The news & observer., 1905-12-28
GIANTS IN S. A. |. 2
Mr.. Hartman May Want
1t for Revenge on Mr..
Ryan.
GATES ALSO NAMED
Recent Deals in Stock Arouse Wide
spread Belief That Great Battlea
for Control is On.
Baltimore Sum-

Baltimore Sum-
Are e. H. Hartman and John w.
Gates behind the recent purchases of
Seaboard stocks made by Middendorf,
Williams & Company, of this city, and
John l.. Williams & Sons. of Rich
mond?
This question is general in local
financial circles, but no definite an
swer to it can be obtained. There
is widespread belief that those cap
ital:sts are furnishing the money to
buy the stocks. If this be true they
are being kept closely under cover.
and the fact will probably not be
known until they and their associates
have accomplished what they contem-
plate and are ready to announce it.
Those who have recently sold Sea-
board stocks and the brokers who. as
a rule. keep in close touch with the
movement of securities and the lodg-
ment of any considerable amount OF
stock. have not been taken into the
confidence of the buyers in the pres
ent instance and are as much at sea
as outsiders as to the source of the
money supply in settling for the re-
cent purchases.
1t was stated that local bankers
have been asked where this money
has come from. They have invaria-
bly, answered, it is understood, that
they have not been solicited for ac-
commodations and have loaned COM
paratively nothing on Seaboard
shares since they have become active
The stocks bought have been paid for
which indicates that someone is fur
nishing the funds. and whoever it is
seems well supplied with cash and
credit
MFR. Middcndorf Silent.
Mr. J. William Middendorf, when
told that the names of Mr.. Hartman
and Mr.. Gates had been associated
with his firm and that of John l.
Williams & Sons in the recent buy
ing. said:
1--WE have nothing to say at pres
ent i'm regard to the matter. The
stock we have bought or contracted
for is going into strong boxes. and is
not likely soon to go on tho market
We cannot discuss our associates, II
VIC have any, nor the purpose of the
buying. Gossip. of course, we can
not prevent, but you must excuse Us
if we refuse to either confirm or deny
reports at this time.
'If rumor has connected us with
Mr.. Hartman and Mr.. Gates every
one must acknowledge that these arc
strong connections, and I am glad we
have been put so close to such power
full financial interests" said he witr
a laugh
1--WE cannot go into details as tc
our intentions. All l can say is that
the stock we have bought has been
paid for and our confidence in the
future of the Seaboard system has
never been shaken"
The firms of Middendorf and OF
Williams recently bought $4,000
shares of the 9eaboard free stock. al
a cost ating $2,000.000. They
have bee vers in the market. and
not only of Iii the outstanding free
stock offered, but also of the Seaboard
Company stock. 1t is estimated that
their total purchase within two
months would sum UP nearly, if not
quite, $5.000.000.
That local banks have not been ask
ed for accommodation in settling foi
this large amount of securities is IN
itself significant. and is taken to in
dicate that the Baltimore and Rich
mond banking houses. which know
the Seaboard property thoroughly
have formed some strong and influen-
tial outside business connections.
Mr.. Gates Birmingham Connection.
Mr.. John w. Gates and associates
recently bought the Tennessee Goa
and Iron properties. These are largel1
in the Birmingham district, and will
the construction of the Atlanta an,
Birmingham road, which is to become
part of the Seaboard system, will give
an Eastern and Northern outlet Il
these iron properties. This road i
nj
Joined up with the Seaboard.
Another point not to be overlooked
is that when Messrs. Williams anC
Middendorf became embarrassed
about two years ago. the first sugges
tion to take over the Seaboard cam'
from the Rock Island interests Tha
road proposed to. form connections int
Birmingham, where it could unite
with the Seaboard extension.
The deal never materialized, but i
is significant that Mr.. Gates is th'
dominant influence in Rock Island
affalrS now as he was then. IL l
was good proposition for him t
consider at that time. it is pointed out
it is very much better now. Then M
owned no mines or blast furnaces il
that territory; now, by a recent pur
chase, he has the most valuable one
in the whole South To secure a rail
road outlet for the vast product ht
will control Mr.. Gates, it is said, woult
go to great limits, and he is a man o.
business acumen who is not deferred
by trifles in the development of hi.
enterprises.
Mr.. Hartman After Mr.. Ryan?
Mr. e. H. Hartman is thought tC
be behind Mr.. Gates in the issue Loca
gossip dealing with Mr.. Hartman ir