Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-08-30
CLOVER LEAF
G0BBLES ALTON

New York, Aug. 30.--The New
York Herald prints the following:
Railroad and financial circles were
electrified yesterday by the announce
ment that the Toledo, St Louis and
Western Railroad company had taken
over the Chicago & Alton system, which
for years has been the hone of con-
tention between the Rock Island and
Union Pacific interests, Theodore p
Shonts is president OF the Toledo, St
Louis y Western. which is popularity
known as the Glover Leaf.
Although the statement of the sur
prising deal was given out officially
from the office of Mr. Shonts, many
bankers and railroad men in Wall
street at first refused to credit it. They
maintained that it was absurd to sup
pose that small line like the Glover
Leaf, with 450 miles of track and
earnings Of S5,000.000, should be in a
position to absorb a standard railway
system like the Alton, 1000 miles in
length. with earnings of $12.000,000
a year.
When the details OF the transaction
became known. however, they assumed
a deeper and wider scope and showed
plans were U1der way for the forma-
ton of a new trunk line that may
prove to become a disturbing factor
in the western railroad situation. At
the same time q new chapter was
ADDED to the history of the feud be-
tween the Hartman and Rock Island
interests. the latter having transferred
control of the disputed Alton property
to group of capitalists. the members
of which cherish by no means the
warmest feelings of friendship for Mr..
Hartman.
1t win be recalled that at the recent
federal inquiry into Alton finances f.
II, Hartman, when on the witness
stand, asserted that he was no longer
burdened with the Alton. saying:
The Rock Island people are carrying
the bag"
TRANSFERS THE BAG"
The Rock Island interests have now
transferred the bag to the shoulders
of another group, who are congratulate
ing themselves that they obtained it at
bargain prices.
1t was through Edwin Hawley, chief
owner of the Glover Leaf, that the Rock
Island group wrested the Alton from
Mr.. Hartman and his associates They
obtained control of 81 per cent OF the
common and preferred stock Mr. Har-
riman through the Union Pacific, owns
a heavy minority interest In Alton pre-
ferred shares.
1t is the Rock Island holdings that
have been sold entire to q coterie of
financiers composed of Edwin Hawley
William A. Read. Theodore p. Shonts,
General Thomas II. Hubbard, C. S. W.
Packard Charles H. Tweed, Henry T.
Huntington and James n. Wallace,
president Of the Central Trust company.
Most of these men are dominant fac
tors in the following railroad proper
ties: The Clover Leaf, the Iowa Gem
trail and the Minneapolis and ST. Louis.
These roads will be bound up with the
Alton in one system, 5000 miles In
length, extending from Toledo. o., west
to lie Beau. S. d., on the Missouri river,
with their important connections at
Chicago, ST. Louis and Kansas City.
Holdings of Alton preferred stock
owned by the Hartman interests have
not been sold. In fact, associates OF
Mr. Hartman In this city were COM
pletely taken by surprise when the an
nouncement was made. Judge Robert
| S. Lovett, counsel for. the Union Pa
cifc, when asked for his opinion of
| the deal said II have no comment to
make whatever"
UNION PACIFIC SATISFIED.
One of the bankers associated with
| Mr. Hartman said, however, that the
Union Pacific interests were satisfied
with the transaction. They had been
informed of the prices at which the
| STOCKS were acquired and these prices
indicated plainly that the preferred di-
vidends would be maintained.
! Gen. Hubbard, who is first vice presl-
dent of the Glover Leaf, said; THE
reason for tho sale of their Alton hold
ings by the Rock Island interests was
a desire to dispose of their control of
the road. They had received intifna-
lions FROM the United States attorney
general that they could not Keep pos
session of ths Chicago and Alton, which
Is a parallel and competing line with
several lives Of the Rock Island system,
notably the Chicago and Eastern IL
linois.
"The Standard oil case has no bean =
ing on the transaction. 1t Is not be-
| lieved that heavy fine can be imposed
or collected from the Alton through any
connection with that case.
1.-THE deal viii not be finally closed
| for ten days or so, as an investigation
II under way by the Glover Leaf In
terests 10 learn whether the representa-
tions made by the Alton are as stated.
We feel however, that the property has
been obtained on favorable terms.
In building a connection between tho
/ Glover Leaf and the Alton a system
will be in operation which viii do
yeiop Into n valuable railway property.
Agreements viii be entered into with
Mr. HaWleys ronds, tho iowa Central
and Minneapolis and 81. Louis, which
will form a strong railroad combina-
ton