The Minneapolis journal., 1902-08-14
COAL And COMBINE.
The Importance of the Former to
49, the Latter. ~,
MR.. GATES GOES IN HEAVILY
" -.
rurchase OF Coal Lands and It's: Con-
nection With the Rock ~
a. - Island Merger. IF

New York, Aug. 14.-The Gates peonle
say they surely have control of the Colo
rado Fuel and Iron Company, and at the
annual meeting on the goth, will elect
George ]. Gould, representing the Denver
& Rio Grande Railroad company, and Ed
WIN HaWley, representing the Colorado
Southern Railroad company, as directors.
The two railroads named handle most of
the traffic OF the Fuel company. ",
1T is reported that; the new Rock Island
combine Is having some difficulty In mar
ketiug its bonds The minority holders
of the old Rock Island stock are getting
rid of their holdings, as they do not wish
to exchange for the new security, and the
consequence has been a big drop in the
price of the stock.
On Monday $500" preferred and Twin
City Rapid Transit made new high records
on the stock exchange. -. 49,.
Frederick E. SaHard, editor of the Coal
Trade Journal, has just given his Views
with regard to, the Importance Of coal to
the railway combines. He says.
The dispatches have told how by purchas
ing large interest in the Weaver Coal com
pany John w. Gates has added a side line
10 MS steel industries, and in the new venture
is associated with other men in the United
States Steel corporation. This is true; like
others, he IS getting to know the value of
coal land. He Is in it elsewhere, If what I
hear Is correct. It is said that Gates and
other members of the Rock Island crowd are
buying the stock Of the Central Coal and
Coke company of Kansas, Missouri, Ar1an-
sas, etc., and 1t Is understood in financial cir
cles that another 100000 concern is being
formed to take over Independent coal prop
critics In Missouri, Kansas and Arkansas. J.
y. Helm OF Kansas City is understood to be in
this deal, with the particular duty Of arrang-
min To fho fol,o
The Missouri mines are to be looked after
by another man, and the Arkansas properties
py still another. 1t is understood that the
details are to be made public this fall.
One of the arguments reported to have been
used in the attempt to get the independent
operators into the new 100000 combine was
that the combination of the Central Coal and
Coke company had been successfully cohsum-
mated. Since the Missouri, Kansas and Texas
Coal company was merged into the Central
Coal and Coke company it has ranked with
the Colorado Fuel and Iron company as the
greatest west of the Mississippi river.
The Colorado Fuel and Iron company Is
being bought openly by the Gates -Hawley-
Moore interests for control. shotIld they get
with 1t the Central Coal and Coke company
they would only need to take In the inde-
pendent companies provided for by the new
$7,C00,000 concern to be masters of the coal
situation in the territory in which they are
building up great railroad system, with the
Rock Island nucleus.
The Central Coal and Coke company has
81, 900, 600 Of Stock much OF which could prob
ably be bought without difficulty, but it has
been generally understood that the old Keith
& Perry crowd is still in control Of therex-
panded company through majority ownership,
and the opinion seems to be that R: H. Keith
would have to consent before control could
pass
=
Coke company are on the Frisco and Kansas
City Southern railroads. Wall street has now
come to accept the report. that the Rock
Island Is about to secure cbntr0f, of the
Frisco, and John w. Gates Several weeks ago
was quoted as saying he was In control OF the
Kansas City Southern. R. H. Keith, in his
recent railroad projects, has been Iclosely as
ISOLATED with some of the principals in recent
Rock Island deals
The Rock Island crowd is now generally
| understood to include, besides the Moore
Brothers, H. G.. Frick, John w. Gates, Edwin
Hawley, w. B. Leeds, y. G. Reid and a long
list of 'millionaires associated with them, but
who are less powerful than: the principals
| named. They control beyond question the
Rock Island, which owns the Choctaw, the St.
Louis, Kansas City & Colorado and the Burl-
| ington,~ Cedar Rapids & Northern, and may
| soon own the Frisco Memphis. Members OF
tthe crowd control the Colorado: &. Southern,
the Minneapolis & st: Louis, the Iowa Central
| and the Iowa & St. Louis. They are believed
to control the Kansas City Southern and to
be powerful enough in Chicago Great West
ern to merge the Kansas City Southern with
IT. retaining control CT The combined system.
They are said to have bought the Chicago 8
Eastern Illinois.
| A noticeable feature of the Rock Island
policy under the new regime has been the
securing of splendid terminals in every city
in it's territory. This work seems to have
been nearly completed, with a result that
the Rock Island will have far better terminals
generally than any Of its competitors. It may
be now, the intention to turn attention to- coal
properties. The Rock Island under the old
management was really in need stof coal fol
it's own ruse, and the new management: has
secured coal only with the; Choctaw purchase
so that a big coal deal would be the mex
thing to be expected In connection with it:
projects. 80 s.