Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-07-25
|N[N LN[ 10 PACFC
The Rock Island Will Buy or
Build a Road TO the
Coast.
Negotiations Said to Be Under
Way for the Atchison
Lines.
Extensive improvements to Be
Made at 0pre... Imnorfant
announcements.

New York, July 95.-The directors of
the Chicago. Rock Island & Pacific
Railway company are to meet early
next week in this city. and it is eApec-
ted that a proposition of uncommon in
terest to the stockholders will be form
ulated. Wall street received an intima-
ton of the character of his PROPOSE
tion Yesterday afternoon, but neither
President w. Il. Leeds nor any other
officer of the company could be induced
To say anything on the subject. From
unofficial sources it was ascertslned
that II plan is under consideration for
~refinancing the present Rock Island
company in Il manner similar to that
followed in the reorganization of the
Chicago & Alton railroad in 1900. The
new Chicago, Rock Island e Pacific
Railroad company. il is said, viii take
the place of the present Chicago, Rock
Island & Pacific railway company and
existing Rock Island securities will be
exchanged for the securities of the new
company. The basis and mn of
this exchange. according to II of the
company's directors. is a problem that
has absorbed the attention of several
lawyers for some time.
The purpose of the new company is
to obtain control of the Rock Island
system by purchasing the stock of the
present company, n holding 1T in the
treasury as security for Il general 4 per
cent mortgage to be executed by the
new corporation. y proposition which
is said to have been discussed by Presi-
dent Leeds and his associates is that
the new company shall give for each
100 shares of present Rock Island stock
ten 1000 4 per cent bonds, 20 per cent
of new preferred, and 10 or 100 per cent
of new common stock. An exchange
under such terms. the controlling pow
ers of Rock Island say, would be based
on a valuation of the present Rock ISL
n stock at about go.
Should the new company issue $780,
00G. 900 of bonds, as has been suggested.
there would he az aggregate bonded in
debtedness on the Rock Island proper
ties of 1924. 600, 900. The old Rock ISL
atiind refunding mortgage amounts to
%ip'soppsoV's III III NJ laSl %sisoVV
900 of collateral trust 4 per cent gold
bonds was issued to pay for the Choc-
taw, Oklahoma & Gulf railroad. The re-
cent $4,000. 900 increase of Rock ISL
and stock makes the total stock capt.
of the present $50
600, 600.
The group of Western capitalists.
represented by the Moore brothers and
w. Is. Leeds, who bought the control of
Rock Island about Il year ago. have
planned improvements and extensions
of that system that will cost many mill
lions of dollars. a new company, such
as is proposed, would, it is argued, tie
up the control of the property securely.
and thru the marketing of new securi-
ties would releases many millions of
working capital.
Plans for the construction of new
lines and connections are being worked
cut by the Rock Island management,
III carried out, Will involve an
of not less than $50. 600, 600.
These plans include the building of a
line to the Pacific coast from Ell Paso.
1t is a fact tina the mel who now con-
troll Rock Island want an independent
line to the Pacific. They are dependent
for California traffic upon the Southern
II the Atchison lines.