The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-10-27
HAYS SUCCEEDS
CPHUNTINGTON
Grand Trunk Official For
President of S.P.
VANDERBILTS SECURE
CONTROL OF THE ROAD
Much Excitement is Caused By
News Of Big Deal.

New York, Oct. 26--Charles A. Tweed
Of the Southern Pacific railroad this af-
ternOOn confirmed the report that
Charles NJ. Hays. general manager Of
the Grand Trunk railroad, has been
selected for the presidency Of the
Southern Pacific company. He said that
Mr.. Hays would assume the new Office
about Jan. and that he would have
headquarters in San Francisco. Mr..
Tweed added that the officers Of the
Southern Pacific would probably retain
their present positions.
mr.. Tweed said that the position had
not been offered to any one but Mr..
Hays, and although Mr. Hays had been
the unanimous choice OF the directors,
formal action on the selection VIII not
be taken until the meeting Of the board
next week
Mr.. Hays wiz reside in san Francis.
co and viii have complete charge of the
operations of the railroad with G H
Tweed as chairman in New York It
was stated today by a director that
there would be 10 friction in the man
agement over Mr.. Hays appointment
and that he viii have the cordial sun
port Of the whole board in his plans
for development Of the Southern Pa
cif1c- It is believed more modern meth
DDS OF rallroading viii largely increase
80 49, INNS eA-'AA-A--
Vanderbilt in Control.
The Times says: The VanderbfIts
have obtained control of the Southern
Pacific system. Negotiations aiming at
this accomplishment were begun two
years ago, but were summarily disposed
Of by G. P Huntington The property
was his, he said, and, owning 1t, he pro
posed to keep it. He wanted no alliance
which could only in extent make him
dependent upon others for which he
himself stood Thus important deals to
which New York, London and Berlin
houses had committed themselves, were
disposed of.
The death of Mr.. Huntington brought
about q complete change IN the situa-
ton The personal equation disappear
ed a German syndicate, bidding for
a large block of the stock in September.
was not without encOura cement that its
bid would be accepted for 100. 900 shares
en- bloc at an average of S42 per share
For. reasons, which on a business basis
were considered satisfactory both here
and at London, however, the bid for
this 100000 shares was rejected
The control OF the Southern Pacific
system, II can now be said. has bean
obtained by American financial inter
ests not hitherto identified with the
property Conspicuous in the syndicate
obtaining the new control are William
h Vanderbilt E H Hartman, James
). Hill, Norman B. Ream and James
Speyer, the latter, as the associate OF
Mr.. Huntington. having been cOnsDic-
uOusly Influential in the direction OF the
cOmpany's affairs for years past.
Wall Street Excited.
Within the past week Wall street be-
came excited over the discovery that
the control of Mr.. HuntingtOn's Pacific
Mall property had passed TO E H.
Hartman and his associates including
James J. Hill and ". X Vanderbilt
"a ma
have aimed to represent that only Mr.
Hartman had become controller, that
Mr. HIS interest and Mr.. Vanderbilt's
interests were relatively Insignificant
However this may be, IL is certain that
in the Southern Pacific deal (whereby
Vanderbilt interests VIII cOntrOD the
corporation OF the Pacific Mail Steam
snip company can be of vast interest
Aside from the Vanderbilt ambition To
establish and maintain a trsnspOrta--
ton line from the Atlantic coast TO san
Francisco and thence to the far east
Cmade practicable by New York Cen
trail. Northwestern, Union Pacific and
Pacific Mal) the taking over of the
Southern Pacific is an accomplishment
greater than any other coalition hither-
to forecast
It is believed by practical railway
managers that with the Southern Pa
Vanderbilt control there viii be at
once a complete disposition OF most Of
those elements which hitherto have
been interfering with far western and
southwestern traffic rates
Vanderbilt control OF Southern Pa
cific,'' declared one authority yester-
day. "wiII produce actual revolution in
southwestern railroad business. We
will have fair dealing. Secret rate
cutting Will stop. Instead Of decep-
ton, secret cuts. disturbances, losses
and reprisaIs, we can have profits.
Is Very Consequential.
In American railway financiering
nothing during the past twenty years
has been of so much consequence as
the possibility that William K Wander
bilt takes over the Southern Pacific and
puts it upon a level with the Union
Pacific. Chicago & Northwestern and
New York Central. Acquiring control
of the great Southern Pacific system
approximately 5000 miIes) is an ac-
complishment which makes relatively
Insignificant the recent taking over by
the New York Central of the Boston
& Albany property
As to the report current that the
Vanderbilts have obtained control OF
the road. Mr.. Tweed said:
Mr.. Vanderbilt may have bought
stock in the open market, but 50 far as
know the control Of the road has not
changed