| Show r FORAKERS s LONG TALK Attorney for Plaintiffs Wakes Strong Argument THEY ARE COMPETING LINES Claims Lake CutOff Is Impracticable Imprac-ticable and Expensive I Arguments In Union Pacific Case I o Are Ended and Decision Will Be Given Next Monday c Nashville Tenn April 3Thc hearting hear-ting of arguments in the Southern Pa eWe case was resumed today before fcific C Lurlon Court adjourned yes tcrcfny while the closing argument was being made by Senator Foraker for Talbot J Taylor Co Senator Foraker finished today The most important 1 im-portant rolnt raised was thai of the Jurisdiction of the court The defendants defend-ants argued that the Union Paclllc was not before the court The plaintiffs attorneys took the ground that the Union Pacific was before the court asa as-a stockholder or the Southern Paclllc Senator Foraker today in reply I to a question by counsel for the defendant its to why the suit was not brought in Ncw York said It would have been I quite as convenient for the complainant I complain-ant but that the suit could not be instituted against a corporation in a district where it had no residence lie paid the complainants in applying for nn injunction wished the court to compel com-pel defendants to do what it is their duty to perform Judge Lurlon then asked Senator Foraker lo stale what other relief wu illsired if an Injunction was not granted grant-ed as prayed Senator Foraker replied re-plied that the Injunction was asked to prevent the voting of the L stock held by the Union Pacific at the I coming meeting meet-ing on April lath and to prohibit the Housing or severing of the Central Pa ifie The speaker said that both roads I had a common terminus at Portland and that they are competitor in transcontinental trans-continental trafilc The affidavit of frame Manager Stubbs was read that if the Union Paclllc wished to divert business from the Southern Pacific it could be done by changing the tariffs LINES ARE COMPETITORS Senator Foraker said no better proof of them being competitive I lines could bo given than that by a change of rates business could be diverted to thc Union I larUlc If they are competing lines said Fcnator lorakcr what are the rights of bonaflde majority stockholders This suit was brought lo ascertain the rights of stockholders and complainants argue ar-gue and Insist that the corporation should have a 1 board of directors free hum the much or influence of any olh r line and who would bo devoted to the interests of the Southern Pacific company While this Injunction was seeking to prevent the execution of a contract raid Senator Foraker the complain I Taius contend that this contract is Die jal There was no redress of the wrong i don > by one corporation to another unless un-less the acl complained of was illegal snd there would have been no Illegal Illy in this contract had it been entered llnlo belwpiMi the directors of both l com panics acting solely for the public in crevls they represented CONTRACT WAS ILLEGAL Senator Foraker Insisted that the contraCt con-traCt t wag Illegal for the reason that it was In contravention of public policy and against such action The statement state-ment that the Southern Pacific was bo iiiff Improved for the benefit of stock lioldcrs was no answer and that the defendants de-fendants were doing wrong honestly vtr no defense rill law said Senator Foraker will not tolcnile repugnant trurlecshii The courts In all such f mailers have taken I the position that stockholder have a rlslit to have the properly mantted for I their Interests The speaker said that vhllc there were allegations In the bill I which had not been supported by evidence evi-dence there were none recklessly and Idly made The defendants had said they had no LC 09OYrlLaLOYYYYY f SUdSLaG Intention of severing the Central from Southern Pacific yet they had spent 20 000000 in Improving it They wanted a through transcontinental line from Chicago to Sank Francisco Certain Improvements had been made but not one word had been said in court concerning con-cerning them The earnings of the Southern Pacific over and above operating oper-ating expenses and fixed charges were being spent on improvements and these sums amounted to many millions One could not help thinking that if the Union Pacific had no Idea now of acquiring the Central Pacific the time would come when they would think of It and this would he when they had made the road more valuable and should they decide to sever It from tho I Southern Pacific it could be done In five minutes by a resolution adopted at a meeting of the directors SALT LAKE CUTOFF The cutoff in Salt Lake said Senator Foraker would cost15000000 and yet the defendants came luto court without saying a word about It or the great tunnel through the Sierras He spoke of the recent fall of a section of the cutoff into the lake to show the Impracticability i Im-practicability of the scheme Senator IorakTI i said that It was not necessary for the complainants to show that the defendants wine doing wrong but to show that they might do it In changing tariff rates that would work a detriment to the stockholders of the Southern Pacific Senator Foraker In closing said the important question was restraining the Vnlon Paclllc from voting the Southern Pacific stock at the annual meeting He contended riat the two roads were competitors and that the tendency was toward centralization and monopoly Senator Foraker read an affidavit from Kenneth G White slut wing a statement of the operations of the Southern Pacific from June HO 3102 to January 1903 The gross earnings for that period were 52085351 and net earnings 12ri750JS leaving a deficit for the period of 12408118 The month oC January Increased the deficit 1173070 Senator Foraker stated that in the face of a showing like this counsel for defendants de-fendants contended that complainants had no right to complain If the Union Pacific wanted to build tunnels cutoffs cut-offs and tho like they should Issue securities se-curities and not put the burden of debt upon the present stockholders The Union Pacific tales these earnings of the Southern Pacific to make Its Improvements Im-provements and pile up large deficits for the latter Judge Liuton announced that it would take several days to go over the records and thvt he would file his decision next Monday with the clerk of the United Stales court at Louisville i |
