The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-02
stock Owned by Huntington and
Speyer & Co. Secured by Il. ii.
Hartman, the Great Promoter.
DEAL INVOLVING MILLIONS
CHICAGO & ALTON, THE ILLINOIS
CENTRAL AND THE b. & O.
To He Used i'm Completing the Trans
tiOn of Combining Many Roads.


NEW YORK, Feb. 1-Another railroad
transaction reaching, 1t is believed. much
further in its ultimate results than any of
the deals which have thus far marked the
closing of the old and the beginning of the
new century became known just few
minutes before the closing of the stock
market this afternoon, when the transfer
of the control of the Southern Pacific Com
pany into the hands of a syndicate in
which the Union Pacific interests predomi-
nate was announced The transaction COM
pletes the last link necessary for the es-
tablishment of a transcontinental railroad
under single control This control is at
present vested In E. III. Hartman. The
new route includes the following lines, in
Mr.. Hartman is officially connected:
Starting at San Francisco, running over
the Central Pacific end of the Southern Pa
cific direct to Ogden. thence first over the
Union Pacific to Kansas City and thence
over the Chicago & Alton to Chicago, or,
second, over the Union Pacific to Omaha
and thence over the Dubuque & Sioux City
branch of the Illinois Central direct to
Chicago. where the Baltimore & Ohio con-
meets direct to the Atlantic seaboard.
The control of the Southern Pacific just
transferred includes the large holdings con-
trolled by Speyer & Co. and also the Hunt
ington holdings. The price secured for
these holdings Is not known. Mr.. James
Speyer when questioned would make only
the following concise statement: 1--WE
have received a satisfactory offer for our
holdings of Southern Pacific stock and
have accepted it,
From reliable source however. 1t max
be stated that the holdings of the Hunting-N
ton estate in the Southern Pacific. have
been acquired by the same interests which
purchased the Sreyer stock and that the
two blocks in connection with recent pur-
| chases in the open market, which have
been responsible for the sharp advance in
Southern Pacific securities, have given the
purchasers working control of the South
ern Pacific Company
HARTMAN INTERESTS ON TOP
The statement that Union Pacific Harri-
man interests predominate in the syndicate
may be made on authority. The syndicate is
composed, in the first place, of the capital
lists who have been behind E. H Hartman,
including Kuhn, Loeb & Co., who, 1t will be
recalled, have very close relations with
the Pennsylvania Railroad interests, and,
he Dro s,~x.
sented by the National City Bank
There is good authority for saying that
the Huntington stocks were secured some
weeks ago. The amount of such holdings
is not a matter of public knowledge They
were bequeathed by Mr.. Huntington, Mrs.
Huntington receiving two-thir1s and Henry
Edward Huntington one-third, subject to
the condition that such shares should not,
in whole or in part, be disposed of during
the life Of either. except with the consent
OF both such legatees or the survivor of
them. About one year ago, before the
death of Mr.. Huntington. what was known
as the Speyer-Huntington syndicate ac-
ouired, according to published reports, the
crocker holdings, par value 500 900; the
Stanford holdings. $50. 100000, and the Hub
bard holdings, 100000. 1t was also re-
ported at the time that the syndicate had
purchased the Searles holdings of $26 OOO, 900,
but this was subsequently denied. AT the
last annual meeting of the Southern Pa
cific. Mr. Huntington voted nine-tenths of
the stock. which included the proxies of
Sreyer & Co. and their friends.
The total authorized stock OF the South
ern Pacific is $500 0OO, ,OOO including ss7 274 200
The Southern Pacific Company owns no
stock in fee, but principally through own
ership OF stock and partly by lease 1t op-
crates a great system of roads extending
from San Francisco to New Orleans
(thence by company steamers to New York,
etc). and to Portland. Ore, to Ogden, Utah.
with branches.
The Importance of the new deal grows
when viewed in connection with the acqui-
sition in November last by the Southern
Pacific of the Pacific Mail Steamship Com
pany, with it's immense distributing power
on the Pacific coast.
AN IMPORTANT MOVEMENT.
The acquisition OF the Southern Pacific
is merely another move In the community
OF interest policy which has already Sc
cured such a vast hold on the railroads
Of the country. 1t means the establishment
OF all-rail transcontinental road gov
erned directly by this policy. Mr.. Harri-
man is president of the Chicago & Alton
road. He is also director in the Union
Pacific, in the Illinois Central. in the Ore
gon Railway & Navigation Company, and
In the Oregon Short-line Railroad Com
pany. In the Alton syndicate. by which
Mr.. Hartman obtained control OF that
road. the vanderbilts were generally cred
tied with participating TO the extent of
s5,ooo,ooo and the Gould and Rockefeller in