New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-31
IT'S CAPITAL S15O,OOO 900.
ROCK ISLAND COMPANY INCORPORATED
IN JERSEY CITY.
STOCK DIVIDED INTO $4,000 PREFERRED
SHARES AND $4,000 COMMON-wHAT THE
REORGANIZATION MEANS


REORGANIZATION MEANS.
The Rock Island Company filed articles late
yesterday afternoon with Maurice Stack Clerk
OF Hudson County. at Jersey City. The capital
stock is S15O.OO0OOO which is divided into $40
600 shares Of preferred stock and 100000 shares
of common stock. According to the articles
filed, the holders of preferred stock are to be
allowed to control the election of directors 1t is
also stated IT. Il dividends of per cent are
guaranteed up to the end of the year 1908. and
from that on 10 1916 the guaranteed dividends
are TO be per cent
The corporators. each of whom holds fifty
shares. all connected with the Commercial
Trust Company of Jersey City They are John
Warren Hardenbergh, president OF the Com
mercial: Robert F. Ross. vice-president; Oscar
L. Gubelman. secretary and treasurer; Walter
L. McDermott George r. Tracy. J. A Tennat.
r. F. Tully. William j. Field and George T.
Boggs, who. it is understood, stockholders
in the Commercial company.
Announcement of the proposed readjustment
of the Chicago. Rock Island and Pacific Rail-
way Company's securities was made on last Fri
day. The rec. ganization. il was announced then,
would be on similar lines 10 the readjustment
of the Chicago and Alton Railroad Company.
which was taken over in 1900 by holding COM
pany called the Chicago and Alton Railway Com
formation of a securities holding company
which was to take over the S75.OOO.OOo stock of
the present railway company on the following
basis: Each 100 shares Cpar value S1O.O0O OF
the present stock to be exchanged for $4,000
in per cent collateral trust bonds $1,000 IN
per cent preferred stock and probably $4,000 in
common stock of the holding company. total
of 90 per cent in securities.
IL was also stated that the Rock Island would
take over perhaps by lease. another large rail-
road system: and that il also proposed to build
a direct road from St. Louis to Joliet. Ill. thus
practically paralleling the Chicago and Alton.
as Joliet. which is only few miles southwest
of Chicago, is the main line of the Alton be-
tween that city and st. Louis
1t also reported last week that the Rock
Island management was considering the advis-
ability of extending the system from FL Paso
to the Pacific Coast. but would not take such a
step il satisfactory arrangements could be MADE
with the Atchison or the Southern Pacific, which
is controlled by the Union Pacific.
The practical effect of the new financial plan.
viewed by the Street, was that II would make
II possible for the Moore interests, who now con-
troll the Rock Island. to retain that control while
releasing about half of their capital now tied
up in the road.
The merger will embrace about eight thousand
miles of road when the construction work now
in progress is completed The Chicago. Rock
Island and Pacific Railway proper operates
about $500 miles, TO which must be added the
mileage of the recently acquired ChOctaw, Ok
dar Rapids and Northern. 1.2S4 miles; Rock ISL
and and Peoria, lis miles; St Louis. Kansas
City and Colorado QO5 miles completeb 31i
miles. and various lines In Texas New-Mexico.
Oklahoma and Indian Territory.
Great interest has been shown recently in Wall
Street in Rock Island On Monday there was
a sharp break in the price OF the stock which
dropped from 1884, TO 1922 before noon In the
afternoon Rock Island regained a part of it's
loss. closing at 194 The stock closed yesterday
at 1914.