Los Angeles herald., 1906-12-19
HARTMAN oUTWITs RIVAL HILL
ST, Paul Coup Executed in Favor of
S. P.'s President

BY Associated Press.
CHICAGO, Dec. 1S.-The Chronicle
today says:
Edward H. Hartman has repaid
James j. Hill in his own coin by wrest-
ing victory from him in the shadow of
defeat through one of the most effec-
tive coups ever executed in financial
battles.
The control of the Chicago, Milwau-
kee & st. Paul railroad, which Morgan
and Hill confidently believed to be
theirs yesterday, is still lodged with the
Harriman-S 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.
Hill executed his flank movement by
retiring the preferred stock of North
ern Pacific, in which his opponents
control conferred; Mr.. Hartman and his
friends maintain st. Paul by issuing
two-thirds of a $1OO,OOOOO0 stock in
crease to the holders of the preferred
While Hills control of Northern Pacific
common was a golden apple, his con-
troll of st. Poul is but ashes.
For month there has been a titanic
struggle for the ownership of st. Paul
in the open market. Quietly and all
most unexpected, the Morgan-Hill peo
pie have been buying St. Paul in the
hope of getting control and turning the
Pacific coast extension southwark into
the Hartman territory. In the last
week this battle for stock has been
acute and a disturbing feature to Wall
street and the money market Much
of the old bitterness has been aroused.
The attack of Jacob 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 ex-
tent deceiving the trained spectators
as to the real purpose.
Yesterday the initial point was
reached. The Morgan Hill interests
We're within safe grounds they would
count on enough stock to swing the
management of the road and they
reached for a good margin over actual
control. To their surprise stocks came
from quarters supposed to be friendly
TO ST. PauIS interests. There was a
hesitation in the purchase, a searching
inquiry and the information from
friends in the enemys camp that there
announcement
of stock issue of 100000, 900 which
was $25,000.000 more than was expected
at this time.
Then the contest was given up and
the stock broke and weakened the mar
ket
The official announcement BETRAYED
the cunning of the Hartman people TO
make safe their agreement. to make
sure the extension of St. Paul into Hill
territory. OF the $99,511, 600 new stock.
the preferred is 6327 900. or 1856 per
cent of the present issue of S49,654 900
There is to be $S3 1874, 900 new common.
or 40 per cent of the present issue of
$S3,1SS,0O0.
subscriptions to this new stock at
at the rate of IS per cent of present
holdings of preferred and common are
given to shareholders of record tonor-
row, December 10, and the first in
stallment of 10 per cent must be paid
on Friday, December q. In other words
supscrlDers VINO own the stock or who
Duy today must exercise their right nv
o'clock on Friday at the place Of
registration in New York.
All STOCK not taken at that time re-
Yerts to a syndicate which has been
formed and this syndicate consists Of
friends OF the present management or
Oh Hartman and the Rockefellers.
owing to the short notice NOT half
the shareholders outside the warrine,
factions will be able to avail themselves YES
OF the opportunity to subscribe.
IT is reported that the Morgan Hill
interests hold $5,000,000 of the common
STOCK, which would give the privilege
of taking $33,75OOOO of the s99.51i Oo0
new securities and make their total
holdings $78.75O,OOO. 'o''i
The STANDARD OIL people own $40. =
100000 of the preferred issue and $40 :
p0O,OOO OF the common. Their propor-
their holdings to $95. O0O. 900 more az t5e
new stock, which would give them
Sl2O000,000, or a clear majority Of tba
S2SO'S4S,OOO of stock as increased.