Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-01-12
MERGE CHICAGO LINES
Chicago City Railway Company and
Chicago Union Traction Company
Said to Have Been Sold to Syndi-

New York, Jan. 10. = The deal for
the sale of a controlling interest in the
new syndicate headed by j. Pierpont
Morgan, which also will control the
Chicago Union Traction Company, was
closed yesterday. Mr. Morgan, 1t Is
said. made it condition that Marshall
Field. John j. Mitchell, p. A. Valentine,
the Armours and other Chicago hold
ers of large interests in Chicago City
Railway should keep their stock, thus
assuring heavy Chicago represen-
tation IN seeking a franchise renewal
from the city council.
According to Mr.. Mitchell, the deal
will solve the franchise tangle for
Chicago, put some new millions of
money into the city, furnish new equip
ment for the street railroads, greatly
enhance real estate values and be a
big thing for the whole city,"
Vast Sum Pledged.
All the money needed for COM
plete control of the street railways of
Chicago was subscribed, 1t is said, and
the Union Traction receivership soon
will be a thing of the past. The total
amount is not stated, but it is report
ed that an offer of 200-or $4,000, OOo
will be made for the entire $1S,OO0,-
600 of stock issued by the city conf
pany.
IT is intimated that the Union Trac-
ton stock will be assessed and the
stockholders will get new securities
for the cash put up by them. This ar
rangement may apply only to the COM
mon stock and points to a holding
company that will combine the Chica-
on citv and Chicago Union Traction
interests -
An exchange of securities will be
offered to holders of Union Tractloh
preferred stock and of Chicago CITY
stock on a basis that will, it is said,
be satisfactory and liberal.
MORGAN as Underwater.
T p Morgan & Co. will underwrlte
the new syndicate. Associated with
them will be several large private
banking houses and western banks.
Advfces from Chicago say that num-
her of houses have been asked to come
into this arrangement, without any
definite terms being given. and that
nrornnt assurances of cooperation We're
given.
committee will be appointed very
soon it is said, to negotiate with the
Chiaeo authorities concerning fran
chise. 1t is hoped by the promoters OF
the consolidation scheme that the
council will grant more liberal terms
than are embodied in the recently de-
yised ordinance for the Chicago City
RAILWAY Company, in view Of the man
ifest advantages Of single company,s
controlling all the street railway lines
of the city.
One of the great advantages Of the
combination, 1t is said, will be to assure
a scent fare between any two points
in the city; another advantage will be
system that will provide short-haul
transporta ton in the downtown dis
trict of the city, where it is needed and
would be highly profitable.
New Service Planned.
1t is proposed to construct practi-
cally the entire street railway property.
giving the underground trolley within
the downtown district and the over
head trolley in residence districts. New
power stations will be built new cars
provided and new tracks built wher-
ever the underground construction is
necessary. To construct the lines and
equip them will take. 1t is said, $40, 600
600 tos50 100000. All this money. ex-
cept that spent for new cars will go
into circulation tn Chicago