The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-25
IS HAWlEY IN THE
D.& R. c. AND ". P?
appointment of Iice-President
I. NJ. Schumacher Said to
Be by the Wizard.
DENVER REPORT PUTS HIM
IN CONTROL OF BOTH ROADS
Rumor Deepens Mystery Around
Much-Discussed Ownership
of New Line.

|
of New Line.
DENVER. March 24.-sensational re-
| ports reached here today OF imporian,
changes in the control OF the Denver g.
Rio Grandc and the Western Pacific
! railroads. The Times this evening saws
| Edwin llawley is said to have secured
! important holdings in the Denver & Rio
Grande. and is now declared To he in
| a position TO dictate the traffic policy
of that road and the Western Pacific.
II has been confirmed officially that
Mr.. hawley rs a large stockholdcr in
| The Western Pacific. but his holdings In
| that road arc not sufficient TO give CON
| tIol. his domination of affairs in The
| western Pacific Is declared 10 be due TO
| the acquisition OF stock in the Denver &
| Rio Grandc and his position Is said TO be
! so strong that hc recently named vice
president Tor The Denver & Rio Grande
and Western Pacific over the head OF
! President T. 7. Jcffcry.
| The Western Pacific has $4,000 900
stock outstanding The Denver e. Rio
| thirds of tho entire Issue. The Denver
| * Rio Grande then deposited all of this
stock with the Bankers Trust company
| OF New York as collateral security for
| its recently authorized $50 900. 600 bond
issue. This deal ties up the Western
Pacific stock so that no person or COM
pany can secure "A majority OF il with
out acquiring control Of the Denver &
Rio Grandc.
mir. Hawley got into the Western Pa
cnc through the acquisition by that
company OF the Alameda & San Joaquin
Valley railroad. but he owns, less than
$50. 900 600 stock as that is all that is in
the hands of the public.
Edwin Uawley is reported in the cast
as having either acquired q controlling
interest In the Denver & Rio Grande.
thereby getting control OF tho Western
Pacific. or has made All alliance with
George Gould.
Hawley Appoints Schumacher,
Last November. r. NJ. Schuma cher of
tho IGl Paso e. Southwestern railroad was
Rio Grande and Western Pacific and put
in charge OF the traffic department of
both roads. and 1T Is learned that he
was called east 10 confer with Mr., usw-
Icy and received his instructions from
Mir llawley personally.
Norc--lt has been pretty we'll under
stood i'm inside railroad circles that the
above dispatch is more or less true and
that Edwin tTawlcy has hold on the
Western Pacific perhaps equal TO hat
Of Gould himself. II indeed not greater,
But it is understood that Uawley's inlu-
cnCc is Indirect through tho bond hold
crs. and also through holding some of The
stock rather than direct through owner
ship OF controlling block OF stock.
Al various times during the past year
the hand OF Hin, OF IIawlcy, OF tho llar-
rmsn interests have by turns seemed TO
appear in Western Pacific. and even In
Denver & Rio Grandc affairs But up
to date the Could interests seem in con-
troll al least on the surface. Even the
Rock Island has bccn reported 10 have
a voice in Denver & Rio Grandc. hence
in Western Pacific. matters.
Central Bond Ownership.
The usual D.. explanation TO this mass
OF puZZiiug contradictions as gwen d!
botl eastern and Western railroad men ~
this: IL is said that large blocks OF ponds
i'm the III Paso S Southwestern CHE road
from which schumacher came 10 the
Western Paci!ic). the Great Northern ana
Northern Pacific ohe iill roads rom
| which Lcvcy came TO the western IA
| ciic a vice president IN charge oil opcr-
ation1 the Denver & Rio Gfande twnlcn
road holds twu-thirds stock conttoi OF
! the Western Pacific. aud OF the western
| Pacific itself TO the extent OF 80 per cent
of the entire bond issue. arc all heid oN
one certain interest This interest," -
| rarrcscutcd by a certain man not Well
known IN American financial circles, al
though he had been a hacker oil j. D.
Hin for many years. and II rs lprouSH
! this man that H,l has been ans TO op-
! ii Is reported on good Nc" io.h du'ioi
Hill Appoints Leyey,
THIS same man is said 10 he hcaEE
backer of \Edwin lIawley. and is also i sat9
! 10 bc deeply interested in Rock Island
| bonds Although the bonds give no 1l-
| rect control in these roads as long is inc
| interest Is mot and the capital Is Eut nm
| pGrllC ]. yet 4 np4utI ~ I"'-
| such bonds Is I'm position 10 make ms
wishes felt especially as all railroads
must look TO certain bankers lor tE'uiS
| bonds and such bankers arc IN = posi-
! ti,n tn make il very unpleasant Tor any
road that does not comply with.n foaso"
| TO their desires. - -.
It is said that Edwin ll2wleN Went 70
! George Gould and had Schum1"her APP
polntcd IT is said that ll,ll mad LGNcE
appointed much in the same way botl1 u
! Ilawlcy and hin arc said To nave "oiEIu
! Inc bonds of the Hawlcy and IN" llili
! roads i'm large blocks SO as 10 nave an
| Indirect combination and de.S'JH,i'E
between all the roads mentioned IN Mh''"
| tho heavy bond holders are Interested
The Hartman Influence.
.r,,, so,,rcc or Tho Hartman influence
! I'm tbc Western Pacific has already Oech
explained ir these columns. Gould We
n in deadly want Of money during lhe III. IL
panic and even before that tllhr- ~"
linz ended in Pittsburg ana MAS SUI =
rounded with hostile interests; esPecleiE
i the poUcrful PeDnsylvania. WhcellnS q
Lake Eric (Could) short-timc notes w. W.,
due and Gould needed 5000 200 Ghsn IN ! ms 8
/ security was good enough. but iarrimai,
had Gould laced up In banking anu oorlu
So tI,Trin1au and Could made deal
| whereby Hartman let Gould have the
| money. made certain arrangements pSs
Pitlsburg to exchange traffic and TO leI
| Inc Western Pacific usc the hartman
| right OF way from Wells &" w Nlnhc-
m,,.ro in Nevada In return. Tn" IiAr-
| rimen people obtsned certain valuable
| concessions from tho western Paelbc
! that involves double tracking arrange
toned and the mutual use OF tracks
throuchout California. -
II is said that lawley received ns
. Western Pacific stock through getting
| Could Interested in the road; that the
1 san Francisco parties who started tnt
\ Western Pacific went 10 llawlcE pSIoIe
\ they did 10 Gould. and that liawley was
\ the man who got Gould 10 under'nEe
The Western Pacific Hawley IL Is un
| dcrstood, also handles the Math tlop-
| L{nq estate and the Huntington estate
| both worth tens OF millions.
The Western Pacific IS co9tr9lled Ip ~
| the Denver & Rio Grandc. ana INC pEh
,,or &. IIn C;randr Is IN turn controlled