Omaha daily bee., 1901-03-01
FRISCO And MEMPHIS JOIN
Consolidation Of Two System. Assured by
Thursday, Big Purchase,
BOTH TO USE KANSAS CITY TERMINAL
siN Properties Included in the Deal
aud several Minor Trans
actions Are Incidental
60 II.

KANSAS CITY. Feb. 2S.--Announcement
Is made of the purchase of control OF the
Kansas City, Fort Scott & Memphis rail
way system by investors who are interested
in the St Louis u San Francisco railroad,
a transaction which will result in the con-
solidation of the Frisco and Memphis sys-
tens.
II is said that the majority interest in
the Memphis was purchased for the Frisco
by II. Clay Pierce of st. Louis. J. and W.
Selgman & Co. J. Kennedy Todd & Co.
and Clair a. Co. of New York. banking
houses, who are heavily interested in the
Frisco.
The Memphis and Frisco consolidation
will make a system with 5000 miles Of rail-
road, OF which the Memphis contributes
1850 miles. The Memphis extends from
Kansas City to Birmingham, Ala, with
branch lines in Kansas and Missouri. The
| Frisco mas lines from st. Louis and Kan
sas City and Ellsworth. Kan. into Arkan-
sas, Oklahoma. the Indian Territory and
Texas. 1t was formerly part of the Santa
Fe system.
The Memphis properties included in the
deal are the Kansas City. Fort Scott a.
Memphis the Kansas City, Memphis e.
birmingham. the Kansas City, clinton a.
Memphis Railway and Bridge company and
the Kansas City Belt railroad. The con-
solidation Will give the Frisco road use
of the valuable Memphis terminals in Kan
sas city, entrance to the union station and
controlling interest in the Kansas Belt
railroad.
B. i. Winchell, president of the Memphis
railroad. who is in Florida, wired the fol-
lowing statement today regarding the deal:
Nothing has ever meant more good for
Kansas ('ity pommprpta1Iy than MI n
contemplated for unifcation and enlarge
ment OF the Memphis system. The new
capital will be available for needed ad
ditions to mileage. all of which will largely
benefit both Kansas City and the Memphis
road. Much valuable additional territory
VIII be opened to Kansas City jobbers and
manufacturers. The present organizat tion
of the road will be maintained through
out"
The Memphis road today purchased the
Deckerville. Osceola & Northern road
which runs from Deckerville. Ark. to
Luxora. Ark. forty-five miles northeast of
Dcckervillc. on the Mississippi river. The
road was owned by the Pond Decker Lum-
ber company.
BOSTON, Mass, Feb. 2s.-The sale is
to be made on the following basis Kansas
city g. Fort Scott preferred stockholders
are to receive $3.50 in cash. common stock
holders $75 In cash and 25 per cent in Sc
curities; Kansas City. Memphis g. Birming-
ham stockholders. $50 in cash income bond
holders per cent second mortgage bonds
redeemable at %. 1t is understood that
the exchange OF the income bonds is not
obligatory. Nathaniel Thayer. chairman of
the board Of directors OF the Kansas City
g. Fort Scott and Of the Kansas City. Mem
phis e. Birmingham roads made known the
facts OF the agreement today.
He said II shall remain as chairman
of the board Of directors and Mr.. Marri-
man will continue as treasurer and Mr..
Winchell as president. The general Offices
will remain in Boston,"