RAILROADS: Proxy Fight

The 15 directors of the Missouri-Kansas-Texas Railroad Co. ("Katy") feared that there would be wigs on the green at the annual stockholders' meeting in St. Louis last week. Edward N. Claughton, holder of the largest single block of Katy stock (11%), had loudly voiced his dissatisfaction with the way the Katy president, natty, gregarious Matthew S. Sloan, was treating his stockholders.

Claughton's chief complaint: no dividends were paid out of the fat $6.1 million profit earned in 1944. Since 1941, Sloan has poured Katy earnings back into the system by making $89...

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