Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-01-13
HOW HARTMAN
BROKE INTO
ATCH|SON
MORAWETZ WITNESS IN
ANTI-MER6ER HEARING
Tells How Union Pacific Inter
est Obtained Representation
on Santa Fe Railway Board
Of Directors,
IL, Morning Journal special Leased wIrel

New york, Jan. IL Victor Mora
wetz. formerly chairman of the exec
utiyc committee Of the .ttchison, 70
pcka and santa re Railroad company
vas on the stand all OF today in tn.
Union Pacific merger hearing befor'
United states Special Examiner Syl
vester q. Williams.
He was a most interesting witness
ana told in detail the story OF y. II
Harriman's entry into the Atchiso1
directorate, through men the lattol
named, after Hartman had fought {
stop Atchison extension into Califorf
MIA. MIR. MoraWetz said.
In 1901 the Atchison company
bought stock and second mortgage
bonds of the Santa Fe, Prescott anc
Phoenix Railway company. Frank
Murphy was president of the com
pany. Because Of his ability and our
confidence in him we asked him t.
continue as president. This he has
done until today.
"Mr. Murphy had a project to
build a road from Phoenix to Benson.
did not think the prospect q good
one. Mr.. Murphy said he would build
the line anyway. / told Mr.. Ripley if
it was to be built we would build il
ourselves. We declined to build it to
DndfeyYifle. Mr.. Ripley was not dis
posed to build it to Benson. lie did
not think it would pay
In the summer Of 1902 we deter
mined to extend the Atchison system
west Of san Francisco bay. We there
upon entered negotiations to purchase
stock of the California and Northwest
ern. While we were trying to accom-
plish this the stock passed to the
southern Pacific
Continuing, Mr.. Morawit2 said;
we then bought the Eel River
Railroad company, owning q short
line running out of Eureka.
During the autumn or winter, ne
gotiations were entered for a settle
ment Of differences between the
Southern Pacific and the Atchison as
to north California. MIR Hartman
objected t. our building tho Phoenix
and Eastern. as ne regarded it as an
invasion OF Southern Pacific territory.
lie offered To buy the Phoenix and
Eastern, and | told him that if he did
SO, all difficulties as to Arizona and
North California would have to be
adjusted at the al time.
u then drew up the agreement
upon which | was willing to settle and
sell the Phoenix and Eastern. We
We're to receive from the Southern Pa
ellie ono-half interest in the CaIifor-
mia NRtsFlt x..ataY,. .,.l 49, fuL Ar.,4f
Shore line, north Of san francisco, a
distance Of AGO miles. We were To
give the southern Pacific one-half in
lefest in the Eel River railroad, and
al roads to be constructed thereafter
We're TO be open to the Atchison.
The construction of the low grade
me from Phoenix to Deming, OF
winch the Phoenix and Eastern was a
part was not contemplated when
work on the Phoenix and Eastern ex-
'ehslon WAS begun. The Atchison had
NOT enough money for the work Of
construction, which would have cost
elS'Oe0 GOO. and to acGaire new mile
age in Arizona"
Mr. Motawetz, continuing his tosti-
m"hy regarding Mr.. Harriman's mo-
IN WIN iHN Atcfilspn Stid.
=" hartman objected strehu-
I" lhe terms | demanded and
''t'est Tor The location to he
.'Fie" .! the Phoenix and Eastern
KIM looN Place because ne was un-
,A 20 tecept the terms.
N"Vul september. 1904. ! was IN
'@'''eu oy AIR. Hartman that be and
nm "ss"eiates had purchased 800.
sna'es OF Atchison stock. He
ior representation on the board,
! would never willingly give
representation to the Union aci-
any rival railroad company.
Hartman declared interfer-
Il the Atchison wac not con
m"p'ated that he and other gentle
~ Individually had bought stock
lhese were Mr.. Rogers. VIII
~ Aetriier, Mr.. Stillman. Mr..
"t ms firm. Kuhn, Loeb q Co
sun would not consent TO rep
I1atl"n Of the Union Pacific until
u'Herehces were settled. Mr. Har-
go urged that the management Of
I'm 'a,itoad systems should deal
etch other openly. fairly and
ni"ad policy live and let live.