New-York tribune., 1908-10-10
HARTMAN In FRISCO,
SURPRISE TO STREET
KUHN, LOEB s co. GET
SPEYER s co. BUSINESS.
Financial District Sees Big Step
To1cdrd Carrying Ont Com
muHity of Interest PlaH.

preted 10 mean the extension Of the Hartman in
| fuence over another important railroad system.
\ came a complete surprise to Wall Street ar
noon yesterday, zen the st. Louis & san Fran
cisco Railroad Company issued a statement To
the effect that it had arranged with Kuhn. Loeb
| & Co. to take care Of its S7JGOOOO IA per cent
| collateral trust notes maturing on December I
/ this year, 4 statement supplemented by Kuhn.
| Loeb & Co, who announced that they had as
| sociated with themselves in the negotiation
I group Of their Continental friends together wiki
! the Berliner HandelsgeseIschaft- Of Berlin. and
/ HaIgarten & Co. Of New York
! It had been understood that speyer & Co, who
| have been the bankers Of the Rock Island com
pany. which controls the Frisco for the last few
| years had virtually completed arrangements for
the financing of this note issue. which would
| involve either the taking up Of the notes at
/ maturity their extension for another year;
| the negotiations for the notes including an
| option running to the Speyer house on the pur-
chase of about S32OOOOOO St Louis & San
Francisco bonds. which option Iapses with the
failure Of the note negotiations
The shifting Of the Frisco from Speyer Co.
To Kuhn Loeb & Co. seems to have been due
primarily to inability Of the railroad 10 arrive
at satisfactory terms with the former. The ne
gotiations It is understood. were not suspended
until almost noon yesterday. when another con-
ference was held. at which the bankers named
their final offer. which was rejected by the
Frisco representatives. who within thirty min
utes afterward signed contract with Kuhn,
Loeb & CO.
The agreement with Kuhn. Loeb & Co. does
not necessarily mean that that house viii hence
forth handle all of the banking business OF the
Frisco. in which at various times during the
last few years several houses. including J. P.
Morgan & Co J. & ". Seligrnan & Co. and
Blair & Co, have figured. The Frisco. how
ever. has several other note issues coming due
within comparatively short time. including
s160OO.O0O 1ve-year AZ Per cent notes OF the
St Louis. Memphis & Southeastern and So
500 900 of it's own collateral trust notes. Sc
cured by St. Louis. Memphis & Southeastern
stock. both maturing on June I. 1909 and ST.
500 600 fve-year 5 per cent notes payable on
January l. 1911 for all of which provision must
he made. as well for the current financing OF
the property.
Wall Street takes the view that the instant
signing OF the contract with Kuhn. Loeb CO.
upon the breaking off Of the negotiations with
Speyer & Co must mean that opportunity had
been afforded Kuhn. Loeb & Co. to make a care
full examination Of the 'Frisco's position. the
result of which must have been satisfactory to
the bankers whose continued afhlatiOn with the
property is therefore believed 70 be probable
Another and strong ground for the prevailing
forth 10 act as the 'FrfscO's bankers. and pos
sibIy to assume the same relation toward the
Rock Island, is the fact that they are the bank
ers for the Union Pacific and other roads OF
the Hartman system. Mr.. Hartman is no
longer buying stocks Of other railroads. but he
seems to be working out a new method Of
achieving the community OF interest ideal OF a
few years ago. taking over evidences Of oblisa-
tion in the shape of notes. instead Of stock GER
tificates.
Mr. Hartman came TO the relief OF the Erie.
and IS now an important influence in that road.
which NAV in time form an Eastern connection
for his system. and more recently he aided and
incidentally harmOnized the Gould system. as.
according to the Wall Street view, he IS now
about to harmonic the Rock Island system
There is authority for the statement that frfc-
ton no longer exists between the Hartman and
Rock Island interests. and it is probable that
the establishment of peaceful relations between
the two. insuring the avoidance of costly rivalry.
is the object uppermOst in the minds Of Mr.
Hartman and his associates. and not the DIS
rnembprment Of the Rock Island system by the
absorption of the Frisco into the Hartman
system
Hartman interest IN the Frisco, IT was point
ed out Yesterday. might have a beneficial in
fuence on the Central of Georgia. which Mr..
Hartman purchased a year ago. and plans for
the deveIopnent of which he IS still working
out This road extends from Birmingham to
the sea at Savannah. connecting at Birming-
ham with the Illinois Central. a Hartman
property. But with Mr.. Hartman in the Frisco
connection with the Southern Pacific also
could be established for the Central Of Georgia.
for the Houston & Texas Central. owned by the
Southern Pacific, connects at Dallas and Fort
Worth with the Kansas City Fort Scott &
Memphis and the Kansas City. Memphis & Bir-
mingham. controlled by the Frisco. which give
a direct route TO Birmingham. With an i'm
portant interest in the Frisco. too the Harri-
man lines might find entrance into St Louis
The negotiations reported in The Tribune a
few days ago for the transfer by the Frisco to
the Atchison the Kansas city Southern and the
Missouri. Kansas Texas or the Colorado
Southern Of the Colorado Southern. New Or
leans & Pacific its outlet. nearly completed. from
Houston TO New Orleans. the route including
trackage over the Illinois Central from Baton
Rouge to New orleans. are stiu in progress and
seem likely to be carried through. The stock
Of the Colorado Southern. New Orleans & Pa
cifc is collateral for the S7JOO.0o0 Frisco notes
maturing on January /. 1911. and the purchase
OF the road BY other railroads would relieve
the Frisco OF a considerable burden. pros idins
the means for paying off the notes at or before
maturity. The ST Louis & San Francisco Rail-
road Company is controlled by the Rock Island
Company which owns $2Ss40.3oO of its $29.-
600 600 common stock The Frisco itself con-
trolls number OF other roads. arnong them the
Kansas city. Fort Scott & Memphis. the Kansas
City Memphis * Birmingham. and the Chicago
& Eastern Illinois. the latter controlling the
Evansville & Terre Haute Railroad The total
IaDpfb Of he 'Erfsco IS ah01t < Miles