The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-04
TO ABSORB OTHER ROADS
Further Moves Contemplated by
the Hartman Syndicate.
The Consolidation of the Union and
lowed by the Acquisition of Great
Southwestern Bines-Atchison and
Gould Systems Being Considered.

NEW YORK, Feb. 3.-With the stock
exchange closed on the occasion of the
Queens funeral the influence upon the
market of the Union Pacific Southern Pa
| cifc announcement and its vast collateral
| possibilities could not be measured yester-
| day in terms of stock quotations, but the
bankers and the many brokers who came
downtown. in spite Of the day being
| semi holiday, discussed with great inter
est the change of control of the Southern
| Pacific Company, and generally took the
view that other scarcely less weighty de-
velopments in the Southwestern situation
were impending. The next move of the
| Hartman syndicate to be announced, 1t
| was declared, would be the acquisition
| of control of the Missouri, Kansas and
Texas Railway Company but this report
/ was explicitly denied by Otto II. Kahn, OF
| Kuhn. Loeb & Co.. who said that his firm
| and z. II. Hartman, who constitute the
so-called Hartman syndicate" were not
| negotiating for control of the road.
Other reports in Wall Street yesterday
| had il that the Atchison also which eX-
tends from Chicago to California, parallel
ing both the Union Pacific and the South
| ern Pacific and lying midway between
| them. and which at present is without
marked affiliation with the now dominant
influences in its territory, was before long
! to be brought in some way into close rela-
! lions with them.
There have beea at more or less fire.
quent intervals for years rumors that the
| GouiGs were 10 consolidate into single
| company the roads of the Missouri Pact-
| fic. systematic Missouri Pacific Railway
| proper, 3.163 miles in length, with the st.
| Louis, Iron Mountain and Southern, oper-
! ating LIB miles OF line, virtually the en-
| tire capital stock of which company is
/ owned by the Missouri Pacific; the Texas
and Pacific. I,425 miles; the st. Louis
| Southwestern. 1,25S miles, and the Inter
| national and Great Northern, S25 miles. 1t
] is known that the Rockefeilers. who con-
| troll the Missouri. Kansas and Texas, have
made large investments in the stock OF the
! Missouri Pacific and ii would surprise no
one in Wall Street to learn that the Gonld5
! had similarly bought into the Missouri,
| Kansas and Texas. which runs from Gal
1 weston 10 Kansas City and st. Louis.
| through territory served also by the lines
| OF the Missouri Pacific system. Still an
i other line in the Southwestern district,
| which may figure in the plans reported 10
| be afoot for chat region, is the Kansas City
| Southern Railway, extending from Port
| Arthur, on the Gulf. to Kansas City-ihe
| old Kansas City. Pittsburg and Gulf. and
| in those days destructive and feared rate
! cutter-control of which since last Octo-
| Der has been lodged In the interests con-
| trolling the Chicago and Alton In the
| voting trust of the Kansas City Southern
| are E. H. Hartman and Ottor II. Kahn,
OF the Hartman syndicate, VINO stand pri-
marily for the Union Pacific interests;
George J. Could President OF the Missouri
Pacific, and James Stillman, representing
the Missouri, Kansas and Texas interests
The main line of the Union Pacific ex-
tends from Ogden. on the west. 10 the
Missouri River at Omaha, and at Kansas
City. with a branch to Leavenworth. AT
Omaha Il connects with the Chicago and
| Northwestern the same interests domi-
mating the two companies, and, through
the Northwestern, almost an air line, it
gains entrance into Chicago. At Kansas
! City connection is made with the Chicago
and Alton affording an equally advan-
I tageous route 20 Chicago; and the Alton
is controlled by Hartman, Gould and
! Rockefeller interests. From Chicago 10
the Atlantic seaboard also the Union Pa
eific is in the country of its friends, Tor
the New York Central is controlled by
interests with which Mr.. Hartman has
long been closely identified, and Mr.. Har-
riman and Jacob II. Schiff, of Kuhn, Loeb
& Co, are directors of the Baltimore and
Ohio
Westward from Ogden, however. the
| Union Pacific has heretofore mad only one
Independent route to the Pacific Coast,
/ that by way of the Oregon Railway and
Navigation Line to Portland Ore.
| The chief value to the Union Pacific OF
| the acquisition of the southern Pacific,
/ it is reckoned, is in irsuring TO the former
/ road the undisputed control of the Cen
I trail Pacific. which brings the Union Pa
/ cific through to San Francisco. The South
ern Pacific main route lies far to the
| southwark of the Union Pacific. and its
Texas lines are closely interlaced with the
j Missouri Kansas and Texas and the Kan
I sas City Southern and the Gould roads,
! with all of which The Southern Paclhc
/ mas now been brought into harmony and
/ all OF which reach The Union Pacific on
| the north.
The price paid for the Southern Pacific
| holdings transferred to the Union racine
! interests by Speyer d Co. and the Hunt
! ington heirs. it is said. was between A
/ and 30, and the transaction is undersaood
! to have involved the expenditure OF near
/ " $40 600 coo, most of 1t in cash.
Isaac E. Gates, acting vice president OF
/ the Southern Pacific Company, brother-
! in-laW of the late c. p. Huntington, sald;
/ "Tbe deal involving the sale Of the
holdings of the Southern Pacific has been
closed but the stock has not yet been
| delivered. The negotiations have covered
! a neriod of several weeks. | understand
! that the Huntington-Speyer holdings car
! ~ control OF the property. OF course,
! cannot say anything about the price re-
| ceived other than to state that 1t was
satisfactory.
! The plan of financing this vast opera
lion II is said, has not yet been fully
worl,ed out. The Southern Pacific system
viii continue to run Independently, but IN
/ co-operation with the roads with which
tho new interests are identified. 1t 10
also declared that the transfer of control
Of the Southern Pacific does not carry any
charge for the present at least, in the
] securities of the allied companies The
Central Pacific. the entire capital stock
/ of which is owned by the Southern Pacific,
/ in 1893 settled its debt to the United
! states Government then amounting to
/ S5S.S12715. principal and overdue inter
/ est. by giving the Government twenty
per cent promissory notes, payable semi
/ annually. and extending over period OF
ten years, the payment being secured by
a pledge of SIS. SIC. 600 first refunding per
cent gold bonds issued by the Central
Pacific Speyer q Co, who were parties
! to the agreement, took up at the time
the first four of the notes, and the re-
| naming notes have been met as they have
become due
Russell Sage said last night. in speak
| of the purchase Of control of the Southern
Pacific by Union Pacific interests: