The San Francisco call., 1903-12-25
Diamond Match Company Makes
Transfer of the New Butte
County Line to the Southern
Pacific Railroad Company
DEAL Is QUIETLY
MADE IN THIS CITY
Coils 2. Huntington's Sue
cesSor Is Said to Have
Feared That the Goulds Might
Use Road in Reaching Coast

Aholher California railroad has been
ADDED to the long list Of properties con-
troIleo BY E. II. Hartman. At a meet
ing held yesterday at the Palace Hotel
the Diamond Match Company's road
between Chico and Sterling, known as
the Butte County Railroad, passed into
the ownership OF the Chico and North
ern Railroad. a corporation whose stock
IS controlled by Hartman. Immediate
ly after the deal was effected the Chico
and Northern leased the road to the
Diamond Match Company. which is at
present using it as a medium for reach
ing its vast timber tracts in Butte
County.
Hartman has been negotiating for
the road for some time, fact which
became known several months ago TO
a number Of local people. but it was
emphaticslly denied by the represen-
tatives OF the Southern Pacific Com
psny in this city. II has developed
that the first move 10 acquire the road
was made nearly a year ago, about the
time that the officials Of the Diamond
Match Company came West to inspect
The concerns properties in that sec
tion Of +he State. The latter then made
an attempt to enter into a traffic alli-
snce with the Southern Pacific Com
psny with . view toward handling
esst-bound traffic and an engagement
had previously been made with Harri-
man, who was then here, to talk over
the subject. On the day Of the ap-
pointment. however, the Southern Pa
cifc magnate suddenly departed for
the East, without giving the slightest
intimation Of his going to the repre-
sentatives Of the match company, who
were at Chico.
HARRISIAN'S CUNNING MOVE.
Arriving here. they openly expressed
their indignation over the manner in
which they had been treated, claiming
that one OF the purposes Of their visit
TO san Francisco was TO confer with
Hartman on this subject and that the
appointment had been made at his sug-
sestion.
Several weeks later it was learned
that the Southern Pacific surveyors
were at work in the neighborhood Of
The Diamond Match Company's road.
Tuasmuch as the Goulds are heavy
stockholders in the match company, it
was limited that Hartman was afraid
that the line between Chico and Ster-
ling might be the nucleus Of a Gould
system extension TO the coast, and it is
said that this fear was stimulated by
the fact that II was known that the
match company had a party Of sur
vezors mapping out a route to the
eastward. by way Of the Big Meadows
which is regarded as one Of the most
feasible outlets for a railroad from the
coas+ ro the East
MAKES BLUFF WORK.
Adopting the tactics often resorted to
nv the late c. P. Huntington when he
found a competitor encroachins on ms
territory. Hartman, on November IL
last. had incorporated in this city the
Chico and Northern Railroad, which
announced as its main purpose the
construction Of a road from a point
three miles below Chico to Sterling, the
,rasent eastern terminus Of the match
,,o,,nanv's road. and a station which
.1o latter created for its own business
r,1rposes. Harriman's rev company
included among its directors 1. w He'll
r77an Jr. ]. N. Israel, H. N. Holbrook'
q A Hart and John c. kirkpatrick.
This hoard organized with Ktrkpatnck
- i+e nresident. and that was the last
.ransaction of yesterday
Realizing that its interests were 1eop-
srdized. the officials Of the Diamond
Match Company were finally forced to
.,,,rrender 10 the Southern Pacific Com
many. and with this purpose IN view
the president and directors Of the
smaller road made a second trip West
; few weeks ago. and after confer
once with General Manager Krutt-
ecbnitt and Chief Counsel Herrin Of the
Southern Pacific completed arrange
nents for the transfer. Instead Of TAX
ing over the road direct Hartman de-
,ided to acquire it through his newly
organized company, the Chico and
Northern.
MATCH PEOPLE SURRENDER.
At yesterdays meeting at the Palace
All the papers were signed and they
viii be fled to-day. Immediately after
the transfer the Chico and Northern
entered into traffic alliance with the
Southern Pacific for its newly acquired
property. a precautionary measure that