The San Francisco call., 1905-05-27
MEANS A LOSS
FOR HARTMAN
Highest Ambition of Rail-
road Magnate Shattered
by Reorganization Plan

Much serious speculation is being in
dulged in by local railroad officials as to
what affect the proposed reorganization
of the dependent Hartman lines will have
locally. Advices have been received from
New York confirming the news published
yesterday that the Hartman syndicate,
with view Of bringing itself within the
provisions of the law as interpreted in
the merger decision, is planning to re-es-
tablish the four lines controlled by that
concern as separate and distinct corpora
tions. The advices add, however, that 1t
will be several months before the un-
dertaking can be carried out in detail.
1t is the judgment of the higher Off
cials of the Southern Pacific Company in
this city tnat the separating of the COM
panies will be followed by the re-estab-
lishment of separate agencies for each of
the roads in all the big cities, as was the
prevailing condition before Hartman ef-
fected the syndicate arrangement.
If this proves to be the case the fond
est dream of E. H. Hartman will have
been dissipated. 1t has been his ambi-
tion to reduce the total expense Of the
entire railroad organization to minimum
and one of the first moves in this direc-
ton. after the cabinet of directing officials
was created in Chicago, was to consoli-
date the Offices, passenger and freight, in
all the big cities.
the strongest footing the offices of the
other roads in the Hartman combine
were merged into that office, and in other
cities within territory regarded as be-
longing TO the Oregon Short Line or the
Southern Pacific, a similar move, in
favor of the strongest road, was made.
One particular exception was made, and
that was in San Francisco, where the
Union Pacific and Southern Pacific were
| allowed l.
! though the offices of the Oregon Railroad
and Navigation Company were merged
into the office of the Union Pacific.
In several of the larger Eastern cities
| where these consultations were made,
particularly in New York. the expenses
in the way of salaries of clerks, whose
services were dispensed with, were turned
to the credit of the Hartman syndicate
and in very short time footed up
| thousands of dollars in the way of saving.
With the reopening of separate offices in
the big cities, which it is thought will
! have to follow the reorganization of the
i four roads, Harriman's big pay roll will
/ again materially increase and the man.
agement will soon realize that there are
| less resources for the accumulation OF
! the interest on the Indebtedness of the
companies.
Among local officials of the Southern
| Pacific Company the reported plan of re-
organization is hailed with pleasure, fol
under the former conditions of affairs
there will be better opportunity for ad-
vancement and better facilities for trans
acting business that is now seriously
handicapped by reason of the fact thai
the bulk of 1t has to go through the
Chicago offices. presided over by Messrs
Kruttschnitt, Stubs and others. AS tc
a lawful means for maintaining the latter
officials in their present positions in con.
nection with the proposed executive
| board, it was stated yesterday by one Of
the representatives of the law depart
ment of the Southern Pacific Company
that this can be easily effected by having
the board of directors of each road sep
arately authorize Director Of Mainten
ance and Operations Kruttschnitt, Traffic
Director Stubbs and other members O.
the Hartman family of officials In Chi
cago to act for all the roads.