New-York tribune., 1907-11-27
HARRlMAN-HILL PACT.
MORGAN PEACEN4KER.
agreement Reached Betzceen T5cO
Great Rail1Cay RiJdlS.

The Hartman and Hill railroad interests. it
learned yesterday from sources which
should be Informed on the subject, have ar
rived at an agreement which will insure har-
mony between them for the future Announce
ment of this agreement, which is said to be the
result of the work of J. Pierpont Morgan. is
expected to he made within the next week
or two. The report of the committee OF Union
Pacific directors having in charge the task
OF framing a plan for the segregation of that
company's assets represented by its stock hold
ings in other roads is expected to be pre-
sented at about the same time, and it is re-
garded as not unlikely that the two announce
ments may be related
The rivalry between the Hfn-Morgan and
Hartman parties reached its elimination in
the Northern Pacific corner" which resulted
In the panic of May g. 1901, but it existed
before that memorable date and has existed
since then, The Great Northern and the
Northern Pacific. it will be remembered, after
having failed to obtain possession of the ST
Paul their first choice of a line connecting
them directly with Chicago. acquired the Chi
cago. Burlington & Quincy. which IN addt-
tion TO forming link between Chicago and
ST Paul and Minneapolis. operates westward
from Chicago a network of lines. which in Kan
sas and Nebraska are parallel to and compete
with the Union Pacific. lying only little to
the north of that system
The Union Pacific, deciding it to be reces-
sary to obtain a hold the Burlington. sought
II oy endeavoring to purchase control of the
Northern Pacific. which divided equally with
'he Great Northern the control of the Buring-
ton The competitive buying which followed
the Hill-Morgan party having become aware
OF the plan of the Hartman party. resulted
in the Northern Pacific panic, when the stock
OF that road sold up to 1000. Two months
after the panic day five of the Northern Pa
cihcs directors resigned and five men selected
by Mr. Morgan were elected to succeed them.
or whom two were Z. H. Hartman and Will
lam Rockefeller. James Stillman was already
a member OF the board
The organization of the Northern Securities
Company came a little later but it was not until
May. 1905 while that corporation VAS etiu IN
existence, that the Union Pacific representatives
retired from the Northern Pacific board. which
since that time has been composed exclusively
OF members of the Morgan-HiIl party After
the dissolution Of the Northern Securities Com
pany or rather. the divesting by 1t Of its hold
ings Of Northern Pacific and Great Northern
shares, the Union Pacific held its large blocks of
stock of those two companies for many months.
after having unsuccessfully tried to compel the
i,'"'' VI 10 VI l5Ildl HOlulnRS or Northern Pa
cfc stock
Last December. following the heavy stock in
rre7ses by the Great Northern and the Northern
- fo, stock Of the two companies was poured
out n seemingly endless volume. the prices de-
cining scores Of points. This selling. which rep
resented serious losses to the other holders of
Northern Pacific and Great Northern. was sub
sequently found TO have been for account of the
Union Pacific.
In the long decline in the stock market this
year the Union Pacific has suffered with it's
rivals. and has not sold at figure which would
make possible conversion at profit of the $T5-
100000 bonds issued this year. Reports have
been current from time to time of heavy buying
by the Morgan party of Union Pacific stock, but
tent of saying that control had passed TO the
Morgan-Hll interests have been denied as often
as set afloat. Whether or not the peace now re-
ported having been arranged will include ac-
QUESTION of a block of Union Pacific stock by
Mr. Morgan and his associates cannot yet be
learned
In his annual report to the stockholders of the
Northern Pacific in October. 1905, President
Elliott advised them of the execution Of a con-
tract with the Union Pacific for the construc-
tion of 12J miles of road In Idaho, in which the
two companies were each to own undivided
one-half interest. There have since then been
other indications that the eumity between the
Union Pacific and its two Northern competitors
was not bitter as in the years preceding.