The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-07
BIG SUM At STAKE
Comment of Eastern Press on Reason
for l.. +. LOree's Resignation.

Comment of Eastern Press on Reason
for l.. f. Loree's Resignation.
The resignation of J.. F. Loree, the
highest salaried railroad man in the
world from the management of the
Rock Island system, has brought out
column after column of comment by the
leading daily papers of the country.
Herewith are extracts from a few of the
papers:
The Chicago Record Herald says: In
railroad and financial circles the resig-
nation of L. F. LOree as the executive
head of the Rock Island system is Ia
ken to mean that the Moores and their
associates have become Independent of
the banking firm of Speyer & Co. of
New York. At the time of ME-. Loree'
selection to control the big railroad sys-
tenn the change was generally credited
to Speyer & Co, whoe faith in the for
mer president of the Baltimore & Ohio
road was unbOunded- The owners of
the Rock Island desired to make bond
issue of about 5000, 900, 900 and were I'M
able to get anyone to finance the deal.
Later the issue was decreased to $685.
000, 900, and Speyer & Co., hitherto not
closely associated with the MoOres,
agreed to undertake the financing, and
succeeded in placing $15,000,000 of the
I bonds, which is all that has been is
sued.
1t is said the condition annexed to
the underwriting deal was that the
banking concern should have the right
to name the executive head of the COM
pany. 1t was not to be expected, how
ever, that the MOores would long be in
active after they became convinced that
the property, upon which there is a
burden of earning an enormous fixed
charge annually, was not being man
aged so as to develop it's earning capac-
ity to the limit.
Whether the action with reference to
Mr.. Loree was taken without consulta-
SnRXQr e definitely
known, but it is certain that the New
York banking concern could not, had
it seen fit to try, prevent the change
in mana cement which mas taken place.
The independence displayed by the
MooreS in this matter is taken to mean
that they are now financially strong
enough to carry the load of more than
$550, 600, 900 capitalization, representing
their varied interests. without reference
to or dependence on any single banking
concern in the vicinity of Wall street.
In this connection it is also stated
that the relations between the Moores
and J. p. Morgan, through the medium
of the First National bank of New
York, are again of the most friendly
character, the chasm caused by the
banks refusal to finance the Rock ISL
and bond deal having been bridged.
The future of the Rock Island.
with its total mileage of more than
5000 miles, has been placed in the
hands of two men-B. L. Winchell
and Robert Mather-and it is under
stood they have been given a free
hand in their undertaking of making
the property what it should be. Five
years ago neither of these men was
widely known in railroad circles, but
both have risen by sheer merit to the
highest eminence in railroad circles.
Mr.. Winchell will be in complete
control of the operation of the prop
erty, with the aid of Mr.. Mather as
chairman of the executive commi tee,
while Mr.. Mather will be charge of
pany of New Jersey, the security-h old
ing corporation. General opinion is
that they have a difficult problem to
solve, but the belief is they will find
the solution.
Neither railroad nor financial his
tory furnishes a parallel of the rise
of William H. and James H. Moore and
y. G. Reid, and nothing in railroad
history has been so fraught with SEN
sational developments as the Rock
Island since the Moores acquired it
three years ago.
In 1896 the Moore brothers, then
cial ruin with the collapse of the
Diamond Match company, falling for
100000. Less than eight years af-
terward the 100000 Indebtedness
had been wiped out, and, together
with their associates, Mr.. Reid and
w Is. Leeds, they are controlling rail
road and industrial corporations with
capitalization of over half a billion
uOlldTS, possessing wealth. eSIlnaU6Q a
S1O0,OO0,0O0.
The acquisition of control in the AL
ton railroad by an expenditure of at
least SO 600, 900, with as little fuss and
feathers as an ordinary man would
make in purchasing a horse, and there
by outgeneraling the shrewdest railroad
and financial men in the country is the
latest example of the sensation methods
of the Moores.
In 1901, when the MOores and their
friends acquired control of the Rock Is
land, it was a property of 3,S1S miles,
and now it is system of more than
$4,000 miles, reaching from the Twin
Cities on the north to the gulf on the
south, and from Chicago. st. Louis and
the great lakes on the east to Denver
and Ell PaSo on the west.
Following their acquisition of the
Rock Island came in rapid succession
the lease of the Rock Island and Peoria,
the Burlington, Cedar Rapids and
Northern, the purchase of a control in
the Choctaw, Oklahoma and Gulf of
the St. Louis, Kansas City and Colo
RADIO, the organization of the Rock Is
land company of New Jersey with a
capital stock of $3.50. 600. 900, of the Chi
cago. Rock Island and Pacific Railroad
of $125, 000,0 900, the purchase in 1903 of a
control in the Frisco system for SIS, 00O.-
900, the purchase of the Eastern Illinois
| for $14, DOC, 900, and the purchase of the
Evansville and Terre Haute. Then fol-