New-York tribune., 1903-03-01
TO FINANCE EXTENSIONS.
Uses to Which Proceeds of the Iron Moun-
tain Bonds Will Be Put.

MI, s;raotors of the St Louis Iron Mountain
and Southern Railway Company II 10 le"
from trustworthy sources. have autIloIl@Ieo @ @ t
execution of a new mortgage Tor $0UOVVVVV
under which bonds to the amount OF S@V'VVV'"OO
have been issued. 1t is said thaC Geoise o.
Gould and John D. Rockefeller have eacn taNen
e. OOO OoO of the bonds and, syndicate formed
by Vermilye & Co. the remaining $IO"VVV''
Mr.. Gould yesterday declined to say anything
about the new bonds and the reason for their
issuance A representative of Nerlnilye & CO.
said that in the absence for the day of William
A Road of that firm, no statement coulu "7
.ao b,, th.n1 1t is learned. however. Ihat the
now bonds are to be known as the River anu
CSeslf Division bonds. and Will oe ol'eet e
ton of the Iron Mountain Company Inc p'
ceeds of the $20O0O.OOO already issued VIII Oe
devoted to the financing of various eAte"oIo'''
.I-eed, announced as decided upon OF the MIS-
souri, Pacific system. of which the iron Niouii-
tain Company is an important part.
Among these contemplated extensions Is thdI
of the White River Railway, which road at
present extends from Batesville ARK 10 bufla'"
CITY. eighty-two miles. and is to be built on 10
Cartbare Mo- an additional 163 miles, shorten
INC materially the distance between Kansas City
and Nemphis Another extension planned is to
he constructed from Marianra on the iron
Mountain road, not far from Memphis SOUTH
ward to a junction with the Texas ana FacIic'
r,aLiue a more direct connection than at pres
ont betv.aen Memphis and New-Orleans. There
is also to be built a line. the JEFFERSON Clty
cutoff along the Missouri River, and consld-
cradle sum is to be expended in acquiring addi-
4ionaI terminal facilities at ST. Louis and Mem
phis
In order to comply with the requirements OF
tho law the directors of the Iron Mountain
have voted to increase the capital stock by
S2OO0OOO0, an amount equal to that OF the
latest bond ISSUE making the total stock $lOO-
OOOO0O. The new stock, it Is understood IS 10
be held in the company's treasury.
It is reported that part of the $30,000OOO new
bonds of the Iron Mountain system authorized
hut not yet issued. will be used IN retiring the
Wabash debenture b bonds, but this rumur
could not be suhstantiated yesterday. Ihls re-
port is in line with the one current a day or two
aeo which wss not generally credited in Wall
Street, that the Wabash control was about to
he taken over by the Iron Mountain. 1t Is de-
clared in eood quarters, however. that the re-
cent heavy buying of wabash securities mas
been for account of the Goulds. and that they
now hold IA majority OF the STOCK so ttldt the
transfer of that majority interest To the IRON
Mountain which is owned by the missouri "a
Cifc a distinCtively Gould property, would be
possible whenever it might be desired to take
such action. which would be a move i'll the dIrec-
tion of unifying the Gould railway interests
east and west of the MISSISSIPPI RIVER
baltimore Feb. 2S-"The Evening News of
this city, to-day telegraphed to George J. Gould
as to the truth of the report sent out last night
l,v special dispatches from New-York, that ar
III ngements had been perfected by which the
Iron Mountain road. one of the Gould properties
will ,ake over the Wabash, and that a trarhc %
alliance has been concluded between the
Wabash and Pennsylvania, receiving the follow
ing reply: 80,
Your message received. know OF no such
de.I GEORGE J. GOULD.