The San Francisco call., 1908-11-28


Calhoun president of the
United Railroads, and his associates
in that enterprise were negotiating
with E. IT, Hartman in New York
for the sale of San Francisco's big
street railway system
According to these reports, which
were confirmed in substance by the
New York correspondent of The Call
1aterin the day representatives of the
bahking firm Of Ladenburg, Thalman
& Co. who are interested heavily in
United Railroads stocks and bonds,
and Kuhn. Loeb & Co., who have
hnanced most of the big Hartman
railroad projects. were meeting daily
with Calhoun and his associates in
the offices OF the United Railways in
vesment company-the holding com
pany-at 25 Broadway.
May Change January 1
Just how far the negotiations had
Progressed the information from the
cast did not state, but the opinion was
expressed that they had gone far
enough to warrant the prediction that
Tho. beginning Of the new year would
find f. II. Hartman in control OF the
United Railroads
There had been reports from time
to time that Patrick Calhoun was
preparing to let go his United Rail
roads holdings, but none of them were
confirmed. President Thalman of the
investment company. when seen in
New York last night regarding the
latest report. was not ready with his
usual denial but declined TO discuss
the matter in any Of its details.
Among local brokers yesterday after
noon. especially those who are supposed
TO know something of the inner work
ings Of the United Railroads, the New
York reports were regarded as a correct
forecast Of Patrick Calhoun's inten-
tions. 1t had been no secret among
Calhoun's friends that he was anxious
to retire from the presidency Of the
United Railroads. He had hoped that
in the event Of his retirement the
. prosecution of the indictments against
him might be relaxed or abandoned.
Family Is Distressed
1t was said also that another reason
given by Calhoun-for his desire to re-
tire from the railroad company was the
distress experienced by the members of
his family over the notoriety their
nsme had acquired through the prom
inence given him among the indicted
higher ups"
Some time ago it was said Calhoun
proposed to Ladenberg, Thalman & Co.
that he retire. but they would not listen
TO the suggestion and reassured him OF
their confidence in his managerial abil-
ity by continuing to supply him with a
defense fund for his graft indictments.
Meanwhile. however. the German
fnanciers who were banking t&rough
Ladenberg. ThaIman & Co. were be-
coming dissatisfied with the situation
in San Francisco. and it was reported
that they had refused to put up any
more money with Ladenberg, Thalman
& Co. with which to better the condi-
uons OF the local railway property.
Hartman on the Alert
+. H. Hartman, ever watchful of
financial conditions, learned OF the
stand OF the German hnanciers, and is
Supposed to have taken advantage Of
it, It is pretty well known that the
Southern Pacific magnate has made re-
peated attempts to acquire the United
Railroads OF this city, but prior to the
fire the. receipts Of these roads, as well
as the Pittsburg lines, were so enor-
nous that the holding company refused
to let go. After the fire, and particu-
larIy after the United Railroads had en-
dured two strikes. and its officials had
become tightly enmeshed in the graft
prosecutions net, the bonds deprecated
1per cent. the preferred stock dropped
ffom SO to 20 and common stock prac-
.ticaIIy went OF the exchange boards.
u baoo,,o hard for Calhoun to get