Evening star., 1914-12-20

! s

Europe Thcrc'n be opportunities in your life"
But the syndicate member Unsuitable. He
said he couldn't quit The prospect ahead of him
too magnificent. He maintained his interest in the
railroad combination, opened elaborate offices in the
financial district and prepared to engage in financial
underwriting a extensive scale.
The aim of the c.. H. & D. syndicate to sell its
combined properties to the Erie Railroad The project
entirely legitimate and well designed to bring the
trunk line enormous traffic from the South and the
Great Lakes. The proposal was laid before the Ere
board. "F D.. Frederick D. Underwood, president
of the Erie is best known, accompanied by corps of
experts made inspection trip the lines of the
c.. H. & D. and its acquired properties. On his
return, however, his report not favorable to the
purchase of the road.
One day month or so later F. D. smoking big
cigar, seated alone before crate fire in the old Erie
offices, when word brought to him that the Erie
had bought the c., H. & D. He was amazed. The
board had acted over his head
Then swiftly followed this succession of events:
SEPTEMBER 19O5.-The Erie agrees to take the
c. H. & d. by buying control of its stock for S. 100000
OCTOBER, 1905-Dissensions arise in the Erie board
caused by E. H. Hartman supporting F. d. in object
ing to the deal.
NOVEMBER, 19O5.-J. Pierpont Morgan relieves the
Erie of its purchase.
DECEMBER, 1904 receiver is appointed for the
c.. H. & d. and its properties.
The unscrambing of this railroad omeet
amazing procedure, well may be imagined. Mort
cages were foreclosed interest defaultcd bond
issues, and coupons unpaid on fifteen million dol
lars of collateral trust notes, half of which had been
sold abroad as gtedged investments, block of them
having been bought for of the British royal family
The purchases by the c., H. & D. of the subsidiary
railroad lines were annuled. Men who had received
bonds for the sale of their properties to the C., H. d.
compelled to take back in their stead the stock of
their roads, which bankrupt The great
sums that had been expected to enrich many of the
organizers vanished into thin air. among them the two
millions of the syndicate member who had refused to
listen the advice of his banker How bitterly he
regretted having ignored the warning of his friend!
How he deplored the wasted opportunity that had been
his of taking his fortune abroad and enjoying himself
His affairs taken by his creditors, who realized
what they could by the sale of his assets His magrif
offices closed, and in the big affairs of Wall
Street. in which he had hoped to take preemnent
part, he stood like cipher in the great account.
There is another chapter in this story. year later
a number of men met at the offices of ]. Pierpont
Morgan Broad street, to draw up recevership papers
for the Erie Railroad itself. They interrupted in
their work by the of F. d. the president, who
brought the startling announcement that Hartman
personally rendered the Erie five million five hundred
thousand dollars of his funds to the road from
bankruptcy The money due that day Hartman
loved to do great things in an offhand way.
THIS bit of railroad history recouned merely to adj
vert to the story of the who made two millions
and lost them. If the c., H. d. syndicate had sue
ceeded in the end the security holders of the Erie would
can't make million without taking it from somebody
elses pockets.
Far far more rarely does the stock speculator