Omaha daily bee., 1902-08-04
ROCK ISLAND-'FRISCO DEAL
Prominent Railroad Nan Says he Think.
It Is "A Go"
CONFLICTING REPORTS OF TRANSACTION
Tnkfng over OF Yoairum Road BY
Rock island Amrned in wall
street-Gosnip About the
Negotiations

'Frisco?' That Is the burningq uestion Of
the railroad world at present. Most peo-
pie who are watching the progress OF AZ.
fairs seem to think the deal has been
made.
In answer to this question one of the
prominent railroad men Of the country.
whose Identification with the general man
agement Of a leading western road and
whose financial standing in the east en-
title him to an opinion worthy Of eonsId-
GRAFTON. replied:
II think it's q CO."
The query was put to him by a newspa-
per man. to whom he said. III you can
divorce yourself FROM your reportorlal
work for a few minutes ! will talk upon
this matter. but az my name and road
have been enormously connected with the
deal already, I cannot AFFORD to be quoted
on a."
As yet no formal or oficial announce
ment Of the transaction has been made.
The men who are given the credit for
swinging the deal refuse 70 speak def
nitely, and the trafic world still waits
n watches. The statement nearest to a
confirmation Of the purchase Is said to
have been made by W. II. Moore Of the
Moore Bros. last Thursday. when ne said
The agreement with the owners Of the
Frisco line, Of course, lie tentative and con-
ditional upon the Rock Islands accept
ance OF the terms"
sup 10" the Rock Island.
Mr.. Moore is quoted further as having
said that the Rock Island people knew
what the Frisco wanted and that IL was
simply up to the Rock Island to accept
or decline.
Others connected with the deal are
quoted as saying that there has been a de-
lay Of the Rock Island In accepting the
terms OF the Frisco, due to a misunder-
standing as to whether the market or par
value Of the railroad stock should govern
the transaction. II Is further said that
this question has become SO serious with
the stockholders OF the Frisco that Il may
lead to the withdrawal Of ali the options
and the entire dissolution OF the deal as
far as made. tn 44s
When the deal was originally launched
this point as to what values should form
the basis OF the transaction, It is now
said, was not clearly defined. The Frisco
people, It is said. have taken a decided
stand against what must have been the
original proposition and insist upon the
most advantageous terms, which action
has disconnected the Rock Islanders and
thrown the deal "in the air. probably for
two weeks.
In Wall street the taking over OF the
Frisco by the Moores road Is affirmed In
strong terms. The awarding Of q, 200 shares
or s2.b00,000 in the new Rock Island stock
issue on the. readiustment plan is said to
have been made as a bonus in the trans
action.
Assuming that the new Rock Island Sc
~curities company. which is already being
/ oInaooA ~ -
Securities company, has taken over the
stock Of the Frisco, a New York paper
says:
plan as viewed by Wall street was that ii
would make il possible for the Moore in
10 retain ~ maj nc cont eont wh,I me es, ko s,1. ls ss5
nalt OF theif capital now tied up in the
Direct Line 20 Coast.
Another popular view Of the situation is
that Notwithstanding the announcement
that the company just organized is not 10
be a merger concern formed for the purpose
Of lighting Morgan roads. every Indication
points to the conclusion that the Moore
brothers are eagerly searching for a direct
line to the Pacific coast. and that with this
determination In mind they are seeking
some sort OF an alliance, not with the
Frisco, but with the Atchison. Topeka &
Santa Fe.
After all Il is this question Of a coast
extension which m itself to the
people Of the west and doubtless to the
transcontinental roads, as the one OF prime
Importance In connection with this deal,
for the argument Is made by this class
that without a profitable line to the Pacific
coast. the whole project Of the Rock Island
would be futile. There are plenty Of peo-
pie who agree with the view that the Rock
Island is after the Santa Fe, though these
are in the minority. evidently. A theory is
advanced on what seems to be good grounds
tending to show that these two roads could
not be united.
It is generally admitted, OF course. that
what the Rock Island has set out to ac-
complish is to dominate the southwestern
territory. To do this successfully 1t can
not, IN the judgment OF many good railroad
men, avoid the acquisition OF a direct line
to the western seaboard. for It Is now de-
pendent on the Southern Pacific for this
facility and the Southern Pacific Is TO be-
come one OF its rivals, SO that community
Of interests to even the slightest extent
would be no longer possible with the Har-
rlman road.
Some time ago It looked as II the Rock
Island would build a line Of its own from
Fl Paso to the coast. In fact this vent FAR
beyond the stage Of superstition ana had
begun to be accepted as a settled fact. the
withdrawal Of the Rock Island from the
Western immigration association on the
grounds Of unfair divisions Of percentages
and one or two other such moves. serving
to emphasize this conclusion. But abruptly
this matter has been dropped ana railroad
circles are no longer accredlting the ri
Paso coast route 81 a probability.
Involves the santa re.
The sudden turn In this affair has bols-
tered up the theory that the Rock Island
had struck some sort Of terms with the
santa Re whereby that road would become
q part Of the Moore property. thus solving
finally and absolutely the ooaat-llne prop
oaltion. 50 persistentiy Is this theory
advanced in some quarters that its adher-
ents even amrm that the deal has actually
been consummated. this IN face Of the ar
Gument advanced on other sides that ANAL
samation Of those two interests IL not now
possible.
An Omaha mar who has been IN the SER
vice Of both the Rock Island and Frisco.
and who Is one Of the keenest observers Of
ne present movement. has this to say re-
garding the proposed purchase Of the
Frisco BY the Moores.
TO begin with, the Rock Island mnet