Omaha daily bee., 1903-05-12
ENDORSE FRISCO PURCHASE
Rock Island Stockholders Formally Agree
to --latest Merger Deal
COMPANIES TO Be OPERATED SEPARATELY
Purchasing Line Increases Capital by
s2O,O 900 and VIII Control 5000
Addition Miles of Track, with
Two Outlets to Sea-.

DES MONIES, May u.-At a meeting Of
the stockholders of the Chicago, Rock
Island & Pacific Railway company, held in
this city today, the deal made by ]. p.
Morgan e. Co. for the sale to the Rock
Island of the St. Louis & San Francisco
railway was approved and the capital stock
Of the Rock Island increased S20,000,0O0
The contract with the Morgans calls for an
exchange Of s29.OOO,O 900 worth of Rock
Island stock for s31, 100000 worth of st.
Louis & San Francisco stock and the turn
ing over Of the entire system to the Rock
Island o~ficials. The purchase includes 5000
miles of railway.
1t was also ordered that SIS. 10000 0 worth
Of S per cent gold bonds be issued.
Carroll Wright Of Chicago, attorney for
the company. gave out the following state
ment this afternoon:
BY this deal the Rock Island secures con-
troll of the Frisco system. II does not
take over the management of the road, the
two, remaining independent lines oper,
does secure control of the capital stock.
The Rock Island now has two outlets to
the coast, one to Galveston and one by
It should be understood that the Rock
Island Railroad company is the Iowa end
of the Rock Island system and in this
company rests the title and right-of-way:
The Rock Island Railway company is of
through a leasehoid controlled by the
ownership of a majority of the stock of
the Iowa Incorporation.
Rock Island Increases Capital.
Subsequently the Chicago, Rock Island
& Pacific railway filed with the sec
rotary of state articles of incor'
| p~oration increasing their capital $20,0o0000,
making their total capital stock $14S, 900,
600. The fee charged for fling was $4,000,
During the last twelve months the Rock
Island has paid into the state treasury an
aggregate amount Of $1eO. 900 for increases in
its capitalization.
NEW YORK, May Ill. p. Morgan &
| Co. today made public the terms of the
Rock Island-St. Louis & San Francisco
railroad deal. Acting for the Rock Island
the company, offers holders of Frisco COM
mon, par value 800, $50 par value in {
per cent gold bonds of the Rock Island,
and $50 par value in common stock OF the
Rock Island company of New Jersey, the
| holding company of the Rock Island and
Pacific roads. The sale is not to be con-
summated unless 225, 900 shares of Frisco
| common are deposited with Morgan & Co.
by Tune /. This is a mere formality, how
ever, as It is understood that a majority OF
the shares have already been pledged.
Accompanying the offer is a letter from
o. H. Bogue. the Rock Island vice presi-
dent. showing these authorized securities
s145, 900, 900 stock. entire issue except shares
to qualify directors being owned by the
Rock Island company of New Jersey; $751;
900, 900 4 per cent bonds"of $4,000. Of which
Sc. 492, 275 are issued and outstanding and
SIS, 100000 5 per cent gold bonds of 1908.
Mr.. Bogue's letter is supplemented by a
statement signed by B. F. Yoakum. II. C.
Pierce, James Campbell. B. p. Cheney. w.
X. Bixby and H. H.. Porter. the controlling
interests in the Frisco road agreeing to
the terms ''as to all common stock owned
and controlled by Shem."F ff-'-'-d 100
Mr.. Yoakum is to remain at the head bf
the Frisco road, which will be ~Tconducted
as an independent company. Reports that
he may eventually become president of the
Rock Island lack confirmation. faf.H,r