New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-02-07
RAILROAD INTERESTS.
THE SALE OF THE ALTON.
PRESIDENT BLACKSTONE OPPOSES THE OFFER
OF THE HARTMAN SYNDICATE.

PRESIDENT BLACKSTONE OPPOSES THE orfrt'
OF THE HARTMAN SYNDICATE.
In addition TO the circular from John J. mitchell,
president Of the Illinois Trust and Savings Bank OF
Chicago to the stockholders OF the Chicago ana
Alton Railroad Company. making an ofer on ue-
half Of the Hartman syndicate OF $40 snare i''
tho common stock and 500 for tho prefcrren' WI
outline Of which circular has already been pr'n'eu
in The Tribune. II Ia learned that two other CIT
culars have heen Issued to the stockholders. one
by a majority Of tho directors Of the road, ahVls
ing the acceptance Of the syndicateS oHer IN" NV
other hy President Blackstone. arguing In faFor Oh
its rejection Mr. Blackstone. in his circular ga!
that the price offered is not COMMENSURATE VIZ"
the value Of tho stock in the market ana as p
dividend payer. and that some or the cohoi"'"'
annexed 10 the syndicate's proposal ara amoRuouS
while others are contrary to the articles OF moor
poration NJ tho company. Continuing ne says
that he holds e per cent Of the stock OF the CON"
pany and is not willing 10 accede 10 the propos''
eale Nearly all Of It's bonds mature WITHIN mo
next three or four years he adds. and he helieVes
that they could be refunded at such ra'e -
10 add 10 the earnings available for DIVIDENDS al
amount equal to 2 per cent year on the snareS o'
the company. The circular OF tho directors "as
Issued in reply to tina, Of President Blackstone. u
IS signed nv Morris X. Jesup. MarshaH r'e'"
John a. Stewart. John J. Mitcheu' Amer ~
Sprague. A. G. Bartlett and charles II. Chap-
peH. vice president and general manager OF me
road-the whole BOARD Of Directors. except lres'
dent T. p. blackstone and William y. Black
stone. his nephew md IS as follows
We believe. Notwithstanding the general ADVANCE Iot
in value Of railway shares, that the price "l''an
namely. 500 per share Tor eacn sna, e - ,be com
ferred and si75 per share for each share OF me 49, 60
mon IL far price for the stock ana t@ tbira 20
for the interest OF the stockholders or me M s,o
and Alton Railroad Company 20 dep"Sr ~ .hlooroforc
under the agreement referred 10 80 ne
recommend The acceptance ~ S'o' n"'''
proposition made therein. ~ .,o
We have had under consideration for over I'VE
months the question Of the purchase Of the STOCK OF
The Chicago and Alton Railroad COMPANY
I-pon the request of the president the ENecuIiH
Committee TOOK up the pending negotiations, an "a
the Agreement now submitted to you was approved
.; rbn %bioago and Alton Railroad is without con
octiors ether cast or west subordinate To fs own
cornorate control At important points, increasing
con15ne,ition already existing and threatened WIN
go, rai tendencv to decreased rates of trans
portation and 10 increased rates OF ~
it more and more difficult for Inc Ioan -, ~ our
onnion constitute conditions Affecting ne f 'urot ,
az the property which WI eEsi a an ~ he com
pany shall be refunded. IN adHiton me 10 ree
Will in our opinion. be obliged 10 eNp'ngq sr re
purpose Of putting the road and Us aPpui 70
In condition in competlnon TE sbslI be offered
For these and other reasons we VII I2r 9pr
selves accent the said proposition ano lo't s..
800, On, own stock with the United states
Trust Company, OF New York, under the Ss'ee
rIc nu-chasers ~ the stock of the company are
mon connected with important rallWayi ~ ~ no
he tact will enable them 10 use the failW"E Oh
ch;ca@o and Alton Railroad Company II acquired
b,- them as n virtual extension or tntH u Nn - :
L,,,b trafic which otherwise It might not Cd
lin This furnishes explanation OF 'ne ..oo.t.
OF tho men named 10 acquire Il Po''''~' ~
Of the Alton company
r. e Generally believed IN Wall Street that the
-, - ,,,o -oso vii soon he contaminated. despite
President Blackstone's antasonsm.