The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-01-30
FRISCO MERCER.
Report ON It's Details Made to
Governor HOch.
Shows That the Deal Is Simply
Lease.

Senator It. A. Noftzger today filed
with Governor Hoch the report of the
senate committee on the Frisco railroad
merger.
During the session of the legislature
in 1903 the committee was appointed,
under the provisions of senate reso-
luton The report is as follows:
Anthony. Kan, Jan. H. 1905.
E. W. Hoch, Governor, Topeka, Kan.
Dear Sir: During the session of 1903
the undersigned were appointed a com
nlittee under senate resolutions No. 38
and rs, to investigate the merger of the
Kansas City, Fort Scott & Memphis
Railway company and the St Louis &
San Francisco Railroad company and
report to the governor of the state. As
such committee we have to report to
you that on the 18th day of August,
1901, the Kansas City, Fort Scott &
Memphis leased all it's property to the
ST. Louis & San Francisco Railroad
company. Under the terms of this lease
the lessee is to pay all taxes and prem
iums of insurance, the salary of the
officers of the lessor not to exceed 81 500
of the lessor, pay the salary of the
board of directors of lessor and the ex-
pense of registration and transfer of
lessons securities The lessee also
agrees to pay an amount equal to the
interest accruing on bonds secured by
mortgage of railroad and equipments
owned by lessor. Lessee, also agrees to
pay annually an amount equal to four
and one-half per cent of the par value
of preferred stock of lessor at the date
of the lease or such as might be issued
thereafter with the consent of the les
see; also amounts equal to the amount
the lessor might, by the provisions of
the mortgage securing said bonds, be
required to pay towards any sinking
fund created under the terms of such
mortgage.
These are. in brief, the material parts
of the lease, and by it the property OF
the lessor is transferred completely to
the lessee. Copies of this lease can be
found recorded in the various counties
through which the Kansas City, Fort
Scott &. Memphis railway runs, and it
may be found in the office of the regis
ter of deeds of Bourbon county, kan
sas, on page $50 of book No. of the
miscellaneous records Of that office. 1t
was filed in that Office on the 5th day
of November, 1901.
The lessee paid under terms of this
lease. and charged the same as rentals
for the year ending June 80, 1903, the
sum of 81, 7S0. 1865. .49, and for the year
ending June 80, 1904. the sum of 81, ,S31,-
S91.19. The St. Louis & San Francisco
Railroad company operates by virtue
of this lease, S71.20 miles first main
track, 1890 second main track, 3S5.O6
miles of side track, or about II per cent
of the total mileage operated by what
is known as the Frisco system.
The Frisco system is composed of the
St Louis & San Francisco company
proper, and certain subsidiary COM
panies in which the parent company
owns the controlling interest. This
system is, however, managed jointly
now with the Rock Island system. The
Rock Island system is composed of the
Chicago, Rock Island & Pacific Rail
way company, together with its sub
sidiary companies.
The Rock Island system and the
Frisco system are jointly controlled oy
the Rock Island company The Rock
Island company is the owner OF the en-
tire stock except directors shares OF
the Chicago, Rock Island q racine
Railroad company
The Chicago Rock Island & Pacific
Railroad company owned, June 80, 1904.
695 574 IS shares of the capital stock OF
the Chicago. Rock Island & Pacific
Railway company, and 2S6,349 shares
Of the common capital stock of the ST.
Louis & San Francisco Railway COM
panv. The Rock Island company con-
trolied on June 80, 1904, under the term
Rock. Island system and Frisco system,
a total mileage of 12,366.66 situated in
the states of Alabama. Arkansas, Hi
nois Indiana Indian Territory. Kansas,
Iowa. Missouri, Mississippi, Oklahoma
Territory. South Dakota, Minnesota,
Nebraska. Colorado, Tennessee, Texas
and New Mexico
Respectfully submitted,
T. A. NOFTZGER.
JOHN L. CALDWELL.
FRANK W. SPONABLE.
JAS L. ALLEN
J. K. CUBBISON.
Committee