Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1902-04-11
THE RAILROAD SITUATION.
The Chocaw Bought Up Either by The Rock island or
the Santa Fe System.

the Santa FelSystem.
The report that the Rock Island had
bought the Choctaw is confirmed furth-
er by the following telegram from Phil
adelphia
Announcement was made today by
Edward B. Smith and Company of this
city, bankers, that the Choctaw, Okla-
homa and Gulf Railroad Company has
been sold to Speyer and Company,
bankers, of New York. The announce
ment is as follows:
"By authority of President Gowan 1t
is stated that a majority of the stock
of the Choctaw, Oklahoma and Gulf
Railroad Company has been sold to
Speyer and Company at the price OF $So
for the common and $50 for the preferr-
ed, both ex-April dividend. BY the
terms of the sale thus made the pur-
chasers agree to take at the same price
all stock offered. A circular giving de-
tails will be issued to stockholders In
the course of few days, and they Will
be asked to deposit their stock with the
1t was not officially announced for
whom Speyer and Company are acting.
AS the April dividend amounts to $l.25
on preferred stock, the price named IS
equivalent to $6125. The dividend on
the common stock per share is $l.5o.
Dividends are payable April 80 to
stockholders as registered April Il.
Mr.. Smith intimated today that the
sale would bring over $21,000,00O to this
city. where most of the stock is held.
Francis B. Gowan, president of the
Choctaw, said that he was not in a po-
sition to talk in detail on the subject.
He said the transfer would mean
revolution in the management or lhe
road, but in what way he could not
| say. When asked if the Pennsylvania
company was interested in the sale,
! Mr.. Gowan said. You are coming tca
!, fa. east"
Whether the bond issue recently pro-
jected would be forthcoming he could
not say, though he expected the new
| management would see the advantage
of the extension that had been contem-
plated. The decision to sell was taken
after careful deliberation, and he
thought that it was decidedly advanta-
geous to the property. The proposition
of Speyer and Company, he said, was
the first bona fide offer made for the
purchase of the road.
The stock issue of the Choctaw
amounts to 10000 shares of common,
par value $SsOO,OOO, and 100000 shares
of preferred, par value $6,000,0OO.
The announcement Of the sale was
made after the stock exchange had
closed and little information could be
had as to the prospective purchaser
During the last six months rumors
have connected the Atchison, Topeka
and Santa Fe, the Missouri Pacific, the
st, Louis and San Francisco and the
Rock Island, with negotiations for the
Choctaw. There is a strong belief thai
the last named road is the real pur-
chaser. This belief is strengthened by
the fact that the directors of the Rock
lIsland are about to issue s15,000,0OO ir
new capial stock.
The Colorado and Southern railroad
which recently passed into the contro
of Edwin Hawley and associates, Is te
be closely affiliated with the Choctaw
Oklahoma and Gulf railroad. The
western extension Of the ChoctaW VII
be completed to connection with the
Fort Worth and Denver City railroad
which is the Texas division of the Col
orado and Southern at Amarillo, Tex.
about May 1, and it is stated that I'M
mediately thereafter a thorough freigh'
and passenger service between Mem
phis, Tenn, and Denver, Colo, over the
Choctaw and Colorado and Southern pS
way of Amarillo will be established. Il
is also stated that Mr.. Hawley and as
sociates are able to secure an Quite
from Memphis to Savannah, Ga, ane
that it is their purpose to ultimatel!
have a through line between that por
and the Pacific coast.
The transportation and traffic de
partments of the Colorado and South
ern road are expecting notice from tn
) Choctaw, Oklahoma and Guf, namlnl
a date when the Choctaw line Will b.
connected with the Southern at Amar
lilo, Tex. owing to difficulty in secur
ing rails the work on the ChoctaW ma
not been completed as soon as wa
promised earlier in the year. This VII
be the most direct route into the Indial
, Territory from Colorado and north
eastern New Mexico, and it is expecte
. that a lucrative business between Col
orado and New Mexico and points Q
Oklahoma will spring up as a result Q
, the development Of the railway system
Scratch Paper.
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