Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-02-02
IH[ ROCK ISLAND
VS.. UNION PACIFIC
,,,.,,,tipg Letter From New York
w., an the Western Railroad
Situation
OGDEN GATEWAY THE GOAL
ru IA About Five Years Supereede
VII IT., S, P. RIsht.Ofway Through
El Paso Texas

tp ..., York Jan. 2S,--Romors that COL
~ a southern has been bought oy
o'auo .ot Island are fatty denied by the
~, uocs Island officials and directors , IN, tar
~. ,,stsment is made that the matter
na' son,ring the Colorado & southern
d %. mo- not come before the Rock Island
' TS,. ls actually and essentially true
r,s acquisition OF Colorado 4 southern ri,
y" sro, been begun, so far as the ROCK
no. 1nnd ls concerned. The truth Is that
."cs more the press has run ahead OF
~. octs about six months or a year
W.. ACQUISITION Of this road by the
yoore system is a hope, as yet ana not
r,olizatlon. The hope Is entertainer
50 syndicate, which syndicate Is maze
y. 4, neople who are generally sup
,'s.a to be pretty close to Rock ISL
IA councils and therefore 1t may be
,,v,r granted that when the time
mes the Rock Island viii fall in with
n. mans of the syndicate and viii take
over the Hawloy railroad.
THE FIRST STEP,
The dissolution OF the voting trust
was the first step. The next Will prob
shlv be the election to the Hawley
S,ard OF some new directors. who VIII
,,nrosent not the Rock Island, but the
nnol which has bought great block or
he Colorado g. Southern voting trust
CERTIFICATES and viii receive the new
s,orE when II is issued, ON April !. This
sisction will include II. r, Yoakum OF
Ne Frisco and Rock Island board, and
may even 80 further and include AT
least one more Rock Island director.
The purchase Of the Cripple creek
line was another step The syndicate
which bought II was quite another ana
distinct syndicate Rock Island was not
asked about It at all. When II goes
10 Inc Rock Island 1t will probably be
transferred as an integral part OF the
Hawley system. AS yet It Is not even
that IL has simply been taken over by
A sroup OF men using their own money.
They are taking a chance on selling II
AFTER for a better price, There Is little
doubt that when they take up their
optlons they will be able to deliver the
rad TO another system at 10 per cent
proft In the meantime they viii OPP
efate the lien and are In a position to
supply TO the Hawley line q great tom
rage Of the best grade collectible In
Colorado
WHAT IT MEANS.
The public mind has become confused
Nv these developments. A conception
has arisen that Rock Island has bought
or Is shortly going 10 buy nearly all the
railroads In Colorado with the exception
d the Rio Grande This conception, II
will be seen, Ia away ahead of the
times In the long run II is extremely
probable that the Rock Island will do
something Of this kind, but In the
nothing has been done.
When Colorado g. Southern Is ac-
CURED, II may be taken for granted
that the price OF the stocks OF this
road will be standing "A good deal
higher IN the market than they are
today The reason they are so slow TO
move In a general rise in the market
lies In Just this fact-namely that the
syndicate has done It's best to keep
them down, while market accumula-
ton has been going on. There are
blocks OF the stock IN New York bro
kers offices that were bought six
months ago and have been carried ever
'Ince on margin. The cutting Of the
preferred dividend was q playing into
The hands Of this inside syndicate. II
brought TO the syndicate blocks Of