The San Francisco call., 1908-11-01
MEXICAN LINES IN
HARRIMAN'S GRASP
Secures Heavy Interest in Gi-
gantic Merger Recently
Formed in Republic
Reported to Be Planning to Buy
TehuantepeC Road From
British Syndicate

Advices from Mexico declare that E.
H. Hartman has secured a heavy in
terest in the National railways -of
Mexico by acquiring the securities of
the Mexican Central railway.
This means that Hartman has taken
hold of the transportation interests of
that country and that he will be the
absolute master of all the railways in
the republic
Less than three minths ago gigan
tic merger was formed whereby all the
railways OF Mexico We're put into one
company. A large part Of the money
used to finance the scheme was raised
in New York. The suspecion was at
once aroused that the financial hackers
of Hartman were instrumental in CIV
ing the money to put through the
merger.
This appears to be the case, and It
is said that it will not be great while
before Hartman shows his hand more
plainly in the management of the MeXi-
can railways. He already has the west
coast in his grip, as he is now building
a line to Guadalajara, which runs along
the Mexican littoral, opening country
which hitherto has been without trans
portation facilities.
The most startling of all the reports
that are coming from Mexico is that
Hartman not content with securing all
the railway systems of the neighboring
republic, is getting ready to end the
competition of the Tehuantepec road
by buying it outright.
HARRIMAN'S POLICY
This is in accordance with the ag-
gressive policy of Hartman. If the
merchants of the Pacific coast seek to
free themselves of the Hartman grip
by using the sea to ship their goods to
Salina Cruz, then overland to the At
lantic ocean, Hartman can prevent this
by simply buying out the road that is
diverting traffic from his lines and their
connections. A few months ago the
English papers suddenly took to ex-
plotting the achievements Of S. Pearson
& Son Limited, managing directors of
the Tehuantepec national railway COM
pany, with headquarters at 4S Lime
street. London.
/ Those accounts looked suspiciously
I like an. advertisement and being fol-
lowed by reports from the City of Mex
4 leo that the Hartman interests are
trying to secure the Tehuantepec line
makes them appear only too true.
! The Tehuantepec line has long been
thorn in the sides Of the transporta-
tion interests of this country. The
American Hawaiian line of steamers
are carrying full loads to Salina Cruz.
Wine shipments which were formerly
sent overland are now diverted to the
Tehuantepec line. transportation men
/ declare that most shipments which can
stand water carriage have been sent
! east via Salina Cruz. The money that
has been lost to the various roads by
the competition would make an enor-
nous sum.
1t has not been Harriman's policy in
the past to sit idly by and see the
transcontinental lines lose business
through little road on the isthmus of
! Tehuantepec. and that road owned by
British capitalists.
WOULD KILL COMPETITION
! Nothing can be done to prevent Har-
riman buying the line and thus chok-
I ing off a competition which is viewed
with alarm by every railroad man do
ing business on the coast.
1t is reported also that Hartman has
no intention Of making Guadalajara the
southern terminus of his Mexican ex-
tension of the Southern Pacific. For
several months past it has been known
that he has had two survey parties in
the field looking for the easiest grade
into the City of Mexico.
1t is also reported that Hartman in
tends to build a line still further south
and has had surveys made as far as
San Geronimo. a station on the Te-
! huantepec line, the junction of the
I western southern extension.
This means that when Hartman gets
so far down as San Geronimo nothing
viii prevent his continuing the South
ern Pacific 70 Panama