The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-08-14
DONE AT MIDNIGHT.
Seaboard Deal Gives Rock Island
Control of 1927 Miles.


The ST. Louis Republic gives the fol-
lowing story of the Frisco Seaboard
deal:
Once more the railroad map Of the
United States has been redrafted.
The Seaboard Air line has lost it's
identity as an independent system and
the Rock Island has emerged as the
controlling interest in the new owner
ship.
This most recent affiliation which in
cludes a perfect understanding with the
Mexican Central. makes the Rock Is
land by far the largest railroad system
in the Western hemisphere, having a
voice in the policy governing 1927 miles
of railroad.
New interests which now dominate
the Seaboard Air Line are the St Louis
and San Francisco Railroad, owned by
the Rock Island the Mexican Central
Railroad and Ladenburg, Talmann &
Co., bankers, who represent the former
controlling interest in the Seaboard and
also the fiscal agents of the Mexican
Central.
community of interest" is the first
change in great railroad property due
directly to the slaughtering of fictitious
prices in the stock market. There were
institutions and bankers in the large
cities of the south who had felt the iron
hand of contracting credit ana falling
prices.
Louisville and Nashville was bought
extensively around $50 before the con-
troll of the road passed to the Atlantic
Coast Line Virginia Carolina Chemical
decline entailed loss upon bankers of
Baltimore and Richmond The decline
Baltimore and Ohio,and virtually every
Southern favorite, threatened to carry
down in a tide of destruction the paper
fortunes that had been accumulated and
used as a basis of credit in the uprush
of security prices that preceded the
present rich mems panic.
The Seaboard Air Line was the safe
ty valve of the situation. Large inter-
eSts stood ready to take the property at
a reasonable price, if the men who con-
trolled the road would sell. Tentative
propositions a year ago had been made
for the purchase of the property by the
ST. Louis and San Francisco. Terms
were not satisfactory to B. F. Yoakum,
president of the Frisco, and the negotia-
tions ended.
1t was again to B. F. Yoakum that
bankers turned Tuesday night when
they were looking for a purchaser for
| the Seaboard, the control of which they
were able to deliver
1t was after dinner hour when the
first proposition was made to the pres
ident of the Frisco. An hour later he
was called into conference of about
dozen men, among them Oakleigh
ThOrne president of the North Ameri-
can Trust Company; Henry Clay Pierce,
president of the Mexican Central; b. s.
Guinness of Ladenburg, Thalmann &
Co.; John Shelton Williams. president
of the Seaboard Air Line, and repre-
sentatives of interests in the South who,
when acting in union could control the
Sea board Air Line Railroad.
This conference lasted until g o'clock
this morning. When@the men separated
it had been decided that the Control of
the Seaboard should pass to a syndicate
represented by Mr. Yoakum, Mr.. Pierce,
Ladenburg. Thalmann & Co, and the
North American Trust Company. Some
1 CT jpOI11diY1c that held Sharu q
Bryan, who made an assignment last
week, had been already acquired by
Ladenburg, Thalmann & Co. To this
was added extensive holdings of South
ern interests represented at the mid
night conference.
The price agreed upon for the voting
trust certifcate-representi the pre-
| ferred and common stock of the Sea-
/ boards understood to have been about
$40 for the common and $40 for the pre-
ferred