The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-02-09
GREAT CONSOLIDATION
OF RAILROAD INTERESTS
Union Pacific Now the
Owner of Southern
Pacific.
HARTMAN SYNDICATE IN CONTROL
a Close ALLIANCE EFFECTED
WITH GOULD LINES IN
SOUTHWEST.
All Traffic Between Mississippi River
and the Pacific Coast Now in the
Control of New Combine and
Santa Fe System.
HARTMAN SYNDICATE IN CONTROL

NEW YORK, Feb. 2.-The Evening
Post says: 1t was announced today
that the Hartman syndicate has not
only acquired large holdings of South
ezn Pacific stock. but is also obtaining
control of the Missouri, Kansas and
Texas. Thus it is shown that the mo-
tives which led the Hartman syndi-
cate 10 secure the Speyer and Hun
tington holdings in the southern Pa
cifc Railroad and thus dominating
interest in that property, involved
vaster scheme OF railroad consollda-
ton.
The close identification of the Gould
interest with the members of the Har-
riman syndicate would facilitate the
new relations proposed for the Kansas
and Texas property and the control of
the Missouri, Kansas and Texas. it
was asserted today. had been practi-
cally already assured to the syndi-
cate
The syndicate's control of these
made more feasible and de-
sirable the control of the Southern
Pacific. because it was the only re-
naming company west of the Missis-
sippi whose lines were in intimate re-
lations with the other properties con-
trolled by the syndicate
The southern Pacific connection to
San Francisco is essential TO the
Union Pacific and the Missouri Pa
cific's Denver line. lying between that
of the Union Pacific and the Atchison
and reaching the Mississippi river at
st. Louis, gives an outlet to the lower
river essential to the
broadcast control of the markets of
the west
The Missouri Pacific and other
Gould lines, particularly the Texas and
Pacific are, on the other hand. very
closely interviewer with the Texas
ines of che Southern Pacific. Both
not only have long lines
across the state of Texas
from Ell Paso to the Gulf of Mexico
at Galveston, but in the eastern por-
lion of the state both the Mississippi
Pacific and the Southern, Pacific lines
have an extensive mileage. largely
and reaching jointly all
the important cities, including Fort
Worth. Houston, Austin. ETC.
Clearly. therefore. the acquisition of
the Southern Pacific NAV be taken as
the syndicate's control of
the transportation facilities in the
southwest. south of the Union Pacific
lines rounding out a system which
viii include, besides the Union Pacific
and the Central Pacific the Missouri
Pacific. the Kansas and Texas. and the
Kansas City Southern. west of the Mis-
sissippi river.
It was learned on the best author
ity today chat the amount of stock
involved in the purchase of the South
ern Pacific constitutes two-ffths of
the entire outstanding share capital
Of over st95.S32 600 This is as near an
absolute majority as could be secured
and constituted the entire holding of
the Huntington estate and of the syn
licete formed by Speyer & Co last
April to take over the holdings of the
Stanford-Crocker estates. This gives
Mr.. Hartman and Kuhn. Loeb & Co.
control of the management as there
Are no other large blocks of stocks
The purchase. it was stated today.
vas made entirely for the benefit of
he Union Pacific to protect that COM
,any's connection with San Francisco. |
which would be in Jeopardy in the pos
'ibility of the Southern Pacific fall |
ng into hostile control While the |
actual terms at which the Huntington |
and Speyer holdings passed to Mr.. |
Hartman and Kuhn. Loeb & Co. could |
aot be learned today. it was stated |
hat the transaction had to-be quickly |
,arried out and it was intimated that |
ne new syndicate used its credit to |
complete the purchase. In this con- |
lection the increase of $50, 900 in |
he Joan account of the New York |
banks this week may be significant |
The question of permanently financ-
ng the purchase has not yet been TAX
IN up. the conditions under which the
purchase was concluded not making
I possible to prepare any plans.
Issac E Gates. acting Vice-President
IF the Southern Pacific and brother
n-law of c. p Huntington. said to-
lay. The deal involving, the sale Of
he holdings of the Southern Pacific
s closed. but the stock has not yet
been delivered The negotiations COW
cred a period of several weeks
understand that the Huntington-Spey-
sr holdings carry control OF tie prop
erty. OF course. cannot say anything
about the price received. other than
i was satisfactory"
II may be stated authoritatively that
while the Hartman interests have Sc
cured control of the Huntington and
Speyer stock in the Southern Pacific
railroad. IL is not in contemplation TO
the two lines, but to see
that they are worked in harmony and
TO stop rate cutting. No change in the
personnel of the officers is in contem-
plation.