The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-05-08
RAILROAD NEWS.
At Last the Rock Island Owns
the Frisco.
President Yoaknm EIectee as a
Rock Island Director.
MORGAN CONFIRMS IT.
MORGAN CONFIRMS IT.
Official Announcement Of the
Deal May Not Be Made.
Makes Rock Island One of the
Biggest Systems in L. S.

New York, May 8.-President Yoakum
of the St. Louis & San Francisco rail-
road company has been elected a di-
rector of the Chicago, Rock Island &
Pacific company.
J. P. Moran & Co. made the follow
ing statement regarding the report that
the deal between the Rock Island ana
Frisco railroads had been consummated:
1t is true that President Yoakum OF
the st. Louis & San Francisco railway
company was elected a director of the
Chicago, Rock Island & Pacific railway
company, which. of course, means that
the harmonious relations which have ex.
listed for some time between the two
roads are to continue
The directors of the Rock Island and
the st. Louis & San Francisco COM
panies held meetings. here Thursday.
George ". Perkins, in making this
announcement. said he was not at lib
erty to give any further details Finan-
ciers interpret this statement as an off,
cial acknowledgment that the long pend
ing deal providing one management of
the two roads has been completed.
A Wall street news bureau says that
the negotiations recently renewed for
the purchase Of control of the St. Louis
& San Francisco railroad company by
the Rock Island company have been
practically closed and that the terms
nave been fully agreed upon.
The St Louis & San Francisco rail-
way company has applied to the New
Y ork stock exchange to list S2523 600
additional per cent refundinS mort
gage bonds of 1851
The election of President Yoakum to
the Rock Island directory ends all
doubt If the deal is not already closed
it VIII be before many days, and the
great Rock Island and the Frisco now
becomes practically one system.
An official announcement of the COM
pletion of the deal may be made, but
then again the details may be closed
UP quietly and the public left in ignor-
ance of the actual terms and conditions
of the deal. A month ago it was semi
officially announced that the deal was
off and that negotiations had ceased.
At that time the Northern Securities
merger decision was thought to have
figured materially in this, and now that
the whole matter has been suddenly
reopened with the official announce
ment of the deal expected at any time
the question will naturally arise what
will be the position of the Rock Island
Frisco should the decision of Judge
Thayer be upheld in the higher court
In his opinion the principal point was
that the consolidation of competing
lines was Illegal The Rock Island and
Frisco would not destroy competition
throughout their systems. but these
two roads undoubtedly control the sit
uation liz many sections, and if Attor-
ney General Knox decided to act
against such merger, should 1t ma
terialize there will be some exceeding
ly interesting developments. There are
many points of difference between the
present consolidation and that in the
North but in other matters they are
the same.
During the latter part of February 1t
was semi officially announced that all
but the minor details were closed up
and within a month an official an
nouncement ef the sale of the Frisco
nents it appeared that the deal had
fallen through, but from the New York
report it would appear that the sale has
not been given up for minute, ana
all this time the heads of the two sys-
tens have been bringing the matter to
head.
lines will create a powerful system, fur-
nishing the Rock Island with line
from the far north direct to New Or
leans and Galveston. This Will be
big factor in turning the wheat traffic
for export purposes into southern ports.
Over the western corn belt they VIII
form a net which will girdle the entire
territory The Chicago & Eastern Hi
nOis will give the Rock Island Chi
cago-St Louis line and there Will be
several ways for it to work to the Gulf
norris over its own and the acquired
tracks. Traffic arrangements will take
the Rock Island east to Buffalo, and
possible agreements with the Santa Fe
viii send it further into the west. One
of the most important features of the
deal win be the result in destroying
much of the competition in the south
west The Gould interests will now be
about the only competitors.
The Frisco has made wonderful strides
since its divorce from the Santa Fe in
1906 From a total mileage of 941 miles
in 1854 the system, by slow growth,
showed a total of 1 162 miles when the
Santa Fe REORGANIZATION committee sur
rendered control. Since that time the
new manager, mt has added to the mile
age Over 1000 miles of track and ex-
tended its branches north from St. Louis
to Chicago, southwest over the terri