Omaha daily bee., 1909-01-18
HARTMAN FORMS A MERGER
Will Make Holding Company Of New
York Central.
PUTS ALL LINES IN ONE SYSTEM
Thomas G. sbotweu of New York
Says He Has Already Acquired
s1s,OOO,OOO of Central
stock.

"The Union Pacific already owns SIS
100000 par OF the New York Central stock
and Hartman is said to have options on
large blocks in the street.
This statement was made by Thomas c..
Shotwell of New York. a recognized au.
thority and writer on railroad affairs. Mr..
Shotwell has other things to say on the
subject Of Hartman and the New York
Central which seem to put a new light on
the statement of President Brown a few
DAYS ago that he had never seen Mr..
Hartman presiding as chairman OF the
| CentraIs board Of directors. Mr.. Brown
made this statement in response to a story
published In The Bee to the effect that
Hartman had secured control OF the
Central.
The new light Is tina Hartmann has not
yet completed the matter Of securing con-
troll Of the New York Central, only having
secured thus far $4,000 Of the stock
According to Mr.. Shotwell, the process Is
going on, but is near completion, and when
completed Hartman will make Of the Cen
trail a holding company for his other In
terests.
What ShOtwelI Says.
Under a New York date line Mr.. Shot
we'll writes this story to the Chicago Ex-
mine of Sunday:
New York Central lie to be the holding
company for all the Hartman system, &C
cording to reports in Wall street today.
This makes a holding company as planned
by Hartman some months ago unneces-
sary. Details of the plan, which practi-
cally amounts to a merger of Union Pa
cific with the other Hartman companies,
are being worked out.
today, that In the plans for the new Grand
Central station quarters are being provided
for Union Pacific, Southern Pacific and all
| the other Hartman offices. The Equitable
Life building, In which the Hartman rail
roads now have their offices, at 100 Broad
way, is to be torn down In about two years
to make place for the largest skyscraper In
the world and II Is expected that Hartman
will by that time be the official operating
head Of the greatest transcontinenta sys-
tenn in the world.
This deal between the Hartman lines
and New York Central has proceeded. SO
far that several OF the old Vanderbilt lieu
tenants are arranging for retirement. Sen.
ator Chauncey M. Depew Ia one who will
60; H. Mex. Twombly, a brother-in-law OF
William K. Vanderbilt, is another named
for retirement.
Enough stock to Begin.
New York Central already has enough
stock authorized to begin the deal. which
the Union Pacific of its Southern Pacific
stock, payment to be made with stock OF
the New York Central in volume large
enough to put the control of New YORK
Central in the Union Pacific treasury. This
deal viii conform with all the laws of the
oAiNCu oNdlt iNtdNlitB W OWb 6Alp "a "a
allel or competing properties.
This deal will not be officially consum'
mated for several months. 1t may be 6
year before official confirmation can bt
had in all its details. because the Hartman
people do not propose to have any more
quarrels with the United States govern
ment and they will proceed in such a way
as to meet the approval of the Taft ad'
ministration.
Union Pacific already owns about SIS, 900.
900 par of New York Central stock, and Har
riman is said to have options on largt
blocks in the street. William X. Wander
bilt is to be an important minority factor
in New York Central and he is reported a:
the purchaser of much stock around pres
ent levels.
New York Central has been strong thu
last few days in the face of heaviness ir
nearly every direction. 1t was the leadei
in trading today, although this report o
the proposed purchase of Southern Pacifi'
was not common knowledge in the street
Southern Pacific and Union Pacific wer,
also braced up by the buying OF insiders
who insist that this merger will be pu
through as planned.