The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-11
ACROSS THE CONTINENT
yANDERBILTs TO HAVE A LINE
FROM ATLANTIC TO PACIFIC.
Another Move in the Consolidation of
Great Railway Systems-The Diff
ferentiaI Rate Question.

1t is probable that before long the Van
derbilts will control a railway line from
the Atlantic to the Pacific oceans. with
thousands of miles of feeders The pro-
posed great transcontinental line will be
composed of the New York Central, the
Lake Shore, the Northwestern and the
Union Pacific systems. The New York
Central and the Lake Shore have already
been consolidated. and, it is reported, plans
are being prepared for the merging of the
other systems. The Chicago Evening Post
yesterday said: "A consolidation of the diff
ferent companies which go to make UP the
Chicago & Northwestern system has been
definitely decided on. Chief of these roads
are the Chicago & Northwestern, the Free
mont, Elkhorn e. Missouri Valley, the Chi
cago, Minneapolis & Omaha and the Sioux
City e Pacific. Together these lines en-
brace 1866 miles of road. For years they
have been operated in the closest harmony,
almost as close as if consolidation had ac-
tually taken place Marvin Hughitt is
president of all the companies 1t is now
proposed however. for financial reasons, to
consolidate all into one company and make
one set of securities answer for all. In
carrying out the plan there will be an ex-
change of the present securities OF the
small companies for those of the North
western, a large increase of which will be
issued to meet the requirements of the deal.
The exchange will be liberal enough to pre-
vent any opposition to the plan on the part
OF the holders of the securities of the
smaller properties. Their position will be
considerably benefited by the exchange. 1t
has not yet been fully determined whether
the consolidation will be carried out under
one general plan or piecemeaL In any gen.
eral plan that might be adopted, it is feared
that jealousies might be aroused between
the holders of securities of the different
companies. All such misunderstanding
might, 1t is thought, be avoided by taking
up the consolidation of the companies sep
arately and treating each on it's merits.
Should this plan be adopted the work of
consolidation will begin at the Chicago, St.
Paul. Minneapolis & Omaha, the stockhold-
ers of which may be asked at their annual
meeting to vote on a plan prepared for
their consideration That part of the plan
once out of the way, the Fremont, Elkhorn
d Missouri Valley would be taken UP and
dealt with in the same way and then would
come the Sioux City e. Pacific. The ar
rangements for the consolidation of the
Omaha have progressed considerably fur
Their than those of the other. roads.
when the consolidation of all the roads
in the present Northwestern system has
been completed the plan now in considera-
ton will have by no means been consum-
mated: These consultations will be but
the solidifying of one link in a great chain
extending. over the entire continent, from
the Atlantic to the Pacific. Once these con-
solidations are out of the way the field will,
it is believed, be clear for the further con-
solidation of the Northwestern and the
Union Pacific systems. The two roads are
to-day practically one. All affairs relating to
through business are so arranged as to
guard the interests and suit the conven-
fence of each, and the final consolidation
of the two roads will in reality be more a
matter of detail than the Introduction of
any radical change in the relationships
which now exist between them. When they
become one in name, as they are now act
ing, the completion of the western end of
the chain already alluded to will have taken
place and nothing. will remain but to weld
to the eastern end, which has already been
formed by the unifcation of the New York
Central and the Lake Shore. The Wander
bilt main line will then extend from New
York to San Francisco. 1t may be that by
that time absolute ownership of the Central
Pacific will have been secured. Whether it
is or not, the present rights of the Union
Pacific over that line are inalienably Sc
cured"