New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-22
TO RUN CHICAGO SUBWAY
RAILROADS IN CONTRoL'
Neso Company Takes lStock-in'"'e-
diate Operation for Freight.

- - has b,,iI+ twenty-five and a half
miles Of freight tunnels under the streets. Inc
vast tonnage of the railroads represented py the
fnancfers in the corporation VIII be olVeFl-
. ed into the company's tunnels. which are al
,aadx under every street IN the business dis
trict Of Chicago Apparently in connection with
The mammoth deal. Sir Ernest Cassel the finan-
ciaI adviser OF the King of England, was in Chi
caco to-day with Jacob II. Schif head of the
international banking house of Kuhn, Loeb &
CO. which is heavily interested.
Men who viii enter the directory Of the new
corporation are Edward Il. Hartman, the prin-
ciqal factor in the Union Pacific, and the South
ern Pacific and influential in the Alton and
Illinois Central railroads; James Stillman. presi-
dent Of the National City Bank OF New-York
and a power in the control OF large number Of
great Eastern and Western systems. notably the
Chicago and Northwestern and the Chicago,
Milwaukee and St Paul railroads, and Jacob H.
Schif New-York, a member of the Wall Street
firm of Kuhn Loeb & Co. and big factor IN
the Pennsylvania system.
Mr.. Schif accompanied by Sir Ernest Cassel
and a party of other English fnanciers. was es-
corted by President Albert G. Wheeler. OF the
tunnel company, to-day through the great sys-
tenn of the underground bores. Among the
foreign members of the party was Robert Flem-
ing Of London, one of the best known bankers
in England
The subway has taken over. it is announced
officially. the entire stock of the Illinois Tele-
phone Construction Company, and 66 % per
cent Of the stock of the S30O00O00 Illinois Tun
mel Company, and stands ready to take over all
the remaining stock of the tunnel company at
the terms which il acquired the two-thirds.
The Illinois company will remain the home
operating corporation, but viii be owned by the
Chicago Subway Company Of New-Jersey.
President Wheeler of the Illinois Tunnel Com
pany will retain his present position. He is
director of the Chicago Subway Company. and
his holdings in the Illinois Tunnel Company
and the Illinois Construction Company remain
intact. The other officials in the Illinois Tun-
mel Company It is understood. will be replaced
by representatives of the financial inter-
ests. All new officials will be railroad men
IMMEDIATE USE OF TUNNELS.
The deal guarantees the immediate use of the
tunnels by the railroad interests concerned, and
promises speedy relief for Chicago from the
present congestion IN terminal roads and in the
downtown district. At present the Illinois Tun-
nel Company has completed twenty-five and a
half miles Of tunnels in downtown Chicago The
bores are 6ls feet wide by IA feet high. al
though in places the dimensions are 10 by II
feet Two thousand tons of freight day are
being handled.
The new owners will extend and improve the
way freight Of the Hartman StiIlman-Schih
and other trunk railroads will be transported
through the underground system.
President A. G. Wheeler this evening made
the following statement:
The tunnels finished under the streets TO
prove q great benefit TO the community, must
have the traffic diverted from the streets and
transported through the tunnels. While no
question was ever in any ones mind that ulti-
7nstolv This yyould he ACCOMPLISHED vet 10 have
Of
Of such congestion at once, it became necessary
that the parties controlling the steam railroads
with terminals IN Chicago should be interested
in the tunnels, and Immediately use the tunnels
for the transfer of the freight from the railroad
terminals TO the Easements Of the business
houses. TO produce this result and get the tun-
nels in full operation at the earliest date. the
holders of rUothirds Of the stock Of the Illinois
Tunnel Company sold their stock TO a corpora
ton called The Chicago subway Company, this
corporation being controlled by the owners Of
all OF the steam railroads that terminate in
Chicago and represented by Z. II. Hartman
and James Stillman, Of the National City Bank
Of Nev-York City: Messrs Kuhn Loeb & Co..
through Jacob II. Schiff, and 2. A. Valentine, Of
Chicago, who IS the local representative of the
railroad interests.
control Of the representatives of the railroad in
terests terminating in Chicago. will prove bene-
fetal 30 all merchants handling freight in and
out or their oulldlngs, ana 70 the general puohc
in having the streets relieved of congestion.
The broad scope Of the development of these
tunnels through this representative railroad in
rerest cannot but help TO lie great commercial
advantage 10 the future growth of this city.
This Chicago Subway Company has no connec-
ton with nor are any parties interested in It
connected with. the street railways Of Chicago.
CHANGES IN HANDLING MAILS.
The magnitude of the deal as affecting traffic
IS illustrated in the changes involved in the
handling Of the United States mails. Touching
this phase Of the subject. Postmaster Coyne to-
cay made the following statement
brought the matter before the department at
Washington, " and they appointed commission
10 investigate the tunnels and consider the
Eftcpcability OF their use for moving the mails
|as member Of that commission. and Post
laS'F General Nynne. who al that time
- 055sStaTJ was chairman OF the commits
me commission concluded that the tun-
~. coulo be of great use TO the postofice for
-''tis bulky mails TO and from the depots and
&c reported 10 the Postof4ice Department and
l-e congress made an appropriation and direct
=. l-t tfio-lce Department TO make a contract
- ~ ul@i o. that service. My belief is hat the
department VIII soon take the matter m They
.iNe proposition before them now i'm Washing
81, a. Itaae oy the Illinois Tunnel COMPANY. and
~ my estimation we will have a. laae+ n trial
FEDERAL building Sc ''A" me 'ls"
"e"' Is declared 10 mean the in,r7a6is te
u1f ION of traffic and freight fran, ,7,o ,..oo.-
10 me tunnels: he transferring Of an -
I@pefs Tor out Of town Circulation - ,t,o -.
-iiS through the tunnels: the tranefo~r,-,-.
- nan between The main postoffice and the ,a;,
80. tI ana between railroads The
- "s SO connected with the INN
''ia. N''eh inail Is dropped in the boxas tho
'-i ri'P -"'h q" the level of the tunnels
ARD re taken Immediately TO the roe+o4ee.
provides means for the tr7rs.an.-4, II
Telght and Of handling II expedjtio,sr.. 80 -
out compelling the railroads to sbso-, ,',
priced property ~ the centre Of the IT,, -"
freight purposes ,freight wards ,sr, - "