The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-08-27
WAR IN WALL STREET
MiIIionaires In Battle of Stocks
For Control of the Pacific
Coast Trade.
RAILROADS FATE THE ISSUE.
Hill and Morgan cOntendins With
Hartman and Others For Ownership
of the St. Paul-Interests involved
Greater Than Those Connected With
Northern Pacific Merger.

VI tnS OF. Tdui-intereStS involved
Greater Than Those Connected With
Northern Pacific Merger.
New York, Aug. 27.-The greatest
financial war, according to Wall street
that ever has been waged on that
multimillionaiEes' battle-ground is now
raging there and is likely to reach a
climax this week. The immediate OBJ
ject of the fighting is the possession OF
the Chicago, Milwaukee and st. Paul
railroad with its $25,000OO0 of extra
cash to be added to it's treasury from
the proceeds of its new stock issue. The
real stake, which is of far greater i'm.
portance, however, is the Pacific coast
trade.
In this war are involved twice as
many millions of dollars and three
times as many thousands of miles OF
railroad as were represented in the
famous fight a few years ago for pos
session of the Chicago, Burlington and
Quincy, which resulted in the memor
able Northern Pacific corner, when the
price of that stock was rushed up to
$1,000 a share and a panic in Wal
street followed.
The opposing forces consist of J
Pierpont Morgan, James ]. Hill and
their friends, the foreign capitalists. on
the one side and E. R. Hartman, prac
tical owner of the Unions Southern Pa.
cific roads with Sir William Van
Horne, Sir Thomas Shaughnessey, as
\ the comptroller of the vast Canadian
Pacific system, with their friends, on
the other. Remaining neutral for the
time being, but inclined to throw THEN
weight to Hartman are James H
Smith and William Rockefeller as the
principal stockholders in the st. Paul.
Fate of Road at Stake.
On the outcome of the war depends
whether the st. Paul road is to be ex
tended to the coast, for which purpose
the $25,000,000 new stock issue was
voted in northerly direction, and sc
seriously injure the traffic of the Great
Northern and Northern Pacific sys
TENS, or southerly to impair the future
profits of the Union and Southern
Pacific roads.
resources and hundreds of millions in
cash, has been dragged into the fight by
the threat of the Hill-Morgan interests
to build into its territory.
In this war Hartman is concentrate
ing all the forces at his command and
is fighting and scheming as he never
before fought or Schemed. Victory
would open the way to him for re-
venge on Hill and Morgan for the trick
they played on him in connection with
the fight over the Chicago, Burlington
and Quincy. In that fight they brought
outside financial pressure to bear and
practically dubbed him into handing
over to them all his stock in the North
ern Pacific, which then controlled the
Burlington, to be put into the Illegal
merger or holding company they form
ed, which was called a community of
interests" but which was known Off
cially as the Northern Securities COM
pany. When that combination was
smashed by the United States courts
Hill and Morgan refused to return all
Harriman's holdings in the Northern
Pacific, but compelled him to take an
equal share with them of all the stocks
in the merger and unloaded on him
quantity of the much less valuable
Great Northern.
Another Line Involved.
Still another line involved in this
war is the Pacific Coast railway, q
small road owning most valuable ter
mil md In,
Hartman two years ago had matured
plans for entering Seattle by means of
tunnels. Hill is already in that city
BY mutual agreement the Pacific
Coast line had been made neutral.
Early this summer there was mystic
rious buying of Pacific Coast line
stock Before Hartman or Hill could
discover who were the purchasers the
Canadian Pacific had obtained a sufi-
cient interest in the road to WELD the
balance of power. Then the Canadians
made overtures to Hill for joint con-
troll of all the advantages the line Of
fered in connection with the trade of
the coast Hill Indignantly repulsed
them and made his memorable threat
+ W Qul1tA llttO buC lCL-
ritory. The latter turned to Hartman,
but that usually astute and wideawake
railroad man was doing for once and
was not impressed with the value of
any alliance with the Canadians. So
the latter fell back on the st. Paul in
terests, with which they made an alli-
ance.
Scarcely had that been accomplished
before Harriman's eyes had been open
ed. Immediately he started to repair
his error by the purchase of st. Paul
stock and soon had acquired sufficient
interest in the road to be able to make
a demonstration against the Smith
Rockefeller interests.
That the fight for the st. Paul stock
is becoming very fierce is demonstrated
by the advance in its price. On May
it was selling at 15515. On Saturday it
closed strong at 1913 after gain on
that day alone of six points. Under
these circumstances the developments
are awaited with intense interest.
Urgent Meeting of Canadian Cabinet