The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-05
Hartman Loses in His Bout
With Hawley and Gates.
Was Unable to Gain Control of
Chicago and Alton.
MADE A COMPROMISE.
Union Pacific Said to Have Lost
Houston and Texas Central.
Gossip and Matters OF Interest
In Railroad Circles.

Chicago. Oct. SIT is stated that I'M
der a compromise made before the an
nual meeting of the directors of the
Chicago & Alton yesterday a deal was
made whereby the Alton is to be OPP
Grated alternately for two year periods
by the Union Pacific and Rock Island.
The compromise makes it certain that
there viii be no change of management
for at least two years. One of the stip-
ulations of this compromise turns over
to the Rock Island system the Houston
& Texas Central railway which gives
the Rock Island the important Texas
connection for which it has worked
some time.
The report of the Alton for the year
ended June 80, 1904. gives the gross re-
ceipts as $11,425,S5S, an increase OF ST.
S54, 761; operating expenses $7,524, 500, in
crease of $685., 4O4; net receipts So, 901, 253,
an increase of $455, $50.
The old officers were reelected. 1t
was announced by Judge W. H Moore
that for Hat least a year. the property
will be operated on a joint basis, with
both the Hartman and Moore interests
agreed on joint policy
Owing to legal provisions for a CLASH
fled board of directors, only three terms
expiring this year, it was impossible for
the MOores to secure a majority of the
board at this meeting without reSigna-
tons of additional members.
Two years hence, under the peace
act, the Rock Island interests are to
have six of the eleven directors, and
two years later the Union Pacific will
have six directors and the Rock Island
five. It is predicted, however. that be-
fore the first two year period mas ex-
pired either the Union Pacific or Rock
Island interests will secure enough Al
ton stock to give it absolute control
The compromise makes 1t certain that
there will be no change of management
for at least two years.
The Rock Island interests have a very
large majority of the common stock of
the Alton, and a large block of the pre-
ferred stock, including the holdings of
Edwin Hawley and John w. Gates. All
the preferred stock owned by Hartman
and his friends was sold by him to the
Union Pacific company, which he con-
trolls Hartman did not attend the an
nual meeting of the Alton stockholders,
and Robert Mather was the only repre-
sentative of the Rock Island interests.
The Hartman forces on the director
ate of the Alton includes J. b. Forgan,
d. r.. Francis, S. NJ. FELTON,, E. H. Har-
riman, John ]. Mitchell, Norman 3.
Ream, James Stillman and George
Gould.
The Rock Islands representatives on
the Alton directorate are D. G. Reid,
j. H. Moore and Robert Matner.
Kansas City, Mo-, Oct. 5.-LocaI rep
resentatives of the Rock Island said
last night that they had received no
confirmation of the report that the
Rock Island had secured control of the
Alton.
TT is in line. however" said one man
who is in a position to know whereof
understand ii. AS a matter of fact the
Moore-Reid interests did not care so
much for Alton itself. They already.
had direct line from St. Louis to Chi
cago in the Chicago & Eastern Illinois.
owned by the Frisco, an allied interest.
The Kansas City-Chicago situation is
we'll cared for by the main line. The
new line to St. Louis from Kansas |
City, added to the others, covers the |
territory through which the Alton runs. |
What the Rock Island really wanted |
was the Houston & Texas CentraA, a /
Hartman line. 1t was needed to give /
an outlet to the Gulf and the Rock Is |
land management had been after it for
some time. Hartman when approach |
ed, it is said. refused rather contempt |
uously to sell the H & t c. and it |
was then the Moore-Reid interests be- !
gan working on the plan to make him /
let loose. When they had secured the
ton of the voting pool last week to
give them control of Alton they were
in shape to go into the annual meeting !
and dictate terms. 1t would be d year |
anyway before working control of the
directorate could be had, but with the
knowledge that the Moores could in |
time wrest the road entirely from the |
Hartman interests it would be COM
paratively easy to get, in the compro-
mise by which as reported. Alton con-
troll is to alternate in two-year periods.
control of the H. & 7. c., the line on
which they had been figuring all the
time. This of course is merely sur
mise, but the Chicago reports corrob-
crate it,
Kansas City representatives of the
Alton disclaimed any knowledge of the
situation. 1t is not believed the change
in Alton control will affect the Kansas
City situation. w. p. Trickett, COM
missioner of transportation. when ask
ed last night what he thought of the
matter, replied that there was nothing
in the deal to affect the Kansas City
traffic situation.
There is no reason why it should"
he said THE Rock Island did not need
the Alton, but it did need badly an
outlet to the Gulf, and this it seems to
have secured through the Houston &
Texas Central of which I understand
it now has control"
Kansas City naturally is interested in
the Alton, for when run as an independent
line it assured the competition necessary
to eQuaIize freight and passenger rates
from here to Chicago and st. Louis. There
is no cause for alarm. however. the
Alton can not be run a part of the
Rock Island system. This would be a
Hurn fnr kcfhma and uau EnvnP