Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-03-19
A BIG RAILROAD D[AL
Rumor That the Rock Island and
Northwestern Will Enter
Combination.
Phenomenal Rise In These
Shares Gives Weight to
the Suspicion.
The Moore Brothers Quietly Buy
ing All the Northwestern
Shares Offered.

| Chicago, March 19.-The comDlnalloIi
&C the Chicago, Rock Island & Pacific
and the Chicago & Northwestern rail-
ways was reported upon good authority
Ion La Sale street yesterday. Giving
weight to the report was the phenome-
nal rise in the stocks of the two roads
in the last ten days and a dispatch re-
ceiyed Yesterday from South Bend, Ind.
stating that the Moore syndicate. head
ed by William H. and James III. Moore,
is in negotiation with the divers. of
South Bend, to take over the latters
holdings in the Northwestern. The
Moores control the Rock Island.
William b. Leeds president OF the
Rock Island, is reported to be the choice
for president of the consolidated roads.
Next to the Vanderbilts, the divers
are the leading holders of Northwestern
railway issues. Some time ago they
were reported to be willing to part with
their stock if the men who wanted to
buy were willing to pay the price. The
Moores have declared that they are
willing to pay it,
1t has been a popular belief that the
Vanderbilts owned a controlling inter-
est in the road Recently it has trans
pired that they possessed the bonds but
not the stock. The Moores have been
buying quietly the floating supply and
n n - &l,o la. Hn6
in the last four weeks have been for
their account Associated with them
in the transactions are Messrs. Frick.
Leeds and Reid. Besides these sales,
r,any recent purchases of railroad
stock have been unrecorded and large
blocks of Northwestern have been
bought privately.
Both La Sale and Wall streets have
been mystifed for weeks over the ac-
tivity in Northwestern and Rock Island
issues. Rumors have been many and
varied, but no satisfactory explanation
for the steady advance in the stocks of
both roads was offered.
Rock Island jumped from 1855 to
above 172 in less than a month, and
Northwestern from 212 to 232 and
above in three weeks. The brokers
could offer no solution.
The merger of the Rock Island and
the Northwestern will mean the con-
solidation of two corporations with a
combined capitalization in stock and
bonds of S334,s54,79S. operating togeth-
er 1896 miles of road.
Close on the heels of the authorita-
tive report of the contemplated merger
OF these two roads, it was rumored that
the Chicago, Milwaukee & ST. Paul was
to enter the combination. This report
was somewhat discredited, because the
st. Paul issues have not been particu-
larly active recently. There has been
no movement of consequence in the
stock, and traders said yesterday that
If the Moores had been attempting to
acquire control of this road, too, the
market would have been affected.
Despite the doubts of the traders,
however, Robert Mather, the general
counsel of the Rock Island, was clos
eted for two hours yesterday afternoon
in conference with George r. Peck, of
the st. Paul. Neither Mr.. Mather nor
MIR. Peck would admit that the confer
ence was the result of the reports on
the street, and neither would admit
they knew a consolidation of the lines
was contemplated. Mr.. Mather said:
II will not deny that the Moores
might accomplish something of this
sort. They may have done it already
for all know. 1 will not admit any
thing or deny anything about it. will
say simply that l know nothing
about It,"
If the st. Paul should later be taken
into the combination of the Moores
there would be an addition to the huge
capitalization stated above of $227,421.-
700. The st. Paul operates 6,512 miles
of road and its gross earnings last year
were $42,369,01.