Evening star., 1902-07-31
S150,000,0OO CAPITAL
Reorganization of Rock Island
Company Launched.
AN EXTENDED LEASE
FRISCO ROAD GETS CHICAGO AND
EASTERN ILLINOIS.
Discussing a New Tunnel Franchise
for the Pennsylvania in
New York.

The first public step In the reorganiza-
tion scheme of the Rock Island Railway
Company was taken yesterday. Articles
of incorporation were filed with the secre-
tary of state of New Jersey by which the
Rock Island Company is launched with
a capitalization of s150.oC0OO0. The stock
Is divided into $4,000 shares of preferred
and a6OOO0 shares of common. The object
of the new company. as set forth in the
articles of Incorporation, is: ITO acquire,
purchase and hold subscriptions, stocks,
bonds, securities, shares and other evil
dences of the corporations generally, and
to merge corporations one into another"
The incorporation was effected through
the Commercial Trust Company of Jersey
City, the official agents of the giant cor
poration. and which is controlled by George
II. Young, president of the United States
Mortgage and Trust Company of New
YORK The names of the western finan-
ciers. II Guiding the Moore Bros. do not
appear in the corporation papers.
Inc holdings of the men whose names
do appear are but 30 shares of stock EACH
which indicates that they are simply act
ing as agents. The corporators are all
connected with the Commercial Trust Com
pany. and include John Warren Harden
bergh. president of the Commercial; Robert
r. Ross, vice president: Oscar L. Gubel-
man. secretary and treasurer; Walter L.
McDermott. George r. Tracy, ]. A. Ten
nat. r. F. TulIy. William j. Field and
George T. Boggs. who. 1t is understood, are
stockholders in the Commercial company.
Papers Filed Yesterday.
The papers were filed Just before the close
OF business yesterday, and the New York
papers who had representatives on the
ground could get no statement from any
absence from Jersey City, where the pa
perS were filed. From semi-officia1 state
ments which have been made heretofore 1t
Is known that the formation of the new
company is the result Of the efforts Of the
Moore interests In Rock Island to unity
their properties and concentrate control
into fewer hands, with less cost than at
present. The holders of the preferred stock
are guaranteed per cent on their holdings
up to 1903, and per cent on and after that
date and up to 1916.
whether the new company will be con-
sidered as a parallel to the Northern Sc
curities Company. organized by Mr.. Nor
gan for the control of the railroads of the
northwest and against which legal pro-
ceedings are now pending, is question on
which legal opinion has not yet been vouch-
safed, owing to the limited knowledge of
the purposes and scope of the Rock Island
scheme
If it shall appear that the stocks and
bonds which the Incorporation papers give
tHc new company d right TO mold Will be
the stocks and bonds of competing roads,
thereby eliminating competition, then
doubtless there will be cause for legal ac-
tiCn against the Rock Island Company as
VioiatoT Of the Sherman antitrust law.
A longtime Lease.
According to reports which were accepted
as authentic in Wall street Yesterday. the
st. Louis and San Francisco Railroad Com
pany has leased the Chicago and Eastern
Illinois railroad for ninety-nine years, on
a guarantee of per cent Still another
report rep was to the effect that the st. Louis
and San Francisco road had secured control
or the Chicago and Eastern Illinois
through the purchase of a majority of it's
stock.
Directors Of the Chicago and Eastern Tl-
nois referred inquiries the subject to H.
b. Porter. the chairman of the board but
MI Porter declined to discuss the subject.
PRESIDENT Yoacum of the Frisco road also
arrangement. = :.
However. the shares of both roads made
significant advances. Chicago and Eastern
Illinois touched new high level 22OA,
winch was hve points above TUESDAYS
c.ose. while the common stock of the ST.
Louis and San Francisco gained four and
one-half points. and scored a new high
level 81 1t was also commented on that
the shares Of both these roads have been
advancing perceptably for months
The Chicago and Eastern Illinois Rail-
road Company operates about $50 miles of
railroad extending from Dolton. just south
or chicago. to Terre Haute, Ind. to Thebes
ard Joppa in Illinois and to Gray's Point
MO II has advantageous connections with
Kansas City and trackage rights between
Doiton and Chicago over the Chicago and
Western Indiana railroad. 1t capitalization
Is S15.COO.C0O of common stock and S1O.-
OOO.OCO of preferred
The St Louis and San Francisco railroad
operates nearly $500 miles of railroad west
nf ntiS hos haa,
expanding rapidly under Its present man.
agement and has direct lines to gulf ports
and close connections with Mexican rail-
roads. Its connection with the Chicago
and Eastern Illinois is via the Baltimore
and Ohio Southwestern road. running from
st. Louis to Salem. III. For several years
the Chicago and Eastern Illinois has been
an aggresively independent road and con-
troll of 1t has been sought, according to
current report. by the Illinois Central, the
Goulds and the Hartman syndicate.
Pennsylvania Franchise Progress.
In accordance with the decision reached
at the conference in the Office Of Mayor
Low. in connection with the Pennsylvania
tunnel franchise. President Alexander E.
Orr of the rapid transit commission has
appointed committee to meet with a COM
Inittee Of aldermen to draw up new
franchise for the Pennsylvania. The COM
mittee named by Mr.. Orr consists Of him
self. Controller Grout and Messrs Wood
bury and Langdon.
Mr.. GroUt is now in Europe and until
his return. Deputy Controller Stevenson
Will take his place on the committee The
gentlemen. named held their first meeting
yesterday afternoon and discussed the mat
ter of the new franchise 1t is understood
that nothing was done in the direction of a
draft of the same.
Mayor Low has prepared his message to
the aldermen. recounting the act of the
meetii e In his office and requesting the ap-
pointment of a committee TO meet with the
Orr committee.
In this connection the visit of Ira A.
Place. counsel for the New York Central.
to Mayor Low yesterday is being made the
cause of some discussion as to whether the
Central may not take a hand in blocking
the plan of the Pennsylvania. 1t was de-
clared. however. that this conference had
to do entirely with the change of motive
power in the Park avenue tunnel from
steam to electrictty