The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-04-14
RAILROAD NEWS.
Has Hartman Secured Trans.
continental ROad2
Union Pacific Wizard Holds
Center of Stage.
HAS CONTROL OF ERIE
Remarkable Story Of His Secur.
~ ing an Eastern Outlet.
Other Items of Interest In
Railway Circles.
HAS CONTROL OF ERIE

Whether Edward H. Hartman act
ually is to take over the Erie system
and with the Illinois Central. Union
Pacific and Southern Pacific form the
FIRST great transcontinental system I'M
der one management is question
which will agitate railroad and IMAM
cial circles for the coming week, or
until Mr.. Hartman declares his in
tentions.
The report published yesterday as
Issued from New York, following the
action of Mr.. Hartman. in providing
&5.500,0O0 for the payment of maturing
notes of the Erie system, that the
wizard" will take $5,000,00O of the new
per cent noteS-which amount 10
total issue of $4,000 ,000-for payment
of car trust certificates aggregatlns
nearly 100000 and to provide funds
to meet the immediate needs o! the
road, form considerable basis TOT
second Wall street report that Mr.
Hartman and his associates Will take
over the Erie as an eastern outlet OIL
a great transcontinental system.
The roads which will form the sys-
tenn and their territory are the Erie,
between the Atlantic seaboard and
Chicago; the Illinois Central from
with the main line Of the Southern
Pacific at New Orleans, and the Union
Pacific and Southern Pacific from
Omaha to San Francisco, the racine
seaboard terminal.
That Hartman grabbed off the big
gest bargain on record, even in these
days of Wall street bargains, When ne
came to the rescue OF the ERIE IN sucn
a spectacular manner was mace pam
when stock market operators hau hdu
time to analyze the deal
All Mr. Hartman was required TO
put up was $3.50 .000-of borrowed
money.
Control of the Erie railroad, a $780,
100000 corporation.
A through freight and passenger line
from San Francisco to New YORK. ioI
which he has been worKlns anu
dreaming and scheming for years.
Renewed prestige in the financial ana
railway world, which compensated IN
a great measure for his loss as a re-
suit of the big stick vigorously
welded for several years by President
Roosevelt. TT. 9
Five million dollars in new Erie
per cent short term notes, when MS
control of the road will enable him 10
meet when they mature three years
Two hundred and fifty thousand
dollars of actual cash, handed back TO
him for use as pin money at llils
when many millionaires are having
hard struggle IiiulhS ihOiO'
ance lobster and champagne suppers.
The story of how he did 1t all reaos
like a tale from the Arabian Nlgnts.
First he learned that the Erie was
going to have a hard time getting the
money to meet it's obligations OF 3d.
soc. 900 which matured yesterday
Then. through interests allied TO
him he made sure that no banking
establishment would advance TIC ny
essary cash.
Next. he allowed alarming reports
of the Fries difficulties to be publish
ed broadcast, so that the holders OIL
the short-term notes. would become
alarmed and sell them at panic prices
Then he sent agents into the mar
ket. who picked up 100000 of the
notes at so cents on the ooliaf-ah
Investment of $4,000,00O.
Finally he made his spectacular Of
fer which at the last minute, saved
the Erie railroad from a recelVersnlp'
The offer looked as If he were going
to put up an immense sum just Out OF
pure philanthropy, but there was
string tied to it. 1t was Tor the pup r.
chase of new per cent notes at 80
cents on the dollar sufficient to pay
off all the old notes whose holders
would not accept new notes at par
and a bonus of per cent in cash.
Mr.. Hartman already owned $5.000,-
600 of the 81, 800, 900 notes. so it was nee
essary for him to put up only $5O0,OOO
mart of this because certain specula-
tors had sold notes they did not own,
and in order to deliver the goods to-
day were forced to pay premium.
And now all the financial world is
.standing aghast at the result
The mileage owned and controlled