The San Francisco call., 1907-06-15
HARTMAN LOSES
GRIP ON CHICAGO
AND ALTON LINE
Magnate's Agreement With
Rock Island Company
Is Abrogated
STOCKHOLDERS GAIN
dnnulnnent of Pact Is Made
by Mutual Consent of
Both Parties
MAY GUST DIRECTORS
Share Owners of Road VIII
Meet Probably and
Elect New Board

NEW YORK, June 1.-THE
agreement between the Hartman
interests and the Rock Island
company, entered into IN 1904,
for the control of the Chicago and
Alton railroad, has been abro-
gated by mutual consent, accord
ing TO an authoritative announce
ment made today. In future, it
was stated. the Chicago and Alton
stock holders will manage the
property. Under the agreement
which has Just been abrogated
the Rock Island company and the Har-
rimsn interests alternately controlled
ne cllfcago4-aad- Alton, the Rock
Island company being in control one
year and the Hartman interests the
next The plan would have expired in
1914 The termination OF this plan is
said TO be without prejudice TO either
party.
The Chicago and Alton officials ex-
planned that the action was taken for
the purpose Of letting the stock hold
ers manage their own affairs, and that
this policy would best subserve the in
terests of the stock holders. There Is
10 be no change. according TO the Chi
cago and Alton officials, in the policy
OF the road. which has been managed
since last September by the Rock
Island under the joint control agree
ment.
B. r Yoakum OF the Rock Island and
san Francisco roads is chairman OF the
Chicago and Alton executive commit
tee At the present time the Rock ISL
snd has six representatives IN the board
OF directors. against five so-caIled Har-
riman directors. Inc recent resigna-
ton OF J. B. Forgan from the Chicago
and Alton board reduced the Hartman
representation TO four men. It is un-
derstood that meeting Of the stock
holders viii be held TO elect board of
authoritative statement was made on
that point
In financial circles 1t is generally un-
derstood that the Rock Island interests
hold over so per cent OF the Chicago
and Alton stock and that z. H Harri-
man and his friends hold 20 per cent
The financial management of the Chi
cago and Alton road by the Hartman n
interests, as told by e H Hartman In
his testimony before the interstate COM
merce commission some months ago,
aroused much adverse criticism and dis
taken to restrain Hartman in the man
agement and to protect the interests of
the small stock holders.
The interstate commerce commission
has as yet made no report on this mat
ter, but a severe criticism of the Har-
rirnan management has been made by
the commissions counsel and by Attor-
ney General Stead OF Illinois IN re-
mort 70 the governor of that state. In
his report Stead said that the indebted
ness OF the Alton system had been in
creased to total of sso.e4s.21s since
It came into Harriman's hands. OF this
amount only s22.5oo.oOo. according TO
Harrinnan's own testimony, said the at
tornev general, was incurred for i'm
movements. betterments or extension
OF rne road.
.Over s5s,oo0,e0o of this indebted
ness declared the attorney general.
.-or more than 50 per cent Of the entire
indebtedness created by this syndicate
upon the properties of these several
coropsnses. was not created in further
ance of any legitimate purpose for
which railroad is or can be organized
under the laws Of the state OF Illinois.