Pine Bluff daily graphic., 1902-08-01
ANOTHER Bic MERGER
Frisco Railroad Scoops in tI7e
Chicago and Eastern
Illinois.
SAID THAT THE ILLINOIS CEf4
TRAL WILL NOW GET TIT.
FRISCO.
If the |. c. Scoop BE True. It Is OR.
of the Biggest Railroad Deais
Ever Made.
MoReANs S SCOOP OF /. ANp NJ.

New York. Aug. l.--AnotteT step Il.
the grouping of railroad properties os
the country has been pract1caly com
pleted, and the financial world is nov
momentarily expecting an official
statement from the directors of tic
st. Louis and San Francisco railroad
that they have acquired control ct tia
Chicago & Eastern Illinois. property
having trackage of over 100 milcS
Definite statements were made III
Wall street by interests Identified
with both roads that the purchase haa
been arranged, and that tie lawyers
had to complete certain details hefore
the official announcement was elvelz
out
Several months ego i, became
known that the Louisville and Nasf4.
Vile was after the property with I.
view of getting an entrance into Chi
cago At the time John w. Gates
purchased the Louisville and Nashville
and turned the property over to i. +.
Morgan, the Louisville and Nashville.
and Southern are said to have nfade
a joint offer of S240 per share for Il
controlling interest in the property
Mr.. Potter however, insisted upon
$3.50, and the deal fell through. H
was at that time thought the project
was to combine the Louisville and
Nashville and the Monon and Southern
and the Eastern Illinois, giving each
Of the big southern roads a Chicago
terminus. The Louisville and Terre
haute was also interested in the deas
as supplemental property ro the
Eastern Illinois.
The management of the Illinois CeI9~
trail undoubtedly viewed the Move
with alarm, and it is said that nego-
tiations were opened with a view to
removing the danger by a purchase
of the Eastern Illinois. The sci: uf
the road is evidenced by recent phe~
nomenal rises in the stock. wfich
went to 120, and which has risen nvta,'
Is points in the last year
There was rumOr tC tic effect
that the Frisco system has leased ttte
property for term of nnetv-ri ine
years upon a guarantee of 8 per cent,
but this is not credited. The FriscU
system does not tan the ga SET iii
nois at any point, and the rrots,~ ~~:Hn :
would have to be connecte9 ~ u,su2ls
of line from St. Louis to some nos,zs-:
in Eastrn Illinois, presumably Salem
or Thebes.
The Eastern Illinois opes''es 80
miles of road, the main line reaching
Thebes, where important corr air'n-
y way of the Cotton Belt ar n:;nic'
to INC Southwest and i1vanov1!Fn by
Way 1f Us, Evansville ami 'sre~
Haute, where connection is made with
tie I.o- isle and Nashviiie. Y lzs
IS outstandii. s7,lS7 SOC orr s9f
Stock and s1.> 20 200 of pr Il I. II
roun numbers ;.e bonded dc,'t is S'5s
600 0."' ile gaming capan!t..= Of he
a.i is 't,At eli $4,000, 900 and 81 t'?l>
eco.
The Illinois Central consists Of T.
700 miles Of road The company has Il
funded debt of s12S, l37 ,925, q STOCK
issue of s66.000,00O, and an earning
capacity of about s40,0G0,000.
1t is a fact, though not generality
known, that the Chicago and Eastern
Illinois interests started TO buy Louis
Vile and Nashville lust before John
w. Gates made his celebrated coup ia
that stock A we'll known brokerage
house at the lower end of Laseilee
street had orders to pick up all the
Louisville possible without exciting
special attention, and managed to get
about 10000 shares up to 107 before
Gates started his campaign for con-
troll. He took the market away FROM
lie Chicago and Eastern Illinois peO-
ple by his aggressiveness, and they
sold their stock around l30. When
he had secured control of Louisville,
he offered It 10 J. P. Morgan, who is
expected soon to exercise his option.