Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1908-08-11
Gould Is
harriman's
STANDARD OIL MANIPULATOR
C0RNERED GCULD-HAS
CONTROL

nc HOl Ouly pllUlllulcu bOulu us u
cUast-to-coast competitor. but en-
trenchcd himself as Il powerful factor
in the Gould lines east of st. Louis.
The Gould yoaus west of st. Louis.
including the Denver and Rio Gran
de and the Western Pacific, will re-
tain their independence.
II was a lack of ready money that
forced Gould to Harriman's terms.
The two men met today in the Office
Of Kuhn, Loeb d Co., each supported
by his financial agent and attorney,
and after a prolonged conference ar
ranged the terms of settlement. Gould
was in immediate need of $4,000, 900
to take up the Wheeling and Lake
Erie notes, which will mature Satur-
day. Hartman agreed to finance the
deal through the banking firm of
Kuhn, Loeb & Co., but he demanded
heavy concessions, to which Gould,
in his present financial predicament,
was compelled to accede.
Gould Is Embarrassed
II has been the ambition of Gould
to expand his system into Il trans
continental line, and for this reason
he was hurryinS the Western Pacific
To completion, but he was crippled Sc
vercly In the recent panic, which
threw the Wheeling and Erie into
bankruptcy and embarrassed the Wa
bash and Missouri Pacific. As the
Wabash had guaranteed the notes of
the Wheeling and Lake Erie, Gould
appealed to Hartman in order to
save The former road.
As u result of today's conference
Hartman will henceforth play an I'M
portant part in the management OF
the Wheeling and Lake Erie. the
| wabash, the Pittsburg terminal and
Western Maryland, all Gould proper.
ties between st. Louis and the Allan.
tic seaboard. This eastern addition
to Harriman's chain of lines in the
west will give him Il commanding po
sition in the railroad world.
Big Deal Is ARRANGED
Hartman and Gould met at the of
flee of Kuhn, Loeb & Co., at Pine an,
Williams streets, shortly BEFORE noon
Jacob II. Schiff participated in tn,
conference as the financial agent o
Hartman. and representative o
the banking house of Blair & Co. wa
in attendance in behalf of Gould
Judge Lockett, Harriman's persona
attorney, accompanied the railroa,
chief to the conference. Winsloy
S. Pierce, Gould's personal counsel
appeared a few minutes later. Tn
men were closeted in Schiff's privat
Office and arranged with care ever
phase of the deal.
Although Gould and Hartman re
fused to enter into discussion of tn
negotiations, 1t was not long befor
the result of their deliberations be
came public.
In addition to the rcalignment O
interests as stated above. the ne,
deal VIII mean close traffic allianc
between the Erie railroad, which wi
acquire Pittsburg terminal and tn
Wheeling and Lake Erie. now 1
bankruptcy. II also will mean tn
double tracking of the Wheeling an
Lake Erie system and the deyeloI
ment OF the Lo"ain steel property, u
Lorain, o., owned by the Unite
states Steel Corporation.
Consents To Rehabilitation
The fact that Kuhn, Loeb 4 Co
the bankers of the Hartman systeI
and Pennsylvania lines, have agree
to finance the Wheeling and Lal;
Erie notes means that the Pennsy
yania railroad also has given its cor
sent to the financial rehabilitation {
the wheeling and Lake Erie, the Wa
bash, the Pittsburg terminal, an
Western Maryland, three embarra,
sed Gould properties. All of this wa
iorcShadowed in the interview give
by George j, Gould Tuesday upon HI
return from Europe. 1t was accul
lately forecasted in these dispatchc
Tuesday morning.
wall Street has regarded the mi
turing of the sS,00O,0O0 note issu,
brought out by the Wheeling an
Lake Erie three years ago and guar
anteed by the Wabash, with II grei
deal of uncasiness. Apparently, III
til today Gould had taken no stel
whatever to provide for these note
which fall due Saturday. 1t is b,
lievcd however, that during his al
sence In Europe Gould was in col
slant communication with Harrlma
and that Hartman purposely delaye
his trip west in order to confer wit