Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-12-19
FIGHT FOR ST. PAUL
Hartman Interests Secure Control OF
Another Bic System.
HILL CROWD is 0UTGENERALED
Trick is Turned BY Manipulation Of New
Stock TO Be Issued.
PREFERRED STOCK HAS THE FIRST CALL
Owners May Subscribe for New Issuet to 90
Per Cent Of FoldingG
HILL INTERESTS CONTROL COMMON STOCK
REFERRED STOCK HAS THE FIRST CALL
HILL INTERESTS CONTROL COMMON STOCK
subscriptions to This Issue Limited
to eb Per Cent of Holdings and
Subscriptions Must He
Made Today.

CHICAGO, Dec lS.-The Chronicle today
says that Edwin H. Hartman has repaid
James J. Hill in his own coin by wrestling
victory from him in the shadow Of defeat
| through one Of the most effective coups
ever executed in financial battles.
The control Of the Chicago Milwaukee q
st Paul road, which Morgan and HIN con-
hdently believed to be theirs yesterday
morning, is stlll lodged with the Hartman
Standard oil interests and will be strength
ened
AS Hill threw Hartman out Of the
ownership of the Northern Pacific in the
| Christmas season Of 1901, so Hartman
Gusts Hill from an ownership in St Paul
Mr.. Iiill executed his flank movement by
retiring the preferred stock Of Northern
Pacific, In which opponents control GEN.
tered; Mr.. Hartman and friends nain-
tain st. Paul by Issuing two-thirds OF a
SlO0.OoO,0OO stock increase to the holders Of
the preferred. While HllIs control OF
Northern Pacific common was golden
apple, his control of ST. Paul common IL
but ashes.
End of Titanic Struggle.
For month there has been a Titanic
struggle for the ownership of st. Paul in
the open market Quietly and almost un-
suspected, the Morgan-Hnl people have
been buying st. Paul in the hope of get.
ting control and turning the Pacific coast
extension southwark into the Hartman
territory. In the last week this battle for
stock has been acute and disturbing
feature to Wall street and the money mar
ket. Much of old bitterness had been
aroused The attack Of Jacob H. Schiff
upon banks charging excessive money
rates for stock loans was directed against
Morgan institutions. For some days the
Morgan banks we're calling loans as the
money was needed to buy st. Paul stock,
the high rates and the calling OF loans
forcing out large blocks of this security
and keeping down the price and to some
extent deceiving the trained spectators
as to the real purpose.
Yesterday the crucial point was reached
The Morgan-H!ll interests were within safe
grounds they could count on enough stock
to swing the management of the road and
they reached for good margin over actual
control. To their surprise stock came from
quarters known to be friendly to ST. Paul
interests. There was a hesitation in the
purchases a searching inquiry and the In
formation from friends in the enemy's
? camp that there would be a coup in the
announcement Of = stock issue Of 800, ,OOO.-
900, which was S25.OOO,OOO more than was
expected at this time. Then the contest
was given up; the stock broke and weak
ened the market.
How Trick Was Turned.
! The official announcement betrayed the
cunning of the Hartman people TO make
! safe their agreement; to make sure the
extension OF st. Paul into Hill territory
OF the $90, 900 new stock. the preferred
: is 900. or 135 per cent Of the pres
ent issue Of S49s54,OOO. There is to be
$33,1S4OOO new common, or 10 per cent OF
the present issue Of $S3,1S3, co.,
Subscriptions 10 this new stock at the
rate of 70 per cent Of present holdings OF
preferred and common are given to share
! holders Of record tomorrow, December 1e
and the first installment Of 10 per cent
must be paid on Friday December 21. In
other words, subscribers who own the
stock or buy today must exercise their
right by O'Clock on Friday at the place
of registration in New York.
All stock not taken az that time reverts
to a syndicate which has been formed, and
this syndicate consists of friends of the
present management. or Of Hartman and
the Rockefellers.
Owing to the short notice. not half Of
the shareholders outside the warning fac
tons viii be able 10 avail themselves OF
the opportunity to subscribe. II Is reported
that the Morgan-Hil interests hold S45OOO.-
, 900 Of the common stock, which would give
them the privilege OF taking $33, 10000 OF
the 800, ,511, 900 new securities and make their
total holdings SIS, 80 OOO The Standard OF
people own $50 900 900 Of the preferred issue
s and $50 10000 OF the common. The propor-
tion Of the new stock would increase their
holdings TO $95OOOOOO. Through the short
notice they will profit by securing $4,000 900
more OF the new stock. which would give
them $l2o,OOO,OOO or a clear majority Of the
$780, S4s, 900 OF stock as increased.
Terms of subscription.
NEW YORK, Dec. 18.-Hoders OF Chi
cago Milwaukee & st. Paul stock will be
permitted TO subscribe for the new 10000
600 issue to the extent OF 90 per cent OF
their present holdings In preferred stock
and q per cent in common The percent
! age computation will be made on the en-
tire amount Of stock held, both preferred
; and common. At the time the announce
J ment was made today It was said that
no "split" or fractional share would be
allowed on the warrant. The stock will be
issued tomorrow.
Following a meeting today OF the COM
mittee on securities OF the New York Stock
exchange announcement was made that
the directors OF the Chicago, Milwaukee q
st. Paul railroad had agreed to issue war
rants in lOO-share lots as rights" for the
new preferred and common stocks. the is
suance OF which was made public yester-
day.
Hill Must obey state Law.
MINNEAPOLIS Dec, l8-Attorney Cen
eral r. 7. Young has not heard officially
from the Great Northern officials as TO
whether they will apply to the State Rail-
, road and Warehouse commission for per-
mission 70 issue $6OOOOOOO in stock as pro-
, vided for In the revised laws OF 1906 The
, attorney ssnerd IL prepar now 10 stoB
any attempt by JaHSs J. HIN ~ the Great
} Northern TO issue the stock without arst
obtaining his permission.
Attorney General Young said he did not
expect any further developments untIl jan
uary T. when the FIRST issue Is scheduIeS
70 take place.
I'VE will DO ready for Them said At
toTney General Young, "OR that date 80