The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-03-16
Rock Island Common Stock
Puzzles Investors.
Shows No Advance While Other
Moore Stocks Have Risen.
rs HARTMAN BUYING?
Common Stock May Be Given
Full Voting Rights.
Gossip and Matters of Interest
in Railway Circles.

Chicago, March ia peculiar in
terest is beginning to attach to the
movement, or lack of movement, of
Rock Island common stock. The shares
are a point or two lower now than they
were last November, although every
other stock in which the Moores have
voice has been advancing The gem
eral market is from 10 to 20 points high
er than three months ago. while Rock
Island common remains practically sta
tionary.
To repeat the theory and not assert a
fact, it is believed that for reasons not
publicly known the insiders are keeping
quotations down for purposes of accum-
ulation. not necessarily by themselves
alone but in the interest of others. The
belief obtains that sooner or later it is
intended to give the common stock Vot-
ing rights equal to those enjoyed by the
preferred issue. The preferred stock,
according to the bylaws of the company,
elects a majority of the board of di-
rectors. The common stock can vote,
but only for six of the thirteen mem
bers of the board of directors, which for
purposes Of control renders the shares
without value. But if given equal vot-
ing power the common stock would be
in a position to elect a majority of the
board, since the common outstanding
amounts to SSS. 754. 900, while the prefer
red issue is SIS, 690, 200.
When the company was organized the
MoOres and their friends didn't have so
much money as they now have In or
der to be able to hold control of the
system which they intended to develop
they vested the election of a majority
red stock and then kept the preferred
issue In this way the amount of cap
ital tied up in the stock was limited,
leaving them a large amount of cash
q "a hi ut
ferred share control plan was highly
attractive at that time for other rea-
sons. Wall street financiers were al
most solidly arrayed against the Rock
Island crowd, and the latter found it
necessary to render its control of the
property absolutely secure
But now the MOOreS and their friends
are much richer than they were. Wall
street is friendly to them. Speyer &
co. freely purchased their bonds. J. 2.
Morgan & Co and the First National
bank interests cooperate with them
They have since purchased controlling
interest in the Chicago and Alton,there-
by demonstrating their enlarged re-
sources.
Another change has come over the
general situation. 1t is the revival of
the community of interest idea in rail-
road management. In the case of the
Chicago and Alton an agreement was
entered into between the Moores and
Hartman interests, so that the election
OF directors passed OH WITHOUT any sem
blance of squabble, a friendly under
standing having been reached before the
meeting took place. Now it is asserted
that Mr.. Hartman and his friends are
acquiring Rock Island common with
view of being represented in the man
agement, and that the Moores and their
friends are aiding this move. Then
when the stock shall have been accum-
ulated to the extent desired the theory
is that full voting power will be given,
and the lethargy in Rock Island COM
mon will become a matter of the past