The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-02-03
CONSOLIDATION
NOT INTENDED
Southern Pacific to Be 0per-
ated as Before.
HARTMAN SYNDICATE
AFTER MORE ROADS
Paid Seventy Millions for
Southern Pacific Stock.

New York. Feb. at may be stated
authoritative.y that while the Harri-
man interests nave secured control Of
the. Huntington and Speyer stock in
the Southern Pacific railroad, it is not
in contemplation to consolidate the two
lines, bus TO see that they are worked
in harmony and to stop rate-cutting.
No change in the personnel of the Of
ficers is in contemplation.
1t was learned on the best authority
today that the amount offs -ock involved
in the purchase Of the Southern Pacific
constitutes two-ffths of the entire out
standing share capital of over $780,
S32, O00.
This is near an absolute majority as
could be secured, and constitutes the
entire holdings Of the Huntington es-
tate and the syndicate formed by Spey-
er q Co last April to take over the
holdings Of the Stauford-Crocker es-
tates.
This gives Mr.. Hartman and Kuhn,
Loeb & Co. control of the management.
as there are no other large blocks of
stock outstanding.
The purchase. 1t was stated today,
was made entirely for the benefit of the
Union Pacific, to protect that com
which would be in jeopardy in the pos
slbihty of the Southern Pacific coming
INTO hostile control. While the actual
terms at which the Huntington and
Speyer holdings passed to Mr.. Harri-
man and Kuhn, Loeb & Co could not
De learned today, it was stated that
the transaction had to De quickly car
rIed out, and it was minated that the
new syndicate used its credit to com
plete the purchase. In this connection
the increase OF S30,441 .0G0 in the loan
account of the New York banks this
week may be significant.
The question of permanently financing
the purchase has not yet been taken,
the conditions under which the pUr-
chase was concluded not making it pos
siDie TO DreDare any plans.
Inc MAI and Express says, The
southern Pacific deal represented an
outlay of S7G,0O0.000. ali of which was
paid IN cash The operation, however,
extended over several weeks The
Huntington stock was taken up and
paid FOR early in January
Another Big Combine.
While The purchase of the Southern
Pacific is the greatest deal that has so
Tar been announced. there is another
great alliance Matching. which viii
carry the community OF interests" one
step further. II can be stated on au-
thority that the Atchison is TO be
brought into close harmony with the
southern and Union Pacific in precisely
the same way as the New York Central
and Pennsylvania have Joined hands.
thereby ending for all time the chances
of rate disputes between the two COM
Ednies- Furthermore, a great south
western combination is being quietly
formed. which viii take IN some or all
Of these systems. AtChisOn, St Louis &
San Francisco. Missouri. Kansas &
Texas, Missouri Pacific and Texas Pa
eifc- The Atchisou is TO be the main
stem of the second big SYSTEM and X
viii have an entrance into both Chicago
End S--n Francisco.
Wall street has it that the greater
Union Pacific system win have lean
ing towards Vanderbilt connections,
and that William K. Vanderbilt is IN
ders-ood 10 he the chief factor behind
T. Il. Hartman. Il SO. the deal marks
the cousummatiOn Of a great Vanderbilt
system from ocean to, ocean. Predic-
tons have been made FOR a long time
that "A merger of the Union Pacific and
Northwestern IS no- FAR of.