The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-06
RAILROAD NEWS.
Merger Of Union Pacific and
Illinois Central Reported.
1t Places Hartman at Head of
10000 Miles Of Road.
AN IMPORTANT DEAL.
Onion Pacific win Have Route
From Coast to Chicago.
Gossip and Matters of Interest
in Railroad Circles.
AN IMPORTANT DEAL.

New Yok, Feb. 6.-AIthough details
are lacking. the report of closer al
lance between the Union Pacific and
the Illinois Central railroads, if not the
actual purchase Of the latter road by
the former. was generally accepted
yesterday by fnanciers as true. Meth
er z. H. Hartman president of the
Union Pacific, nor Stuyvesant Fish, the
president of the Illinois Central, would
discuss the subject. All that could be
obtained from Hartman was, Il will
have nothing to say about it,
Two directors of the Illinois Central
were reported from Chicago as saying
that they believed the report of the
merger was true, but they were unable
to give any of the details of the trans
action. According to the story, the
Union Pacific. out of its profits. grow
ing out of the investment in Northern
Pacific and Great Northern shares,
had purchased 81 per cent of the cap
ital stock of the Illinois Central 1t
was said, further that the accumula-
ton vi this stock had been gradual,
extending over a period Of two years.
It was learned in this city today that
there are many indications that the
Illinois Central has been acquired by
interests identified with the Hartman
party. 1t has been known for some
time that the Illinois Central holdings
in the hands of this party have been
figured as high as 100000 shares. of a
par value of $4,000, 600. According to
statements made by persons who are
in a position to inspect the transfer
books of the Illinois Central, there is
evidence there that goes far toward
confirming the story of a merger.
It is said that the Union Pacific,
some time ago, took over all the Hi
nois Central stock owned by the Rail-
road Securities company. a New Jer-
sey corporation organized by the Har-
riman interests for the purpose of
owning and holding Illinois Central
shares The records show that this
company had acquired at least $4,000
of this stock, and this, added to the
stock already in the hands of the Union
Pacific. would make that road at pres
ent a holder of at least 240,0 600 shares
of a par value of S24,O00,OOO-
That the money for the purchase Of
these shares has come from the sale
Of other securities owned by the Union
Pacific is accepted as fact by several
6nanciers who discussed the matter
today It has been practically admit
ted that the Union Pacific interests
Western. and Northern Pacific in the
market, and the superintendent Of the
proceeds of this sale will eventually be
devoted to the payment Of the price of
the Illinois Central shares.
According to Wall street theory, this
stock has been accumulated. but has
not vet been transferred to any cor
poration and still stands in the names
of individuals.
It is a matter of record that the
Union Pacific did hold Great North ern
stock to the amount of S18,665. 259,
par value. and having market value
of approximately $61. 1854. besides
Northern Pa cific shares of a par value
of s24295.152, which has a present
market value of more than $4,000
600.
In the absence of any official denials
the report that the stock held by the
Railroads Securities company has
Dassed to the Union Pacific interests
was believed, and as an indication OF
its truth the following history of the
New Jersey corporation was pointed
Under the laws of New Jersey the
| Railroad Securities company was or
ganized bv interests identified with the
/ illinois Central in February. 1896, but
/ +he company did not actively begin
/ business until the year 1900.
The authorized capital stock of the
/ company is $4,000 000 divided into $40
/ 900 600 Of per cent accumulatiVe pre-
/ feTred stock and s1O.00000O common
| stock OF the preferred stock S2.0O0.OOO,
/ and of the common stock $4,000 GOO, have
! been issued. -.
/ relative to the bonded debt Of the
company. it is on record that in Oeto-
u