Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-09-23
OVERLAND FROM SEA TO SEA
Barriman'S Control Of the Bait more &
Ohio Railroad Reasserted.
A MODERN COLOSSUS OF ROAD
Wlsard of the Union Pacific Fore
staIIinE Gould's Continental Lines
speculative Talk in Rail-
road Circles.


terests have secured the property and that
the wizard OF the Union Pacific is already
directing the policies Of tho Baltimore a
Ohio. Here IL what the sun saws
The rtport that n II. II imam and
fnanciers allied with him had acquired con
troll OF the Baltimore a Ohio. and conse-
quently a large interest in Reading, re-
ceived substantial confirmation Monday.
Bankers with particularly good sources OF
Information regarding the properties de-
clared there could be no doubt Of the trans
fer of control.
Both Mr.. Hartman and James Stillman,
president Of the National City bank and one
Of Mr.. Harrimans associates on the Union
Pacific board and in railroad ana stock OPP
eratlons generally have been directors OF
Baltimore & Ohio for some time and have
represented a considerable stock holding.
This holding. II Is believed, was largely
augmented last spring when the company
put out new stock issue OF 81, 10000. the
Hartman party exercising their own rights
TO subscribe to the new issue and also pur-
chasing rights on a large scale IN the open
market. II would have required very few
additional purchases. II Is believed, 10 COM
bine with these holdings and the stock
sold by the Pennsylvania, to constitute
dominant interest.
ION the first OF January last the Pennsyl-
vania in its own name owned more than
100000 Of Baltimore & Ohio stock, and in
the name of subsidiary companies had
nearly t20,00o000 more. with the issue OF
the new stock the Pennsylvania had a right
TO subscribe TO large block but 1t Is not
believed that the right was exercised, since
the company at that time was borrowing
r. m ~
the Pennsylvania sold 10 Kuhn Loeb & Co.
two weeks ago 100000. Those who are
authority for the report of the transfer of
control insist that the purchase was made
for Mr.. Harriman's account, although
Kuhn. Loeb & Co. won't admit 1t.
Additional Condemnation.
Additional confirmation of the report was
secured from prominent officer OF the
road, who said that not only had Mr..
Hartman acquired control, but that he had
begun to exercise 1t. AS to the particular
point of policy on which Mr.. Hartman had
been exertlng his influence the officer de-
clined to speak. He did say, however, that
II had been displayed In such a way as
70 leave no more doubt that the domi-
nant interest in the property was now in
Union Pacific hands than in the past 1t
had been shown to lie with Pennsylvania.
Both prominent bankers and well in
formed railroad men were OF the opinion
that the Pennsylvania, before parting with
its holdings, must have received assurances
that the new control OF the road would not
be used In a manner detrimental to it's
interests. The Pennsylvania and Balti-
more q Ohio, II was pointed out, are
PARALLEL lines for more than half of their
routes, and II was inconceivable that the
Pennsylvania would part with its control
OF the other without the strongest possible
guarantee that the present community OF
interest would be preserved.
"'You can better appreciate" said one
of the most prominent railroad men in the
street, "how greatly Pennsylvania's In
terests are dependent upon a friendly con-
troll OF Baltimore & Ohio II you stop TO
consider between how many principal traffic
points these are the only line. without
specifying all of them take Pittsburg as a
center and you will note that westward
they are the only direct lines between Pitts
burg and Cincinnati and Pittsbufg and
81, Louis. Eastward they are the only
lines between Pittsburs and Washington.
Pittsburg and Baltimore. Pittsburg and
Philadelphia and Pittsburg and New York,
In however great need of money for
the completion of its extension and improve
ment plans President Cassett would never
consent to q surrender of the control over
Baltimore g. Ohio without guarantees
as to the management OF the road. Such
guarantees, 1t is quite probable. could have
been arranged by Kuhn, Loeb g. Co, who
are fiscal agents for both the Pennsylvania
and the Union Pacific.
From Sea TO Sea.
"Other railroad men were positive in the
belief that the transfer Of control will In
no way jeopardize the community Of inter-
est among the eastern trunk lines. Its great
advantage, II was agreed, is that IL gives
Mr. Harriman's party practically a trans
continental line and enables II TO make re-
markabiy formidable opposition 10 the rap
idly completing Gould transcontinental sys-
tenn.
THE western terminals OF the Baltimore
q Ohio are at Chicago and st. Louis The
eastern terminals OF the Union Pacific are
Omaha and Kansas City The st. Paul.
which reaches both Omaha and Kansas
City, could be transferred to the Union Pa
cihc between courses OF a dinner with but
half dozen covers. The Illinois Central
which connects with the Union Pacific at
Omaha and with the Baltimore a Ohio at
both Chicago and st. Louis. and also with
the Southern Pacific at New Orleans is
road In which the Hartman party already
has a large interest
But neither OF these lines, II was pointed
out, Is necessary 10 make Of the Union Pa
ciho and Baltimore 4 Ohio a transconti-
mental system. The Chicago q Alton is suf-
ficient for that purpose
1.-Two years ago the control of the Chi
cago & Alton was acquired by the Harri-
man interests and the Rock Island. The
holdings OF both companies are in a voting
trust providing for harmonious manage
ment The road IL short and direct line
between St. Louis and Kansas City, and
while the Rock Island might not care 70
part with its entire interests IN the prop
erty II has line Of It's own between ST
Louis and Kansas CITY and might consent
20 transfer Of the Kansas city-sf. Louis
division OF the Alton TO the Union Pacific.
At any rate Union Pacine's interest In the
rroperty IL sufficient 10 insure as good traf-
~ arrangements as probably would be de-
sired.
SiEnihcarce Of the r~SfroS.
~ practical combination NJ the Baltimore
= Ohio. Union Pacific and Chicago q Alton
would furnish almost parallel competition
for the main links in the Gould transeon-
tinental chain. the Union Pacific competing
with the Western Pacific. now IN course OF