Omaha daily bee., 1906-11-07
ILLINOIS CENTRAL CONTROL
Hartman Interests Decide that stuy-
vssant Fish Must Go,
FIGHT CAUSED BY OMAHA EXTENSION
Line said to he Losing Property
AntaEonIsm OF COmpetinE Omaha
ROads-Many Changes in
Omcers Likely.


| Omcers Likely.
The climax in the battle for control OF
the Illinois Central railroad will be reached
| today. when the directors Of the company
/ called to meet in New York City cast
their ballots for president. The contest Is
between Stuyvesant Fish, president OF the
| company representing stockholders who de-
sire the company TO maintain an independ-
ent position. and Edward II. Hartman.
president Of the Union Pacific, who insists
on the community Of interest policy. Mr..
| Fish is a candidate for recollection. J. I.
Harshan. second vice president Of the COM
pany, IL said to be the choice of the Har-
riman interest for the presidency. It is
generally conceded that the Hartman can
didate will be elected, as the latter controls
majority OF the board OF directors
According to a New York dispatch to the
Chicago Tribune the origin OF the differ
ences between Mr.. Fish on the one hand
and Mr.. Hartman, Mr. Hsrahan and tho
other directors on the other, date back
seven years to the time when the so-called
Omaha extension" from Fort Dodge, Ia,
to Omaha was projected
Mr. Fish, It is said. constructed this line
! connected in capacity Of importance with
the road. The results have not indicated
his judgment. The extension has proved
losing venture from the start Millions of
dollars have been poured into il, but in
stead OF increasing the profits OF the Iowa
lines 1t has turned them from dividend pro-
ducers into deficit producers.
II at the the same time has come into
competition with the Chicago & Northwest
ern and the Chicago. Milwaukee & st. Paul.
and has caused reductions Of revenue to
them. Combined with the direct losses sus-
iained by the Illinois Central. this, It is
said, is the chief cause of the estrangenent
from Mr.. Fish of the Vanderbilt interests,
which control the Northwestern and which
are represented on the Illinois Central di-
rectorate by Cornelius Vanderbilt. and OF
the Standard oil interests. which control
the st. Paul and which are backing Mr..
Hartman in the present contest.
HarnhRn Against the Project.
Mr.. Harahan is said to have been par
ticularly vigorous i'm opposing the exten-
sion TO Omaha. There were then five lines
between Chicago and Omaha-the Burling-
ton, Northwestern, Rock Island, Wabash
and st. Paul-besides the Missouri Pacific
line from st. Louis It was oontended that
there was not enough business from Omaha
and the tributary territory to pay these
roads, and that the construction of another
line to that city would only injure the
roads already entering 1t and result In loss
to the one building the extension.
! Mr.. Fish, however took a different view
He believed a line to Omaha, by serving as
a feeder to the rest of the system, would
be highly profitable. and he had his way.
The extension, which is 131 miles long. was
built at an initial cost OF 5000. co., and was
opened for operation in 1900 The expendi-
lures on the Iowa lines since 1899, mainly
for the Omaha extension, have exceeded
ss,OOOOOO.
The results have only too completely vim
dicated the position of those who opposed
the building OF the extension. Tho Illinois
Oentral's main line from Chicago to Fort
, Dodge. Ia, had been in existence and on
Grafton about forty years Its line TO Sioux
city and most OF its other lines I'm Iowa
were almost equally old. They had been
put on paying basis, and during the wear
ended June 30, 1899, the last before the on
Grafton Of trains over the extension began.
they paid profit of 1894 294, or about 3
J per cent on the investment.
New Line Brings Loss of Income.
) From the day the operation of the exten-
sion began the net income Of the Iowa lines
has declined. During the year ended June
80, 1900, their net earnings were 1Oq 600
despite the increased investment of 900 =
600. In 1901 these net earnings were $lC9,COl
IN 1907 N65OOO. In the year ended June 90
. 1906 the Iowa lines showed an absolute loss
OF S60SOOO, and in the year ended Juno 9o
: 1904. a loss of S75l,SS4. Adding this to the
profits OF s594,OOO, which they earned i'm
1899, gives a total loss to the stockholders
3 in 1904 OF s1.S45.OOO
The Iowa lines did better in the wear
! ended June 80, 1905, but even then tbev
) showed loss Of $8GS567. The figures for
the last fiscal year are not available but
> 1t is said they show Improvement.
= One reason for the heavy decline in the
. net earnings of the Iowa lines is made clea r
by comparison between the increase which
has taken place since the construction ~
\ the Omaha extension in operating expenses
r and in gross income Between 1898 and 1eol
gross income increased from S., e,s55. 800 n
: S,SO2,96O, or $4,000. Meantime operatino
Q expenses increased from S1,65Of2 to S3,13.
5S6. or almost S2,OOO,OO0
The new line had to be kent I'm good oor
dition whether it earned anything or not
It had 10 have enough trains. passengo,
and freight, run over Il to meet comneti.
ton And so money has been poured into
It like water into rat hole-and the 70.
turns have not been much more satisfac-
tory than they commonly are from this
latter operation.
MT Fish has been much blamed for ,bs
results or the extension 10 Omaha. It ha,
SVEN his enemies seemingly good ground
for criucising his judgment both as a rsjr.
road operator and as a nnancier. and the,
nave utilized It TO the fun. It has glver
Mr.. Hartman a strong argument ,,.hiot
he has not failed to employ In his atton,rt,
TO get his ellow-dlrectors to turn Tho I'M.
hois Central over to his management.
Cuts Into Income of other Roads.
What perhaps has Influenced some Of Tn,
directors against Mr. E,Ish c,.en ,,,nro tl,.r