The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-04-10
is SOLD
Rock Island Buys Valuable 700
Mile Line.
ChOctaw Road is of Great STRAIT
egic Importance.

A dispatch from Philadelphia announ-
ces that the Choctaw, Oklahoma & Gulf
system owning about zoo miles or road
has been purchased by Speyer & Co,
bankers, for the Chicago, Rock Island &
Pacific.
If this announcement proves to be
correct it will have great effect on the
railway situation in the southwest The
Santa Fe has recently been engaged in
negotiations with the Choctaw for an
extension of the Choctaw from Amarillo
to Albuquerque. This extension if built
would enable the Santa Fe to secure
the hight to run its train over this cut
off, and restore it to the position of the
shortest line from Chicago to Los An
geles. It would solve for the Santa Fe
the vexing problem of how to meet the
stiff competition for California traffic
which the Rock Island is able to put up
with its short line to FL Paso.
If the Choctaw is really in the posses
sion of the Rock Island, all such posi-
bility would vanish. The dispatch from
Philadelphia, dated April TO- follows:
A reliable authority here states that
the purchaser of the ChoctaW, Oklaho-
ma & Gulf is the Rock Island con pany.
The announcement of the sale was made
by Edward B. Smith & Co, of this city.
bankers. The announcement is as fol-
lows:
by authority of President Gowan it
is stated that a majority of the stock
of the Choctaw, Oklahoma & Gulf Rail
road company has been sold to Speyer
& Co., at the price of $50, for the COM
mon and $50 for the preferred, both ex-
A pril dividend. Under the terms of the
sale thus made the purchasers agree to
take at the same price all stock offered
A circular giving details Will be issued
to stockholders in the course of a few
+T-, h.. Il TO- ,er1f
their stock with the Giard Trust COM
pany." (Philadelphia).
It was not officially announced for
whom Speyer & Co. is acting. As the
April dividend amounts to Sl.25 on pre-
ferred stock, the price named is equiv
alent to S61.25. The dividend on the
common stock per share is $3.50 Divt-
dends are payable on April 80, to stock
holders as registered April /. Mr..
Smith minated today that the sale
would bring over S21 900 TO this city,
where most of the stock is held
Francis ]. GOwan, president of the
ChoctaW, said last night that he was
not in a position to talk in detail on the
subject He said the transfer would
mean a revolution in the nagemen1
of the road, but in what way he could
not say. When asked If the Pennsyl-
vania railway was interested in the
sale, Mr.. Gowan said: You are coming
too far east
Whether the bond issue recently pro-
not say. though he expected the new
management would see the advant-
age of the extension that had been
contemplated. The decision to sell was
taken after careful deliberation. and
he thought that it was decidedly ad-
vantageous to the property. The prop
OsitiOn of Speyer & Co, he said was
the first bona fide offer made for the
purchase of the road
The stock issue of the Choctaw
amounts to 10000 shares of common.
par value $SS0u,0 600, and 100, 600 shares of
preferred, par value 100000.
During the last six months rumOrs
have connected the AtchisOn, Topeka
& Santa Fe railway, the Missouri Pa
cific railway. the st. Louis & san Fran
cisco railway and the Rock Island rail-
way. There is a strong belief that the
last named road is the real purchaser.
| This belief is strengthened by the fact
that the board of directors of the Rock
Island are about to issue S15,0000o0 in
/ new capital stock.