New-York tribune., 1901-04-23

TION WITH PITTSBURG BY THE PJJR-
CHASE OF THE CHICAGO AND ALTON
AND WHEELING AND LAKE ERIE.
The financial district was alive yesterday with
ru-nors of approaching consolidation of the
Southwestern group of railroads under the lead
ership of the Missouri Pacific The fact that the
directors of the Missouri Pacific Railway Com
pany met yesterday and voted to increase their
present authorized stock of S10O00OOo 20
$lOOOOO.OOO seemed to justify these rumors-
1t was announced that large part OF this new
stock had been taken by George P Butler &
Co. of No 10 Broad-st.. and that the proceeds
would be available for the purchase of Denver
and Rio Grande Railroad preferred and common
shares The officers of botn companies declined
to state the price of issue or the amount ap-
propriated for the purchase.
The following statement was issued by one OF
the interests concerned:
The Missouri Pacific Railway. in increasing It's
eapitaI stock has practically announced its inten-
may be added to its system by use of its stocksi
n nis peey Is In striking contrast TO the large is
tenn tens ,n IN eohnec9p with their recent extensions
part of the interests who are willing to take the
Stock issued for the acquisition of the Denver and
that these stocks were taken at less than yester-
Only part of the auborEsd 4 % @ thus
appropriated has been used Cor the purchase OF tho
Denver and Rio Grande's connections to the MIS-
ing at the rate o 4 per cene on s reaG s0 Is
future
MISSOURI PACIFIC GOES UP.
The action of the Missouri Pacific directors
was the first official confirmation Of their plans
of consolidation There were Sc. 300 of the COM
pany's shares sold yesterday. 4O00 changing
hands at the opening. The stock closed at los.
two points under it's highest quotation of the
day. a net gain of one-eighth of point Dem
Yer and Rio Grande stocks were undsturbed.
About year ago the Missouri Pacific board (,
authorized to increase it's present outstand-
ing capital Of $50. 432 900 to S1OO1OOOO. but the
increase was never made. 1t was said at the
time that the increase was authorized because |
Missouri laws required a certain ratio To be
maintained between the bonds and stocks OF
corporations The last authorized increase
brings the amount OF unissued stock at the dis
posal of the company up 10 nearly S5O0O0O10. .
only a small part OF which will be necessary for +
the full acquisition of the Denver and Rio
Grande
Several weeks ago the control of the latter
road passed into the hands Of the Missouri Pa
c!fc company 1t seems. then. fair to suppose
that the recent increases were planned for the
purchase of stocks ard bonds other than those
of the Denver and Rio Grande Railroad Com
pany-
Wall Street has ali along held that number>'
of the Southwestern roads would eventually De-
come integral parts of the Missouri Pacific sys-
tenn 1t is now believed that within a year a
still greater merger will be erected rms
merger will it is understood include the Dem
yer and Rio Grande and the Rio Grande West
ern which together make through line rom
Denver 10 Ogden: the Colorado Midland. extend
ing westward from Colorado Springs; the CoIo-
rado and Southern, which runs northWaTG IrOii
Denver into Wyoming and southward 70 texes.
Southwestern gTOup-tNe MiSspuEis
Kansas and Texas. which fifteen years ago vas
an integral part of the Missouri Paclnc SysseIn. M
the Kansas City Southern. now controlled oy
Hartman and the St. Louis and san trahClsco,
which touches St Louis. Paris Tex; Oklahonla
City. Wichita and Kansas city
AN OUTLET To THE EAST
To find natural outlet for this immense sys-
tenn at Chicago and further east is very m
teresting problem. Three months ago 1t was
rumored that the Rockefeller interests contem-
plated purchasing the Missouri Pacific and the
wabash route linking these lines with their
Missouri Kansas and Texas road TO form a.
through route TO Buffalo Vice-President
Ramsey of the Wabash Railroad promptly de-
MED the report. Last December IL was reported
on the Stock Exchange that the Nanderoilts
were acquiring Wabash stocks. with view or
extending their system beyond the MISSISSIPPI
This rumOr was also refuted.
Now comes the report that the Missouri Pacific
is planning to reach eastward 10 Pittsburs. with
the Chicago and Alton as the Chicago connec-
tion. 80 - ,,..
To Join Chicago with Pittsburg the Missouri
Pacific interests will. according TO the re-
mort form a S20O00,O00 syndicate to connect the
Wabash Railroad with the great steel centre.
The recent purchases Of Wheeling and Lake
Erie stocks by Mr.. Gould and his associates ia
taken TO be an indication Of this movement TO
give the Wabash road, now controlled by Mr.
Gould access to the coal regions of Southeastern
ohio and-what is far more important-to Pitts
burg The syndicate, which is supposed 70 in
Clude George j. Gould. Russell sage, Colonel
Myron t. Herrck. Washington E. Connor and
General Louis Fitzgerald, president OF the
NarcanttIe Trust Company, has already, acCord-
ing to the report, bought several bridges. rnade
preliminary surveys and secured rights OF way
for the extension