Omaha daily bee., 1909-07-28
CASH FOR HARRTMAN'S USE
Union Pacific Has Fifty Millions
Ready to Spend.
IMPROVEMENTS WILL GET IT ALL
when Head Returns from European
Trip Executive Officers Expect
TO Get Busy on Extensive
Program.

Although Hartman is in Europe on a
vacation, the Union Pacific has raised
$50, OOo,O 900 in cash since his departure some
weeks ago. What Mr.. Hartman will DO
with all this money is undetermined but
It is thought in many quarters that the
money will be used in making improve
mcnts. among which is a headquarters
building for Omaha.
This money was raised by the sale Of
SO, 10000 worth of Atchison stock and
ST. 5O0,O0O Of southern Pacific convertible
bonds at a private sale, with a profit
of something like 1900, 900. The reason
for selling is not given out by Mr.. Har-
riman or by any of his associates, but ii
is thought the Atchison was sold because
Of the activity Of Uncle Sam in forcing
the suit against the Hartman lines for
buy competing lines.
Hartman needs millions to carry on
the vast undertakings he has under way.
and perhaps thought it might be well to
raise the money by getting out from under
a deal which had submitted the Hartman
management to criticism on the ground
Of monopolistic intentions. The Atchison
is a co-defendant in the government suit
against the Hartman lines, and 1t Is
alleged that the close relationship between
the two roads is made a prominent issue
in the litigation.
Atchison Not Needed.
It may be taken for granted that the
Union Pacific's interest in Atchison has
been made to serve its purpose and is no
longer essential to the success OF the
schemes the Hartman party has in mind
There is the further fact that by the sale
Of the two big blocks of practically fixed
interest bearing securities the Union Pa
cific has recently raised close to S5O,OOO,OO0
Of cash, entailing a corresponding loss Of
revenue Investment, but not increasing the
company's capital obligations or fixed
charges.
Both these latest Union Pacific transact
tions appear to render less likely the long
discussed segregation of its investment
holdings. one of the principal items which
might have figured in such an arrangement
has been disposed of, while Union Pacific's
proportionate voting power in Southern
Pacific has been at least potentially re-
duced from As per cent to about IS per
cent by the sale of the convertibles.
There is good authority for believing that
Union Pacific is in process of disposing Of
some other investment acquired about the
time of the Atchison purchase. II this
proves to be the case it would not be sur
prising to find later on that the company
has been concentrating its outside invest
ment capital on not more than two chief
connections with the eastern seaboard and
the Gulf, all with the purpose of solidifying
the vast transportation machinery which
goes by the name of the Hartman system.
Projects fl View.
Hartman is just completing his new road
into Mexico and this will require money,
not only to build, but to colonize. This
will not be permitted to drag, as was the
settlement of the western states, but the
most modern methods will be used to in
duce tillers of the soil to take the land
and make the entire country produce ton
mage for the Hartman lines to haul.
Several branch lines and undertakings in
Nebraska and Colorado and Wyoming have
been hanging fire for some time, waiting
for the time when Mr.. Hartman thought
he had the spare money to spend. One of
these is the Omaha-Lincoln line, surveys
for which we're made two years ago. The
Union Pacific has had four different sur
veys made for a line between Omaha and
Lincoln. one of these contemplated branch
ing off from the Union Pacific at Gilmore
and another was to use the Lane cutoff
to the west end of the big fill and then
make a bee line for Lincoln. The remain
der of the Kansas City line is prac-
tlcally completed. The Topeka & North
western is nearly finished and considerable
money has been spent on the line between
Lincoln and Marysville.
Mr.. Hartman said when last in Omaha
that he needed money for double-track
work and for equipment. Both OF these
have been fairly well supplied, and per-
haps when he hears the Jingle of that So
goo, 900 in his jeans he will order work to
start at once on the new headquarters
building.