Omaha daily bee., 1899-08-20
NOT CONFINED TO RATE WAR
Interest Of Railroad Men in Gulf Line E1-
tends Beyond Present Boycott,
COMBINATIONS FoRMEDFoR FINAL CONTROL
Regarding Outcome OF situation,
Rumor Most Generally Accepted is
that PhiladeIpbians Will
Dictate Reorganization.

No railroad enterprise in the history Of
the United States, 1t is claimed by well in
formed men, has created so much discus
sion. led such a stormy existence and yet
continued to be a factor in railroad circles
as the Kansas City, Pittsburg & Gulf, which
IS Just now plunged into the most critical
period of its stormy career by the contro-
versy over freight rates, resulting in the
boycott with which newspaper readers are
generally familiar.
The Gulf line has certainly been a maker
of history. and the outcome OF the present
crisis will be an important addition to its
already well filled pages. Anent this matter
st is interesting to contemplate the stories
that are afoat regarding the future OF the
road, and for an enterprise that succeeded
On bankrupting itself and getting into the
hands of receivers so quickly 1t Is also in
teresting to note the lively scramble that
seems to prevail in the effort to secure con-
troll.
A prominent executive officer OF one OF
the big western roads in speaking OF the
existing freight difficulty stated: THE only
cure for the present trouble is the purchase
of the Gulf road by a syndicate headed by
some man like e. II. Hartman. 1t is rea-
sonable to suspect that Mr.. Hartman de-
sires to make the Gulf road a part of the
Chicago e. Alton system. III he succeeds In
doing so the history OF the Gulf road as q
demoralizer of the rate situation VIII come
to a sudden end. and all the western and
southwestern roads would rejoice The
theory advanced by this official Is not an
unlikely one. The relation of the Chicago
& Alton to the Gulf line in the present rate
war is a criterion of the favor with which
1t Is viewed by Mr.. Hartman, the executive
head of the Alton. The latter road Is one
"a A. four uybicb bne rpflspd TO iOil in the
boycott against the Gulf line.
Besides the connection Of Mr.. Hartman
with the future OF the Gulf road comes the
reports that John w. Gates has been the
principal buyer of securities in Boston; that
the Thallman syndicate, or, as 1t Is better
known, the New York reorganization COM
mittee, has been gobblins up everything in
sight; that the Philadelphia committee has
secured the support of the Holland interests
In the road and that the Stillwell interests
In Wall street have formed a plan for the
reorganization and have gained the assent
of two-thirds Of the security holders. A
special telegram to The Bee from Chicago
Btates that the Philadelphia committee has
formally announced that 1t has secured con-
troll of the reorganization and gives an out
line of its plan. This is most generally be-
aieved to be the final outcome OF the matter,
because 1t has practically been established
tina the Holland interests have combined
with the Philadelphia committee and 1t is
known that they are the holders OF a vast
majority OF the securities and are adverse
to any plan for reorganization which does
not include a generous recognition of their
holdings.
With all of these combinations in the field
bent upon securing control of the Kansas
City, Pittsburg & Gulf there is room for an
endless amount of speculation, but 1t is
practically assured that final control will be
gained only by the combination that makes
the highest bid for the property when it is
auctioned off by order of the United States
court, and until that time all the rumors Of
this syndicate or that combination secur-
ing control of the Gulf line have no founda-
fion In fact.