| Show I 1 a THE INJUSTICE OF A greata corporation tuu thu utah eastern railroad scheme has become a sore subject to many of our people it was started in good faith and with excellent prospects pla pia plans ns were vere laid by which the control of the road could be kept in the hands of the people who subscribed to its stock and by which it would have hav e been impossible to change that control without their consent consent but this was predicated on bm an int if irl and that was 4 if the people would take stock to the amount of the shares were placed at each and the whole amount amoun was shares if then the people had taken shares they would have held the majd majority rity of the stock This was to be pooled and held for them by three trustees for alf fifteen teen years to be voted by them at all elections individual stock could be transferred as in other cases but could not be taken out of the pool during that period this would have placed control in the power of the small stockholders as a body and prevented the la large r e ca capitalists ita lists from freezing out or g gobbling 0 blin biln sup yup up the little fishes bit but the people did not respond so as to make this secure the stock they placed la c ed jn in the pool only amounted to E sliwoo Sli I 1 ojo noo shares being issued at afif nifty fifty ty per cent n to of par this would give the pooled stocks a representation represent ution of in he capital stock instead 0 f as was ivas contemplated and would have been beell secured if the full amount of 0 f subscriptions to the pool had been obi bained the consequence was that because of the smallness of the capital the road had to be bonded to hagin hag in and tevis of san francisco later on second mortgage bonds had to be issued and with that a bo banus nus of 2600 shares of stock was given in order to effect the sale ale of tile the new bonds lia iia luin agin and tevis were subsequently induced by the union pacific railroad company compa who w ho had built a broad gauge bowd road to park city parallel with wit ft the utah aas eastern t nar narrow rov gaal gauge e to sell out their interest and the union pacific company compa in 1 I came into possession of the bonds held heid by haggin and tevis and with them the 2600 shares of stock one year ago at the first election after the sale the union pacified people came amein ameln in with their stock thus ac quiren to the surprise and consternation of the small stok stockholders holders who had not learned of the transfer and of cour seby vartue virtue of this large amount of stock elected the their r own board of directors and thus assumed control of the utah eastern road it is claimed that they removed the books of the company to omaha thus taking them out of the territory contrary to law closed lip up the road which had been paying expenses and producing profits profits sufficient to pay tjay the interest on t the K e first bonds transferred the running stock to the utah northern their own road and absorbed the con contract between the utah eastern and the ontario companies which was the main support the road and thus literally ruined the utah eastern company in traveling recently over the line of the roads we have marked the respective conditions of the park city branch of the V U P and the utah eastern by its side the U P is in alne condition conveying both bota passengers and frel frei freight ah I 1 the latter litter chiefly coal for the ontario the U E is dilapidated dilapidate dand and empty its rails are twisted its roadbed sunken its bridges falling into decay and the whole concern going rapidly to destruct destruction loh it Is a standing but crumbling shame to the company which has wrought this ruin on monday the list the utah eastern company met for its annual election of directors the people by their trustees J it winder and F H Auerba auerback cl leonard W hardy being dec dep deceased eased voted their 1098 shares which with enose of sundry local stockholders made up a total of 1333 1335 shares the tho U P company represented by I 1 E U dickinson C E and W W riter voted 2337 shares all of it being of that bonus stock which was originally anally given to hat has agin and tevis cat cau the commencement of the meeting mr dickinson in the chair he having 1 stated that the object was to vote for lor a new board of directors to serve during the ensuing year a report of thel business and condition of the road was called for the chairman stated that as the road was not in use no report could be given and again auno anno announced that the election was iii in order an objection was offered to the voting of the bonus stock but this was overruled led by ane chairman the voting then commenced and when the bonus stock votes were broucht forward another protest was entered by a motion duly duty seconded but it if wa was declared out of order by the chairman an appeal was taken from the chair mans decision but by tile the vote of that very bonus stock the validity of which was in question the motion questioning its validity was lost I 1 the result was the election of the U P ticket as follows for directors sid sidney ney dillon chas francis adams F L ame amese se dickinson C E W IV riter TJ almy RC chambers WB doddridge Dod drige apt 2337 voted vote here is the locaL ticket for directors it 11 C chambers T J aimy almy lilly IL T bertou burton edmund wilkes F il auerbach all ail raleigh 11 II dinwoody jno R winder jno anoa A groesbeck 1198 17 iou loo votes it should be understood tilt that the stock represented by the local loca 1 tiit s share rc ri is paid up stock it is bona bord fide stock the stock held by the U P 11 cobas as a gift bondholders bond holders antl anel though financially valuable is consid ered worthless wort hiess biess as to voting power be cause obtained without payment and therefore not equal for such such buch purpose with stock paid up this question Is to be tested in llie ilie coults coutts arthur brown is attorney for the local stockholders and i they intend to push the matter until i hey obtain justice it if that is possible the course othe orthe unton union pacific company in re gard kard to this local enterprise which wa was started with such excellent prospects and f for or so laudable a purpose is certainly not commendable in the light of honor and business equity even if the stock they hold gives them the tiie lawful majority for all purposes they had no right tor to transfer the ontario contract to the union pacific to remove the rolling g stock or to render valueless the property of the company we understand that they have offer d atho the tho local stockholders the munificent sum of eight dollars per share f for or the stock which cost them fifty dollars per share but they think it better to risk the issue in the courts than to submit to such a shameful squeeze from the company which has wrecked their project and nearly destroyed their road they will have the pym ym pathy and support of the public and of all fair minded persons who understand the situation |
