The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-10

STANDARD OIL is in up.
DOES NOT CONTROL
UNION PACIFIC-INsIDE FACTS.
Recent Advance in L. II. Is Explained
by Heavy Rockefeller Buying
Hartman went to sleep"
Special to the Indianapolis Journal.

NEW YORK, April 9.-The mysterious new in
terest in Union Pacific has been definitely To-
Gated at % Broadway. When that designation is
given 1t means Standard oil. for % Broadway is
the directory number OF the mammoth stone and
steel pile which is the Rockefeller headquarters.
This new interest is not large enough to give
majority control of Union Pacific. but it is suffi
ciently formidable 10 entitle it 10 very infiu-
entail voice in the policy of the great corpora
ton.
incidentally. also. it puts the Union Pacific
into closer alliance with the Gould properties
west OF the Mississippi George Gould and Mr.
Hartman at time very close, but lat
terly their paths have been somewhat divergent.
Mr.. Hartman found it to be to mis- advantage
TO tie up to the Kuhn-Loeb banking house and
Mr.. Gould devoted himself exclusively to the
cultivation of the Rockefeller family. 1t would
appear that Gould and Hartman to be
brought together again. There has never been
any estrangement-only gradual pulling apart,
perceptible reduction in temperature, so TO
speak.
Incidentally, also. the Rockefellers. by reason
of their heavy buying into Union Pacific, en-
croach further upon the northwestern territory
over which James ]. Hill has been for so long the
undsputed transportation king. The Rockefel-
lers have. for several years last past controlled
st. Paul, and with the hold which is given
investment in Union Pacific. Standard Oil be-
comes really important factor in that section
Of the country.
Gradually inside facts coming out. ex-
planatory of the recent tremendous activity and
strong advance in Union Pacific The story is
one which greatly amuses the big people OF Wall
street. although the public has not yet been let
fully into the half secret
1t appears that the Hartman party had great
ly reduced its holdings OF Union Pacific at higher
levels, feeling confident of being able to buy
losing control. Washington advices were such as
10 convince the Hartman people that the Su-
preme Court would hand down an adverse deci-
sion in the merger case and it was the expecta-
tion that the attendant weak market there
would be oceans of Union Pacific certificates on
Others were of the mind. and having an
inkling of the Hartman plans got the start Of
him. They were busy while Hartman slept
Quietly and for weeks they took all. Union Pa
and in such manner as not to disturb things
The result was that when Mr.. Hartman started
well drained.
The Rockefellers had not yet obtained all they
wanted. however and there ensued spirited
competition between Hartman and the Standard
Oil forces Union Pacific was marked up 10 points
during the progress of the contest and the whole
financial world was puzzled as 10 the meaning
OF the enormous buying which was apparent.
riddle Was one that Morgan and Hin We're bu uY
Ing the co cont away from MI Hartman Anoth-
into Union Pacific. Another attributed the pur-
chases TO the ST Paul Railroad direct Still 9TH
ers put the Vanderbilts in and revived the old
story of "a transcontinental line under Wander
biltian control This latter theory is still chung
TO tenaciously in some usually well informed
Mr.. Hartman and his Kuhn-Loeb allies were
n9t on safe srSun6 until Union paSihc stock had
stock to re-establish their position firmly 10 in
sure them against being summarily overthrown
by the Standard Oil party they dessted from the
activity Of their campaign. and not until then.
410
figure sec. OOO. OOo
The one thing certain is that Mr.. Hartman
inadvertently left his great railroad of doors
night and it strayed away into the woods.
When he started to the strayed prop
erty he found others trying to capture 1t. His
position was not unlike that occupied by Mr.. Bel
mont just prior to that gentleman's loss of con-
troll Of Louisville & Nashville--the time John w.
Gates kidnapped the property and held it for ran
som.
The important difference between the two cases
is that Mr.. Hartman discovered his danger be-
fore the game was irretrievabiy lost The be-
lief is strongly entertained in banking quarters
close TO Standard Oil that the Rockefeller inter-
est in Union Pacific amounts TO than one
third OF the outstanding common stock. besides
Now that he has taken the Rockefelers into
partnership with him in the direction of the
Union Pacific the future OF that vast system will
be watched with increasing interest. The Rookie
fellers believe in having their properties make
all the money that is possible to be made, but
| that does not always for immediate har-
mony in competitive territory. The harmony and
community of interest idea which is in highest
| favor with the Standard Oil crowd is that which
arrives after competition has been killed. 1t Is
| the peace which reigns in desert; the serenity
which follows the total humiliation OF an enemy
Mr.. Hartman may not like his bedfellow
and partner, but he Will have to acquesce with
| the new conditions 1t will be physical impos-
| sibility for him to swallow his new associate
and he will be in luck If he is himself swaI-
| Dc hn Dc 11ro1 -
| his Union Pacific was not taken away from him
! as he tried to take Northern Pacific from
/ Messrs. Morgan and Hill three years ago. He
him.
The entire stock market was in a nervous state
| during the early stages of the contest between
Rockefeller and Hartman. This nervousness was
| not entirely unreasonable either as there were
| many signs of a terrific struggle going on be.
hind the scenes between the giants When bis
| people have their hands at each others throats
it is time for little folks to get under cover ocE
the doors and pull down the blinds.
At the same time the very evident willingness
! of the market to advance. If it should turn out
that the giants could get together again after
their contest OF strength. keyed up the specua
| tive feeling and induced more or less miscel
| laneous buying by the venturesome. After halt
| ing FOR some little time the general market
moved up and broadened out in a way to joy the
souls of commission earners On this improve
| CURED. Large amounts of Union Pacific bought
| by spectators came out and there profit
| taking all along the line by the trading element
| Conservatives are not in hearty sympathy will
| the theory of a continued bull movement how
ever 1t is understood that on every bulge thei
| stuff is for sale and that the people who hav,
| the goods their shelves not getting ex
| cited over the situation. They are mildly pleased
| to Improvement, but not increasing the
| lines to help II along.
| The financial exhibit made by the steel trus
| has been variously received in the street A dis
| quieting feature in connection with the report Il
both before and after the dividend announcement
| and statement of earnings. The popular estmat
| of net results below official figures an,
| there was consequent elation over the s13 600 90
| earned whereas only 100000 had been locke,
| for. The deficit for the quarter Of less than 80
00O O00 against nearly S. 600 600 for the last quar-
| ter of 1903 considered being favorable, al
| though the existence of any deficit at all had ;
| chilling tendency.
| People with heads for statistics and the habi
| of making comparisons called attention to tn
| fact that a year ago the minimum quarterl'
| amount called for to meet fixed charges and pro
| vide for depreciation. etc, $l9. 900 600 Thes
| unpleasant fellows went about asking wherein
| there could be reduction of many million dol
| no satisfactory To these inquiries they a
| once jumped TO the conclusion that the lates
deficit should have beer nearer 81. 600 900 than So
| O00 900. These carping critics made little head
| way, however, although they freely prophesie
! that insiders were already preparing for whole
| there would be much inside
| within the next thirty or sixty days AS at an