New-York tribune., 1914-12-20

Europe Therc1l be opportunities IN your ME.
But the syndicate member was now insatlable' Tie
said ne couldn't quit The prospect ahead OF him was
Too magnificent He maintained his interest IN the
railroad combination opened elaborate offices IN the
financial district, and prepared to engage IN hnanca
underwriting on a more extensive scale
The aim Of the c., H. & d. syndicate was to sell ITS
combined properties the Erie Railroad Inc proco'
was entirely legitimate and well designed TO bng 10 tc
trunk line enormous traffic from the South anu .'o
Great Lakes The proposal was laid before the Ere
hoard aF D.. as Frederick d. Underwood. president
f the Erie is best known accompanied by corps oi
evners made an inspection trip over the lines ot tne
c. II. & d. and its acquired properties. TN MS
return however his report was not favorable 10 t'c
purchase Of the road -.
Ono dav a month or so later f. d. was smoking big
cigar seated alone before CRATE fire in the Ola Enc
Offices when word was brought to him that the Enc III
had boucht the c., II. & ID. He was amazed. Inc
board had acted over his head
Then swiftly followed this succession OF events;
SrprrvprR. loO5-The Erie agrees to take the
CHAD bv buying control OF ITS stock Tor s'oVoo'V'
OCTOBER. l9O5-Dsscnsons arse IN thc Ere Doi'u'
caused bv +. II Hartman supporting +. d. III ooJect-
ing to the deal. ..,;o..o. ,bo
NOVEMBER l9O5.-J. Pierpoh' No's''
DrcrvprR loOj-A receiver is appointed for the
IL & ID. and its properties
!rhc unscrambling Of this railroad omelct was an
amazing procedure as well may be imagined. Mort,
cages were forccoscd, interest was detautcd on pou
ISSUES and coupons were unpaid on fifteen mllon dol
lars Of collateral notes half of which had been
sold abroad as gilt-edged investments block o te"
having been bought for of the British roya ialy'
The purchases by the c., II. e ID. OF the subsidiary
railroad lines were annulled. Men who had received
bonds for the sale OF their properties to the - H. ~
~ ,,rcIIed IN take back in their stead the stock OF
,i,;g
sums that had been expected TO ennch many oi t"e
organizers vanished into thin air. among theh inc TWO
,;iIore of the syndicate member who had refused TO
listen to the advice of his banker. How bitterly ne now
regretted having ignored the warning OF his Trend!
How he depored the wasted opportunity that had been
his Of taking his fortune abroad and enjoying mmSelf
His affairs were taken over by his creditors who realized
what they could by the sale Of his assets His magnil-
cent Offices were closed and in the big affairs OF Wall
street in which he had hoped to take preeminent
mart he stood like a cipher in the great account
There is another chapter in this story year later
a number of met at the Offices OF j. Flerpo"O
Morgan Broad street. TO draw up receiversmp papers
for the Erie Railroad itself. They interrupted in
their work by the entrance of T. d. the president who
brought the startling announcement that Hartman
nersonallv rendered the Erie five million five hundred
thousand dollars of his funds to save the road iiom
bankruptcy. The money due that day. Hartman
loved TO do great things in an oiihand way
THIS bit Of railroad history rccounted merely to adj
vert to the story of the man who made two millions
and lost them If the c., II. & d. syndicate had sue
ceeded in the end the security holders OF the Enc would
have had to foot the bill. Which goes to show that you
can't make million without taking it from somebody
elso's pockets.
Far far more rarely does the stock speculaor accu-