The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-07-31
FRISCO BUYS CHICAGO
AND EASTERN ILLINOIS.
Continued From Page One.

west. Requirement Of the Illinois road
places the Frisco in direct competition with
the big systems which reach from Chicago
into the Southwest, and enables the sys-
TEN to reach the Atlantic Coast by an
agreement, or traffic alliance. with the Sea-
board Air Line. with which it will connect
from Birmingham eastward.
GROUPING TOGETHER OF
MORE INTERESTS BY FRISCO.
Mr.. Yoakum's deal is another step in
grouping together railroad properties Of the
country. This property has 100 miles OF
track From Wall street definite state
ments nave been made that the purchase of
the road is arranged. Lawyers are compiet-
ing details OF the purchase. previous 10 the
official announcement.
Great interest was aroused yesterday by
the statement that the Illinois Central
would intimately turn up as the owner of
the FRISCO. and through its ownership OF
that property control Of the Chicago and
Eastern Illinois would be acquired. This
view OF the deal is not credited in St
Louis.
The utmost secrecy has been maintained
But in well-informed banking circles yes
terday II was quietly given out that the
Illinois Central would either become the
owner of the Frisco as a result OF the pr s.
ent deal, or as a compromise II wOu!i
lease that property as counter move
against the aggression of the Morgan roads
in the South.
President Yoakum confirmed the story of
the purchase of the Chicago and Eastern
Illinois by the Frisco to his intimate
friends. but explained that some minor de-
tails remained to be settled before an o.
fetal statement could Be made.
NO LEASE, But ACTUAL
SALE OF THE c. & E. I. ROAD.
A Frisco director yesterday made this
statement:
There mas been no lease. but an actual
sale. The Chicago and Eastern Illinois Will
be under the absolute control OF the Frisco
system. 1t is proposed to issue a collateral
Illinois stock and each common shareholder
OF the latter company will receive for his
100 shares $1,000 in new per cent bonds Of
In other words. the Chicago and Eastern
Illinois stoclkho!der will receive ~ certlf-
Gates for each share Of his stock. All the
stock of the company absorbed will be de-
posted. and against that stock will be is
sued the new collateral trust bonds OF the
ton. The terms upon which the preferred
stock of the Chicago and Eastern Illinois Is
The capital stock of the Chicago and
Eastern Illinois Company issued amounts
to s13,0cs so. Of which Sa,iSIsoO Is common
stock and the balance is preferred. In ad-
dItion, it has bonded Indebtedness of S2t.-
O10Oo0. The Friscc system extends IN the
Southwest and Southeast about $50 miles.
and has capital stock Of S0.0poO00 and
a bonded Indebtedness OF Ss.5o0oco.
President Yoskum of the Frisco road.
when seen at the Waldorf for The Republic
last night. refused 10 discuss the terms OF
the purchase. Concerning the report that
the Illinois Central had practically conclud-
cd arrangements for the acquisition or lease
Of his system. he said. laughingly: That's
a good report
NEGOTIATIONS BETWEEN FRISCO
AND THE SEABOARD AIR LINE
Negotiations are now under way for a
traffic alliance between the Frisco and the
Seaboard Air Line. President Yoakum in
tends to reach the Atlantic Coast. using
either Brunswick. Charleston or Savannah
as a port outlet, Charleston or Savannah
preferred. The Frisco has acquired the
Birmingham Belt Railroad and the Sea-
board will be given joint use Of IL.
A grand trunk line from the Atlantic
Coast 10 Chicago all passenger trains to