The Washington times., 1909-09-10
DOMINANT FIGURE
IN BUSINESS WORLD
Hartman Had Complete
Control Over His
Railroads.

Although Harriman's influence extend
ed 10 more than a third Of the total rail-
road mileage OF the United States, he
was officially in complete charge OF
only three great systems. These were
the Union Pacific. Southern Pacific and
the Illinois Central. The combined mile
age Of these three roads is 20.211. They
employ more than 10000 men. At the
time of the last annual report there
were 4,24S locomotives in operation on
their tracks and 1896 cars of all kinds
were in daily use.
Hartman was absolute master of
these three roads. The directors left
everything 70 him. 50 complete was
his mastery that he would spend scores
OF millions Of dollars without consulting
fellow-directors. 1t is related that on
one occasion the directors were in ses-
sion in Mr.. Harriman's absence. when
they received a telegraph order from
him 20 issue $50. .o00 900 in bonds One OF
the younger directors protested that the
board should be consulted about such
an important issue. whereupon Judge
Lovett, who presided at the meeting,
said
This telegraph instrument under my
hand is in direct connection with Mr..
Harriman's tent at San Antonio II
you care to make a protest 1 WI have
II sent 70 him Immediately"
No Conference Needsd.
No message was sent TO Mr.. Harri-
man, and Wall Street was surprised a
few minutes later to receive the an
nouncement that Southern Pacific had
issued SS2,OO0.OO0 Of bonds. The Street
Was no more surprised than were the
directors OF Southern Pacific
In order to facilitate business. Har-
riman had a resolution passed by the
board giving him absolute power to
borrow unlimited sums in the name Of
the railroad company and expend il
without consulting the board. de as
tonished the directors frequently by
announcing loans and purchases run
ming up into the tens OF millions, but
there never was any protest.
These heavy transactions by Harri-
man often had embarrassing conse-
auences. During the panic Of 1897 the
Investments made by Hartman showed
+. tremendous losses. At present there is
a handsome profit to the credit of the
Union Pacific treasury out OF th-se
same investments. and Harriman's s
judgment seems to have been vindi-
Gated.
One Bad Investment.
The ore investment made by him that
still shows a loss is that OF S20.123. 100 OF
Illinois Central stock. He paid Sl75 for
it. and il is now selling around $50
Hartman was most severely criticised
by the public for this purchase. and the
men from whom he bought the stock
were the very men who about a month
ago were prominent in a movement 70
distribute the assets of Union Pacific
when they believed Mr.. Hartman was
dying in Europe.
By making that purchase of Illinois
Central stock Hartman saved the ven
dors from serious financial trouble He
remained silent. and deded the Presl-
dent Of the United States to make him
gave up their names, while they them
selves vanished from New York Har-
rimans last days were embittered by
the knowledge that his fidelity TO them
had met with such a base reward
Enmities deep as the hatred OF Hanni-
as a result.
Aside from the railroads mentioned.
Hartman was influential through own
ership OF stock by the Union Pacific
treasury in the. Atchison railroad, the
Baltimore and Ohio. Chicago and Al
ton, St Paul, Great Northern. Northern
Pacific, and New York Central He was
uAENARI III UlOel OF these ROADS. He
had a personal interest in Erie so great
that when ]. p. Morgan had receiver
snip papers signed and ready 10 file IN
the United states court two years ago
Hartman advanced several millions
cash to keep the company out Of court
Planning Great Combine.
He had a personal interest and served
as director on the boards OF the Brook
lyn Rapid Transit Company, the Ma
tional City Bank, the Delaware and
Hudson railroad, the Wells Fargo Ex-
press Company. the western Union Tel
egraph Company, and International
Banking Corporation He was a pro-
moter and director OF the Night and
Day Bank.
At the time Of his death Hartman