The daily morning journal and courier., 1904-11-22
GREAT SUBWAY SYSTEM
 FOR CITY OF CHICAGO
COMPANY WITH CAPITAL STOCK
 OF $50, ,OOO, ,OOO.
Organized Yesterday-Takes over ESQ., 100000 Company Which Already Has Built Fifteen Miles of Freight Tun- neIs in the City-Great Railroads in Acknowledgements of King Ed- ward Present in Connection With DeaI-Men in Directory.
DeaI-Men in Directory.


 Chicago, Nov. 21.-The Chicago sub- way company, with capital stock of s5O.OOO,OO0, and composed of men who
 represent 90 per cent. of the railroads
 having Chicago terminals, was organ ized to-day and took over the sSO,OOO,OO0
 company here which has built fifteen miles of freight tunnels under the city's street.
 The vast tonnage of the railroads
 represented by the financiers in the new corporation will be diverted into the company's tunnels, which are al-
 ready under every street in the busi- ness district of Chicago. Apparently in connection with the mammoth deal, Sir Ernest Cassel, the financial advis- CT of the king of England, was in Chi cago to-day with Jacob H. schiff, head E of Kuhn, Loeb & Co, of New York, which is heavily interested. Men who will enter the directory of < the new corporation are Edward H. Hartman, the principal factor in the Union Pacific and the Southern Pacific, ! and the big factor in the Alton and H. \ linois Central railroads; James Still E man, president of the National City < bank of New York, and a power in the control of a large number of railway systems, including the Chicago and E Northwestern and the Chicago, Mill \ waukee and St. Paul, and Jacob H. Schiff, prominent in the Pennsylvania system.
 MT. Schiff, accompanied by Sir Ernest Cassel, Sir Robert Fleming and other < well known English financiers, was es- & corted by President Albert G. Wheeler of the tunnel company, to-day through H the great system of underground bores. & The subway has taken over, it is an- j nounced officially, the entire stock of E the Illinois Telephone construction, X 66 2-3 per cent. of the stock of the $S0,- i 100000 Illinois Tunnel company, and \ stand ready to take over all the re- < maining stock of the tunnel company ! at the terms on which it acquired the I two-thirds.
 The Illinois company will remain the N home operating corporation, but owned by the Chicago Subway company of New Jersey.
 President Wheeler of the Illinois Tun- mel company will retain his present po- sition, but the other officers in the tun- mel company, it is understood, will be replaced by representatives of the new q financial interests and all will be rail- road men.
 The deal guarantees the immediate k use of the tunnel by the railroad inter- S ests concerned and promises speedy relief for Chicago from the present congestion in terminal roads and in the \ down town district.
 At present the Illinois Tunnel com 4 pany has completed about fifteen miles of tunnels in down town Chicago. The < bores are six and half feet wide by seven and half feet high, although in places the dimensions are ten by E twelve feet. Two thousand tons of # freight a day are being handled The new owners will extend and inn proc the system and as fast as possible # the steam railway freight will be trans M ported through the underground sys- < tenn.