The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-06-05
Takes Mr.. Walkers Place on
Executive Committee.
Santa Fe May Be Absorbed by
the Union Pacific.
A LONG TIME LEASE.
Reported That 1t Will Be For
100 Years.
Basis to Be Graduated Guar
antee on Stock.

New York. June 5--The Atchison. To-
peka & Santa Fe railway company has
declared the regular semi-annual divi-
dend of 21z per cent on its preferred
stock. payable August l.
The directors have voted to abolish
the Office Of chairman of the board and
have elected d. l. Gallup permanent
vice chairman. with headquarters at
New York
Charles F. Steele Of the firm Of J. p.
Morgan & Co., was elected a director in
place of the late AIdace F. Walker. He
was also placed on the executive COM
mittee of the road.
New York, June 5.-A special to the
Times from Boston quotes the Journal
of that city as saying:
1T comes from excellent sources to-
day by way of explaining the present
active demand for the Atchison securi-
ties and the strength characterizing the
same, that Influential directors OF the
road, including President Ripley, have
been In conference in New York for two
or three days past, with representatives
of the Union Pacific road and it's allied
lines, that a proposition has been made
by these people for a lease Of the Atchi-
son property on a graduated guaran-
teed rental
THE plan contemplates, 1t is claimed,
a lease for a term Of 100 years grad
uated guarantee of ~ per cent on the
common stock for a period of ten years.
per cent for the next ten years. 5ts
for the thirteen years and per cent
thereafter. The preferred stock and
bonds viii also get a guarantee on the
spresent basis.
'Ohicials have thus far failed to con-
firm the report"
A New York dispatch to the Chicago
Tribune has the following to say on the
same subject:
Railway consolidation Of magnitude
begins to take form in the southwest.
The Southern Pacific company, cOntrOll-
ed by Union Pacific financiers, is ready
to absorb the Atchison. Topeka a. Santa
Fe system. Influential directors of the
Atchison company are in conference
with Southern Pacific Union Pacific rep-
offer to take over the Atchison upon a
graduated guarantee extending from AZ
per cent to per cent for AtchisOn COM
mon stock-41A per cent for ten years. 5
per cent for ten years. 515 per cent for
ten years, and 6 per cent thereafter
for period Of seE~. ty years, making a
total lease term of 100 years.
Wall street has long talked of plans
to take Atchison by many other pro-
perties.
The appearance. however. Of bids
from Southern Pacific (Which actually
means Union Pacific, and that means
Vanderbilts) provides a new phase for
the situation-suggests developments o.
greater consequence than others hith-
erto discussed.
With Atchison controlled, the South
ern Pacific would hold practical monop-
oily in all the far southwestern terri
tory, and would at once become such n
factor in Chicago and ST. Louis to the
Pacific as to practically revolutionize
its earning capacity.
No recent negotiations have had IN
them more OF possible consequence TO
the American railway world that these
that may end in the joining together
in one system of 9,4O0 miles of the
Southern Pacific and the 1900 miles OF
the AtchisOn, Topeka & Santa Fe-a
system nearly twice as big as the big
gest other railroad in the world.