The Cairo daily bulletin. (Cairo, Ill.) 1870-1872, 1871-07-12
CHICAGO,

RUMoRED CONSOLIDATION OF THE ROCK
| ISLAND AND THE CHICAGO AND SOUTH
WESTERN RAILROADS, AND INCREASE or
STOCK OF THE Il. l. r. r..
CHICAGO, July 1.-THE Tribune of this
morning says that all sorts of rumors are
III circulation in regard 10 the Rock
Island railroad. The associated press dis
patches, Saturday evening from New
| iork, contained a rumor OF an incl iclsed
issue of stock also the consolidation with
the Northwestern railroad company Yes
terday dispatches were received here from
brokers in New.York, saying that notice
had been given on New-York exchange
by the Rock Island railroad company Of
the proposed increase Of SO 1000 900 to the
stock. Later dispatches TO the associated
press failed 10 confirm any such report
Even IL they did, it would be apparent 10
those conversant with the constitution Of
! Illinois that such reports, or even admit-
ting the possibility of such step having
been taken, are humbugs, got up in Wall
street to affect the price Of Rock Island
stock. 1t is tie opinion of some of the
best legal talent in this city, that, under
the constitution of this state, no railroad
company of Illinois can consolidate
with any other company nor
increase its own stock till the legislature
has passed some general law authorizing
such act and prescribing method Of pro-
ceeding. All increase of stock and consol-
dations are positively prohibited by the con
sttution, except under these conditions
and there is no such law either in exis-
tence or proposed authorizing consolida-
tion or increased issue of stock. 1t is APP
parent that any such increase or any such
consolidation with any other company us
| rumored about X. l. would be fictitious,
| and the constitution provides that all
stock, dividends and other fictitious in
crease of stock shall be void.
The Chicago and Southwestern Railroad
which is the one rumor says is to be con-
solidated with Il. /. extends from Wash.
ington, Iowa. 275 miles west Of Leaven-
worth, Kansas, distance OF 250 miles
This road will make direct line Of five
hundred miles from Chicago to Leaven-
worth, distance about the same also by
this new line to both Kansas City and st.
Joe. This company now have about two
hundred miles Of their road open and in
operation. The gap Of about fifty miles,
in Davies, Grundy and Sullivan counties,
| in Missouri, will be finished in August
and in view of the fact that this company
will be shorter line than any at present
| from Chicago to three of the most i'm
portant cities on the Missouri river, there
is reason to believe that it will be one Of
the most important and profitable roads in
the west. As shown, the constitution of
of this state prohibits consolidation, but
this road in fact, is continuation of the
Rock Island companys system of roads.
The Rock Island company have guaran-
teed S5,000,O0 of the Southwestern COM
pany's bonds, and the latter road is entire
ly under the control of the Rock Island
company. 1t will probably be
leased to it at rate which will
| make it the most important
| feeder, the Rock Island Com
pany has. The real secret of
all these rumors probably is that Mr..
Tracy and his friends are covering shorts
they put on day or two before Wood.
wards failure, knowing as they did then
that they could could cause an explosion
and depress the stock temporarily below
! Its real value, they allowing rumors to q
| uncontradictcd and by countenancing
false view of the real value of the South
western Railroad as branch of the RocL
| Island SYSTEM,
NEWS FROM FORT NC DowELL
Letters from Camp Mcdowell to d
Tuckson citizen dated June II, says Lieut.
Chas. Morton with 90 men of cavalry
and party l6 citizens from Prescott and
vicinity arrived at that fort on tina: day
after a most successful scout, having killed
SO Indians and recaptured $50 head of cat
| tie sto en- from Bowens ranch on the Sd
| inst.