The Washington times., 1907-01-06

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finance. after wrecking the fortunes OF
q hundreds of outsiders who got caught
/ in the squeeze, sat down 10 hgure out
/ their gains and losses, il was found
/ that control sul rested with Hill
l Hartman had used his credit TO the
l limit and had fought a losing battle
/ He had his millions tied up in secu-
/ rites OF a road he did not control. and
/ for the time being II seemed that Hill
/ and Morgan had won a decisive battle
] for the mastery of the railroad world.
Wealth in His Defeat.
But it was in defeat that Harriman's
/ luck did for him what management
! could not do. James ]. HIM. tie great
/ est master OF transportation in America,
: made the Northern Pacific so profitable
} that its shares rose month BY month
in value until by the time the Northern
! Securities Company was dissolved the
/ Hartman holdings had actually Melted
/ him proht said 10 have been near
! So. 0O0.00O
] Thus did this Napoleon of finance
| turn the greatest defeat of his career
INTO proht which alone would have
] n ade him one of the richest men OF
the world. II certainly seems reas0na-
I BILE 10 assume that nothing less than
4 the uttermost power of the Government
/ of the United States can ever check
the progress Of a man apparently fated
/ 10 such good fortune as this.
/ From the day OF the Northern Pacifc
/ corner 10 the present Hartman has had
no serious reverse. True, he tried to
! get control OF the Rock Island at one
/ time. and failed because a crowd Of
the new steel millionaires. headed BY
. the Moore brothers. had seen IL FIRST.
! and secured control before he began
/ buying.
Luck Still With Him.
But here Harriman's usual luck was
/ with him and he got out with a profit
| instead OF a loss Later he and the
I Rock Island crowd had a tilt over the
/ Chicago and Alton. which both wanted.
and compromised by a contract under
which The Union Pacific and the Rock
Island jointly controlled the board OF
} directors Of the Alton, the majority be-
! ing given to the Union Pacific one year,
| 10 the Rock Island The next year. and
| SO on alternating.
! This arrangement not onis- gives Har-
/ rimsn the substantial benehJ Of CON
! trolling the Alton. but also amounts 10
/ "a close alliance between him and the
! Rock Island. which Is one OF his most
/ important competitors. Thus the pos
/ sihility OF real competition between the
/ Rock Island ana the Hartman system
I was done away with.
| Al another time Hartman attempted
/ TO buy control of the Atchison. Topeka.
and Santa Fe. and again he failed be
| cause Atchison is one Of the most widely
| distributed stocks Of any American rail-
! road and only a comparatively small
! amount Of it was on the market.
Buying Up Atehison.
But again Hartman. b. dint of his
| eternal good luck, was able 10 sell his
| stock ON a rising market and 10 make
| another pToht. Apparently not discOur-
| aged with one failure. however. il sas
| been developed by the Interstate Com
merce inquiry that within the last six
months he has been buying Atchison,
and has slowed away ten million dol
/ lars OF its shares IT, the strong box of
/ his oregon Short Lie.
! The relation OF the Oregon Short Line
10 the Hartman system is extremely
| interesting. The company owns 1875
miles of road running from salt Lake
and Ogden To Portland, ore. II is cap
italized at only S27 $50. 600. OF which all
but so. 800 IS owned by the Union Pacific.
Practically all OF its outstanding bonds
are also held by the Union Pacific.
The Oregon Short Line is the holding
company Of the Hartman system. When
the death OF Coils p. Huntington opened
the way to a new control of the South
ern Pacific, Hartman made the first
great step toward carrying out his
scheme Of a huge consolidation Of West
ern roads. by buying so, Ool0oO Of IT'S
common and SlS,O00,O0O of its preferred
stock.
Evading Trust Laws.
This was turned over To the Oregon
Short Line, because the Oregon Short
Line was held not to be parallel TO and
competing with the Southern Pacific.
whereas the Union Pacific, being a par
auel and competing line. could not prop
crly have held this stock in a competi-
tor.
In similar fashion. the Oregon Short
Line holds S23.97s000 of the common
stock of the Oregon Railway and Navi-
cation Company, the total issue of
which is $4,000 eco; SIG, SIS, 200 Of the pre-
ferred stock Of the Oregon Railway and
Navigation. the total issue being ST.
900. 900: and on June 80 last the Oregon
Short Line owned So 436, 400 Of the stock
of the Great Northern and SI3. s., 500 OF
the stock of the Northern Pacific
Adding 10 these a number OF minor