The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-11-14
At Same Time May Economic
i'm Cost of Operating.
Big Earnings Necessary to Pay
Dividends on capitalization.
dimes Marked for Combination.


SOUTHERN RAILWAYS.
Il. E. n. Il. and o. & -''''' '' 80.
weste gnana l0tn $50 $1,000 GO
Eastern -..--.'-- 4S'SsS S9 9S3 5O0 0 00
Se VSn England ' ssis $3.50 1885 SSS
rotsI mileage Of ali roads in the eounE
Total capitalization. $4ss2, 100000
Chicago, Nov. 1.-THE Chicago
Tribune in a three column article upon
its first page says:
Details are working out rapidly for
the formation of the gigantic railroad
trust beside which all the other great
trusts heretofore organized in this
country will dwindle into insignif-
canoe. A dozen eastern financiers
headed by the Standard Oil interests
with their unlimited wealth expect to
control the entire railroad system in the
country and prevent competition
among the various roads.
The plan is to divide the railroads
of the country into a few groups or
systems each one of which is to own a
substantial interest in the stocks and
securities of every other big group or
system. and all to have representation
on each others board of directors.
The dozen financiers, all represented
on the boards of the various roads, will
control, from present appearances,
more than 100000 miles of railroads,
including every important trunk line
in the country, representing a capitali-
cation of about 5000 million dol
lars in stocks and bonds. They will
see to it that the roads are managed
as economically as possible and the
rates kept up to as high a figure as the
traffic will bear in order to secure all
the revenue necessary to pay good div
idends on the enormous capitaliza-
tion.
The recouping of systems, which
has been going on for some time, has
not yet been completed, but from pres
ent indications the western roads viii
be divided into about six systems, the
eastern into three or four, with the
southern and New England lines form
ing separate system each The west
ern system or groups probably will be
as follows:
System. Mileage. and debts.
Hartman, including Illi-
nois Central 2 2So So ss4 SS SSS
Hill. includ. Burlington. 1900 764 Co., 900
r. L, Frisco (doores). .19. 407 40 100000
Rockefeller, NJ. & St. FILES 100000
Totals 49,. .......... 6,104 a. 4s5 600, 900
The eastern system probably will be as
follows:
vanderbilts 80. ..........9o ,4s3 s1,117.5 900
Erie, Pere Marquette, c. .-''-'' ''-''''''''
II. & d. -.-...-.-.....-.-. 1852 414OO0Oo0
Totals .... .455SS $,o6s, 500, 900
The southern railroads are all con-
trolled by ]. p. Morgan except the
Illinois Central, which is classed with
the Hartman system. The mileage of
Morgan's southern railway system is
1888 miles, with a capitalization of
$297,50O,O0O.
The plans of the Gould interests
I-v,n to h. it, t.
IS believed to be their intention to
construct establish a transconti-
mental line stretching from the At
lantic to the Pacific. Through the &C
QUESTION of the Wheeling & Lake Erie,
West Virginia Central and Western
Maryland, with the construction of
some new mileage, the eastern termi-
nus of the Gould system practically
has been moved to the Atlantic sea
board Through the acquisition of the
Denver & Rio Grande and the Rio
Grande Western the western terminus
has been advanced to Salt Lake. Ar
engagements have been made lately for
the. construction of a new road. to be
known as the Western Pacific in
which the Goulds are largely interest
ed. and which is expected. to furnish
them with the desired outlet from
Salt Lake City to San Francisco. The
Western Pacific, if carried to compile
ton. will become a direct rival of the
Southern Pacific as a trunk line to
the Pacific coast. The capitalize ton
OF the w eSLeIn racine is follows
Stock paid up, s., 500, OoO) .......s so 600 eOD
Bonds (30-year, D per cent? -...... 100000
Total .---.... -..--.-....-...-....$1O 800 600 900
The Vanderbilt system is the ONLY
one in the east that extends into the
territory west of Chicago and the
Mississippi, just as the Gould system
is the only western one that laps over
into eastern territory. The Vanderbilts
however. unlike Mr.. Gould, are making
no effort to extend the Northwestern
to the Pacific coast, but are content
with the traffic alliance the road has
with Harriman's Union and Southern
Pacific roads. Although the Chicago
& Northwestern is a Vanderbilt prop
erty, yet scrupulous care has been
taken not to have it closely identified
with the Vanderbilt roads east of Chi
cago, and il exchanges traffic with all
of its eastern connections on the same
terms as it does with them.
Some time ago it was reported that
the Pennsylvania was trying to secure
control of the Santa F'e system, with
a view of securing a continuous line
from ocean to ocean. This has been
denied, however, by both the Pennsyl-
vania and Santa Fe people. and there
is nothing to indicate that the Pennsyl-
vania has any large interest in the
Santa Fe.
Nearly all the changes thus far
made in the regrouping of the western
eas-fi