Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-11-15
HARTMAN Won OUT.
Has Gotten Controlling In
terest in Southern
Pacific.

NEW YORk, November 1t(Special.>-
Edward Fl. Hartman. heading the Union
Pacific syndicate, has routed the Southern
Pacific pool. led by James r. keene. and
by the purchase of S12,oH0.ooo OF Southern
Pacific stock has secured control CT that
system
Hartman. in acquiring an actual major
ity of The stock. practically completes this
greatest railroad deal in the history OF the
country.
III FEBRUARY. 1901. the original Union
1.;tcitic syndicate paid s,1.ooo,o0o for the
Southern Pacifc holdings of Coils P.
Huntington, the Leland Stanford estate
and the Croker holdings That gave them
the control, through being the largest
minority holders, of e,60i miles of railroad.
owned, operated or leased by the Southern
Pacific.
Since then the syndicate added 10 itg
holdings ontil, at the inauguration of the
present market crisis. it held 100000. Goo
and was within 100000 of owning ma
iority of the stock. BY the purchase OF
S12.o00,0O0 additional stock this week. tina
syndicate now owns the road.
It was stated positively In Wall street
this afternoon that the Union Pacific syn
dictate had taken over the Southern Pa.
citic holdings of the firm SO lorg ideuti.
fed with the Southern Pacific pool II
let most of his Southern Pacific stock go
but this was emphatically denied. Thk
Southern Pacific pool in which Mr.. keent
has long been the leader, has undoubtedl.
lost several millions OF dollars in the re
cent slump. The figures have been placed
as high rs 81 1000. CO., and it may now b.
dissolved because. with the vesting OF
actual control In the Union Pacific group
there passes the possibility of the stoch
SIT rallies or declines.
Included in the original Union Pacific
syndicate were Edward Fl. Hartman.
John D. Rockefeller. George J. Could. D.
0. Mills. Kuhn. Loeb & Co., and Speyer Sc
Co, which comprises q group of the rich
est men in New York and the world.
In connection with the big transaction.
it was said that James r. Keene had
quarrelled with his broker because the
latter sold to the Union Pacific syndicate
his Southern Pacific holdings. which went
to make up the sl2,O00.o00 block This was
also denied by Mr.. Keeue. and all inter
ested as idle gossip.
The price of Southern Pacific sagyed or
the Stock Exchange to-day. and sold as
low as g. on heavy sales caused by the
report that the stock pool In it had dis
entegrared. Shortly before Mr.. keene's
return from Europe the stock was buIled
LEolH ID 10 ~, ana the DAY after he ar
rived ne predicted par fer Southern Pa
ciflc within n few months Since then a
$LVtoGO,oG0 bond issue proposed has been
abandoned. and the securing of complete
control by the Union Pacific means the
postponement of dividends about o. year
Heretofore the Union Pacific has con
trolled the Southern Pacific as the strong
est minority holder. This, of course left
1t open to attacks by such combinations
as the Western group. and evidently Mr..
Hartman and his associates decided to
take such steps as would prevent, in their
neck of the woods. repetition OF the
Louisville and Nashville deal.
The entire capital stock of the Southern
Pacific is sl91. So0.0 00. and as Mr. Hartman
holds for the Union Pacific about sl02, 0Oe.-
eco. the control cannot be taken away
from him.
JUST as w II. Vanderbilt took advan-
tage of the exigences of a crisis to take
over the Western spectators in Chicago
and Northwestern stock at prices $50
share less than they paid for it. so Ed
ward H. Hartman has fortified his posi-.
ton by buying the control outright
Hereafter. Mr.. Hartman need not al.
up all night to watch his railroad system.
IT IS out of the reach OF raiders and safe
from the attacks OF speculative or covet-
0uS