Albuquerque daily citizen. [volume] (Albuquerque, N.M.) 1895-1903, 1902-07-16
A GREAT SYSTEM.
Rock Island Policy Gives Enormous
Treasury Resources.
FEW FINANCIAL FACTS.

Although the Rock Islands policy
of capital expansion has weakened the
roads position as to the proportion of
capital to mileage and earnings, it has
given the company enormous treasury
resources" says the Chicago Evening
Post. March 81. as shown in the COM
pany's report the treasury resources
were over $l0,00000O larger than
March 81, 1901.
With the sale of $15,000,00 stock
at par, the company will have gained
altogether about $25,O00,000 in treas
ury resources, which will then amount
| to about $32.000,000 besides prob
able $1000,00U in the Choctaw treas
ury. This will give the Rock Island a
stronger treasury position than that of
any other granger, except perhaps, st.
Paul, and Will enable the company to
go ahead with considerable extension
work, which will now be in the direc-
ton of st. Louis.
THE purchase Of tue Choctaw, as
well as the increase in capital stock,
was responsible for Rock Islands in
crease in nominal capital each mile
The shares (par value 500 were taken
over at 80 for the common and 60 for
the preferred, a total cost of S23,524,-
O09 for stock whose par was S15,S27,-
500. The total cost of the Choctaw.
including the assumption of the Choc-
taw bonds. was $50, 400 a mile, or $13,-
600 a mile more than Choctaws NOM
inal capitalization.
Last year Chostaw's surplus after
charges had been ad muntil sstocku
charges was $1,4l7,625, and for five
hn
O27. The charges on the purchase
bonds will be $500 900 a year. Choc-
taw's fross earnings a mile last year
were as large as Rock islands. and it's
charges a mile were less; but the prev
ious year earnings a mile were much
less than Rock Islands.
Part of its increased resources has
been allotted to pay for the Burling
ton, Cedar Rapids & Northern and tho
Rock Island a. Peoria on the basis of
share for share. The purchase of the
Cedar Rapids which has $7,150,00 cap
ital stock and SlS,35S 900 bounds out
standing on over 1,200 miles. would
considerably reduce Rock Islands nom
inal capital a mile, although, of course,
its treasury resources would be cor
responding reduced. me total cap..-.
mile after the purchase of these
two roads would be about $4,000"
A dispatch from New York, July IA,
says:
Rock Island scored sensational as-
vance on the stock exchange Saturday,
and all sorts of rumors were afioat CON
corning the property and given as rea-
sons for the advance from 1922 to 1870.
After touching the latter figure, the
stock reacted to 1888, closing with u
net advance of CSC.
One of the rumors current but which
could not he traced to an authoritative
source, was that the Rock Island con-
templated the purchase of a steamship
line, the intimation being that it was
the Mallory line, and planned reaching
Galveston through it,
Another report current as account
ing for the strength of the stock was
that Rock Island is interested with
Illinois Central in the acquisition of
Chicago & Eastern Illinois, and that
the latter would be operated by the
two jointly.
In well-infOTmed quarters the ad-
vance was said TO be due TO manipula-
tion by the western clique, which con
trolls the property and which is in a
position to mark il up or down at will.
There is, and for long time has been,
no bona fide public buying of the stock,
and the remarkable manipulation wit
messed since the control of the prop
erty changed hands has succeeded
only in mystifying Wall street and
eyoNng comment not at all hatterins
to the manipulatOTs.
Missouri Pacific also shared in the
advance and was extremely active,
nearly 12O, 900 shares being traded in
as against $1,000 Rock Island. The ad-
vance in Missouri Pacific was said TO
be due to the improvement in the con
ditiOn of corn in the states which con.
tribute TO the road tonnage.