New-York tribune., 1901-02-03
gARRIMAN'S NEXT MOVE.
,oRARIE DEVELOPMENTS IN THE
SOUTHWESTERN SITUATION.
-.-v-HrR ACQUISITIONS By THE syNDI-
rATE LIKELY TO FOLLOW THE
Union PACIFIC CONTROL OF
SOUTHERN PACIFIC

80 could not he measured yesterday in terms
:, stock quotations. but the bankers and the
Inv brokers who came downtown. in spite Of
-. asv being a semi-holiday. discussed with
at interest the change OF control OF the South
" Pacific company, and generally took the view
sc, other scarcely less weighty developments
=. she Southwestern situation We're impending.
The next move Of the Hartman syndicate 20 be
.-,ornced. II was declared. would be the ac-
,,,s,tion of control OF the Missouri. Kansas and
Tovss Railway Company, but this report was en-
r,,c,tly denied by Otto II. Kahn. OF Kuhn. Loeb
q 70 who said that mis- firm and z. H. HarT1-
-,.n Who constitute the so-called Hartman
svnsicate" were not negotiating for control OF
the road.
other reports in Wall Street yesterday had n
NJ, .be Atchison Also which extends from Chi
,oqo 10 California. paralleling both the Union
1D.o,sc and the Southern Pacific. and lying mid
,ys, between them and which at present Is
,,,,hopt marked affiliation with the now doHli-
,.,, Influences IN its territory was before long
a ne hroucht IN some way into close relations
with them.
There have been at more or less frequent In
,sr,,sls for years rumors that the Goulos were
% consolidate into a single company the roads
q, the Missouri Pacific system-the Missouri
T.c,ac Railway proper. 3.163 miles in length.
NTH
srn operating LIB miles OF line. virtually the
sr.tra oapital stock OF which company is
,u-nas bv the Missouri Pacific; the Texas and
Facihc 425 miles; the St Louis Southwestern
125s niles. and the international and Great
Northern, sos miles 1t is known that the
Rocke1ellers. who control the Missouri. Kansas
ana Texas have made large investments in
she stock OF the Missouri Pacific. and It would
surprise no one in Wall Street TO learn that the
Goulds had similarly bought into the missouri
Kansas ana Texas. which runs from Galveston
20 Kansas City and St Louis. through territory
served also by the lines OF the Missouri Pacific
system. stiu another line IN the Southwestern
district which may figure in the plans reported
10 be afoot for that region. is the Kansas City
Southern Railway, extending from Port Arthur.
on the Gulf 10 Kansas City-the old Kansas
City PittsburF and Gulf. and in those days
destructive and feared rate cutte--control OF
which since last October has been lodged In the
interests controlling the Chicago and Alton. In
the voting trust OF the Kansas City Southern
are E. r. Hartman and Otto II. Kahn. OF the
Hartman syndicate, who stand primarily for
Union Pacific interests; George J. Gould. presi-
dent Of the Missouri Pacific. and James Still
man. representing the Missouri. Kansas and
Texas interests.
UNION PACIFIc's MAIN LINE.
me main line OF the Union Pacific extends
from ogden, on the west, to the Missouri River
at Omaha, and at Kansas City. with branch
20 Ieavenworth At Omaha Il connects with
the Chicago and Northwestern. the same inter
ests dominating the two companies. and, through
the Northwestern, almost an air line. Il gains
entrance into Chicago. At Kansas City connec-
ton is made with the Chicago and Alton. af-
fording an equally advantageous route TO Chi
oago; and the Alton is controlled by Hartman,
Gould and Rockefeller interests. From Chicago
% the Atlantic seaboard also the Union Pacific
is in the country OF its friends. for the New
York Central is controlled by interests with
which Mr.. Hartman has long been closely iden-
tilted, and Mr.. Hartman and Jacob H. Sehitf, OF
Kuhn, Loeb & Co. are directors OF the Baltimore
and Ohio.
Westward from Ogden. however. the Union
Pacific has heretofore had only one independent
route to the Pacific Coast. that by way OF the
Oregon Railway and Navigation Line 20 Port
land. Ore.
The chief value to the Union Pacific OF the
acquisition OF the Southern Pacific. II is reck-
Oned. is IN insuring 10 the former road the un-
disputed control OF ths Central Pacific. which
brings the Union Pacific through 10 San Fran
CISCO The Southern Pacific main route lies far
70 the southwark OF the Union Pacific and its
Texas lines are closely interlaced with the
Missouri. Kansas and Texas and the Kansas
City Southern and the Gould roads. with all OF
which the Southern Pacific has now been
brought into harmony and all OF which reach
the Union Pacific on the north.
The price paid for the Southern Pacific hold
ings transferred to the Union Pacific interests
by Speyer e. Co. and the Huntington heirs Il is
said was between AZ and 80, and the transac-
ton is understood 10 have involved the expendi-
tuFe OF nearly S7OOO0oo0. most OF Il in cash.
Isaac z. Gates. acting vice-president Of the
Southern Pacific Company. a brother-in-law OF
the late c. p Huntington, said:
"The deal involving the sale OF the holdings
OF the Southern Pacific has been closed, but the
stock has not yet been delivered. The nego-
uations have covered a period OF several weeks
understand that the Huntington -speyer hold
ings carry control OF the property. OF course.
cannot say anything about the price received
other than TO state that IL was satisfactory"
FINANCING PLAN NOT READY
The plan OF financing this vast operation, 81
Is said. has not yet been fully worked out. The
Southern Pacific system viii continue TO run in
oependently. but in cooperation with the roads
with which the new interests are identified II
Is also declared that the transfer OF control OF
the Southern Pacific does not carry any change
Tor the present at least, in the securities Of the
allied companies. The Central Pacific. the
Tire capital stock Of which is owned by the
Southern Pacific in 1899 settled it's debt 10 the
United States Government. then amounting TO
Sos.sl27l5. principal and overdue interest. by
giving the Government twenty per cent prom
lssory notes. payable semi-annually. and ex-
tending over a period OF ten years. the payment
being secured by a pledge Of S5s,s20,00o first
ietunding per cent gold bonds issued by the