of John D. Spreckels,
had a narrow escape from asphyxiation
at his home last night.
Mr. Spreckels was taking a bath and
was overcome by escaping gas from the
patent hrnter in the bathroom.
His prolonged stay In the bathroom
alarmed the members of hl« family, who
broke open the door and tounfl his un
conscious. Mr. Spreckels soon recovered,
and will suffer no ill effects from his mis
hap.
NO MARKS ON
MRS. MAGILL
SIGNS OF VIOLENCE ASSENT,
SAYS WITNESS
Undertaker Who Prepared Body for
Burial Testifies There Were No
External Evidences of
Murder •'
By Associated -'ress.
DECATUR, 111., Oct. 14.— When the trial
of Fred Maglll and his wife, Fay Graham
Maglll, charged with having caused the
death of MaglU's first wife, was resumed
today, C. G. Oakman. an undertaker of
Clinton. 111., where the Magllls lived,
testified that he lived a few doors from
the Magill home. He said that during
the year preceding the death of Mrs. Pet
Magill he saw Fay Graham go to the Ma
glll home about twice a week In that
time and be frequently saw Maglll and
her leave the house together in the
morning.
Oakman prepared the body of. Mrs. Ma-
Kill for burial. He said her right wrist
and forearm were bßdly swollen On
rofifi examination Oakman said he Imd
«r*umlned the- body closely but found no'
marks of violence.
Mrs. W. C. Campbell of Clinton testified
that she went to the Maglll home In the
afternoon after Pet died and she heard
Fred Maglll say: "I suppose the d
people will blame me for her death."
The prosecuting attorney asked Mrs.
Campbell: "Did he say damned people?"
"No, sir; he said d "
"Did you hear Fay say anything?"
' "Yes; she said she understood the peo
ple were blaming her for the death. I
heard Fay ask Fred to destroy the blan
ket that was found wrapped around Pet's
head. She said Marguerite, Magill's
daughter, had requested it. Fred said It
was such a good blanket he hated to de
stroy It, but would give It away."
Mrs. Campbell testified that there was
no talk at that time that Fred had mur
dered his wife, bu there was great talk
about the conduct of Fred and Fay caus
ing Pet Maglll to commit suicide.
ALCOHOLIC MEDICINE
LIKELY T6 BE TAXED
WHEN SUITABLE FOR BEVERAGE,
SELLER MUST PAY
Commissioner of Internal Revenue
Renders Decision as to Manu
facture and Sale of
Compounds
By Associated Proi-».
WASHINGTON, Oct. 14.— Commissioner
of Internal Revenue Capers has returned
a decision relative to the manufacture
and sale of alleged medicinal alcoholic
compounds where on analysis it Is found
that the said ulleged compounds are
suitable for use as a beverage.
Summing up an elaborate opinion, the
commissioner holds as follows:
"That a special tax is required for the
manufacture and sale of alleged medi
cinal alcoholic compounds of malt ex
tracts manufactured from fermented
liquors, the drugs used in the manufac
ture of which are not sufficient in
amount or character to render the
product unfit for use as a beverage, or
In the case of cordials, extracts and es
sences, In which the amount of alcohol
Is greater than Is necessary to preserve
the Ingredients or extract the properties
or cut the oils and hold same in solu
tion.
"Manufacturers of alcoholic medicinal
compounds, malt extracts, flavoring ex
tracts, essences and soda water syrups,
who wish to avoid liability for special
taxes, must satisfy themselves that there
products are within the limits herein
defined, and those s who put opt alco
holic compounds of doubtful medicinal
value or containing a questionable pro
cess of alcohol, must do so at the risk
of being required to pay special taxes
for the manufacture and sale of same."
Mitchell Twice Operated On
By Associated Preen.
INDIANAPOLIS. Oct. 14.—Vice Presi
dent Lewis and Secretary Wilson oi the
United Mine Workers of America re
turned today from LaSalle, 111., where
they left President John Mitchell. Two
operations for appendicitis and hernia
were performed on Mr. Mitchell yester
day. Both were successful, but they left
the patient Ai*& weakened condition.
To Recall SPpihish Commander
Br Associated Prut.
