The San Francisco call., 1903-12-12
Great Railroad Fights.
BY EARL D. BERRY

Copyright, 1908. by Joseph B. Bowles)
Recent Wall street rumors of a
Rockefeller -Cassatt fight for control Of
the Pennsylvania Railroad bring TO
mind other strenuous contests for the
possession Of great railroad properties.
IN the case Of the Pennsylvania, Off
cial denials that there is any attempt
10 change the control are emphatic and
explicit, but some other great fights
for railway control have passed into
history. Just as the large buying of
Pennsylvania shares in the stock mar
ket led 10 the reports that the Rookie
feuers were seeking TO acquire the
property. so a sudden and abnormal de-
mand for Northern Pacific stock early
in May. 1901, indicated TO Wall street
that somebody was after that prop
erty."
The main facts Of the Northern Pa
cihc fight are doubtless still fresh in
the public mind An important detail
is recalled in the annual report Of the
Union Paci Railroad, issued a few
days ago. wherein the statement is
made that $50. 491 600 of Oregon Short
Line bonds have been issued TO cover
the cost Of the purchases Of Northern
Pacific stock which were made by f.
H. Hartman and his friends during
those exciting May days of two years
ago. This large sum represents ma
icrity OF the Northern Pacific's s155.-
100000 Of stock Mr Hartman. through
the banking house OF Kuhn. Loeb &
-.,H
Of this great property away from ].
PierpOnt Morgan and James J. Hill,
because the Union Pacific was denied
participation in the joint purchase Of
the Chicago. Burlington and Quincy
system by the Northern Pacific and the
Great Northern companies. Mr.. Har-
riman started to buy Northern Pacific
when it was selling at about 125. His
movements were quick and energetic,
and he took the controlling manage
ment Of that road completely by sur
prise Both sides bought fast and fu-
riousiv for two days, forcing the price
up TO $1,000 a share and so effectually
'cOrnering" the stock that a very Sc
rious panic threatened. Many brokers
sold Northern Pacific stock that they
did rot possess, and widespread ruin
would have followed had not J. p Nor
gan & Co. and Kuhn. Loeb & Co. mu-
tually agreed TO ease up on the con-
tracts Although Mr.. Hartman sue
ceeded in acquiring a majority Of all
the shares. the victory was technically
with the Morgan party, which held a
majority Of the common stock. in which
the voting power alone was vested.
cov,,o of +bo Could y,,f11fove cor. A.
Hartman temporary aid in this great
fight. and it is interesting TO contem-
plate the important part that the
Gould millions have played in other
railway controversies. Jay Gould on
two occasions had TO fight for the
Union Pacific which Mr. Hartman now
controls. The most remarkable contest
with which the elder Gould was con-
nected. however, was the Erie Railroad
war II was IN 1867 that Commodore
Vanderbilt undertook to buy the Erie
road. This property had become the
football Of Wall street, through the
speculative tendencies Of Daniel Drew,
and Vanderbilt thought that il would
be easy for him 10 buy a majority of
the stock Jay Gould and James Fisk
Jr were associated with Mr.. Drew in
the co-atrOl Of Erie. and when they
found that Commodore Nanderbilt's
millions were being poured into Wall
street to acquire Erie stock they Sc
cretly. and contrary to an order Of the
court issued 100000 shares of new
stock More than slO,OOO.O00 was paid
by purchasers Of this stock" which
had nc valid existence. Vanderbilt took
II IN 81 100000 blocks. and when the
trick was exposed the price of Erie
dropped so fast that the commodOre's
friends thought he was ruined. Power
fuI financial influences came to his aid,
and he soon succeeded in getting on his
feet.
Warrants We're issued for the arrest
OF Drew. Could and Fisk, and they and
other Erie directors fed tc Jersey City.
taking with them the company's books
and papers and ell tire cash that they
could lay hands upOsi. Charles Fran
els Adams. in his History OF Erie"
SAYS that one individual bore away in
a coach Sc 600, 900 in greenbacks- By
a liberal use Of this stolen money
Tweed Legislature al Albany was in
duced 70 legaiize the fraudulent issue
Of Erie securities Threatened with
prosecution n the courts. Drew. Gould
and Fisk went stealthily to Commodore
vanderbilt's house just before daylight
one morning and effected a compro-
mise. by which they refunded to him
large part % the money that he
had paid OFT Tor tne Illegal Erie stock.
TWO CT three JeaTE a<te-warG. when
Could ard mia associates were forcibly
depoeed from the control Of the Erie
road by a majority OF the sfockhoId-
ers. Jed by General Daniel E. Sickles,
a restitution of about S9,000.oOo was
made &c the Erie company. This
amount Ct the conpany's property the
Gould-Fisk regime was accused OF hav-
ing converted 10 fae.r own use.
One OF the memorable railroad fights
in this country was the contest be-
tween the AtcniEon. Topeka and Santa
Fe and the Denver and Rio Grande
companies for possession of the
ROYAL GORGE IN the Grand Canyon of