Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-09-06
RAILROAD MERGER
The Goulds and Rockefellers
Said to Have United Their
Interests.
Missouri Pacific and St. Paul
to Work Under an Agree.
ment.
Boom in Stocks as a Result
of the Rumored
Merger.

efeller in a community of interest is the
next great railway combine. The plans
involve close working alliance be-
tween the Chicago, Milwaukee & st.
| ing the possible merger of the entire
| Gould system and the Rockefeller rail-
ways. Reports of an actual merger
I Thursday sent the Missouri Pacific and
st. Paul stocks booming skyward on
the stock exchanges of this country,
| and at many places it is believed that
more than the offensive and defensive
1 alliance of the two railway powers is
under way.
George j. Gould. by the alliance with
| Rockefeller, secures an entrance into
| Chicago for his western roads, and
Rockefeller secures a southern outlet
for the ST. Paul system. The Missouri
| Pacific and ST. Paul come together at
| Omaha and Kansas City, and the alli-
ance of the systems means a huge saw
/ ing in traffic business and greater rap
iidity in handling freight from the Da-
kotas to the gulf.
Those in control of the two great sys-
tens refuse to talk of their plans. Rail
road men and stock market leaders be-
lieve that an actual merger is not IN
tended, but that the agreement entered
into will bring the roads into as close
relations as those now existing between
the Great Northern, Northern Pacific
and Burlington.
The Rockefeller or Standard Ooi in
terests have controlled the Milwaukee
& st. Paul for the last two years. and
thew also control the Missouri. Kansas
& Texas.
The Milwaukee & ST. Paul has no in
dependent outlet west Of the Missouri
river, and the Missouri. Kansas & Tex
as has none east of Hannibal. Mo.
The Missouri Pacific, Iron Mountain
and other Gould roads on the other
hand have no other important outlet
east of the Mississippi river than the
Wabash. which does not afford them all
the facilities they need, especially to
territory in the north and northwest.
With the lines controlled by the
Rockefellers allied closely to the Gould
lines. the latter would be placed IN
most advantageous position to meet the
competition of the Rock Island, the
Santa Fe, the Hartman and the Hill
systems.
Close relations between the Rookie
fellers and Gould have prevailed for
some time, and the Missouri Pacific
and Milwaukee and ST. Paul have for
years been working together in har-
mony.
The Milwaukee and ST. Paul will give
the Missouri Pacific much shorter
line from Kansas City to Chicago than
it has by the Wabash. and 1t will give
it a good line to ST. Paul and points
in the Dakotas. The Wabash of course
would continue to be the direct outlet
for the Missouri Pacific to the east
from ST, Louis, the Milwaukee and st.
Paul having no ST. Louis line.
In connection with the Missouri Pa
cific and the Rio Grande, which is a
Gould road. the Milwaukee and st.
Paul would secure the shortest line to
Salt Lake City, and from that point to
San Francisco the Central Pacific
branch of the Southern Pacific, a Har-
riman road. would undoubtedly furnish
the desired outlet to San Francisco.
There was brisk trading in the stocks
of both railways, which made record
advances in the market. Missouri Pa
cific stock went up to 100. the highest
point reached since June, 1901, and st.
Paul stock rose to 1875, the highest
price for it on record. The trading
amounted to $4,000 shares of Missouri
Pacific and 44.100 shares of st. Paul.
In connection with the advance in the
price of st. Paul stock was a report
that the dividend rate of the company
was to be increased. Semi-annual div
idends at 8 per cent, making a yearly
dividend of 6 per cent, have been paid.
1t was reported that the semi annual
dividend was to be increased to 31s
per cent. making yearly dividend OF
I per cent in future. Earnings of the
it is said, We're large enough to
Justify an increase of the dividend rate.