Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-04-07
ATLANTIC TO PACIFIC.
Sea to Sea Line Of Railroad is Con-
tempIated.

sea to sea Line OF Railroad is NoH.
templated.
New York. April IA line of rail-
road from the Atlantic to the Pacific
under one management, that dream of
transportation leaders for many years,
will be an accomplished fact in a
short time, according to the opinions
of number of we'll known financiers.
Under the direction Of j. Pierpont
Morgan & Co. and Kuhn, Loeb & Co.
the underwriting of this vast enter
prise, which dwarfs the Northern Sc
curlties merger by comparison, is we'll
under way and Wall street is expect
ing a successful report in short
time.
The railroad systems involved in this
combination are the New York Cen
trail and the many lines it controls.
including the Lake Shore, Michigan
Central, West Shore Boston and AL
bany, Big -Four and a number of
smaller companies; the Chicago and
Northwestern system and the Union
Pacific, controlling the Southern Pa
cific, the Oregon Railway and Navi-
cation Company and the Oregon Short
Line. Their aggregate mileage Is
more than 10000 and the value of their
combined capital stocks presents
startling array of millions.
Scope of the Merger
This first transcontinental system In
fact would tap the largest ports on the
Atlantic and Pacific seaboards and
draw on the richest districts in the
United States for business. 1t would
not be open to the same line of attack
as was the Northern Securities Com
pany, for the three systems are in no
sense competitors, and there could be
no argument of combination in re-
straint of trade. The advantage gained
in thru rates would be enormous, both
in freight and passenger business.
Underwriting In the securities of the
holding company that is to take over
these great systems is being offered to
the financial elect in New York, Chica-
go, Boston and possibly some other cit
les. 1t is understood that the secur-
tiles, both stock and bonds have been
very well subscribed. The matter has
been handled with the greatest Sc
crecy, people who have been APP
preached on the matter practically be-
ing bound not to divulge any of the
facts concerning the new company.
There have been reports for months
Of a consolidation of these three roads
into transcontinental line. The stock
market has been advanced repeatedly
on rumors that important announce
ments were to be made. The report
of dead have been believed in some
quarters and doubted in others, but
the success of the underwriting seems
to make certain the inauguration of a
real transcontinental line.
Huge Issue Of Stock.
While Wall street has not been fav-
ored with any official information re-
garding the holding company that is
to take over these properties, 1T is UNI
derstood in we'll informed circles that
there is to be huge issue Of stock
as well as bonds for which the stocks
of the three roads will be exchanged,
ties.
1t is the understanding that New
York Central stock is to be exchanged
at 200 into the new holding company's
3h per cent bonds, and Northwestern
at 800. Such an exchange Of stocks
would call for company having a
considerably larger capitalization than
the $400.000,O00 Northern Securities
concern.
The stocks Of these three main COM
panies alone aggregate something
more than $450,000,OOO, and their com
bined bonded Indebtedness is more
than s525, 100000. The latter however,
would not have to be looked after by
the holding company.