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Sign up freeThe Marion Daily Mirror
Marion, Marion County, Ohio
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On Oct. 15 in Chicago, Stuyvesant Fish secured a temporary injunction through attorneys to restrain the voting of 286,731 shares of Illinois Central Railroad stock by entities linked to E.H. Harriman at the upcoming meeting, alleging unlawful ownership and control schemes under Illinois law.
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Harriman May be Enjoined From Voting 286,731 Shares of Stock at the Illinois Central Meeting Tomorrow—Injunction May, However be Dissolved.
Chicago, Oct. 15.—Stuyvesant Fish, through his attorneys, H. W. Leman and Frank H. Colver, of Chicago, and Edgard H. Ferrar, of New Orleans, yesterday secured a temporary injunction which will, if made permanent, restrain the voting at the Illinois Central meeting here Wednesday of 286,731 shares of stock of the Illinois Central Railroad Co., which would otherwise be voted in the interests of E. H. Harriman.
The writ is directed against the Union Pacific Railroad Co., the Railroad Securities Co., of New Jersey, and the Mutual Life Insurance Co., of New York, which, combined, hold the above shares of stock.
The petition, filed by ex-Senator George F. Edmunds of Vermont, John A. Kasson, of Iowa, Stuyvesant Fish, of New York, and William H. Emrich, of Chicago, as stockholders of the Illinois Central Railroad Co., claims the Union Pacific Railroad Co. has placed all the stock, which it holds in the Illinois Central and in whose names the Railroad Securities Co. has placed 15,000 shares of its stock in the Illinois Central.
In addition to the temporary injunction sought a final decree was asked declaring that the Union Pacific and the Securities company have no power, under the laws of Illinois, to own stock in the Illinois Central. It was also asked that these companies be directed to sell their stock in the Illinois Central within a reasonable time.
The petition charges an unlawful scheme of the Union Pacific Railroad Co. to control the commerce of the United States by buying large blocks of stock in the principal transportation companies. It also sets forth the facts stated in a recent report of the interstate commerce commission in regard to the transactions of the Union Pacific Railroad Co., and E. H. Harriman.
It is further charged that in the effort to get as large a percentage of the stock of the Illinois Central as possible, the Union Pacific violated its charter in buying the stock of the Railroads Securities Company of New Jersey, which held as its only asset 95,000 shares of Illinois Central stock.
The charge is made that 15,000 shares of Illinois Central stock belonging to the Railroads Securities Co., was transferred a few days before the Illinois Central books closed, by a sham transaction, to E. H. Harriman and eighteen officials of the Union Pacific and Illinois Central, who are under the control of Mr. Harriman.
The bill declares that Directors Peabody, Auchincloss and Vanderbilt of the Illinois Central are trustees of the Mutual Life Insurance Co., of New York and have combined and conspired with E. H. Harriman and the Union Pacific Railroad Co., to aid the Union Pacific in getting control of the Illinois Central, and to that end, it is declared, they proposed to vote the 5,500 shares of stock owned by the insurance company at the coming election. It is claimed that the insurance company under the laws of Illinois, cannot vote stock in the Illinois Central.
It is believed that the attorneys for Mr. Harriman will, tomorrow, seek the dissolution of the injunction, and it is not possible to state at the present time whether the arguments will be completed in time to allow Judge Ball to make a decision before the day of the annual meeting.
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Domestic News Details
Primary Location
Chicago
Event Date
Oct. 15
Key Persons
Outcome
temporary injunction secured against voting 286,731 shares; may be dissolved tomorrow; seeks final decree declaring unlawful ownership and ordering sale of stock.
Event Details
Stuyvesant Fish and fellow stockholders filed a petition alleging unlawful stock ownership and voting by Union Pacific Railroad Co., Railroad Securities Co., and Mutual Life Insurance Co. to control Illinois Central Railroad; charges include scheme to control U.S. commerce, charter violations, sham transactions, and conspiracy by directors.