Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-02-17
SOMETHING ROTTEN.
A Peculiar Condition of Things in the
Illinois Central Railroad.
President Fish and Vice President Hartman
Invited TO Explain Why Wide
Discrepancy Exists

NEW YORK, Feb. l6-The Sun this
morning prints very interesting and
sensational article in regard to the present
management of the Illinois Central rail-
road. The article says:
Vice-President Edward H Hartman of
the Illinois Central and some of his social
chums who he has made directors of that
company had a conference yesterday at
the New York office of the company. 1t
was officially stated that the business
that called them together was of a routine
character. Whatever the occasion was
it made those who attended it illnatured
and communicative. 4 reporter for
Wall street newspaper managed to get
hold of Mr.. Hartman and asked ii his
company would sign the agreement
of the Interstate traffic association. Mr..
Hartman was quoted as saying:
g Neither the PRESIDENT of the company OF
/ can commit the company to any
pledge The board of directors viii
meet TO take action on this matter. Our
directors viii decide - He added that a
meeting to consider the matter would be
held early next week.
This is an entirely new position for Mr..
Hartman to take, and before he
sewers his relations with the Illi-
nois Central railroad company, he
may wish he had always been
as punctilious about consulting his
board of directors as he now appears to
be. Perhaps if President Stuyvesant
Fish had advised with the directors he
would not have appeared as he did in his
correspondence with MIR. Charles Francis
Adams, that the Illinois Central is above
cooperating with its neighbors to secure
better rates. The little interview with
Hartman that was published down town
yesterday was promptly construed as in
dicating a breakdown OH the part of the
Fish-H Hartman management, and it
undoubtedly means that company will
sign the Interstate traffic agreement 1t
was suggested down town that a meeting
is to be held next week. A reclassifica-
ton of the board might be effected in or
der to determine who approves of the
Hartman policy and those who do not
1t also may be worth the time of Mr.
Hartman and his associates to study the
figures which are presented herewith.
They were prepared by one of the best
expert accountants in the city and the
results will bear the closest scrutiny.
The Sun then prints tabular state
ment showing the new securities issued
by the Illinois Central since 1882, and
also the expenditure in that date
for permanent improvements and
extensions. 1t then comments on the
table as follows: cit appears that the
obligations of the Illinois Central have
increased since Edwards became a con-
trolling spirit i'll its affairs, S25 496 900,
and besides the management has used up
$3.50 $40 of the securities that were in its
treasury. According to statement, it
appears that the prices of proceeds of
S34 ,305, $40 of securities have passed
through the hands of Fish
and Hartman. AS matter of fact the
or larger than that, as pre-
MUM are S3G per share was received for
100 200 shares of new stock that was
issued three years ago. That premium
would amount to So 1854 600, and the
proceeds of increase of capital account
we're, S3S ,265 $40. Against this the
report of the company shows dlsburse-
ments of construction, extension and |
betterment accounts of .S25 ,71S SOY, |
making Il difference between value of |!
securities issued and cost of additions to |
of IS ,5S7 ,033, and the differ |
ence between cost and proceeds of |
securities referred to SI2 ,547 ,033 All |
of these figures are from the company's |
reports. Messrs. Fish and Hartman |
doubtless have some explanation to make |
this remarkable discrepancy,
and, if so, it is clearly their duty to make
It before accepting single proxy from
the stockholders of the company. The
remark was printed in the financial col
Imn of the sun yesterday that the man
lgement and treasury of the Illinois Cen
ral needed thorough overhauling, and
hat the sooner it was done the better.
Such q showing as the above seems to
Justify that statement. In looking for an
explanation of this wide difference be-
.ween the receipts and disbursements of
he company it might be well to pay
some attention to the commission ac-
count, if the concern keeps one, or at
east discover what compensation HarrI-
nan has received for his services in
shaking security holders out of their
properties that he might secure them for
he Illinois Central The indications are
hat there is enough TO be looked for.