Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1904-01-09
NEW BOND DEAL ON
Rock Island Road Said to be
Planning an Issue of
SI5O,ooo,Ooo.
REVOLUTION IN MANAGEMENT
President Loree to Bring Number of
Men From Baltimore
~ Ohio.

1t is reported the stockholders Of
the Chicago. Rock Island & Pacific
Railway company will meet within
the next two or three weeks ana au-
thorize an issue of S15O.OO0,OOO of new
bonds. which will he sold to the bank
ing firm of Speyer d Co. of New Y ork.
at the head Of which stands James
Speyer. This announcement was made
officially yesterday in New York. and
il means the refinancing of the entire
Rock Island System. The plan origi-
naIlv was for the issuance IF S25O.OOO.-
600 bonds. but the amount has been
reduced 10y SlOO.00O,O0O. and 10 proper
tiOnS which will permit Of its being
handled with facility.
The advent of SpeNer Il Co. into
Rock Island affairs and the conSe-
quent displacing of the First National
bank of New York. which has hither-
to been back of all Rock Island tinan-
cial schemes. are said to preSage "A
revolution in the management of the
vast railroad system which the Moores
have built up in the west during the
last two years.
Hand of SpeJer Seen.
1t was Speyer Il Co. who insisted on
the retirement of President w T..
Leeds and Vice President {. II. War
rem. and who named the formers sue
ccS>cr. l.. f. Loree. recently president
of the Baltimore d Ohio railroad.
Conditioned ON the banking firms ii
nancing the gigantic bond issue was
its right to name a man who should
become the head of all Rock Island
companies. and who as such should he
clothed with supreme power to oper-
ate the property without interference
either from Mr. Leeds Or the Moores.
No railroad president in the c"un-
try Will have the absolute sway which
will be exercised by President Lorec.
fer upon him the banking firm de
ponds to make Rock Island securities
valuable by an intelligent operation
of the heterogeneous system.
To make il worth while for Mr.. Ln-
rec to leave the Baltimore Il Ohio he
WAS offered Il salary Cf $4,000 a year
ami given Il stock bonus which will
make him rich man within the next
five or six years. provided matters
turn cut as expected.
MoUr-s' scheme Fails.
II was ,earucds that when the
Moores first planned to retire out
standin" securities and replace them
with bonds. they found strenuous OPP
position To the amount of the issue.
The plan was abandoned for the
time being and again taken up about
three months ago. hut the MoorcS
were unable t. secure the aid Of either
Morgan a Co.. the First National bank
or Kuhn. Loeb n Co.
An appeal was made To Speyer d
Co. and Mr.. solomon. of that firm.
thoroughly Investigated the Rock Isl
and System. The result was the prop
o~itiou by SPryer & Go. These finIn-
cicrS are heavily interested in Halti-
more d Ohio securities. and James
Speyer iS Il director of the company.
~ such he came i'm contact frequent
Is with Mr.. Lorec. and believes him In
he the one man who can make the
Rock Island System a success.
That the change in financial back
iug and in the head of the system
means reorganization there can he
little doubt. 1t * known that there
will he changes among the high off
cialS in the Rock Island and infusion
Of Lorec men into the management.