The sun., 1903-03-01
AN iron MOUNTAIN $5o,o0o,oOo
m ne RiISED NJ BONDS As CIR
ClMSTtNCES REQUIRE
s4o. .oOo. 900 to Construct q New River
and Gulf Dt,tsion--i,eoked 10 some
Ob.er, ers In wall street Like an Onset
10 the Frisco.Rock Island Coalition.

Obser, ers In Wall street Like IN onset
10 the Frisc0.Rock Island Coalition.
That the directors Of the 81. Louis, Iron
Mountain and Southern Railway Company
authorized new mortgage for $50, ,0cO 900
a, their meeting ON Thursday became known
Yesterday. No official statement bearing
,pon the matter was obtainable from the
ONO. OF George J. Gould, president Of the
Missouri Pacific company. which company
owns nearly all Of the total outstanding
capi,al stock Of the Iron Mountain com-
nanv II was understood, however. that
he bonds under the mortgage will bear
. Der cent interest and that an issue Of
10000 900 Of them has been authorized by
,he directors The remaining $50 900 900 will
be held in reserve, exactly for what pur-
poses has not developed.
The issue Of SO. 900 900 was said to have
been already practically subscribed for.
yemilys 4 Co. were mentioned as being
concerned In a syndicate which would take
Them, but no statement was obtainable al
the Office OF that firm, excepting that they
might have something 10 say on Monday
The purpose Of tho issue OF bonds. II was
said. was 10 provide for the formation OF
what will be practically a new system OF
lines from Kansas City and st. Louis TO
Memphis and from Memphis TO junction
with the Texas and Pacific Railway-an.
other Gould line-at Concordia. Entry
into New Orleans will then be furnished
by the Texas and Pacific. The mortgag
will provide for additional terminal facili-
lies at 81 Louis and Memphis. The new
lines will be low grade lines and will give
10 the Missouri Pacific a shorter line from
Kansas City to Memphis than that owned
by the ST. Louis and San Francisco Rail-
road the control OF which latter road
Wall Street believes, has passed to the
Rock Island company.
In fact in some quarters yeste riay
this new Gould move was looked upon as
an answer by the Gould interests TO the
Rock lsland-Frisco coalition.
The mortgage for $1,000 900 will be-
entirely upon new instruction and will be
= hrst mortgage on such property The
division covered by the mortgage will be
known as River and Gulf Division. and
the bonds will have the saIne characterize
ron. The property underlying them will
amount 70 system complete IN itself and
one over which large business will be
done
Despite the views expressed on Friday
b. men familiar with Wabash affairs, that
there was 10 likelihood oi o deai by wlIch
the securities OF the Wabash Railroad
will be taken over by the Iron Mountain
Company. reports again circulated IN
Wall Street yesterday that something OF
he sort il pending Ii Was sugg.stcd
that IN. S7n.DJo 900 cf the ncw bonCis held
IN reserve Tor enlargements and improve
mrnts 30 the new division might bc utilized
TO aCGuir' the debsntuTc A and b bouds
OF the wabash company.
1h.sc lrnus, "t'ch carry voting power,
aggregate SEQ. .ooo eco. OF the o,5CC coo
Of bonds IS ASS eco are now held iI the treas
uIy Of the Iron Mountain Company. BY
acquiring these bonds and some stock the
Iron Mountain Company would control
the Wabash.
At the same time q Wabash authority
who discredited the story Of . Wabash Iron
Mountain combination on Friday. said
then that the laws Of the State Of Missouri
would prevent II, as the Wabash and the
Missouri Pacific, which owns the Iron Noun
ain control are paralleling lines between
y. Louis and Kansas City.