The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-10

James Stnlman, and a few others, dur
ing the financial depression about a
year ago, bought large amounts of the
stock of several Of the principal rail-
way companies IN the United states,
including the Atchison, Topeka & Santa
Ee Railway company. They thus be-
came the holders in the aggregate of
about 4 million shares of common
stock OF the Atchison company.
HOW the standard Got In.
mot long before the last annual meet
ing they expressed 9, desire to have
some representation upon the board of
directors on account OF their large hold
ings of stock. The subject was consid-
cred by the Atchison management and
it was decided that no representation
could or would be voluntarily given TO
these gentlemen if they were acting in
the Union Pacific or Southern Pacific
interest and that no officer of the Union
Pacific or the Southern Pacific COM
pany would be acceptable as a member
of the AtchisOn board of directors
These gentlemen stated that their
interests in Atchison were substantially
as large as their interests in Union Pa
cific and that they did not ask for rep
resentation as representing Union Pa
cific interests or Southern Pacific in
tereStS, but solely on account of their
own large investments in the Atchison
company.
After sprotracted negotiations it was
agreed that two places upon the board,
which consists of fifteen directors, should
be given to the holders of this stock,
and Mr.. H H Rogers and Mr.. Henry
@. Prick were elected, with the distinct
understanding that they were not elect
ed as representing any railroad interest,
but merely the individual holdings of
themselves and their associates.
No Control of "Atchison."
1.-THE Atchison board is divided into
four classes of directors, of which four
Z
four years. 1t is obvious, therefore, that
control of the Atchison board cannot be
acquired except by the purchase of a
majority of the entire capital stock, and
/ then only at the expiration of number
! of years. AS the gentlemen above named
! have large influence in financial circles,
| they could undoubtedly control a sub
Stantial number of proxies and with
| their own holdings elect One-fourth of
the board of directors. The represen-
tation given to these gentlemen by the
appointment of two directors is there
fore not more than they could legally
| obtain by cumulating their votes at the
annual elections.
There is absolutely no truth in the
rumOr that the AtchiSOn company is
| controlled or is likely to be controlled
1 by the Union Pacific or the Southern
Pacific company. The outstanding cap
( ital stock of the company now consists
! of $216.129 200, divided into 2,161. 292
has recently been increased by the ad-
dition of so million dollars, consisting of
/ Il million shares Of common stock,
against which S31, 100000 of bonds, con-
vertible into common stock, have been
sold to the stockholders at par. Assum-
/ ing that the gentlemen above referred
to own and represent as much as 300, 600
/ shares, it would follow therefore, that
they control only about Is per cent of
the outstanding capital stock, or about
II per cent of the authorized capital
stock of the company"
Holders of the Bonds.
1.-THE bonds of the company" Mr..
Kenna continued, "are distributed about
as the stock is held. There are about
600 bondhOlders. The largest holders
of bonds are the insurance companies
and the savings banks, so every holder
of an insurance policy and every saw
ings bank deposltor owning any Atchi-
son bonds is directly interested in the
securities of the company
Fifteen per cent of the stock of the
company, MT. Kenna says. is owned
abroad and the remainder in the United
! States. Forty per cent of the stock
holders live in. New England