Condon globe. (Condon, Gilliam Co., Or.) 189?-1919, 1908-04-17
HARTMAN MADE
A MASTER STROKE
THE ERIE ROAD GIVES
HIM ooEAN.To-ounAN LINE
Story Of tho Big Deal II Told In q
Fascinating Mnnner--Its Financial
and Commercial Importance Stag
gers Wall Street.-The Greatest
Railroad Stroke OF the Century.

A special dispatch by the United
Press from New York gives the inter-
esting details OF Harriman's master
stroke In securing control Of the Erie
system this week,
That Il. II. Hartman grabbed off
the biggest bargain on record. oven
In those days OF Wall street bargains,
whom ho came to tho rescue OF the
Erie railroad in such q spectacular
manner. was made plain today. whom
stock market operators had had time
to analyxe tho deal. says tho dispatch.
All Mr.. Hartman was required TO put
ui was $500. 900 OF borrowed money,
Here are some OF the things no got In
return:
What Hartman GAina.
Control OF the Erie railroad. q
tto0.oo0.o00 corporation.
A through freight ana passenger
line from San Francisco 10 New York.
for which he has been working and
dreaming and seheming for years
Renewed prestige. which compen-
sated in great measure for his losa
as result OF the big stick" vigor-
ously welded for several years by
President Roosevelt.
Five million dollars In new Erie Q
per cent short-term notes. which his
control OF the road will enable him
to moet whom they mature three years
hence.
Two hundred and fifty thousand
dollars OF actual cash, handed back
TO him for use as pin money at time
when many millionaires are having a
hard struggle finding money to H.
nance lobster and champagne sup
pers.
How He Worked Scheme.
The story OF how he did II reads
like a tale from the Arabian Nights
First, he learned that the Erie was
going to have q hard time getting the
money 10 meet It's obligations OF 16,-
Then, through interests allied 10 him.
he made sure that no banking estab-
lishment would advance the necessary
cash.
Next, he allowed alarming reports
of the ErIe's difficulties to bo pub
lished broadcast. 20 that the holders
Of the short-term notes would be- |
come alarmed and sell them at panic |
prices. Then he sent agents into the |
who picked up sB.oo0,o00 OF
the notes at so cents on the dollar |
an investment OF 100000.
Finally. he made his spectacular
offer. which at the last moment, saw
I'd the Erie railroad from q receiver
lhip.
The offer looked as II he were 70.
ng to put pan immense sum Just
'ut OF ure philanthropy. but there
was a string tied to II II was for the
purchase Of new per cent notes at
,b cents on the dollar sufficient 70
pay off all the old notes whose hold
,rs would not accept new notes at
oar and bonus Of per cent In
ash.
Mr.. Hartman already owned S6,-
100000 OF the S5.600.000 notes, no II
vas necessary for him to put up anly
100000 more In cash. He even got
Jack O par of this because certain
peculators had sold notes they did
lot own, and in order to deliver the
'oods today. were forced to pay q
premium.
Line Joins Two Oceans,
And now all the financial world L.
tanding aghast at the result.
The requirement by Mr.. Hartman
a transcontinental line is the part
{ the deal which appeals most to
ailway men. Mr.. Hartman and his
ssociates, 1t 10 reliably reported,
tand ready to spend, under certain
from $4,000. 900 TO $40.
10000 for improvements In termi-
ais, unnels. trackage and rolling |
Lock. II these plans are completed, =
lr, Harriman's dream of a perfectly
luipped- complete transcontinenta :
bad, with Erie as the eastern outlet. ,
Ill have come true. =