The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-09-10
PURCHASE OF WESTERN.
History of the Deal Given in An
nual Report

History of the Deal Given in An
nual Report.
Copies Of the fifteenth annual report
OF the Denver q Rio Grande have been
received in the city from President z.
T. Jeffery. Tne report tells of the
prosperous year of the company ana
also gives some facts relating to the
purchase q the Rio Grande Western,
which transaction, il says, will be COM
pleted by oct. 1. on the latter subject
TIE report Gays.
From the spring # 1883 until July
1854. prior to- The organization the
entire railroad. from Denver to ogden,
was operated as one line and unCsr one
management, but from July. 1884, when
the contract relations were terminated,
the two lines meeting at Grand juno
ton were operated Independently, al
though as close connections and allies
in the reorganization agreement and
the articles Of association of your
company certain securities were eX-
pressly reserved for acquiring tte
Western railway or for building in
dependent line to Salt Lake City and
Ogden. unity Of interest aid control
from Denver to Ogden by purchase OF
the existing line or construction of
new one was then believed 20 be desir
Ible. and IL was thought that the fu-
ture would make it necessity Last
autumn your directors authorized ne
EotiatiOns to be conducted with repre-
Eentatives % the Rio fSrande Western
Railway company for the purpose Of
acquiring for your company the cap
igal stock of that company and thus
Teuuiting the lines under one manage
ment. instead Of building another rail-
road in competition with existing ones
These negotiations were successful and
on May Il a plan for acquiring the
property was submitted to he stock
holders OF your company at EHqf.Isil
meeting called for the purposE ana Va I.
approved by them AS me submission
Was 80 eCent, y0ur directors believe
II unnecessary 20 again explain in de-
tai the propositions voted upon. The
plan involved the is sue Of $50. $50 600
preferred stock. Of which s.. 25O. 900 is to
be exchanged for the preferred stock
Of the Rio Grande Western in the ratio
OF eleven Of yoIrs for ten Of theirs. and
it also required the ownership of valu-
able GOAL and coke properties in Utah
TO be vested in the Rio Grande Western
company before its acquisition by your
company 1t the close of the fiscal
year the transaction was not fully COM
pieted. although control of the Rio
Oirande Western railway. 645 miles had
passed into Your hands The exchange
or the preferred sh'res will require
niue time, but Il is hoped and believed
tn4t the entire matter viii be con-
Guided by Oct l. The outstanding
share capital Of your company viii then
be $44.4oo.O00 preferred and S3S. 600 900
common. or total of $50 400 600 which
is The full amount authorized At the
special meeting mentioned. authority
was granted TO use FOR other capitol
requirements S6.900.000 consolidated
mortgage bonds heretofore reserved for
acquiring the property and franchises
OF the Rio Grande Western or for build
Ing an independent line to Ogden. and
the authority to issue certain preferred
and common shares for this ourDose
was Withdrawn, and in lieu thereof TN.
issue was authorized of preferred stock
only as above set forth"