The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-06
Hartman Places Funds at Dis
posal of the Wabash.
Another Evidence Of Passing of
Control Of Gould System.
BIG DREAM WRECKED.
Railway Wizard Will Operate
First Transcontinental Line.
Other Items of Interest in Rail-
way Circles.

George ]. Gould authorizes the
statement that the Wabash company
has made satisfactory ARRANGEMENTS
for the protection of the $4,000. 900
Wheeling & Lake Erie notes at ma
turity." $50 "A
The foregoing announcement comes
from Edward T. Jeffrey, Mr.. Gould's
representative in New York city. Mr..
Gould refuses to eive-any supplement
tary information concerning the source
from which the necessary funds had
been derived or to refer in any way to
the connection of Edward H. Hartman
with the negotiations.
Mr.. Harriman's bankers admit that
they had the cash on hand not only
to meet the interest on the notes, but
to pay them off promptly on maturity.
August l.. banking syndicate headed
by Kuhn, Loeb & Co. and Blair & Co.
will handle the matter. In the open
market the quotation for the notes.
which at one time was quite low re-
covered to virtually par, all doubt as
to the meeting Of this obligation hav-
ing now been removed. No official
statement was given. out as to the Sc
curity offered the Interests RESPONSE
BILE for supplying the cash, but it is I'M
derstood that no new securities. will be
issued at this time in lieu of the old
notes. Whether the Hartman interests
will be content to accept as collateral
4 per cent refunding Wabash bonds, or
will insist upon the stock and bonds of
the Wheeling & Lake Erie, formerly
lodged as security; for the notes. is not
stated, but Wall street, believes that
the inducement offered was of a very
desirable nature in the eyes of Mr..
Harriman-it probably took the form
of concessions that will be of great use
to the Erie.
Every care has been taken both by
Mr.. Hartman and. by the Goulds, to
conceal the humiliating position in
which the latter have found themselves.
Last night Mr.. Gould indicated that
there would be no additional announce
ment, and Mr.. Hartman has con-
sistently refused to say anything that
might tend to emphasize the plight of
his former rival In financial circles
it is understood that the terms of the
alliance with the Hartman Kuhn
Loeb interests will not be made pub
lie and that George. ]. Gould will con-
tinue the ostensible head of his pro-
perties. The final outcome, however, is
not doubted by Wall street Mr.. Harri-
man can command almost unlimited
capital, the other side cannot. Mr..
Hartman has proved himself an astute
railroad builder and organizer; the
Gould regime has been peculiarly un-
fortunate from the stockholders point
Of view. The Hartman qualifications
have been steadily increasing; the
Gould dream of a great transcontinen-
tai system has been wrecked.
Just how the Erie stands to benefit
from the new deal will not be made
known officially at this juncture. Mr..
Hartman may not even enter the
Gould directorates Immediately. but it
is taken for granted that he has not
taken the trouble to help Mr.. Gould
out of a tight place without first stipu-
lating that he must receive quid pro
ouo. J. P. Morgan's close connection
with the Erie may be taken to mean
that he has been consulted and that
his Endorsement Of the arrangement
has been secured.
The Wabash directors held a meet
ing yesterday to ratify the action that
had previously been taken in regard
to the Wheeling & Lake Erie notes.