Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-15
OUT OF THE ALTON
HARTMAN RESIGNS AND STOCK.
HOLDERS RESUME CONTROL.

NEW YORK. June 15-The agreement
between the Hartman interests and the
Rock Island Company, entered into In 1904
! for their alternate control OF the Chicago
and Alton railroad, has been abrogated by
mutual consent. according to an authorita-
tive announcement made yesterday. In
future, 1t was stated, the Chicago and Alton
stockholders will manage the property.
Under the agreement which has just been
abrogated the Rock Island Company and
the Hartman interests alternately con-
trolled the Chicago and Alton, the Rock
Island Company being in control one year
and the Hartman interests the next The
plan would have lapsed in 1914. The ter
mination Of this plan Is said to be without
prejudice to either party.
The Chicago and Alton officials explained
that 1t was simply an instance of letting
stockholders manage their own affairs. 1t
was felt that this policy would best SUBJ
serve the interests of the stock holders.
There is to be no change. according to the
Chicago and Alton officials, in the policy Of
the road, which has been managed by the
Rock Island under the joint-control agree
ment since last September.
B. F. YoakHm OF the Rock Island and st.
Louis and San Francisco roads Is the pres
ent chairman of the Chicago and Alton ex-
ecutive committee. At the present time
Rock Island has six representatives in the
Hartman directors. The recent resigna-
ton of ]. b. Forgan of Chicago from the
Chicago and Alton board reduced the Har-
riman representation to four. 1t is under
stood that meeting of the stockholders
Will be held to elect board of directors
under the new plan, but no authoritative
statement was made on that point
In financial circles II is generally under
stood that Rock Island interests hold over
30 per cent of Chicago and Alton stock and
that E. I'll. Hartman and his friends hold
% per cent.
The financial management OF the Chicago
and Alton road by the Hartman interests.
as told by Z. Fl. Hartman in his testimony
before the interstate commerce commission
some months ago, aroused much adverse
criticism and discussion as to whether or
not action should be taken to restrain Mr..
Hartman in the management and to pro-
tect the interests of the smaller stockhold
has as yet made no report of the matter.
but a severe criticism of the Hartman
mana cement has been made by the commits
sions counsel and by Attorney General
Stead of Illinois in report to the governor
of that state. In his report Mr.. Stead said
that the Indebtedness of the Alton system
has been increased to total of $S0Di6,2lS
since it came into Mr.. HarrimanS hands
OF this amount only $l2,50O coo. according
to Mr.. Hartmann own testimony. said the
attorney general, was incurred for improve
ments, betterments extension OF the
roads.
over s57. 600 900 of this indebtedness"
said the attorney general, "or more than 20
per cent of the entire indebtedness created
by this syndicate upon the properties of
these several companies, Was not created
in furtherance of any legitimate purpose for
which a railroad company is or can be or
ganized under the statutes of the state Of
Illinois,.