Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-02-05
START new STORY
Agitation of Stock of Local Utility
Corporations Due to Quiet
Buying.
SEEK CONTROLLING INTEREST
Which Results in Attempt to Form
Mutual Agreement-That Big
Merger Again.


hallway company, Peoples Power COM
pany and kindred organizations in the
three cities due to the quiet purchase
OF holdings in larger or smaller
blocks, the past few days, has given
fresh impetus to rumors which some
weeks ago found their way into a Dav-
export paper in the form of what was
given as an authenticated story to the
effect that negotiations were under
foot for the formation of a gigantic
S10,00O,O00 merger involving all the
traction, light and power corporations
in the three cities
The scheme which was at that time
denied by most of the interested par
ties in the three cities, was said to be
fathered by George Kobusch, president
of the st. Louis Car company, who had
associated with him capitalists in ST.
Louis and also in the east
Must Buy All or None.
Investigation by The Argus as to
the effect of the late dealings in the
stocks of the corporations, was attend
ed by the admission that an attempt
had been made to buy up the CONTROL
ing stock in the corporations referred
to which had resulted in the executive
and managerial officers of the corpora
tions getting out an agreement, which
is being circulated among the stock
holders binding them not to sell indi-
vidually unless all sell. This agree
ment affects the stockholders in the
Tri-City Railway company, the Peoples
Power company in Rock Island and
Moline and the Peoples Light & Power
company in Davenport, but does not in
clude the Walsh interests confined
strictly to Davenport.
Not Officially Negotiated.
A Rock Island man who speaks with
authority for the Peoples Power COM
pany and to an extent for the Tr-City
Railway company, and who is largely
interested in others of the corpora
tons reported involved in the alleged
transaction, admitted today that
there is basis for the rumors, but
insisted that no outsiders had entered
into negotiations with the companies
in an official way. Some stock has been
purchased from the individual holders,
he said, and efforts are being made to
get more of it. To prevent losing con-
troll those most largely interested have
taken steps to protect their interests
and it has been decided that there will
be no deal unless it is officially nego-
tiated So far he said, the necessary
cash is not in sight.
Added to this information is the
knowledge that subsequent to the orig
inal rumors, President Kobusch of the |
St Louis Car company, the head and |
front of the alleged purchasing syndi- |
cate made visit here and ordered an |
inventory of the property on which the |
designs were centerei, and that there |
after eastern capitalists also made a |
trip of investigation and inspection to
the three cities.
The representatives of the corpora
tions which it is sought to ally, have,
while maintaining all along that no ne
gotiations were on foot, admitted that
they were not averse to considering
as matter of business, propositions
Of the proportions referred to in the
first published story.
And there are strong suspicious that
1T least some of the corporations have
since been flirting with the prospectors.
Public At Least Interested.
The public will, of course, be some
what interested in what may be going
IN. for such deal as would involve the
of the traction and light
Utilities would, even if it could be legal
V arranged, vitality concern the peo-
lies welfare.