The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-09-26
RAILROAD NEWS.
Stage Being Set for Big Rail-
road War.
Union Pacific and Atchison
Stocks. Perform.
FIGHT FOR CONTROL.
Intricate Deals Not Understood
by Public.
Has Rockefeller Secured Con-
troll of Santa Fe.

Affairs appear to be shaping them
selves for a vigorous fight between the
Hartman people and the Rockefeller
Gould interests. For a long time there
have been rumors of prospective war
fare between these groups of fnan-
ciers, but it was commonly believed
in Wall street that the differences
would be settled before any serious de-
velopments came. One bone of con-
tention is the dividend rate for Union
Pacific stock. The present rate is 4
per cent. 1t is said that the Rockefel-
Ter people want the rate raised to per
cent. Hartman and his clique have
a bSOlute control of the Union Pacific.
A higher dividend rate probably would
mean an advance in the price of the
stock to point where it would be
profitable to change the $4,000, 900
convertible bonds into stock. Such a
conversion would necessitate the pur-
chase of about $40,O00,000 worth of
the bonds by the Hartman group, if it
wished to retain its control of the road.
1t is apparent, therefore, that a change
in the dividend rate would be an ex-
pensive move for Hartman and his
following. Judging from the way
Union Pacific stock is moving these
days it would not be particularly sur
prising if it reached the point where
conversion of the bonds would be
profitable, even if nothing is done with
the dividend. Other features of the
fight involve the construction of new
lines Altogether, the chances are that
before long the financial and railroad
world will have a struggle of much
more than ordinary importance to in
terest it.
New York, Sept. 26.-Wall street
was interested in furry in railroad
stocks which some were inclined to
construe as evidence of warfare
against the Hartman Interests This
was accumulated by adviceS from Chi
cago of a rumor current there that
deal is on for the consolidation of the
Union Pacific, Southern Pacific, Atchi-
son and Erie. with the Union, Pacific
as a holding company.
1t was reported in Chicago, too, that
a local house had bought a large
amount of Colorado & Southern COM
mon to be delivered to E. H. Harri-
man. One theory was that the Union
Pacific wanted the road and another
was that the Hartman interests were
seeking retaliation on the Hawley
crowd for interference in the control
of some of the so-called Hartman
properties.
Chicago had denial of the story
that the Rockefeller crowd was seek
ing to force the payment of a larger
dividend on Union Pacific common.
Officials of the Pennyslvania rail-
road denied, in Philadelphia last night,
that their company had bought con-
troll of the Toledo, st. Louis & Western.
AtchisOn Stock to Rockefeller.
New York, Sept. ga deal involv-
ing in one transaction upward of $20,
600. 900. and which may mean the con-
troll of the Atchison, Topeka & Santa
completed when Jacob H. Schiff of the
firm of Kuhn, Loeb & Co. turned over
to the Rockefeller interests a single
block of 100000 shares of the common
100
been known for several months that the
great banking firm of Kuhn, Loeb &
Co. was accommodating the Atchison Sc
curities, but for whom was secret I'M
til today.
When the Atchison, in reaching out
for line of its own to the Pacific coast,
purchased control of the San Joaquin
railroad. which gave it entrance into
San Francisco, it was feared there
would be fierce competition between the
Union and Southern Pacific on one side
and the Atchison on the other Traffic
agreements were, however, made, to
which, thus far. both the AtchiSon and
its competitors have lived up to strictly.
The Rock Island, under the manage
ment of the Moore party, was looked
upon as an interloper in the transcon-
tinentaI field. That company proposed
to build a line to the Pacific.
The control of Atchison by the
Rockefeller interest Will prevent the
Rock Island from making such close
traffic arrangements with the Atchison
as to constitute a menace to the st.
Paul, the Union Pacific and the various
roads west of the Mississippi which are
dominated by the Rockefellers. There
will be no necessity for the St Paul
building through to the coast if the
Rockefellers. controlling both the Atch- /
ison and the Union Pacific, can prevent
competition from roads traversing ter
ritory tributary to the St Paul sys-
tenn.
There is no necessity for heading off
the st. Paul, because it already belongs
to the Rockefellers, but the purchase