Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-07-29
Rock Island to Combine With
st. Louis & San Francisco
and Mexican Central.
GATES PROPHECY TRUE
Big Deal Involving 10000 Miles of
Track-Few Men to Be in Control
Milwaukee Road Purchased by the
Union Pacific.

oIuOsl FdClIlC.
New York, July 26.-The process of
merging great railroad interests be-
tween the lake regions and the further
most points of the North American
continent continues.
The absorption OF the Chicago. Mil
waukee & st. Paul by the Union Pacif-
ic, giving clear way between Chicago
and the Pacific coast is announced, and
new comes the report of a merging of
the Chicago, Rock Island & Pacific, the
St. Louis & San Francisco and the
Mexican Central Syndicate. making the
way clear from Chicago to Mexico
around to Birmingham, Ala, and to
Oklahoma, Arkansas and Texas.
Recognition OF the Rock Island.
The latest deal involves a recogni-
ton of the Rock Island, preparations
for which have been going on for sew
eral weeks.
1t means the formation of still an
other securities Company-that meth
cd OF railroad merging introduced by
j. T. Morgan.
The Northern Securities Co. still
awaits the decision of the highest
courts as to its legality, yet others are
already in course OF formation. Con-
solidation is the word, and Wall street
is full Of rumors of still further merg-
ers.
Gates Prophecy Being Realized.
John w. Gates prophecy of the divi-
sion of the countrys railroads into a
few great systems is coming daily
nearer to realization.
The reorganization OF the Rock Is.
land includes the extinction OF the
voting privilege OF a majority OF the
present stockholders.
In place of probably three-quarters
of the present $T5,000.000 par value OF
stock it is proposed to give for each
100 shares $4,000 ina4 percent cullat.
eral trust bonds, $500 in per cent
preferred stock, and $4,000 in com
mon stock-a total of ITS per cent in
new securities.
To be Held by Few Investors.
In return for this the direction of
the road will be held in few hands
and the problem of control be greatly
simplified. The title will be slightly
changed-from Rock Island Railroad
to Rock Island Railway-but the real
change will be great and the results
sweeping.
Moores Did Not Dare to Let Go.
Moore Brothers secured control of
Rock Island in open market after hard
buying that sent stock rising rapidly
Like Gates with Louisville & Nash.
vile, they did not dare to let it go
A combination promised better results
The st. Louis & San Francisco, with
its sweep to Oklahoma and Birming
ham, offered the most natural outlet
for the road. and the combination, il
| is believed, will soon be perfected.
Tie Moores are heavily interested
in the Mexican Central and the con
troll of those roads by one interest
| ferns natural combination, and one
| that promises great results by its
sweep of an immense territory.
Blow to Atchison System.
| This new combination will be blow
TO the Atchison system, which once
o,;ned the st. Louis & San Francisco
but Parted with the control for the
now Ialtry sum oil $1.0O0.O00 in cash.
| The late Aldace r. Walker, chair
man of the board of directors of the
Atchison system, bitterly opposed
parting with the ST. Louis & San Fran
cisco, but his objections We're over
come by the majority under Edward
King, president of the Union Trust
company.
The new combination will embrace
nearly 10000 miles of road and extend
the Chicago systems down almost tc
the istnmus.
Milwaukee Sold.
Chicago, July 26.-The Chicago, Mil
waukee and ST. Paul railroad, it i!
positively stated. has been purchased
by the Union Pacific road, or rathe
by the men who own the Union Pacific
Chicago fnanciers of prominence in
terested deeply in both properties wer,
advised of the contamination of tn,
deal yesterday. 1t may mean a new
Northern Securities deal.
The men who will come into contro
of one of the greatest railroads in tn,
west are: E. H. Hartman, Vim
Rockefeller, John D. Rockefeller, H. Fl
Rogers, George j. Gould, and Jane
Stillman. Some of them already ar
large stockholders and one or two ar,
directors of the ST. Paul road.
Among the interests in ST. Paul
| To ryiu tn 40
ership, according to the statement, ar
those of the Armours of Chicago
). Roswell Miller, present chairman 0
the st. Paul board, probably will b
succeeded by 3. H. Hartman OF som
of the Union Pacific crowd. The Ne
tional City Bank, Rockefeller-St
Oil interests, with number of assoc
ated capitalists, are the people benin
the deal.