The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-03-01
WICHITA Is
NOT ALAKM Ed
May be Truth in Reported
Railroad Merger.
WOULD STOP BULLD0ZlNG
A. C.. JobeS Talks About lnCOn-
sistent Reports.
STOP BULLDOZING

The Geographic reports from New York
and St. Louis as published in the Eagle
concerning the purchase of the Frisco by
the Rock Island and the further report
that the Santa Fe and the Rock Island
had formed a merger and would be oper
ated under one management caused
good deal of discussion among business
men of this city.
The des;inies of all commercial centers
are more or less controlled by great lines
of transportation. When word of this
great merger reached this city the first
thing that every merchant, manufacturer,
grain dealer and stock raiser asked him
self was: How will that effect Wich-
ita" 1t did not take these men very long
to figure out that this city could under
present conditions afford TO keep cool.
Wichita for a long time has been in
the habit of getting the worst of the
deal in the adjustment OF freight rates.
She has grown and prospered in spite OF
all these determinations. The grain deal
ers, millers, packers. jobbers and other
business interests in this city have ever
had an abiding faith in Wichitas adj
yantageous location and they have never
asked more than an even start in the
race for business. They have felt that
railroads into giving them better freight
rates than Wichita was able 10 obtain.
They also at once realized that if the
three railroads named were merged I'M
der one management that bulldoZing tao
tics would not work. That is the reason
the business interests of this city are not
excited over the reports referred to, but
are quietly awaiting further develop
mentS.
&c avid w md for q
persistent rumors of this great merger,
but it is also evident that the trade is
not yet consummated. President a. c.
Jobes, of the National Bank of Com
merce of this city, is one Of the Santa
Fe directors and he is authority for the
statement that this merger has never
been mentioned in a meeting of the Atchi-
son directors. He, however. admits that
the officers of the road might be max
ing Il deal of that kind with the intention
of bringing it to the attention of the di-
rectors later When asked last evening
what he thought of these reports Mr..
Jobes said:
II am absolutely without any informa-
ton upon this subject further than that
which l have seen in the papers; but am
sure that there has been no official ac-
ton taken toward giving the Rock Island
Co., representation upon the Santa Fe
on the Rock Island board. OF course,
the matter may have been discussed with
the officials of the road, and possibly an
understanding reached that it will be
brought before the respective boards OF
directors at their next meetings. Though,
from the face of the article, l am in
clined to disbelieve it for the reason that
the figures quoted as the purchase price
of the Frisco seem to be entirely incon-
sstent. The article which l read stated
that the Rock Island had acquired con-
troll of the Frisco by purchase of its com
mon stock and that the price per share
was about $40 cash; s45, AZ per cent
bonds and SEQ Rock Island preferred stock.
Assuming that the AZ per cent bonds
were worth par and that the Rock Island
stock was worth S5c about the average
quotation this would make the purchase
price of the Frisco common stock Sl20 per
share. Whereas. the quoted price for 1t
during the past year has averaged &c.
These figures would indicate that the
hook Island Co. has bought the stock
at an advance of siS per share over the
average market price; and | do not be-
lieve that their desire TO acquire posses
sion of the property is quite that strong"