Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-01-08
ROCKEFELLERS HAND IN RAIL
ROAD DEAL.
New York World.l

John ID. Rockefeller and William
Rockefeller have just put through a
deal which viii give them trunk
line connecting their great lake in
terests with the Gulf, and which VIII
eventually give them Il thorough grain
route from the West 10 Liverpool via
the Gulf, Ry this new line 1t is in
tended to divert millions OF bushels OF
wheat. oats and corn every year from
New York and other Atlantic ports to
Galveston and the ports on the Gulf
of Mexico.
The statement is made upon high
est authority that behind the Hartman
Pacific interests. which recently pur-
chased q controlling interest in the Chi
cagO and Alton railroad, We're the
Rockefeller brothers ana Standard Oil
The two brothers headed that syndicate
with Il subscription of $5,O00,0O0. for
which they are to have in return track
facilities which will give their Mis-
souri,. Kansas and Texas system-which
runs between st. Louis and Galveston
II through line from Chicago to Cal
weston by II route shorter by several
hundred miles than any of the COM
pcting systems.
At the same time the statement is
made that the Rockcfellers have with
drawn their influence from the syndi-
cate organized to build n rival line to
the Alton between Chicago and st.
Louis. which was 10 be known as the
st. Louis Short Line. 1t is said this
Withdrawal has caused great bitterness,
particularly among the stockholders of
the Deutchse Bank, represented by Ed
ward ID. Adams. of the Northern Pacific
Terminal and Transfer Company, which
We're interested in the new line.
| John y. and William Rockefeller for
several years have been slowly develop
ing the Missouri. Kansas and Texas
railroad, with a view to eventually
making q trunk line of it. They have,
however not been able to make that
road profitable. because its Northern
| terminal is at st. Louis, where very lit
tie Southbound traffic originates.
! To develop this Missouri. Kansas and
| Texas railroad the Rockefellcrs entered
Il syndicate organized by Henry Budse
of Hallgarten S- Co, Edward d. Adams
representing the Deutchsc Bank, OF
| Berlin. and the Chicago Terminal
Transfer Company, to construct a short
! line from Chicago to North Clinton. Ill
| This was to connect with the St. Louis
| Peoria and Northern. the whole TO bc
known as the st. Louis Short Line. The
! Laciede Construction Company was
organized to undertake the construc-
| ton.
| All the prelimlnaries had about beer
arranged two months ago when Prcsi-
| dent y. l.. StilWcll. OF the Kansas City
! ifttsburS and Gulf, came to New Yorl
! prepared to buy the Alton road. The
! kansas City. Pittsburg and Gulf is the
only rival of the Missouri, Kansas anC
/ Texas. Like the Missouri, Kansas anc
: TeXns- sXstenl.- the znnsna CitX Pit is
| bugh and Gulf needed a Chicago ter
minal to make it u great hnd prosper.
| Gus line. When Mr.. StilweIl left Kan.
sas city he had assurances that the
Chicago and Alton road was his. HI
had only 10 come 10 New York to sier
Il few papers.
| Suddenly the whole deal collapsed
! The !inancicrs that were TO underwrit.
1t were unable TO do so. they said. The
! Rockcfcllers had seen their golden on.
portunity. Ia make a long story shor
| Mr.. Stilwell Went back to Kansas CitS
and the Chicago and Alton options ex.
! PRED
Then it was that T.. H. Horrlmar
| orsanlzed the syndicate which ha.
| bought controlling interest in III.
Chicago and Alton at $l75 n share
! "hich is about 81 above the narI<c
price. By means of this deal the Unio,
Pacific is to have favored trackage owe,
the Kansas City branch of the Alto,
and the Missouri. Kansas and Texo,
trans are 10 have unusual faciiitie
over me st. Louis branch. shared h,
| George Goulds Missouri Pacific. TIL,
! Chicago and Alton will throw all if,
enormous influence at Chicago TO orici
nate business for the Rocllefeilers' Mis-
souri,, Kansas and Texas.