The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-09-13
RAILROAD news.
Union Pacific Alton Deal Is Not
Closed.
Believed i'm Some Quarters that
Union Pacific La in Control.
AWAIT DEVELOPMENTS
Alton Makes a Valuable Proper.
ty for Pacific.
Gossip and Matters of Interest
i'm Railroad Circles.

| Chicago railroad officials place little
credence in the report that John w.
Gates, Edwin Hawley, and the Moore
| brothers have wrested the control of
| the Alton from E. H. Hartman and
Kuhn, Loeb & Co. They believe the
reports are for the purpose of boom
| ing the stock.
Stock deposits sufficient to control
the Alton, they say, were reported to
| have been made during the last year,
subject to Harriman's request. The de-
posits were asked for the purpose of
effecting a sale of the Alton to another
road, which was understood to be the
Union Pacific. 1t is understood Hawley,
Gates, and their associates refused to
deposit their holdings, and now are
seeking better price than they first
were offered. The general opinion is
that an agreement will be reached, and
that the Union Pacific will become the
principal owner of the Alton stock.
1t is still asserted in most quarters,
however, that the Alton is in control
of interests friendly to the Rock Island
1t is said that a large part of the stock
bought a t private sale by other brokers
than Gates and Haw1ey. 1t is said the
entire transaction, extending over more
than a year, was carried out with such
secrecy that not even the big houses
concerned in the purchase had the
faintest idea at any one time of the
aggregate of stocks held in these ac-
counts or were able to define just where
the control of the Alton lay. 1t is
also said that the new syndicate has
paid for more than $45O0,OO0 of the pre-
ferred and $15,500,000 of the common and
that the stock was bought at an aggre-
gate cost below $9,000,0O0. The capital
has been provided thus far by private
individuals, and there is much specula-
ton in financial and railroad circles as
to the future of the road.
How true these statements are re-
mains to be seen.
Should it develop that the Union Pa
cific has the control of the road, the
advantage which that road mas gained
will be hard to estimate.
The Union Pacific now reaches Chi
cago from Omaha over the tracks of
QUESTION of the Alton would not only
give that road it's own tracks into chi
cago but would atfthe same time give
it a line into St. Louis.
1t begins to look like the building of
the cutoff of the Union Pacific from To-
peka to Marysville is a part of the
scheme which had for its object the
control of the Alton by the Union Pa
cific.
Through trains from the Chicago to
the Pacific coast could be routed from
Chicago over the Alton to Kansas City
and from Kansas City to Topeka over
Marysville over the cutoff and thence
over the ST. Joseph and Grand Island
railroad, also a Union Pacific property,
to Grand Island, Neb; and thence west
on the Union Pacific main line.
This route would be but 132 miles
longer than the present Chicago-Pacific
coast route of the Union Pacific which
has the disadvantage to the Union Pa
cific of having to pay toll to another
road for the trackage rights over 49S
miles of the distance.
The line between Topeka and Marys-
Vile is being built up to the h1ghest
standards of the railway builders art, |
and it is not unlikely that the time |
will come when through trains from
Chicago to the coast will be passing
through Topeka over the Union Pa
cific.
the Union Pacific would also be able
to run passenger trains through from
St. Louis to the coast.
The ACQUISITION of the Alton M, by THE the
road an advantage that would make
hot competition for the other western
railroads reaching Chicago and ST.
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