Show 1 ALTON GO GOES S TO THE ROCK ISLAND Union Pacific Only Had a Mi Minority Minority Minority Interest in Wrecked Railway Property Propel y AGREEMENT ENT IS ABROGATED TALK WITH DIRECTOR OF THE HARRIMAN ROAD New York June 15 A director of the Union Pacific Railroad company speaking of ot the abrogation of ot the Chi Chicago Chicago Chicago cago Alton agreement today said The suggestion in papers that there Is to be a contest for the control of the Alton is a absurd A clear majority of ot the Alton stock Is now owned by the Rock Island interests and has been owned by that interest for nearly three years The right of the he Union PacifIc to own stock in the Chicago S Alton is not open to question since their lines are nowise parallel or competing The Pacific could lawfully hold all allot of ot the stock but the Rock Ro k Island owns n R line between Chicago and Kansas City Ity parallel with the line of ot the Chi CM Chicago Chicago cago R Alton and if IC there is any doubt about the agreement being legal It is due entirely to the competitive Interest of ot the Rock Island company Instead of being a restrictive the ef effect effect of the agreement was obviously Intended to be and absolutely has been the contrary When It was entered into In October 1904 the Rock Island owned a clear majority of the road thus the Alton would soon have become be become become come subject to the control of a paral parallel lel competing line Alternate Control By the agreement control was post postponed postponed postponed for two years rears and thereafter the Interests were entitled to control only In alternate years The effect was to inevitably relieve the Alton from and preserve its absolute Inde Independence of control by a competing company every alternate year yea ye r It is very difficult therefore to see how the agreement would be regarded as in restraint of trade Mr HarrIman tes testified testIfied testified before the th commission that the inducement main inducement for the Union Pacific to enter into the agreement was the understanding that the Rock Island would use the Kansas City line for its through traffic and the Union Pacific would use the Kansas City at t Louis line for Its eastern connection out of Kansas City and that with both systems systems using the Alton the latter would serve perve the needs of the two and prove profitable to the stockholders and conserve con on serve nerve the public interest But the Rock Island never carried out the plan thus contemplated d and hence one of the main purposes of the management m as asfar asfar asfar far as the Union Pacific is concerned has Ims failed and as the Rock Island de desired desired desired sired to abrogate it the Union Pacific acquiesced being still of the opinion that the public disfavor Into which the agreement has been brought is due to toa toa toa a misconception of its terms and effect The Alton now by the abrogation of the agreement comes under the absolute absolute absolute lute control of the Rock Rook Island with its great competitive interests No Change Was Made The intimation in the morning pa papers papers pers pen that the very en satisfactory results of the operation of the Alton for the year nar about closing Is due to any charge change chan e eIn In the management is without foundation foundation foundation tion White Whim under the voting arroe ment the Rock Island interest was gh given ghen given en one more director making a major majority majorIty majority ity of the board at the election of 1906 It continued without any change what whatever whatever ever vcr in the management of ot the road as it existed since the syndicate took it Jt over in 1599 Mr Felton the president president dent and his entire staff has continued ir is the actual management of the prop property property erty ert and the results achieved are due entirely to the Improvement of the property and the management Inaugurated Inaugurated inaugurated rated Mr lIr control and con continued continued continued to this date I |