The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-06-16
HARTMAN AND
ROCK ISLAND BREAK
Agreement as to Control of Chi
cago & Alton Abrogated
by Consent.
ROCK ISLAND HOLDINGS
OVER so PER CENT
Huge Increase in Indebtedness
Under Regime of Harri-
man Interests.

NEW YORK, June l5.--The agree
ment between the Hartman interests
and the Rock Island company, entered
into In 1904 for the control Of the Chi.
cago q Alton railroad, has been abro-
gated by mutual consent. according to
an authoritative announcement made
to0ay. In the future, il was stated
the Chicago g. Alton stockholders will
manage the property. Under the agree
ment which has just been abrogated,
the Rock Island company and the Har
rlman interests alternately controlled
the Chicago & Alton. the Rock Island
company being in control one year and
the Hartman interests the next. The
plan would haze expired in 1914. The
termination of this plan is said TO be
without prejudice to either party
The Chicago G. Alton officials ex.
planned that 1T was simply an instance
of letting stockholders manage their
own affairs. II was felt that this
ests of the stockholders. There is to
be no change, according TO the Chi
cngo & Alton officials, in the policy of
the road, which has been managed by
the Rock Island under the Joint con-
troll agreement since last September.
B, F. Yoakum of the Rock Island
and San Francisco roads is the present
chairman of the Chicago & Alton e1-
ecutive committee, At the present
time the Rock Island has six represen-
tatives IN the board Of directors.
against five so-calIed Hartman direc,
tors. The resignation of j. B. Forgau
from the Chicago & Alton hoard re.
duced the Hartman representatives TO
four, 1t is understood that n meeting
Of the stockholders will be held TO elect
a board of directors under the new
IL l>,,{ 49, 90
was made on that point
In financial circles 1T is generally
understood that the Rock Island inter
ests hold over 80 per cent of the Chi
csgo & Alton stock, and that F.. n.
Hartman and bis friends hold 25 per
cent.
Increase of Indebtedness.
The financial management of the
Chicago & Alton road by the Hartman
interests. as told by E. Fl. Hartman in
his testimony before the Interstate
aroused much adverse criticism and
discussion as TO whether or not action
should be taken to restrain Mr.. Har-
riman in the management, and TO pro.
tect the interests of the smaller stock
holders. The Interstate Commerce
commission has, ss yet, made no report
on this matter, but severe criticism
OF The Hartman management mas peen
made by the commission s counsel and
by Attorney General Stead Of Illinois
in a report 10 the Governor of that
State In his report Mr., Stead said
that the Indebtedness of the Alton sys.
tenn has been increased TO total Of
SSO,646,21S since it came into Mr., Har'
riman's hands Of this amount only
S22. 800 900, according TO Mr.. Harri'
man IS own testimony, said the attor'
ney. general, was incurred for improve
ments, betterments, or expansion OF
the road.
''over s57 100000 of this indebted
ness said the attorney-general. "or
more than 20 per cent of the entire
Indebtedness created by this syndicate
upon the properties of these severa
companies. was not created in further
ance Of any legitimate purpose fol
| which railroad company is or can be
organized under the statutes of the
| State Of Illinois. -