The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-12-21
FIGHT FOR CONTROL
Hartman Beats Hill in a
Titantic Struggle.
ST. PAUL ROAD THE PRIZE
Big Railway Property Still in the
Hands of the Standard Oil
Syndicate.

Chicago, Dee. l9.-Edward H. Harri-
man has repaid James j. Hill in his own
coin, by wrestling victory from him in
the shadow of defeat, through one of
the most effective coups ever executed
in financial battles. The control of the
Chicago, Milwaukee & st. Paul railroad,
which Morgan and Hill confidently be-
lieved to be theirs yesterday morning, is
still lodged with the Hartman Standard
Oil interests, and will be strengthened.
As Hill threw Hartman out of the
ownership of Northern Pacific, in the
Christmas season of 1901, so hartman
Gusts Hill from an ownership in st.
Paul. Mr.. Hill executed his flank move
ment by retiring the preferred stock of
Northern Pacific, in which his opponents
control centered. Mr.. Hartman and his
friends maintain st. Paul by issuing
two-thirds of Sl00,000,000 stock in
crease to the holders of the preferred.
While HIPS control of Northern Pacific
common was golden apple, mis- control
of st. Paul common is but ashes.
For month there has been Titanic
struggle for the ownership of st. Paul
in the open market. Quietly and almost
unsupported, the Morgan-Hill people
have been buying st. Paul in the hope
OF getting control and turning the raci-
fc extension southwark into the Harrl-
man territory. In the last week this
battle for stock has been acute and a
disturbing feature to Wall street and
the money market.
of old hitfnrnacc had hppn
aroused. The attack of Jacob H. Schiff
upon banks charging excessive money
rates for stock loans was directed
against Morgan institutions. For some
days the Morgan banks were calling
loans, as the money was needed to buy
st. Paul stock, the high rates and the
calling of loans forcing out large blocks
of this security and keeping down the
price, and to some extent deceivlng the
trained spectators as to the real pur-
pose.
Yesterday the crucial point was reach
ed. THE MorganTssiil interests were
within safe grounds; s, they could count
on enough stock to swing the manage
ment of the road. and they reached for
good margin over actual control. 10
their surprise. stocks came from quar-
tiers known to be friendly to st. Paul
interests. There was a hesitation in the
purchases, a searching inquiry, and the
information from friends in the enemy
camp that there would be coup in the
announcement of a stock issue OF
500 900 900, which was 100000 more
than was expected at this time Then
| the contest was given up; the stock
broke and weakened the market.
The official announcement betrayed
the cunning of the Hartman people to
| make safe their management, to make
sure the extension of the st. Paul into
| Hill territory. Of the $99.5ll 900 new
stock, the preferred is S66,o27 900, OF
1876 per cent of the present issue OF
| $40 .654, OOO There is to be $33, DOC
new common, or 40 per cent of the pres
.ent issue of $S3, 1873 900.
Subscriptions to this new stock at the
rate of IS per cent of present holdings
| of preferred and common are given to
shareholders of record tomorrow, zee
| 10. and the first installment of 10 per
cent must be paid on Friday, Dec. Il
In other words, subscribers who own the
stock or who buy today must exercise
their right by three o'clock on Friday
at the place of registration in New
York
All stock not taken at that time re-
verts to syndicate which has been
formed and this syndicate consists OF
friends of the present management OF
of Hartman and the ROckefellers.
Owing to the short notice, not half
the shareholders outside the warning
factions will be able to avail themselves
of the opportunity to subscribe. 1t is
reported that the MOrgan-Hill interests
hold 100000 of the common Stock
which would give them the privilege of
taking $33, 100000 of the $99,5ll 600
new securities and make their total
holdings $7S,75OO00. The Standard Oil
people own S3OOOOOOO of the preferred
issue and S3O,OOO,OOO of the common.
Their proportion of the new stock would
increase their holdings to $4,000, D.
Through the short notice they will
profit by securing S25,0OO,0OO more of
the new stock, which would give them
Sl20,0OO,OOO, or clear majority of the
| p-,