New-York tribune., 1909-09-21
FOR WABASH CONTROL
WAY CLEAR FOR RO1DS
TO ENTER PITTSBURG.
Deal to Carry gcih 1t acquisition of
Whceiing S Lake Erie and
Terminal Com pdny.

Control or virtual control. OF the Wabash
Railroad Company and it's subsidiary lines. the
Wabash Pittsburg Terminal Company and the
Wheeling & Lake Erie Railroad Company. ac-
cordiug 20 information from a good source. Is
likely IN the not distant future 10 be lodged
Jointly with four or five large roads. which
under that arrangement would obtain en-
trance into Plttsburg.
Activity and advance IN Wabash preferred.
which began toward the end of 1905 and con
tinued until the hieh record level of 6Is4 was
reached in June OF this year. gave rise to vari-
Gus reports. the most persistent of which was
that the property was 10 be taken over by the
Delaware. Lackawanna 4 Western. a rumor 10
which strength lent by the fac. that the
stock accumulated was known TO be- going into
a large trust company which has long been
identified with the Lackawdnna
The latter railroad company. however denied
that it was contemplating the purchase of the
Wabash. and similar reports concerning the
acquisition OF other roads OF the Wabash group
have met similar denials the latest having
been that the Lake Shore Il Michigan Southern
was 10 acquire the Wheeling & Lake i:rie.
These denials. it said yesterday might be
accepted as accurate. the actual plan was
for the acquisition. OF the Wabash itself that
transaction carrying with IL the control of the
Wheeling Lake Erie and the Pittsburg Ter
minal. in the joint interest OF a number of rail
road companies among them. IT was believed
the Lackawanna. the Lake Shore. the Erie and
the Rock Island This arrangement ii was
added was understood TO represent the execu-
ton Of plan formed by the late r. H. Harri-
man.
The Wabash Pittsburg Terminal Railway the
costly siXty-mile line through which the Wheel
ing Il Lake Erie and the Wabash obtained their
entrance into Pittsburs ana The opportunity ~
enjoy the benefits of the contract through which
one-fourth of the annual tonnage OF the car
negie steel Company to be carried by the
Gould system. went into the hands OF receivers
May - 1905. and on June ) a receiver was
named for the Wheeling * Lake Erie ma
jority of the stock of the latter company *
owned by the Wabash Pittsburg Terminal Rail-
way Company, the entire $lOOO0OOO capital
stock of which in turn is owned by the Wabash
Railroad Company.
GOULD AND HARTMAN
The Wheeling & Lake Erie had $SOOaOOO
threc-ye per cent notes maturing on Angus.
l. 1905. secured 10y $12,0O00OO of its 1 per cent
bonds as collateral these notes being guaranteed
as to both principal and interest by the Wabash
Railroad Company There was much spccu!a-
tion as to whether or not the Wabash would he
able to meet this obligation. although Mr. Gould
had announced few weeks before that the
notes would not be permitted to embarrass the
Wabash.
Almost upon the. eve Of their maturity. fol-
lowing weel, of conferences between Mr.. Gould
and Mr.. Hartman, whose differences resulting
from the building Of the Western Pacific by Mr.
Gould had not long previously been adjusted
announcement was made by Kuhn, Loeb q Co.
bankers of the Hartman system. and clair -
Co. who had long Oeen identified as bankers
with the Gould financing. that at the request
o. the Wabash they would purchase the $SfOOO.-
600 notes at par and accrued interest. This pur-
chase of course. released the Wabash ON it's
liability as guarantor.
From that time MIR. Hartman was commonly
regarded as controlling the Wheeling & Lake
Erie the connecting link between the Wabash
and the wabash Pittsburg Terminal Railway
and there were frequent reports that he would
enter the wabash board. Mr. Gould. recently
as July 2S said: "As for the report that Mr.
Hartman viii enter the directorates of my
roads. all | can say is that nothing would give
me- greater pleasure than 20 have him with us.
Mr. Harrman's interest in the Erie. which he
saved from probable receivership last year. has
been matter of common knowledge. He was
IL director also in the Lake Shore and other
of the New York Central system. in
Continued nfth page.