Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-08-12
RAILROAD .D[AL DARK
Little Progress Made in lnvesti.
eating Rock Island Deal
Financiers Charry.
Scheme is to Retain Voting Con.
troll OF the Road and Release
Capital.
Great Western Has Made Seven
Year Contract at $l4,0O0,0OO
Per Year.
necial to Times Rnn1hlican

| Special to Times Republican.
! Des Moines Aug 12.-There has moi
as Yet been great progress made in
the investigation into the reorsaniza :
tion of the Rock Island company. Gov
Cumnins has done all that ne could do
until he gains some foothod for an
investigation. The published statements
in regard to the plans of the new own
that there is something very unusual
Happening in connection with the Rock
Island reorganization. Whether the
governor will be able, even if he as
certains all the facts, to do anything
Ito prevent what appears to be con-
itrary to public policy and contrary to
(, the wishes of the more conservative
! investors. is something that is yet prob
Ilematic;,l Thus far he has secured no
information not known to the public.
He has information however, to the
effect that the plans of the spectators
for exploiting the Rock Island are not
entirely pleasing to all the people who
land railroad mana cement in the coun-
try. The stock brokers are not en-
tirey pleased With the matter. There
is also a runor that The governor CON
templates calling 4 special session of
the legislature. This has no foundation
bin fact. tho such a thing might be
possible of the governor thought any
thing could be accomplished in that
Way. That the plans OF the Moores who
are exploiting Rock Island are not en-
tirely pleasing to the eastern specula-
tors is indicated by the tone of the
and railway journals of the
east. For instance. the Railroad Ga
zette has strong editorial on the sub
.iect which concludes as follows:
Altogether the plan for the "reQr-
ganization' as it is officially termed of
the Rock Island railways capital,
seems bound to cause renewed dis
.cussion as to what is legitimate in the
capitalization OF railroa.s. The plan
has been unfavorably received in tinan-
cial circles, ii has aroused suspicion in
the west, and the politicians, quick to
perceive the trend of popular feeling,
talk in Iowa of calling a special ses-
sion of the Legislature to harass the
new company. and perhaps TO look out
for their personal interests. The new
scheme OF recapitalizing the Rock
island is avowedly made as a means
of enabling the interests which now
hold majority of the stock, to reduce
the heavy investment of their capital
now tied up in holding the absolute
majority of the shares. which the sue
cess of their plan requires, while still
holding their personal managing con-
troll Their capital will be released i'm
very large part by sale of the new coll
lateral bonds. their voting control will
be held thru holding the new preferred
shares, while any sum realized by the
sale of the common shares will be
profit on their operations
while still leaving them in control of
one of the great railroads of the coun-
try. How this plan will succeed de-
pends on whether the public will invest
in the new securities"
An Illustration of the manner i'm
which railroad companies get business
and the value of certain classes of busi
ness is given in the case OF the Great
Western. President Sticlney. in order
to reassure those who are putting up
the money for the new extensions to
Sioux City and Omaha. makes public
that before he decided upon these eX-
tensions he had secured the business
for them to make them pay. He has
entered into u SeNen-Near contract with
the big packing firms at Kansas City, |
Omaha. st. Joseph and Sioux City for
a certain percentage of their business,
the amount not stated. and this busi-
ness will be done at q considerable adj
vance over the prices which have hth-
erton obtained. The Great Western
will get this business. no matter what |
happens. for at least seven years. and
nothing the other roads can do will af- /
feet the contract. Mr.. Sticllney figures |
that on the basis of the present busi- |
ness being done by the packers this
business alone will amount to $l40o0- /
600 n year for him. and if there is an !
increase such as is Indicated ii viii |
amount TO $20.0o0.000. He has this /
contract all closed up, 50 that the bust /
ness can not fail him. The business be-
gins at once on the Kansas City and I
ST. Joseph lines. and will begin on the I
other two lines as soon as they are |
/
The latest general order of Gen. Tor
rance. commander in chief of the q. a.
t.. makes announcement of the follow
ing committee of the G.. a. r. To repre-
sent that body in the organization of
The department of history of the Me-
norial University. Sons of Veterans. U.
5. ~, at Mason City. namely: James O.
Pierce, chairman Minneapolis: l.. r.
Raymond, Hampton. Iowa: Samuel r.
Van SAINT. ST. Paul: r. u. Wallace. ID.
D.. Chicago: William H. Armstrong;
The commander in
.hef.' SAYS Gen. Torrance in the ORDER
is pleased to announce that said uni
'ersity Will be opened under the most
auspices ON "Wednesday. Sep
cnber 10, with from 100 To 200 stu
Tents. The energy and enthusiasm thus
ar displayed by the Sons OF Veterans,
md the high measure of success al
oady attained in the establishment OF
his university, calls for the heartiest
approval and encouragement on the
,art of the Grand Army of the Repub-