The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-12
THE ROCK ISLAND RAILROAD.


Rumored Waterins OF stock-stringent Pro-
visions Of the Illinois Constitution Concern
Ing RnilrOads-The Chicago and South
western ACKNOWLEDGEMENTS the Stock
Market.
CHICAGO, July IL, 1871.
The Tribune Of this morning says all sorts Of
rumors are circulated IN regard TO the Rock Island
Railroad Company. The Associated Press dispatches
OF Saturday evening from New York contained ru-
mors of increased issue OF stock, and also con-
solidation with the Southwestern Railroad Com
pany. Dispatches were received here from brokers
in New York saying that notice had been given on
New York Exchange BY the Rock Island Company
OF proposed increase OF two millions OF stock. Later
dispatches by the Associated Press failed confirm
any such reports, ana even If they did It would
be apparent to those conversant with the constIu-
ton and law of Illinois that such reports or even
such action admitting the possibility OF It's having
been taken, are humbugs. got up on Wall street to
AFFECT the price Of Rock ISLAND stock. IL is the
opinion OF some of the best legal talent In this city
that under the constitution Of this State, no rail-
road corporation Of this state consolidate with
any other corporation OF increase Its own 8 took
until the Legislature shall pass some general law
authorizing such acts and prescribing methods OF
procedure AS there Ia no such law, either In exist
ence or proposed, authorizing consolidation or In
creased issues Of STOCK 1t Is apparent that any such
increase OF stock or any such consultations with
any other corporation, as Is rumored about
Rock Island, would be fictitious, and the
constitution provides that oil stock div
blends and other fictitious increase or stock
shall be void. The Chicago and Southwestern road,
which Is the one rumor says, TO be consolidated
with the Rock Island road extends from Washing
ton. Iowa. 257 miles west OF Chicago, to Leaven-
worth. Kansas, distance of $50 miles. This road
will make direct line Of 5O7 miles, from Chicago to
Leavenworth, the distance being about the same
also by this new line to both Kansas City and st.
joe This road has about 200 miles Of It's route done
and in operation. The grading OF about d fly miles
In Davies Grundy and Sullivan counties. IN Mis-
souri, will be finished In August, and view OF the
fact that this companys road VIII be shorter line
than any present one from Chicago to the three
most important cities on the Missouri River there Is
reason to believe that 1t will be or the most i'm
portant anu profitable roads In the West. AS shown
above the constitution OF this State prohibits the
consolidation but this road in fact, is continue.
ton Of the Rock Island Company system OF roads,
The Rock Island Company have guaranteed
5000, 900 of the Southwestern Company's bonds
and the latter road is entirely under control OF the
Rock Island Company, and will probably be leased
to II at rate when will make 1t the most important
feeder the Rock Island Compan, has. The real
secret OF all these rumors probably is that Mr.. Tracy
ana his friends are covering the shorts they put
out day or two before the woodward failure
Knowing, as tney did then, that they could cause an
explosion and depressure OF the stock, temporarily
below It's real value. Dy allowing rumJrs to go un.
cOItradlcted and by countenancing false view OF
the real value OF the Southwestern Railroad as
branch OF the Rock Island system.