New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-28
NEW HARTMAN SYNDICATE
10 UNDERNEATH KANSAS CITY, PITTS
BURG AND GULF REORGANIZATION

VANDERBILT. GOULD AND ROCKEFELLER
AND ILLINOIS CENTRAL INTER-
EsTs IN CONTROL.
1t became known yesterday that +. H. Harri-
man. who organized the syndicate which a few
months ago purchased the Chicago and Alton
road. has just formed another syndicate which
VIII underwrte the reorganization of the Kan
sas City Pittsburg and Gulf Railroad Company
This system, 1T will be remembered. went into
the hands Of receivers April OF this year.
on the petition of creditors. who alleged that the
road was insovent in that it was unable to meet
the 100000 interest due on its bonds on April |,
and was also unable to clear away certain other
debts aseregating between 100000 and $780,
oOO. The receivers first appointed were f. l..
Martin, Robert Gillian and j. McD. Trimbe. all
ofhcers OF the road; but April 81 they were
replaced by Webster Withers. of Kansas City,
ana >. w. Fordyce Of st. Louis. Two reorgani-
zation committees formed. known popu-
larly as the "New-York Committee" and the
philadelphia Committee" respectively. The
former was made up as follows Ernst Thai
mann. chairman; Louis, Fitzgerald James Still
man, j. Lowber Welsh William L. Bull. f. II.
Hartman. George Coppell and w. +. Glyn; and
the Philadelphia committee consisted Of William
William Edenborn. Max Pam. Samuel r. Ship
ley, Sias W. Pettltt and Winthrop Smith. Both
committees put forth plans of reorganization.
and that Of the Philadelphia committee on
September % declared operative. more than a
majority of the first mortgage bonds having
been deposited under the plan. as we'll as other
securities affected thereby
PROVISION FOR A NEW COMPANY
The Philadelphia plan provides FOR the for
nation Of a new company, which shall acquire
all the property OF the existing Kansas City,
Pittsburg and Gulf Railroad. and the whole or
at least a majority. of the stocks Of the Kansas
City Suburban Belt Railroad Company and the
Port Arthur Channel and Dock Company. thus
bringing the whole system under owner
ship and management. The new company Is to
issue S300OO.00O first mortgage fifty year per
cent gold bonds S2OOO0OO0 per cent non
cumulative preferred stock, and S3OOOO.OOO
common stock. The plan also provides for the
management of the new company for five years
by a voting trust which. originally made up.
was to consist Of John W. Gates. Arthur f.
Stilwell, a. Heckscher Herman Sielcken, Will
lam Edenborn. Samuel r. Shipley and l. de
G6ijen of Amsterdam. As a result OF the agree
ment which has been reached between the
derWriting syndicate however, ii IS understood.
President A. T. Stilwen OF the old Kansas
city. Pittsburg and Gulf road. and his friends,
are 20 have no interest in the property after re-
organization. Mr. Stilwells place member
Of the voting trust is to be taken by +. II.
Hartman. representing Union Pacific. Illinois
Central and Chicago and Alton interests. and
Mr. De CITIZEN will be superseded by James Still
man. who Will represent the Rockefellers Mis-
souri,, Kansas and Texas Railway holdings and
the Interests Of foreign bondhojers % ~, Kan
sas City Pittsburg and Gulf 1t is understood
that the Gould roads also represented in
the underwriting syndicate.
PERSISTENT RATE DEMORALIzER
The Kansas City. Pittsburg and Gulf road ex
tends from Grandview. twenty three miles south
Of Kansas City. and 764 mics to Port Arthur
From Grandview It has access 10 Kansas city
over the tracks Of the Kansas city. Osceola and
Southern and the Kansas City Suburban Belt
road: and It reaches deep water from its ter
minus at Port Arthur which is on Sabine Lake,
by a seven-mie ship canal operated by the Port /
Arthur Channel and Dock Company. IT Is the
shortest line from Kansas city TO the Gulf Of /
Mexico. but in the past the company mas Deeh
perhaps the most persistent rate denoralzer IN
the United States. II was only the other day
that a truce was declared in the contest which /
had been going on for many months arising
ential on traffic from New-Y York TO Colorado
Kansas Nebraska and Utah. and its policy or
making rates 10 per cent under those made py
the direct lines.
The syndicate which took over the Chicago /
aud Alton Railroad last spring was composed
of r. H. Hartman, chairman Of the Executive
Committee Of the Union Pacific, representing
the Vanderbilt interests and the Illinois Cen
trail. George j. Gould. representing the Gould
railroad interests. James Stillmdn representing /
the Rockefeller holdings In the Mlssourl Nam /
eas and Texas, and Jacob II. Schit, as repre- /
sentative of the Baltimore and Ohio The pres |
ent Hartman syndicate as has already been /
noted also contains representatives, Of the van /
darbNt Gould and Rockefeller interests anu the /
Illinois Central management ana lta cohtr"i nl /
the Kansas city. Pittshurg and CUR road VIII /
have the result of giving the Alton, which eN- /
tends from Chicago 10 ST. Louis and Kansas |
CITY a direct lin. from the latter city TO the /
Gulf and will il IS believed mean the operation /
OF the Pittsburg and Gulf road in complete har- /
mOny with the Illinois central extending Inlh /
Chicago to the Gulf at New Orleans, with the /
Missouri Kansas and Texas. extending from |
81 Louis and Kansas city to the Gulf at Gal |
weston and with the GOulis Missouri Pacific |
system I'm the Southwest through the lines of /
which also Kansas City and ST. Louis are con- /
nected with the Gulf ports Of Galveston and |
New Orleans.
Mr. Hartman said yesterday afternoon |
through Il representative that he had "spe- /
cidc details To give out regarding the plans for /
cffccting the reorganization of the Kansas city, |
pttshurg and Gulf road. The Philadelphia /
committees plan 0f reorganization. as recently /
modified viii be issued within a day or tWo' IL |
IS understood.
THE PONCE TouED T0 SAVANNAH
STEAMER LOSES PROPELLER oN FIRST TRIP TO