Daily Arizona silver belt., 1909-09-10

road, but gave the plan up in sheer
 disgust But Hartman never lost his
 confidence He formed mixed syndi-
 cate, backed by Kuhn, Loeb Co.,, of New York and including two members
 of the Vanderbilt faction, two of the
 Goulds, two of the Boston crowd that
 had sunk millions in the old Union Pa,
 cifc and several independent capital.
 ists among them Hartman. The road
 was merely line from Omaha to Og-
 den about l,SQ0 miles long. The synd.
 cate paid the government S5S,00O 900
 in cash and $27,000,000 to settle with
 the holders of the old first mortgage
 bonds. The road was turned over
 the syndicate at midnight on the lasi
 day of January. 1898,
 The same syndicate purchased for
 $S, 300 900 block of coal company
 bonds and other railroad bonds and in
 the following month group of branch
 lines, called the Kansas Pacific, for
 S6.303000. That was he last dollar ever subscribed by the syndicate for the creation of the great Hartman sys tenn The members of the syndicate re ceived back every cent they had in. vested within three years and all the
 subsequent purchases of railroads were made on the credit of the Union Pacific and the few other lines under it's con. trol.
 Hartman soon became the controllno spirit of the Union Pacific and by stringent economy, cutting off all waste and improving the< main line, trans formed the road into valuable property paying steadily increasing dividends. He cleverly used the credit of this road for acquiring, without spending single dollar the control of one railroad after another The first railroad thus ab. scrbed was the Oregon Railroad & Nav igation company, whose stockholders were induced to change their stock for Union Pacific stock
 In the summer of 1899 Mr. Hartman temporarily dropped his financial schemes and took a scientific exploring expedition to Alaska. which he had fitted ont at his own expense. The fol lowing year he bought the Kansas City, Pittsburg X Gulf railroad and reorgan ized the Chicago X Alton which he had acquired in the early spring of ls99 Next came the Southern Pacific, which became part of the Hartman system on February 1, 1901. The credit of the Union Pacific was used to accomplish this absorption. The Union Pacific ex eeuted mortgage for Sl00, ,000. .OOO and sold s40,0O0.000 of bonds at par, thus paying for the stock of the Southern Pacific.
 tt.sa tn Nk& trol of the Burlington railroad and the Morgan interests snapped it away from him. buying it for the Northern Pacihc. Hartman became determined to obtain control of the Northern Pacific. This led to q bitter fight between the Harri. man and the Morgan Hill interests and caused the panic of May 9. 1901 This was one of few eases in which liar riman did not succeed in carving out his plans. He fought hard and went to law to force the Northern Securities company, declared illegal by the su- preme court. to return to him the Union Pacific stock he had turned over to the Morgan Hill clique for Northern Secur. ty stock, but in the end he had to take what Mir. Hill was willing 10 give him.
 In the following years Hartman con tinned the extension of his system to- ward the east and south He acquired control of the Illinois Central railroad. ousting his former friend Stuyvesant 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 Shcr. line he obtained interests in the Atchi- son, Topeka & Santa Fe, the Baltimore X Ohio, the Milwaukee & St. Paul, the Chicago X Northwestern, the New York | Life Assurance Society and other insur- lnce companies placed him in control Dr property valued at more than Sl,. l lO0,000,0GO and one of the most dan gerous rivals of John D. Rockefeller, | J. P. Morgan and James J. Hill, as well | as political power, particularly in the west.