The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-07-26
Rock Island Reported to Be
Buying Frisco Stock.
Tactics Used in ChOctaw Deal
Brought Into Play.
STOCKS ARE SOARING.
To Make Arrangements to Run
Trains to City of Mexico.
Rock Island Coast Line Rum0rs
Are Revived.

Men in railroad circles have been
watching the doings of the Rock Island
recently with a great deal of interest.
Persistent rumors and reports of var
ious acquisitions planned or consumma-
ted have continually vibrated to all
parts of the globe The most recent
report is that the Rock Island is plan
ming to take over the Frisco. This re-
port gained some credence few weeks
ago and has again come to the publlc's
notice.
The common stock of the st. Louis &
San Francisco railroad advanced 31s
points yesterday, with heavy buying
and rumors of prospective control by
the interests dominant in Rock Island.
Rock Island stock, which had been
shooting skyward for some time, eased
off fractionally, but received the same
powerful support as heretofore. the
rumor of an attempt on the part of the
Rock Island crowd to buy Santa Fe was
not credited in well informed quarters,
but the Frisco rumor. which took its
place, was generally believed to have
substantial basis.
The desire Of the MOOreS and their
associates in Rock Island control to Sc
cure the Frisco has been known for
some time. The Rock Island had, pre-
vious to that time, run surveys paral-
Icing a considerable part of the Frisco
lines and was threatening to build ex-
tensively in Frisco territory unless it
was permitted to buy that road. These
same tactics had been adopted by the
Rock Island in the purchase of the
Choctaw and succeeded them. They
doubtless had considerable weight with
Frisco stockholders and it is not impro-
bable the Moore interests have succeed
ed in acquiring a heavy holding in FRS
co during the past few months without
going on the market for it.
1t is possible that the next few days
- IL az,
arrangement between the Chicago, Rock
Island & Pacific and the Mexican Cen
trail railroads, which will enable the
Rock Island to run it's trains direct to
| the City of Mexico. 1t is intimated that
| if the plan now under consideration is
| carried out the Moore Bros. will be-
come financially interested In the Mexi-
can Central, and that the Rock Island
| will have representation in the director
| ate of the Mexican Central line. The
Moores may also lend a helping hand
| financially in carrying out Mexican
| Central schemes of extension and re-
| construction.
| Rock Island official here deny that
! the plan of building the Chicago, Rock
| island & Gulf railroad has been aban-
| doned. The line will be pushed on to
| the gulf.
| The immediate reorganization Of the
| Mexican Central, it is understood, has
| been interfered with through the re-
| fusal of the Mexican Central Securities
| company of London to accept the terms
| of the management 1t is not expected
| this refusal will cause the reOrganiza-
| ton to fail entirely, although there may
have to be some changes made In tie
present plans.
The Mexican Central Securities, linn
tied, was organized in London in 1893
| for the purpose of acquiring the per
| cent consols of the Mexican Central
| railway, and issuing in exchange for
| each $1,000 per cent bond deposited
| f102 in A debenture, bearing per cent
dIyy1d Is nd - dnt, 1fV1r>
| stock, bearing per cent dividends
| when earned. The consols are of a total
| authorized issue of $66, 649, 900 first mort
| gage, secured by a direct lien upon the
| consisting of 2,15O miles, subject only
| to about $277, 900 of prior bonds.
| What amount of the consols are held
| by the Securities company is not known
! The statement, however that it controls
! large majority is denied. The company
has issued f3,840,606 in each class of
| stock in exchange for bonds deposited.
| This would seem to indicate that the
| company holds less than $40, 000, 900 of
| the consOlS.
New York, July est has been
learned that the directors of the Rock
| Island are to meet in this city early
next week. From. unofficial sources it
was ascertained that plan is under
consideration for refinancing the pres
ent Rock Island company in manner
| similar to the reorganization of the Chi
| cago and Alton in 1900. A new Chicago,
| Rock Island and Pacific railroad COM
| pany, it is said will take the place of
the present Chicago, Rock Island and
Pacific and existing Rock Island securi-
| ties will be exchanged for the securities
of the new company. The basis and
| manner of this exchange, according to
one of the companys' directors, is a
| problem that has absorbed the attention
Of several lawyers for some time.
The purpose of the new company is
~ obi Tot Of hn Ie1o
system by purchasing the stock of the
| present company and holding it in the
| treasury as security of a general per
cent mortgage to be executed by the
is said to have been discussed by Presi-
| dent Leeds and his associates is that
| the new company shall give for each
100 shares of present Rock Island stock
ten per cent bonds, rs per cent of new
preferred and rs or 100 per cent of new
| common stock. An exchange under such
terms, the controlling powers of Rock
| Island say, would be based on valu-
| alton of the present Rock Island stock
| at about 260.
Should the new company issue $780,
000,0 10000 Of bonds, as has been suggested,
there would be an aggregate bonded in
debtedness of the Rock Island properties
of 1924 900 600. The old Rock Island re-
funding mortgage amounts to $10o, 000,-
900 and in April last 100000 of COLA
teral trust per cent gold bonds were
issued to pay for the Choctaw, Okla
homa and Gulf railroad. The recent
SIS. 100000 increase of Rock Island stock
makes the total stock capitalization of
the present company $15,00000
The group of western capitalists re-
ported by the Moore Bros. and w. B.
Leeds, who bought the control of Rock
Island about a year ago, have planned
| improvements and extensions of that
system that will cost many millions OF
dollars. A new company such as is pro-
posed would, it is argued. tie up the
control of the property securely, and
| through the marketing of new securities
| would release many millions of work
ing capital Plans for the construction
! of new lines and connections are being
worked out by the Rock Island manage
ment which, If carried out, will involve
an expense of not less than $50, 600, O0C
| These plans include the building of q
line to the Pacific coast from Ell Paso