New-York tribune., 1901-02-02
UNION PACIFIC GETSS.P.
SPEYER- R-HJ-NTTNGTON SHARES
IN THE LATTER SOLD.
THE MOST GIGANTIC RAILROAD DEAL
IN THE HISTORY OF THE COUNTRY
TWO IMMENSE SYSTEMS
IN UNITY.

operation in the history of the United states
was made yesterday afternoon when the rurnors
which had been flying thick and fast in Wall
Street throughout the day that Union Pacific
interests had obtained control of the Southern
Pacific Company received official confirmation
from James Spever of ,he great banking house
of speyer & Co. who said Tribune re-
porter:
Il have issued to The Associated Press an Of
fetal statement confirming the report that we
have sold out our interests in the Southern Pa
ciic"
Suppiementng Mr. Speyer's announcement.
one Of the interests most prominently identified
with the Union Pacific said
There is ample foundation for the rumor that
the control of Southern Pacific has passed to
Union Pacific interests. It certainly bears the
impress of truth You MAY not bc greatly mis-
taken IF you state that the transfer is agreed
upon There will be. however. mo- lease or direct
ownership Of tine Southern Pacific by the Union
Pacific. but the relation which viii exist be-
tween the roads will be what IS popularity known
as the community of ownership
The directors of the Union Pacific Railroad
Company are r. II Hartman. James StilIman.
Horace c. Burt. Winsow : Pierce. Marvin
Hughtt. Roswell Miller louis Fitzgerald.
James H. Hyde John w Doaue. otto n. Kahn,
T. Jefferson Coolidge, jr. George j. Gould.
oliver Ames. George q. Cannon ard Jacob II.
Schiff Mr. Hartman is chairman of the EX-
ecutive Committee and Mr. Burt the president
The Board represents powerful financial inter
ests SIr Hartman is generally regarded as
closely identified with the Vanderbilt interests.
which through their influence in the Chicago
and Northwestern and the Union Pacific and
now with the Southern Pacific. have virtually
p through line from ocean TO ocean Messrs.
Schif and Kahn as members Of the banking
house Of Kuhn Loeb & Co.. represent great
financial interests both here and abroad. Mr.
Stillman is president of the National City Bank
and in the closest relations With the Standard
Oil group of financiers; and Mr.. Gould repre-
sents the wealth of the Gould family and the
interests of the Gould system of railways in
the Southwest. Messrs. Hartman, Stllman,
Gould and Sehiff the syndicate which in
the spring of 1890 purchased the Chicago and
Alton road.
The directors of the Southern Pacific Com
pany are H. +. Huntington. d. o. Mills, Charles
H Tweed John W. Mackay. Thomas Fl. Hub
bard. Edward F. SearIes. Charles NJ Hays. J. r.
Haggin James Speyer. John D. PrObst, August
Belmont and Edwin Hawley. Mr. Hays is the
president and MIR. Tweed the chairman of the
Board
COURSE OF THE NEGOTIATIONS.
The operation by which the powerful interests
representing the Union Pacific Railroad Com
pany with it's S195 900 O0O of stock and its 300
miles Of track. have come into control Of the
Southern Pacific Company, with its Sl9S,OOOOOO
stock and $500 miles of line has been in prog
ress for months. and was foreshadowed in The
Tribune as far back as December. when the
news was published that the c. p Huntington
estates Southern Pacific holdings had been sold
The concentration of the largest holdings began
more than year ago First came the sale to
the Speyer-Huntington syndicate. according to
common report. of the Crocker stock, about
$4,000 shares Then. in November. 1899
Speyer & Co confirmed the report that they in
company with their European houses and other
powerful interests had purchased the 2S5.OOO
shares owned by the Stanford estate. and IN
December of the same year it was understood
that the Hopkins-SearIes holdings. 100000
shares. had also been taken over by the syndi-
cate These three aggregated 100000 shares
c. P Huntington, who used to say that he
never sold share of Southern Pacific died last
summer The amount of his holdings in the
great railway system of which he was the mead
has never been publicly known. but is said TO
have been at his death about 100000 shares.
One clause of his will. il said yesterday.
prohibited the sale Of his Southern Pacific stock
piecemeaI. providing that all must be sold at
once.
II was said in Wall Street yesterday that
Speyer & Co. were ANXIOUS 10 acquire possession
of the Huntington shares. but that the price
offered by them was unsatisfactory to the heirs.
the consent of all of whom had to be obtained
before a sale could be made. 1t then. ac-
cording to Wall Street report. that the Hartman
syndicate stepped in. obtained an option the
Huntington shares and named to the Speyers the
price they were willing to pay all around.
The Huntington. Crocker Stanford and Hop
kins-Seares holdings all of which have it is be-
lieved. been transferred TO the interests repre-
sented by r. III. Hartman. aggregate. according
TO the reckoning above, about 100000 shares,
constituting a clear majority, as the total au-
thorized capital stock issue is 100000 shares.
II could not be definitely ascertained yesterday
what price had been paid by the Union Pacific
syndicate for the stock. but reports placed the
figures at all the way from - TO -. 1t may
be set down as an absolute fact that the Speye-s
have not sold their Southern Pacific bonds
The application to the Union Pacific and the
Southern Pacific Of the community of owner
ship" principle. put into effect only recently in
the case of the Great Northern and the North
ern Pacific, leaves outside of the operation of
that and vital principle of railway control
only OF the five transcontinentaI lines. the
AtchisOn. Topeka and Santa Fe Railway Com
pany, and there reports yesterday thac
closer relations than now exist between that
road and the Southern Pacific would before long
be established.
CONTROL OF \ VAST SYSTEM
The Union Pacific through the purchase now
negotiated. will dictate the policy and control
the operation of vast system OF railways and
steamship lines. with which il had previously