The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-09-10
most SPECTACULAR
FINANCIAL GENIUS ;.
Continued From Page Ope.)

that had sunk millions in the old
Union Pacific and several indepan-
dent capitalists. among them Harri-
man. The road was merely a line
from Omaha to Ogden. about 1.s00
miles long. The syndicate paid the
government sos, o0o.0 900 i'm cash and s27.-
100000 to settle with the holders of
the old first mortgage bonds. The
road was turned over to the syndicate
at midnight on the last day of jan
uary, 1898.
The same syndicate purchased for
s3,3oo.0oo block of coal company
bonds and other railroad bonds and in
the following month n group of branch
lines. called the Kansas Pacific. for
SC, 300, 900. That was the last dollar
ever subscribed by the syndicate for
the erection of the great Hartman
system. The members of the synti-
cate received back every cent they
had invested within three years and
all the subsequent purchases of rail-
roads were made on the credit of the
Union Pacific and the few other liE IS
'laaer its control.
Hartman soon became the control
ling spirit of the Union Pacific and
by stringent economy. cutting off all
waste and improving the main line.
transferred the road into valuable
property. paying steadily increasing
dividends. He cleyerly used the credit
of this road for acquiring. without
spending single dollar the control
of one railroad after the other. The
first railroad thus absorbed was the
Oregon Railroad & Navigation COM
pany. whose stockholders We're in
duced to exchange their stock for
Union Pacific stock.
Goes to Alaska.
In the summer of 1899 Mr.. Harri-
man dropped his financial schemes
ard took a scientific exploring ex-
petition to Alaska. which he had fit
ted out at his own expense. The fol-
lowing year be bought the Kansas
City. Pittsburg & Gulf railroad and
icorganized the Chicago 4 Alton
which he had acquired in the early
spring of 1899. Next came the South.
ern Pacific. which became part of
The Hartman sySts.n on February ].
1901. The credit of the Union Pa
eific was used to accomplish the
absorption. The Union Pacific executed
a mortgage for 500. 600. 900 and sold
$40. 600 of bonds at par. thus pay
ing for the stock of the Southern Pa
cifis.
Hartman tried to obtain control Of
tho Burlington railroad and the Nor
gan interests snapped 1t away from
him. buying 1t for the Northern Pa
eific. Hartman became determined
to obtain control of the Northern Pa
eific. This led to a bitter fight be-
tween the Hartman and the Morgan
Hill interests and caused the panic
of May 8. 1901. This was one of the
few cases in which Hartman did not
succeed in carrying out his plans. He
fought hard and went to law to force
the Northern Security company. de-
elared Illegal by the supreme court, to
return to him the Union Pacific stock
he had turned over tn the Morgan
Hill clique for Northern Security
stock, but in the end he had to take
what Mr.. Hill was willing to give
him.
In the following years Hartman
continued the extension of his sys-
ITEM TIE east south lie
acquired control of the Illinois Gem
trial railroad. ousting his former friend
Stuyyesant Fish from the presidency.
obtained strong hold over the st.
Joseph & Grand Island by using the
credit of the Union Pacific and
through the Oregon Shortline he OBJ
tanned interests in the Atchisan. To-
peka & Santa Fee, the Baltimore &
Ohio, the Milwaukee g. St Paul. the
Chicago & Northwestern. the New
York Central and several minor rail-
roads. These railroads and his in
terests in the Equitable Life Assur-
ance society and other insurance COM
panies placed him in control of prop
erty valued at more than $1,000. 000. 600
and one of the most dangerous rivals
of John d. Rockefeller. j. P Nor
gan and James ]. Hill. as well as a
political power. particularly in the