The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-18
NODOUBTHERRINAEHASB.& 40.
GIVING HIM TRANSCONTINENTAL
LINE TO FIGHT THE GOULDS.

tiaIIy Conf ned, bot Pennsylvania 10
Rereyed 70 have q GUARANTEES Chicago
ana Alton 10 Now an Important Link.
The report that E. H. Hartman and
ananciers allied with him had acquired
.ortrol Of the Baltimore and Ohio. and con
.aouently a large interest in Reading, re-
.siyed s~ubstantial confirmation yesterday.
Bankers with particularly good sources Of
Incarnation regarding the properties de-
cIared there could be no doubt OF the trans
fer Of control.
Roth Mr.. Hartman and James Stillman,
rresident OF the National City Bank and one
~ Mr.. Harriman's associates on the Union
pacific board and in railroad and stock
onerations generally. have been directors
~ Baltimore and Ohio for some time and
have represented q considerabl 10 stock
holding. This holding, It Ia believed, was
largely augmented last spring. when the
connpanv put out a new stock issue OF ST.
Eo. 600. the Hartman party exercising their
avn rights to subscribe TO the new issue and
.Iso purchasing rights on a large scale In
~. onen market. Il would have required
vsrv few additional purchases, IT, IL be-
B.ved. TO combine with these holdings and
ne stock sold by the Pennsylvania to con-
rtitute a dominant interest.
On the first Of january last the Penn
xvlvsnia in it's own name owned moro than
AZ, M. 900 OF Baltimore and Ohio stock,
and m the names Of subsidiary companies
had nearly $40, 900. 900 more. With the
IssI,e Of the new stock the Pennsylvania
Rad a right to subscribe TO a large block,
hut IL Is not believed that the right was
exercised, since the company at that time
was borrowing money extensively. or it's
avn ISL, 600, 900 the Pennsylvania sold to
Kuhn. Loeb a. Co. two weeks ago $40. Ooo, 900.
Those who are authority for the report OF
the transfer OF control insist that the pur-
chase was made for Mr.. Harriman's 40
count: although Kuhn. Loeb q Co. won't
admit It.
Additional confirmation OF the report
was secured from a prominent oficer OF
the road, who said that not only had Mr..
Hartman acquired control, but that he had
begun to exercise It. As TO IN particular
point Of policy on which Mr.. Hartman
had been e~xerting his influences the oficer
declined to speak. He did say, however;
that IL 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 he past it 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
it's holdings, must have received assurances
that the new control Of the road would not
he used in a manner detrimental TO It's
interests. The Pennsylvania and Balti-
more and Ohio; it was pointed out, are
raralled lines for more than half OF their
routes, and it was inconoeivable 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, show greatly Pennsylvania's In
terests are dependent upon a friendly con-
troll OF Baltimore and Ohio II you stop &c
consider between how many principal traniC
points these are III only lines. without
specifying all Of them take Pittsburg as
centre and you will note that westward
thew are the only direct lines between Pitts
burg and Cincinnati and Pittsburg and
81. Louis. Eastward they are the ONLY
lines between Pittsburg and Washington
Pittsburg and Baltimore, Pittsburg and
Philadelphia and Pittsburg and New York.
In however great need Of money fol
Elc COT1DNtIlDuO u " III 49, NtNO
ment plans President Cassett would neve
consent 70 a surrender Of the control owe
Baltimore and Ohio without guarantee
az TO the management Of the road. Sucf
guarantees, il is quite probable, could hav
been arranged by Kuhn, Loeb 4 Co., VIII
are fiscal agents for both the Pennsylvani
and the Union Pacific"
Other railroad men were positive in tn
Tiff 49,. sLz tranafar Of control will 1
no yay ieopardize the community Of interes
among the Eastern trunk lines. Its grea
advantage, it was agreed, is that it give
Mr.. Harriman's party practically a trans
continental line and enables it 10 max
remarkably formidable opposition TO I'll
rapidly completing Gould transcontinent
system.
The Western terminals Of the Baltimor
and Ohio are At Chicago and st. Louis. tt
Eastern terminals of the Union Pacific al
Omaha and Kansas City. The st. Pau
which reaches both Omaha and Kansa
CITY. could he transferred to the Unio
Pacific between courses Of a dinner wit
but half a dozen covers. The Illino
Central. which connects with the UniC
Pacific at Omaha and with the Baltimo
and Ohio al both Chicago and st. LOU
and also with the Southern Pacific at Ne
Orleans, is a road in which the Harrim'
party already has a large interest.
But neither OF these lines, il was points
out. is necessary to make OF the Union Paci
and Baltimore and Ohio a t~ranscontinen
system. The Chicago and Alton is suffioie
for that purpose.
Two years ago the control OF Chicai
and Alton was acquired by the Harrimi
interests and the Rock Island. The holdin
of both companies are in a voting tru
providing for harmonious managemer
The road is a short and direct line bet"e
st. Louis and Kansas City, and while
Rock Island might not care to part with
entire interests in IN property it has a Il
Of its own between st. Louis and kanf
City and might consent to a transfer OF I
Kansas City-St. Louis division OF the AIT
to the Union Pacific. At any rate I'M
Pacifo's interest in the property is sufici'
10 insure as good trafic arrangements
probably would be desired.
A practical combination OF the Baltimc
and Ohio. Union Pacific and Chicago a