MADRID, Oct. 14.— The government has
decided to recall General Santa Olalla,
the Spanish commander at Casa Blanca,
whose differences with General Drude
tyive caused endless friction between the
French and Spanish forces.
Q. CENTS
COURT RULES
AGAINST S. P.
PRESIDENT
ENJOINED FROM VOTING BLOCK
OF SHAKES
FIERCE FIGHT FOR CONTROL IS
BEING WAGED
Illinois Central Stock Held by Outside
Companies May Be of No Avail
at Coming Election of
Directors
By Associated Press. , '¦'-•;.-. „; '."....'•/-'-..
f J CHICAGO, Oct. r 14. — Stuyvesant ; Fish
through H his J; attorneys, ;H. W. : ; Leman
Frank W. Culver of I Chicago and t Edgai
H. Furrar of J New j Orleans, l^ today sa
cured 'a' temporary Injunction which ./will
if ; mads : permanent,',; restrain the i votim
at the Illinois Central I meeting ! of 286,73
shares '. of ¦'¦ stock ¦ of .' the Illinois . Centra
Railway "• company, which would other
wise ' be ', voted ' in : the ' interest' '• of K. -ii
Harrlman.,,V ¦''. „:..,. .- .-¦ •„. -^^^r&SS&v;
f . The writ ' is directed against . the Unioi
Pacific Railway company, the Railroac
Securities ';. company of' New . Jersey ant
the Mutual .Life Insurance company o:
New . York, - which,, combined, hold ¦ thii
big block ' of : shares. ¦'
! ; Aside . from the \ temporary .¦ lnjunctioi
sought ' a final j decree ¦ was ' asked i declar
ing , the Union Pacific ; and '< the i Railwaj
Securities 7. have «,' no '4 power, "fj under > th<
laws " of s Illinois, to ; own stock i in thi
Illinois Central. It , was also I asked thai
these companies be directed to sell theli
stock' in the • Illinois Central , within rea
sonable ..time, j •¦¦.;-. '"¦¦':•_¦; j .:\-,*"...:v^ J c-V
The -: petition _ charges . an Y; unlawfu
scheme •of the -' Union • ; Pacific ¦ ¦ Rallwuj
company (to control ' the j commerce of th<
United States ; by . buying | large | blocks ' o.i
stock '¦ in ' the . present transportation I coin
punies. . It also set * forth I the : facts ;in i
, recent t report ? of V the i interstate \i com'
merce commission f ¦¦ in ;• regard : ', to ¦'•¦' th<
transactions ¦ of . the . Union '¦ Pacific f Rail
road * company : and > E. , H. , Han ..nan. ,, »t
Tit v sets ;. forth \ the 'i names * of *, corpora
tions "whose stock it is claimed the C'ntor
Pacific <j has ' .bought,'- • among f, them t* th<
Chicago & : Alton, lllinota Oentral, . Chi
cago, „' Milwaukee ¦ & * St. Paul % and £ th«
Chicago " &•''. Northwestern. .' It ¦- charge!
these 'four companies ; . own | and > operate
parallel and competing line* both in anc
outside of the state lof Illinois, and i thai
it is unlawful for. the Union Pacific com
pany to own ' and v vote 1 stock <in • suck
parallel and competing lines. '
i Deal Concealed from • Public - _
< It ' is ' also ¦ charged ' that the ; acquisition
of the . Illinois ' Central by - tne Union Pa
cific, which ; took [ place July, 190t>, was
concealed 1 from the I public I an H . , was ' first
brought ' ; to i light by . the ,• investigation!
of ' the ¦ interstate commerce commission.
