The San Francisco call., 1906-10-17
HARTMAN GRASPs
FEDERAL TRADE.
Southern Pacific in Way
to Secure Monopoly of
Government Business
DEALS FOLLOW FIRE

Mortimer L. SchiH, son of Jacob
Schiff, head of the banking firm of
Kuhn. Loeb & Co. of New York, is on
his way to San Francisco in a special
train with a party of friends and busi-
ness associates. 1t has been given out
that the trip to the Pacific Coast is
stated by those in a position to know
that Schiff is coming to California on
matters of business in connection with
newly made plans of the Southern Pa
ciffc. The special business which 1t is
said Schiff Is to arrange Is the pur-
chase of lands and rights of way which
will enable the Southern Pacific to han
die the Government business at Fort
Mason and the Presidio.
Kuhn, Loeb & Co. are the Southern
Pacific bankers In New York and many
of Harrimans largest deals are carried
through by this corporation. The pur-
chase Of the Fontana warehouse at the
foot of Van Ness avenue was negoti-
ated by Kuhn, Loeb e. Co. and the
banking corporation will conduct the
negotiations with Mrs. Uelrichs and the
Government by which the Southern Pa
cif1c expects to lay tracks in the Pre-
sidio reservation.
NEEDS BETTER FACILITIES.
1t has become known that in the
days following the fire IN April GEN
eral Funston felt himself Handicapped
by the inability to handle freight to
and from the Preside with dispatch.
Hundreds of teams were pressed into
service. but the system at best was
clumsy and occasioned aggravating de-
lays 1t was then that Funston called
the attention of the Government at
Washington to the need of better means
Of transportation at the Preside. He
pointed out that in case of a war in
which the Preside should become a
strategic point the present conditions
would subject the army TO costly de-
lays The general staff of the army
at the national capital at once gave
consideration to a plan for the con-
structfon of tracks which should con-
meet with one of the transcontinental
railroads.
This became known to Kuhn, Loeb
& Co., who at once suggested to Har-
riman that he take advantage of the
opportunity for the Southern Pacific.
/ Herrin Immediately took up the mat
ter, discussed it with the army officers
and practically made his headquarters
at Fort Mason.
The first step in the matter was the
purchase of the Fontana warehouse.
This property was paid for with a
check signed by Kuhn, Loeb & Co.
Negotiations were at once entered into
with Thomas Magee. who as agent for
Mrs. Oelrichs exercised control OF the
Fair estate lands along the water
front near the Preside. Kuhn, Loeb &
Co. made an offer for these lands and
the deal is now pending.
Then came the application for a
spur track for fourteen blocks on
Beach street, from Van Ness avenue to
Lyon street.
This application is now before the
Supervisors and it is understood that
1t will be granted
When granted il will practically give
the Southern Pacific a monopoly on the
Government business. The railroad has
been assured that 1t will be given per-
mission to lay Its rails on the Gov
ernment reservation to the warehouses
and supply depots.
SPUR TRACK. ON BEACH.
The spur track on Beach street will
be laid in such a manner as to cross
a small section of Southern Pacific land
and in accordance with the recently
adopted spur track ordinance the
Southern Pacific has the right to re-
fuse to allow rival lines to use 1t.
This is not the only deal OF large
proportions which was put through
while smoke rose from the city. The
story is told that E. II. Hartman in
those days of excitement, in the guise
of emergency legislation, secured for
his line valuable traffic rights and track
permits in various sections of the city.
When Patrick Calhoun, president of
the United Railroads, reached the scene
and called upon the city authorities for
his slice of the pie he found that Har-
riman had secured such an enormous
chunk that only scraps were left. CAL
houn is something of a fighter. He
recognized that he was up against a
mighty opponent. but that did not de-
ter him. He called upon the head of
the Southern Pacific.
'Mr. Hartman" he said. you've in
vaded my territory. You are a power-
full man, but unless you do what's right
I'm going to fight you" He spoke with
determination
How will you fight me?" Hartman
asked.
.TH tell you how" Calhoun replied
as he thumped the table. I'll go into
Wall street and I'll batter the daylight
out of your stock"
Those were the days when 1t was
yet uncertain how badly the big cor
poration had Jared. Hartman saw the
point.
The stormy conference at once took
voluntarily surrendered a large part of
its franchise In a few days Hartman
and Calhoun impressed upon the ad-
ministration the need of emergency
legislation in behalf of the United Rail-
roads. The vast extent to which this
was enacted is common knowledge.