New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-19
CONFIRM B. & O. SALE.
Declines Kuhn, Loeb 6 Co,
Say Negotiations Dire Pending.

The announcement in The Tribune that the
S4O.O00.O00 OF Baltimore & Ohio Railroad
stock sold by the Pennsylvania Railroad Com
pany to Kuhn. Loeb & Co. had passed into
the possession Of the Union Pacific, received
practically official confirmation yesterday in
statement issued by Kuhn. Loeb & Co. that
the report of the sale premature. and that
negotiations 10 this effect are under way. but
have not yet been completed"
Union Pacific interests yesterday were dis
inclined to discuss their plans for the estab-
lishment OF the first actual transcontinental
line. OF which the Union Pacific. the Baltimore
& Ohio and probably the Chicago Alton
are 10 be the constituent parts.
Control of the Baltimore & Ohio alone would
bring the Union Pacific system TO the Atlantic
seaboard at Baltimore. which is TO be the East
ern terminus Of the Gould transcontnental line
upon its completion two or three years hence.
But the objective of the Union Pacific in the
East. il is understood. is the port of New York;
and with the control OF the Baltimore & Ohio
obtained. the work of gaining an entrance into
this city would seem TO present no important
difficulty.
The Baltimore & Ohio gets TO New York
by way Of the Reading and its controlled road.
the Central Railroad OF New Jersey For the
last two or three years the Reading has been
practically controlled Jointly by the Baltimore
& Ohio and the Lake Shore and Michigan
Southern, which purchased more than 100000
900 OF it's S140OO0,O00 stock. The Lake Shore
is controlled by the New York Central. in the
board Of which are William Rockefeller and
James Stillman and. in which. according 10
Wall Street belief. the Rockefeller interests.
which is TO say the Hartman Union Pacific
interests have for some time been the domi-
nant factor. II is safe to assume that the
policy of the Reading will be friendly TO the
plans OF the Union Pacific.
The news of the Union Pacific's far reaching
plans caused much discussion yesterday as to
other possible railway combinations OF a de-
fensive sort Among others. the old report of a
joining of the Pennsylvania and the Atchison to
form line from sea TO sea was revived. but this
was not regarded seriously. as the Rockefellers
heavily interested in the Atchison and are
more or less influential also in the Pennsylvania
The stock market declined on the announce
ment OF the Union Pacfc's move. apprehension
being felt as 10 the likelihood Of retaliatory &C
ton by some other roads. and the fact being rec
ognized that the acquisition by the Union Pa
cifc OF $40, 600 900 TO 100000 Of Baltimore &
Ohio stock would involve financing on a large
scale. and that the acquisition OF an actual ma
jority Of the stock would call for the raising OF
more than S1O0,O00.00O.
In what way the Union Paciic's pending pur-
chase Is to be financed, no sign has yet been
given. The company has 800, 900 600 OF pre-
ferred stock authorized but unissued and il NAV
he that thls STOCK VIII be used. The Chicago <
Northwestern. II will be remembered, within the
last few months has bought 41,OOO shares Of
Union Pacific preferred-part Of the outstanding
100000 shares Of this class-and IL is reported
I'm some quarters that that road, in the director
ate OF which are Mr. Stillrnan and Henry c.
Prick, also OF the Standard OIL party and which
connects with the Union Pacific at Omaha as
the Alton connects with IL at Kansas City Will
join with the Union Pacific in providing the
means or payment for the Baltimore & Ohio
holdings about TO be taken over by the latter
and VIII form one OF the connections between
the Western and Eastern divisions Of the Union
Pacific transcontinental system.