It is I alleged ;in ! this connection that jup
to this day not one share of the Illinois
Central has been ! registered jin ' the . name
of the Union Pacific, 'but ; still I stands : in
the names 'of the ¦ clerks ' and ' brokers ol
Kuhn, ', Loeb & Co. T -': ¦',¦¦'¦"¦¦ .'¦''-. ' •",' TV-l'K
I It is further charged that in the effort
to get as large a percentage of the stock
of ¦¦ the ' Illinois ' Central " as s possible » the
Union Pacific violated i, its r, charter in
buying the stock ' of I the Railroad Securi
ties, ! which, held as 1 its : only; assets 95,000
shares of Illinois Central. , ' .-V> f,'"'®
j The I charge is I made that 16,000 1 shares
of Illinois .Central; stock belonging 'to
the. Railroad : Securities ¦¦ company ¦ were
transferred ' a ' few . days | before I the ' Illi
nois Central books ¦ closed ':¦ by a > sham
transaction s to .v E. H. ; Harriman li and
eighteen .. officials - of the Union-. Pacific
and Illinois ¦ Central . who I are ' under . the
control i of 1 Mr. : Harrlman. :<; ','i . :, ' v .;;"¦ \>
: The bill declares that Directors Pea
body, > Auchlncloss and ; Vanderbilt of '• the
Illinois Central ' are , trustees , oil the i Mu
tual i Life - Insurance .: company of £ New
York and . have j combined and I conspired
with 10. H. Harrlman and, the Union Pa
cific Railroad company .. to aid 1 the Union
Pacific in getting control of j the i Illinois
Central; j and jto : that ' end lit i is i declared
they . propose 'to vote • the | £500 ' shares ;of
stock o wnttl * by the i insurance ; company
at ' the coming election. , ', ". „ , ;. ' U". .'* ¦
¦ It is claimed ', the * insurance company,
under the > laws | of ' Illinois, cannot , vote
stock in the Illinois : Central. • - ' V i " ¦
.1 The bill * declares : that '¦ Directors '. Harri
man, ' Peabody and Qoelet of ' the • Illinois
Central .' are ; also >; directors of the :, Union
Pacific and alleges that E. H. Harriman
nominates all the ¦ Union Pacific ¦ and all
of i the Illinois < Central directors,' except
Messrs. ¦: Fish, Cutting and Beach. .-- :
.: \] Says Harriman Sought Revenge ..,"'
It is ' claimed that Harriman ¦ deposed
Fish , as ' president/ of < the , Illinois Central
because 'he . defeated ', last I year the , elec
tion of one. De ~ Forrest of the Union Pa
cific as a director, of the Illinois' Central
and: because he refused to , let the Illi
nois Central be controlled in the interests
of the Union Pacific. ;.;¦:, ' ¦'.'.?.>;'¦_?
' It 'is \ set forth in the petition', that* the
object of the Union Pacific | is , to . perpet
uate t its :' control jof I the < directory . of the
Illinois Central- so fas|to '/ have ( the J Illi
nois I Central ( operated to its ¦ irreparable
injury. and damage, as a mere feeder to
the * Union S Pacific : through its ";? connec
tions '.atj Council f Bluffs, £ lowa, and Ij at
Now t Orleans,; by means of . the Southern
Pacific company, which, ' the petition > do
clares the Union ¦ Pacific t controls i abso
lutely.-. :•¦¦.'.¦. •;.- .', 1 >¦ -,-¦ •' ¦'¦"- .•'..-¦•*;,:: ;:" ~'?£i.'V.
¦l lt is claimed, under , the laws and pub
lic '„ policy of ' Illinois '' neither | the * ; Union
Pacific; or . the Railroad ' Securities <* com
pany, " nor it the J Mutual ;•* Life •.• Insurance
company can own and vote stock ', in the
Illinois •¦ Central. .V ; '<.( ."S .• fi'^i-j: v^SfViKS'gSS
The amount of the stock of the Illinois
Central to ' which ¦ the application "of in
junction '. Is directed, < is made up as 186,231
shares bought by the Union Pacific by B.
H. Harrlman, 11. I H. Rogers, James ! Still
man and Kuhn, Loeb ' & Co. '¦ in ' July, 1901;
96,000 1 shares | belonging I to '.' the f Railroad
Securities company, all of which stock tho
petition ; declares ' Is ! owned |by i the Union
Pacific, ? and ?' 5600 j shares 5 owned 5 by 4 the
Mutual fi Life ;'•; Insurance company, the
whole aggregating 286,731' shares, out of, a
total lof i 950.400 outstanding j shares i In \ the
Illinois 5 Central, 'or a little ; over ;80 J per,
cent of the stock. ; ¦' '.' ¦ ' -,' r i. : -V.
It is > believed '1 the j attorneys 1 for f Mr. 1 :
' ¦•¦¦; (CtoatUnu* ©» r«»« Xw*& > ¦i"> : ' ¦"