The Paducah sun. [volume] (Paducah, Ky.) 1898-1906, 1902-07-31
It is Said to Have Bought The C. "a
{. !. Outright.
The st. Louis and San francisco Makes
the Purchase and the I. O.
Gobbles Up the Frisco.
ENSATION IN RAILROADS.

New York, July 31-Another step
in the grouping of railroad properties I
of the country has been practically |
completed, and the financial world 10 |
now momentarily expecting an official |
statement from the directors Of the
st. Louis and San Francisco railroad
that they have acquired control Of the
Chicago and Eastern Illinois, q prop
erty having a trackaee of over 700
miles. Definite statements were
made in Wall street today by interests /
identified with other railroads that the
purchase had been arranged, and that
lawyers had to complete certain de-
tails before the official announcement
was given out.
While Wall street toox 1t for grant,
ed that the deal was completed, far
greater interest was aroused in the
statement that the Illinois Central
would ultimately turn up Is either the
owner or lessee of the St. Louis and
San Francisco, commonly known ~
the Frisco, and through its owner
ship Of that property the Chicago and
Eastern Illinois would thus be acquir-
ed. The greatest secrecy was main
tanned by officials Of all companies in
regard to their plans, but the strength
Of the stocks Of each company, includ-
ing the shares of Illinois Central, was
pointed out as indicating better than
anything else what was being done on
the national railroad checker board.
| In we'll informed banking sources
the information was quietly given
that the Illinois Central would become
the owner of the Frisco road as re-
suit Of the present deal, or as q COM
promise ii would lease that property
as counter move against the aggres-
sion Of the Morgan roads in the South.
The fact that the roads were not
connected at any point along their re-
spective lines brought out numerous
queries as to the object of the Frisco
directors buying control.
The only explanation Of the deal
made today was that the Illinois Cen.
trail was placed in the position by the
recent Louisville deal, where it had
to protect iself by the purchase of the,/
Frisco and the Chicago and Eastern
Illinois.
This acquisition Of the Chicago and
Eastern Illinois by the Frisco and the
rumored plan by which the Illinois
Central proposes to either own or lease
the great Frisco system is, therefore,
sold BY big financiers to be o counter
move on the part of the Hartman syn
cicate, by which 1t proposes to protect
itself against the Entertainments Of
the Morgan lines in the South.
OF the terms by which the Chicago
and Eastern Illinois stock will be 60
quired by the Frisco. the following
statement is made BY . director Of the
line scquired There has been no
lease of the Chicago and Eastern n
linois, but an actual sale. The Obi
oago and Eastern Illinois road win
be under the absolute control Of the
Frisco system. 1t 10 proposed to H.
sue collateral trust bond against
the Chicago and Eastern ILLINOIS
'tock, and each common shareholder
Of the latter will receive for his 100
'hares Gas, 600 in new 4 per cent bonds
On the 'Frisco road. In other words.
the Chicago and Eastern Illinois stock
holder will receive two and half
for each share Of his
stock"