Los Angeles herald., 1906-03-24
MAGNATES READY
FOR BIG BATTLE
HARTMAN AND HUNTINGTON
FORCES ALIGNED
New Owner of Los AngeIes-Pacifio
Is Expected to Improve System,
Shorten Routes and
Reduce Fares

That Hartman and Huntington in
terests are at outs is denied by the
advisers, constituents and followers o.
each magnate. Contrary to these de-
malls are the facts that the interests
of each in the city council have caused
a split where before these two inter-
ests have worked in harmony for sew
eral months.
The fight between these two men
over street railway affairs dates back
three years. After Hartman had
forced his way into Huntington's bus
iness in such manner as he thought
would make an even divide in profits
Huntington proved to be the master
although apparently beaten and de-
rived the profits in a manner that Har-
riman was not looking for.
In March, 1908, the date was set fol-
selling a franchise on West Sixth
street. Up to two or three days before
the sale day it was thought that there
would be little bidding done, but anxious
inquiries and the action on the part
of several men tipped it off at the city
hall that a lively time might be ex-
pected.
Hartman Gets Franchise
The Huntington interests were rep
resented by "Billy" Dunn, who opened
the bidding by offering $4,000 for the
franchise, which was twice as much
as it was thought beforehand that II
would bring.
T. E. Gibbon, who represented the
Hook interests who then owned the
Los Angeles Traction company, raised
the bid ten per cent. After the bid
ding had gone on lively for several
minutes. G. G. Johnson, real estate
dealer little heard of at that time, took
a hand.
"Billy'' Dunn made a bid of 100000
and then at a signal from H. E. Hunt
ington it is said withdrew johnson
raised the bid ten per cent and the
franchise was his.
1t soon developed that Johnson was
not buying the franchise for himself
but that ne was representing Senator
w. A. Clark of Montana.
In a short time Clark and Hartman
identified themselves with one another
and with this franchise as a club
threatened to reduce fares to three
cents and made other dire threats
that were never carried out.
Costs Huntington Heavily
Clark was in some manner lost in
the shuttle, and it is said that with
this franchise, which was transferred
by Johnson to the Los Angeles Inter
urban that had been absorbed by Hunt
ington, Hartman forced his way into
the Pacific Electric and the Inter
urban.
In return for this topheavy fran
chise that had cost about twenty times
more than it was worth and a stipu-
lated amount of money, Hartman re-
ceived a share in the two roads.
Those who are best in position tc
know outside, the real owners say thai
Huntington would have been wise il
he had paid as much as $200,O 900 for the
franchise in the first place. for he haC
to allow Hartman more than that fol
it and also had to give up an interest
in a road paying good dividends.
Hartman had insisted that he should
be given an interest in the Los Angeles
railway, which was originally the Los
Angeles traction road but had been
acquired from the Hooks by Hunting
ton, but on this Huntington remained
firm. He would not give in and Har-
riman mad to be satisfied with the
interests he acquired in the other two
lines.
Hartman Received No Dividends
In short time Huntington began tc
retaliate for having been forced tC
give up part of his pet project. Per-
haps ne had this in mind when he
would not let loose of an interest in
the Los Angeles railway.
Anyway, the road which was owned
almost solely by himself was the one
that WAS 10 pay the large dividends
from then on and was the one to re-
ceive any favoritism that could be
shown.
All of the net earnings of the Pa
cific Electric and the Los Angeles In
terurban for the past three years have
been spent in repairs and extensions
of lines. No dividends, it is said, have
been declared If any, only those thai
it was necessary to pay.
While Hartman has been receiving
good interest from his street railway
holdings he has not been receiving al
equal amount to the dividends thai
Huntington has been getting from the
Los Angeles railway.
Botn Seek Upper Hand
Apparently during the past two years
Huntington and Hartman have beer
on most friendly terms, but Hunting.
ton is possessed of a forceful character
and it must have been as a thorn ir
his side to be forced by Hartman.
1t is said that both of the magnate:
have been waiting for good chance
TO get the upperhand on the other one
Hartman had no club to WELD ovel
the head of his adversary partner, anC
1t is said by financiers who are in a po,
sotion to know that this is the reasor