The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-08
RAILROAD NEWS.
Rumored That Rock Island
Controls ssKafy-"
New York Herald Says Moore
Group Is In.
MERGE WITH c. & f. l.
DeniaIs Are Made in Many
Quarters.
Gossip and Matters of Interest
in Railroad Circles.
MERGE WITH c. & f. l

New York. Dec S.-The New york
Herald says:
Control has been obtained of tins
Missouri, Kansas & Texas Railway
company by group of financiers, the
majority of whom are directly or in
directly identified with the Rock Is
land properties. This group, it is said
holds 10000 shares of Missouri, Kan
sas & Texas stock which were pur-
chased not long ago, both here and
abroad.
1T is not the intention of these in
terests to link the Missouri. Kansas &
Texas with the Rock Island, with
which it is in a measure a parallel and
competing line. On the contrary, it
will be maintained as a separate sys-
| tenn controlled by the same interests
1t is understood, however, that it prob
ably will be merged with the Chicago
& Eastern Illinois, which has practical
W been separated from the St. Louis &
San Francisco system.
PuzzIing Changes Explained.
This plan for the consolidation OF
the Missouri, Kansas & Texas and the
Chicago & Eastern Illinois, which is
not yet officially admitted, finally ex-
plains the perplexing changes which
were recently made in the manage
ment of the latter road
"A. ]. Davidson, president of the
company, who is also head of the
Frisco system, resigned from the Chi
cago & Eastern Illinois, his place beins
taken by H. T. Miller. Simultaneous
ly two other officials who were identi-
fed with both companies left the Chi
cago & Eastern Illinois.
1t was explained at the time by the
Rock Island interests that these
changes were made with a view of
totally separating the two systems. Mr..
! Davidson was to devote himself entire
| " to the FriscOs development, while
Mr.. Miller was to do the some on the
4 Il. IT. L.
ter. it was said to have the two roads
separte and even competing against
each other,
The Need of the s'Katy.'
1T is acknowledged that the union
of the Frisco and the Chicago & East
to both roads. AS separate systems
each will be ena bled to obtain a greater
percentage in the division of through
rates.
'The Southern terminus of the Chi
cago & Eastern Illinois is Thebes and
the property would be capable of much
better development if it obtained a
route through to the gulf This 1t
Missouri Kansas & Texas. The two
roads meet in Kansas City. and St.
Louis, and together they form an adj
mirable system from Chicago to Gal
weston, comprising a continuous line OF
nearly 1000 miles of road.
Some Railroad History.
This arrangement is regarded as
part solution of the complicated situa-
ton now confronting the railway prop
critics Whise interests lie between Chi
cago, Kansas City and the gulf. Be
hind it is an interesting bit of history
regarding the attempts that have been
made in the last year to purchase or
obtain control of the two Independent
north and south roads leading to the
gulf the Kansas City Southern and the
Missouri, Kansas & Texas.
1T has been intimated that James J.
Hill was eager to obtain the Missouri,
Kansas & Texas as a gulf outlet for the
Burlington. Mr.. Hill, however, has
steadfastly denied this, saying that his
interests are practically confined to the
development of the northwest
1T was learned today, however, and
admitted by ST. Paul interests, that
less than a year ago the st. Paul hau
entered into tentative negotiations
with a view to acquiring the Kansas
City Southern. Previous to this several
members of the group now in control
of the Missouri, Kansas & Texas en-
ployed intermediates to make over
lures for the purchase of the Kansas
City Southern.
The Rock Island Interested.
'eThese Rock Island interests were ap-
prehensive lest any of the great west
ern railroads should buy up either OF
the two independent gulf lines. thus
invading the territory which they prac-
tfcally control at the present time.
The negotiations advanced to stage
where a price of 20 was offered for
Kansas City Southern preferred and 30
for the common shares. The Kansas
City Southern interests, while willing to
sell, demanded so for the preferred and
IS for the common. These prices being
considered too high, the deal fell
through.
A Kansas City Southern OFFER.
1T was soon afterward that the Kan
sas City Southern property was offered
to the St Paul at the same price. The
St. Paul made an examination of the
road, but no satisfactory terms could
be agreed upon.
THE Rock Island group then turned
its attention to the Missouri, Kansas &
Texas. It was not willing to see the
ACQUISITION of this property by the ST.
Paul. nor did it relish its purchase by
Mr. Hill, who would thus become an
active factor in the gulf territory. But
being controlled by interests closely
identified with the Rock Island, the lat
ter would continue to maintain its SUI
premacy in the gulf territory west of
the Mississippi river.
"A quiet system of inquiry was be-
gun to learn where the stock Of the
Missouri Kansas & Texas was chiefly
held It was learned that a large
amount of the stock was still in Ans
terdam, but that big block of the
Amsterdam holdings had been sold in
London.
Stock Held in London.
considerable stock waa absorbed |
by the purchasers in Amsterdam, and
also in the London market. The stock
was also bought here in the open mar
ket until the financiers were in pos
session o. 10000 shares. Tho Mis-
souri,. Kansas & Texas has outstanding |