The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-25
Hartman Figures Largely from
Control of Wells Fargo.
ALLDENIEN
Winchell and David.
son Discuss Affairs.
other Items of Interest in Rail-
way Circles.

| there have been rumors touching the
| Solvency Of the Rock Island railway
system. These have been more numer-
Gus as the securities declined. Prac-
! tically all the issues of the corporation
| are selling at the lowest point in their
history. The selling has been copious
| and continued and evidently emanated
| from important holders.
| Another phase of the matter has
! been the recent contract for transfer
ence of the express business On the
| Frisco line from the Wells Fargo COM
| pany to the United States Express
company, the talk being that as e. H.
Hartman, who controls the Wells Far
| go company, had refused to make a
| loan to the Rock Island, his organiza-
ton was deprived of the express bust
ness.
President Winchell of the Rock
Island ridicules all this talk. He states
that the earnings of the Rock Island
are increasing. the receipts, in fact,
showing something like per cent
earning on the preferred stock, which
is quoted at $28 a share. AS for the ex-
press phase of the matter, he says the
Rock Island proper has always done
its business through the United States
company, and now that the. FriSco'S
contract with the Wells Fargo has ex-
pired, it was only natural that the SER
vices of the United States Express
company should be enlisted for the en-
tire system. No loan was solicited
from E. H. Hartman, the Rock Island
having borrowed all the money 1t
needs some time ago. The liquidation
of the company's securities was ex-
planned as coming from people who are
involved on the wrong side of the
! stock market movement, and who
wish to raise more money to protect
their deals.
The refusal of the WeIls-Fargo COM
pany to loan 100000 to the ST. Louis
& San Francisco railroad caused finan-
ciers today to say that Mr.. Hartman
always has declared that the Rock
Island clique furnished the interstate
| commerce commission with much OF
the material used in the investigation
which did so much damage to the Har-
riman prestige.
For several years the two systems
| jointly controlled Chicago & Alton, but
about year before the interstate COM
merce commission investigation the
Rock Island interests got control OF
sufficient stock to outvOte Hartman at
the annual meeting. The result was
that Hartman was compelled to turn
| over the company to his rivals. Sub
sequently charges were circulated In
Wall street that there had been irregu-
| larities in the bookkeeping, and GER
tain disbursements discovered thai
were not justified by sound business
practice. The interstate commerce
commission was found to be in posses
sion of evidence that could not have
come except from inside sources.
The relations between the two fac
lions became greatly strained when
Rock Island turned control of the Chi
cago & Alton over to the Clover Leaf.
About 10 days ago Rock Island stock
began to show pronounced weakness IN
the face of a heavy advance in the gen.
eral market. and at the same tins
there appeared heavy selling from
some mysterious source of Union Pa
cific. Southern Pacific. ST. Paul AMI
Northern Pacific.
President Davidson of the st. Louis
& San Francisco railroad has discred-
tied the rumor that a receiver had been
appointed for the Rock Island system.
While he admitted a receiver might be
appointed for that system, over which
his jurisdiction does not extend, with
out his knowledge, he stated that II
such were contemplated he probably
said he had heard nothing about 1t and
considered it an idle rumor.
The report originated in press dis
patch from Denver and stated tha-
Frank Turnbull of New York had in
formed a. friend that he (TurnbulD had
been appointed receiver. Telegraphlc
denials of the receivership came from
President B. L. Winchell and Vice
President w. B. Biddle of the Rock
Island at Chicago.
President Davidson declined to com
ment on the alleged reason of Harr1-
man for refusing to allow the Wells
Fargo company to loan the Frisco
81 900. OoO. He said: THE details of
loans go through Comptroller Hillard
at New York. 1 know nothing ABOUT
the matter"