The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-09-25
RAILROAD NEWS.
John w. Gates Launches a New
Railroad System.
Buys Up Four Bankrupt Roads
Out Of Kansas City.
WILL GO TO QUINCY.
Plan Nay Be to Extend Line to
Chicago.
500 Niles OF Road Now COntrOII-
ed by Syndicate.
Will co no QUINCY.

Chicago, Sept. 25.-John W Gates has
signaIized his return from Europe by
launching a new railroad system Its
announcement today brought surprise
and CONSERVATION to the big trunk lines
that run from Chicago to Kansas City
Gates and his associates have been
quietly corraIling the securities of four
bankrupt roads each independent. but
50 situated as to make a continuous
line from West Quincy, on the Alissis-
sippi river to Kansas City, on the Mis-
souri, river and TO Council Bluffs The
contamination OF the new system has
been effected in the acceptance of the
scheme by an overwhelming vote of the
bond holders of the Kansas City K
Northern connecting line
The four roads that enter into the
new Gates project are the Quincy-Aan
sas City railroad. Us miles in length,
from West Quincy to Trenton, No;
the Omaha, Kansas City < Eastern
failroad. SO miles long from Trenton to
Petersburg; the Kansas City &
Northern connection railroad, 81 miles
from Petersburg to Kansas City, and
Omaha to st. Louis railroad from Pat
tensburg TO Council Bluffs.
The four roads comprise a. connecting
and continuous system OF 500 niles and
traverse the territory of the Burling-
ton. Alton and Santa Fe roads.
The bonds Of the Kansas City &
Northern Connecting road, aggregat-
ing 81, S51. 600 on 81 miles of road, will
be bought in the interest of the Omaha,
Kansas city & Eastern, making the
through line. Already holders OF 81
zoo, 600 of the bonds have accepted the
terms offered, and it is announced that
the others will do so.
A syndicate has been formed Of in
terests in the Kansas City & Northern
f7forr7art7r1rr ~ hrrffd ard RI
connection with the Northwestern, but
this plan was abandoned for the pres
ent offer The transaction opens the
way for a new line from Chicago to
Kansas City, but it is said the two lines
may be absorbed by other systems.
The following letter has been sent
to first mortgage bondholders by
Thomas l. Chadbourne, jr., chairman,
and Herbert O. Wright. secretary, of
the bondhOlders' committee.
Since Mr. Chadbourne's letter of
August your company has been stead
ily negotiating with various parties for
the purchase of your bonds. and has
finally received a firm bid for all bonds
under the control Of the committee at
81 per cent of the principal amount net
TO bOndhOlders, confirmed by the Guar
anry Trust company Of New York
Considerably more than a majority of
the bonds under our control have as
scented TO a sale at this price and we
have entered into an agreement with
the purchasers subject to ratification of
the remaining bOndhOlders. As this
price is more than bOndholders would
receive if the property were sold under
foreclosure. we strsngly recommend its
prompt acceptance
It is likely that with the Gates in
terests in control Of the Kansas City
and Northern Connecting road the pro
1ected through line from Kansas city
TO the Atlantic seaboard viii become a
fact The project cOntemplates the ex-
tension of the Omaha, Kansas City and
Eastern from Quincy to Springfield
where connection is to be made on the
extension Of the Indiana, Decatur and
w estern- The Cincinnati. Hamilton and
Dayton and the Chesapeake and Ohio
roads enter into the plan OF a through
line.