New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-29
WILL SELL THE ALTON.
Deposits of Preferred Stock asked
for by Kuhn, Loeb & Co.

L14lS are un0eT way Tor the transfer OK the
Chicago and Alton Railway Company to some
other road. as appears from the following ofi-
cial statement. issued last night:
Holders of the preferred stock of the Chicago and
Loeb & Co tbat a IaTee anIoyrt oF tbst s{ocS has
been Senoeted Wiz, ~ tb b9 - - @ a1Tssnanf @
authorizing the sale thereof On before Septem-
may be approved by a preferred stockholders
e mrs 99n5n 5n5 6bS of 0ha a tewa ds dwaF o pr n
ferred stock who desire to participate in any sale
quested to deposit their certificates with
the bankers. who reserve the right to terminate
transferable receipts emitting them to pro rata
snare m OF t4e net pT0Geees OF any sac az 20 a46 % IN % Ease
of their stock without expense
Asked for further details. leading interest
in the Alton said:
think the. circular is self-explanatory. OF
course. definite purchaser is in view. but II would
serve no good purpose to say at present Who 1t Is
The syndicate which in March, 1900 pur-
chased the control of the Chicago and Alton
Railroad Company (now the Chicago and Alton
Railway Company composed of Z. H.
Hartman, representing the Union Pacific in
terests; George J. Gould. president of the Mis-
souri, Pacific; James Stillman representing the
Rockefeller interests in the Missouri. Kansas
and Texas, and Jacob H. Schih. OF Kuhn. Loeb
& Co. the representative of the Baltimore
and Ohio
ferred stockholders committee named in the
present circular of Kuhn Loeb & Co, is now.
as he was in 1900. the head of the Union Pa
ci1c system. Mr.. Stewart, the second member
of the committee, is the ex-president Of the
United States Trust Company, which is closely
identified with the National City Bank and
Rockefeller interests. Mr.. Mitchell, who is pres
ident of the Illinois Trust and Savings Bank Of
Chicago. acted for President Blackstone and his
associates in negotiating the sale Of their con-
trolling holdings in the road to the Hartman
party in 1900 and has since then been a d-
rector of the Alton.
An interest not represented on the preferred
stock holders committee which is to pass the
terms at which the preferred stock is to be sold
it may be fairly assumed that a majority OF
the common stock is already in the hands OF
Mr.. Hartman and his frends-is the Missouri
Pacific. and in view of that fact and of the
further fact Of the lack of harmony between
Mr.. Hartman and Mr. Gould during the last
year two. the inference may be drawn that
the Missouri Pacific is not the intending pur-
chaser of The Chicago and Alton The indica-
tions rather point to the Union Pacific one of
the other so-called Hartman roads as the sys-
tenn of which, If the pending negotiations be
successfully carried out, the Alton will become
a part The eastern termini of the Union
Pacific at Omaha and Kansas City.
The acquisition of the Alton would mean the
direct extension Of the Union Pacific system
from Kansas City to connection with the east
ern trunk lines at Chicago. with entrance also
into ST. Louis. Kansas City. too. is the northern
terminus of the Kansas City Southern road.
which since October. 1900. has been under the
control of Mr.. Hartman and his friends.
This road. originally the Kansas City, Pitts
burg and Gulf. extends to Port Arthur, the
Gulf of Mexico. and far back as 1898 rumors
were frequent that it would be combined with
the Chicago and Alton to form a through line
between the Gulf and the Great Lakes.
The Kansas City Southern is hardly in
position to purchase a line like the Alton with
cash or with its own low quoted stocks. nor
indeed would IL be generally believed that the
Union Pacific was entirely prepared to carry
through such an operation II is not incon-
ceivable, however, that resort may be had to the
modern device of issuing collateral trust bonds.
for which the Alton stock would be security.
and which would be given as the largest part
Of the consideration.
Chicago and Alton common stock. which went
as low 1872 in September. closed yesterday at
35Ss, less than points under the high level of
the year, touched in January The preferred
sold up to IA, It's highest price in 1903 and
closed at I3Ik a net gain for the day OF points.
IBY TELEGRAPH TO THE TRIBUNEl