The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-02-02
TRANsCONTINENTAL LINE Is NOW
CONTROLLED BY THE HARRI-
MAN SYNDICATE
SOUTHERN PACIFIC TAKEN IN
A CONTROLLING INTEREST is AC-
QUIRED IN THAT COMPANY,S
STOCK
DEAL IS OF VAST IMPORTANCE
Gives the Union Pacific Direct
Line of It's Own From Ogden,
Utah, to the Golden
Gate

NEW YORK, Feb. 1-Another railroad
transaction, reaching, it is believed,
much further in its ultimate results than
than any of the deals which have thus
far marked the closing of the old and
the beginning of the new century, be-
came known known just a few minutes
before the closing of the market this
afternoon, when the transfer of the
Southern Pacific railway into the hands
OF syndicate, in which Union Pacific
interests predominant, was announced
The transaction completes the last link
necessary for the establishment of a
transcontinental railway under a single
control. This control is at present vest
ed in E. H. Hartman. The new route
includes the following lines in all of
which except the Southern Pacific Mr.
Hartman is officially conn fcted:
Starting at San Francisco running over
the Central division of the Southern Pa
cific direct to Ogden, thence, first over
the Union Pacific to Kansas City, thence
over the Chicago & Alton to Chicago,
or second, over the Union Pacific to Oma-
ha and thence over the Dubuque & Sioux
City branch of the Illinois Central direct
to Chicago, where the B. & o. connects
direct to the Atlantic seaboard.
The control of the Southern Pacific,
just transferred, includes the large hold
ings controlled by Speyer & Co. and also
cured for these holdings is not known
Mr.. James Speyer, when Questioned
would make only the following concise
statement:
1--WE have received a satisfactory Of
fer for our holdings of Southern Pacific
stock and have accepted it,
CONTROL OF SOUTHERN PACIFIC.
From a reliable source, however it
may be stated that the holdings of the
Huntington estate in Southern Pacific
have been acquired by the same inter-
ests which purchased the Speyer stock
and that the two blocks in connection
with recent purchases in the open mar
ket, which have been responsible for the
sharp advance in Southern Pacific secur-
tiles, have given the purchasers a work
ing control of the Southern Pacific sys-
TEN. The statement that the Union Pa
cif1c-Harriman interests predominate in
the syndicate may be made on authority
The syndicate is composed in the first
place Of the capitalists who have been
behind E. Fl. Hartman, including Kuehn.
Loeb & Co., who, 1t will be recalled
have very close relations with the Penn
sylvania railway Interests and second
the Rockefeller interests represented by
the National City bank. There is good
authority for saying the Huntington
stocks were secured some weeks ago.
At the last annual meeting of the
Southern Pacific, Mr. Huntington voted
nine-tenths of the stock, which included
proxies of Speyer & Co. and their friends
The total authorized stock of the South
ern Pacific is 5000, coo, 600, including s62,-
274,2O0 exchanged in 1894 for Central Pa
citic stocks The Southern Pacific COM
pany owns no stock in fee, but principal
ly through ownerships and stock and
partly by lease it operates a great sys-
tenn of road extending from San Fran
cisco to New Orleans Ghence by COM
pany's steamers to New York, etc.) and
to Portland, Or, to Ogden, Utah, with
branches.
OF GREAT IMPORTANCE.
The importance of the new deal grows
when viewed in connection with the ac-
QUESTION in November last by the South
~ern Pacific of the Pacific Mail company
with its immense distributing power on
the Pacific coast.
The acquisition of the Southern Pacific
is simply another move in the community
of-interest policy which has already Sc
cured such vast hold upon the railways
of the country. 1t means the establish
ment Of an all-rail transcontinental road
governed directly by this policy Mr.
Hartman is president of the Chicago Ss
Alton road. He is also a director in the
Union racine, IN the Illinois Central, in
the Oregon Railway & Navigation com
pany, and in the Oregon Short Line Rail-
way company In the Alton deal, by
which Mr.. Hartman obtained control of
that road, the Vanderbilts were credited
with participating to the extend of So
00o000, and the Gould and Rockefeller
interests to the same amount. It is be-
deved George Gould will be invited into
the present syndicate, If he is not already
in. The Union Pacific has already an
outlet to the Pacific coast through it's
stock holdings in the Oregon Short Line
and Oregon Railway & Navigation, but
these connections reach the extreme
Northwest. It's connection with the
Southern Pacific will give the Union Pa
cific direct route from Ogden, its west
ern terminus, to San Francisco. The
Union Pacific would then have direct
road from San Francisco to Omaha and
Kansas City. Reports have already been
current that negotiations were pending
for the control of the Chicago, Burling-
ton & Quincy, which would meet the
Union Pacific at both Omaha and Kansas
City, and afford a direct route to Chi
cago.