The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-29
Makes Him Master of 10000
Miles Of Railway.
GETS INTO PITTSBURG
Also Obtains Another Line to
the Pacific Coast.
Is Believed to Have Captured
the C. +. & 1. Company.

New York, July 2s.-By the treaty of
peace between E. n. Hartman and
George J. Gould, which Wall street
heard was approved by both men, Mr..
Hartman becomes the master of about
10000 miles Of railroad. His Union Pa
cific system has about 5000 miles of
track, the Erie has about $500 and the
Missouri Pacific nearly 1000 miles. Mr..
Gould will remain as president of the
companies as heretofore, but it is un-
derstood that Hartman will dictate
the policies.
This movement will rehabilitate the
credit of the Gould companies, which
has been SO bad recently that three of
them have gone into receivership. 1t
will enable the Gould roads to raise
money for improvements that are much
needed. 1t will give Hartman joint
use with the Missouri Pacific of the
Western Pacific railroad, which Gould
has just finished building. 1t will give
the Erie railroad half interest, either
by direct ownership or trackage rights.
over the Wheeling & Lake Erie and
the Wabash Pittsburg terminal. This
will let the Erie into Pittsburg and will
also give it trackage rights into the
Lorraine steel works, from which a
heavy tonnage Is expected.
1t is understood that Mr.. Hartman
has decided to abandon plans for the
Hartman holding company. which was
planned nearly two years ago to take
over the Investments of the Union Pa
cif1c. One rumor in the street goes so
far as to say that the Union Pacific
may issue enough preferred stock to
pay for actual control of the Erie and
enough Wabash stock to make the
Union Pacific secure forever in its
transcontinental trackage- rights. Di-
rectors Of the Union Pacific already
have authorized 100 million dollars OF
preferred stock which Hartman may
use at his discretion. There have been
tributed on Union Pacific stock and
up to few days ago 1t was supposed
in the street that these rights were in
connection with the holding company.
Kuhn. Loeb & Co. are said to be the
bankers through whom the financial
arrangements will be made. Blair q
Co. will participate in the financing.
Neither of the banEers would admit
officially that anything would be an
nounced this week. Eight million dol
lars Of Wheeling & Lake Erie notes
indorsed by the. wabash will fall due
Saturday It Is understood that Kuhn,
Loeb & Co will take care of these
notes in behalf of Hartman and the
Erie.
Neither Hartman nor Gould would
admit that the arrangement had been
perfected. but it is known that MI
Hartman will start for 3-week trip
through the west on Thursday or Fri
day of this week.
Hartman and Gould are working to-
gether now for the first time since
their bitter quarrel over the Colorado
Fuel & Iron company control six years
ago. Previous to that each had been q
director in the companies controlled
by the other. Their enmity was dis
PLAYED in public and mutual resigna-
tions followed. Gould was left in con-
troll of the Iron company and 1T has
cost him millions. Only through the
friendship Of John D. Rockefeller has
he been able to keep 1t out of the
hands of a receiver. 1t is believed by
Harriman's friends that Hartman also
has captured control Of that company.
although there is no public evidence
of the fact If Hartman has cap
tured 1t H. c. Frick probably is In
terested in the deal.