Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-07-12
RocK ISLAND RAILROAD.
"amOrs Of a Reissue Of StSok-ESSits.
ment in New Work and at the west

HICAGo, July 1.-The IyiBQl,,s M
4hSs ~. 9lng says all sorts of runaor9
sra Sra' circnIa,. I'D in regard to the Rock
island Railroad company. The As
sociated Press dispStehes OF yesterday
evening from New York contain ru-
NOR Of an increased issue Of stock,
and also Of the consolidation with the
Southwestern Railroad Company.
Yesterday dispatches were received
here. from brokers in New York, say
ing that notice hs.d been given on the
New York Exchange by the Rock
Rock Island Company OF a proposed
increase of two millions of stock. La
ter dispatches by the Associated Press
failed to confirm any such reports,
and even if they did it would be ap-
parent to any one at all c0nversant
with the Constitution and laws of Illi-
nOis that such action, admitting the
possibility Of its having been taken,
are humbugs, got upon Wall street to
affect the price of Rock Island stock.
It is the opinion of the best legal
talent in this city that under the Con-
stitutiOn of the State no railroad cor
poratiOn Of this State can consolidate
with any corporation nor increase its
own stock until the Legislature shall
pass some general law authorizing
such acts and prescribing the method
of procedure. All
INCREASE OF STOCK
and all consultations are positively
prohibited by the constitution except
under these conditions, and as there
is no such law, either in existence or
10
or increased issues OF stock, it is ap-
parent that any such increase of
stock on any such consolidation
with any other corporation, as is ru-
mOred about Rock Island, would be
fictitious; and the constitution pro-
vides that all stock dividends and
other fictitious increase of stock shall
be void. The Chicago and South
western railroad, which is the one ru-
NOR says is to be consolidated with
the Rock Island, extends from Wash
ingtOn, Iowa, 257 miles west of Chi
cago to LeaYenwOrth, Kansas, a dis
tance of about $50 miles. This road
will make direct line to both
KANSAS CITY AND ST. JOSEPH.
This company now have about
road finished and in operation.
The gap of about fifty miles
in Daviess, Grundy and Sullivan
counties, in Missouri, will be finished
in August; and in view of the fact
that this will 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 it will be one of the most
important and profitable roads in the
West, as shown above. The cOnstitu-
ton of this State prohibits cOnsOlida-
ton, but this road is in fact cOntinu-
alton of the Rock Island COmpany's
system of roads. The Rock Island
Company have guaranteed $4,000, 900
of the COmpany's bonds,
and the latter road is entirely under
the
CONTROL OF THE ROCK ISLAND COM
PANY,
and will probably be leased to it at a
rate which will make it the most i'm
portant feeder the Rock Island Com
pany has. The real secret of all these
rumors probably is, that Mr.. Tracey
and his friends are covering the shorts
they put out a day or two before
WOOdWard's failure, knowing, as they
did then, that they could cause
an explosion and depress stock
temporarily below its value, by
allowing rumors to go uncOntradicted
and by countenancing false view of
real value of the Southwestern railroad,
as q branch of the Rock Island SYM
stem.