The San Francisco call., 1907-06-30
HARTMAN AND COULD
BEGIN STRENUOUS RACE
Object Is to Span Country
With Coast to Coast
Railroad
SECRETS ARE OUT
Reason for Purchase of the
Baltimore and Ohio
Is Apparent
SECRETS ARE OUT
SPECIAL DISPATCH 70 THE CALL

SPECIAL DISPATCH TO TIE CALL
NEW YORK. June 29.-The object OF
the Union Pacific in acquiring heavy
Interest IN the Baltimore and Ohio rail-
road has now become apparent Harri-
man wishes to forestau Gould in form
ing the first complete transcontinental
3ine, and II is now race between the
two railroad Enagnates to see which
viii be the first TO control a coast to
coast railroad.
President Oscar G. Murray has ef-
fected IN the Baltimore and Ohio rail-
road a physical reformation similar to
that Hartman wrought in the Union
Pacific Ten or fifteen years ago the
Union Pacific was. like the Baltimore
end Ohio. fun OF kinks" The million
aire promoters Of the Pacific railroads
having formed what was then known
as the contract and finance company,
received so much per mile government
subsidy for the roads construction, and
they improved rich opportunity to get
IN as many curves as possible, but dur
Ing the last few years Hartman, by the
expenditure Of millions (to the grea;
dissatisfaction OF other stockholders
who did not believe the money would
ever be earned back), Strengthened out
the Union Pacific track, doing some
work each year in the way Of tunnels
and cutoffs, until II is today possible
10 make the overland trip from Chicago
10 san Francisco IN three days.
Hartman whenever assailed nova
days by enemies accusing him Of stock
watering and manipulating points to
the physical condition Of the Union Pa
cifc and also TO its financial condition
as eVinced by the payment OF 10 pei
cent dividends. which is about double
The dividend paid by the average rail
road.
Hartman is a firm believer in spend
ing money 10 build up the physical con
dition OF railroads, eliminating grades
and curves TO shorten the running time
It is gossiped IN Wall street that he
IN conjunction with President Murray
OF the Baltimore and Ohio, will soon
undertake the work of making still
greater improvements in the Union Pa
cifc and Baltimore and Ohio. respec-
lively, in order 10 give the Baltimore
end Ohio and Hartman system a com
plete and short tranSconunental line
u is well known that the Union Pacific
few months ago purchased the Balti-
more and Ohio stock held by the Penn
sylvania railroad, and this it is gener-
ally believed is a controlling interest.
WHAT MURRAY DID
Ten years ago the Baltimore and
Ohio was in such poor physical condi-
tion that il was scarcely thought Of as
p competing line. It's track was two
streaks Of rust" and it was fun OF
heavy grades and curves. Under the
able management Of President Oscar G.
Murray the road has been wonderfully
improved and developed into a splendid
railroad property. Its freight traffic is
enormous The territory through which
81 extends is richer in freight traffic
than any section Of the country except
ing the territory through which the
Pennsylvania runs.
After paying a per cent dividend
during 1906 and making extensive i'm
provements costing millions of dollars
the Baltimore and Ohio had a surplus
Of more than $1,000. 600.
The dividend has since then been
raised to 6 per. cent. Thus two railroad
presidents have shown stockholders
the wisdom Of spending money literally
TO improve the physical condition OF
their respective railroads-and they
are convinced that still further i'm
provements Of this nature will yield
proporUonste returns in earnings.
IT has long been Harriman's ambition
40 control a transcontinental railroad
and Gould's building OF the Western
Pacific as a link in the Could transcon-
tinental system served only TO whet HIS
desire. He looked around for an At.
lsntic sesboard connection and wal
sibilities OF the Baltimore and Ohio. i
IS now not only one of the largest
freight carriers in the country, but does
an enormous passenger business
Whereas a few years ago its passenger
service was poor. the road now operates
splendidly equipped modern trains and
makes fast time owing TO the elimina-
tion OF the high grades and frequent
curves that formerly impaired th'
Epeed Of passenger trains.
TO MAKE MORE CUT OFFS
It is gossiped in railroad circles thai
Il IS Harriman's ambition in conjunc
tion with Murray TO further shorter
the Baltiomre and Ohio and Union Pa
cihc by the construction of cut offs, 81
that the Could system comprising th'
Wabash, Missouri Pacific. Denver and
Rio Grande and Western Pacific vii
not be able to compete with the Harri-
man lines in point Of speed from coasi
20 coast.
The construction Of a short line from
New York 10 Pittsburg, where it would
connect with the Baltimore and Ohic
FOR both Chicago and st. Louis, is now
suggested as one of the probabilities
of the immediate future, and IL is gos.
siped that Hartman and Murray are
anxious to complete such short line
before Gould can have time to com
plete the Western Pacific.
The Baltimore and Ohio undoubtedly
gets much OF fits passenger traffic by
reason OF the fact that all Of fits trains
run by. way Of washington, and this is
considered Of great advantage mas
p much es many travellers from the west
wish to include the national capita
. IN their trips east The construction
Of a cut off from New York to Pitts
burg would not. however, work 10 the
roads disadvantage, as some of the
passenger trains could be diverted tC
the washington branch, Just as the
Pennsylvania trains are today.
Hartman, it is said, is ambitious tt
control q complete transcontinental
route that viii enable passengers Il
speed from coast TO coast in four day:
and to make IL possible for through
mail trains 70 make the trip from New
York to San Francisco in three days.
CREASE RAILS IN FILLMORE