The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-24
CLOVER LEAF GETS The ALTON
THEREBY FORMING A NEW AND
IMPORTANT SYSTEM.


4 Of Them Are No Friends OF Ht-DeM
Contingent on Alton GETTING Immunity.
Control Of the Chicago and Alton, which
the Rock Island party wrested from 4. II.
| Hartman and his associates last u n after
a contest which began three years age
has to all intents and purposes been trans
ferred to the Toledo. st. Louis and Western.
The stock which will change hands on the
formal ratification Of the contract is the
majority interest owned by the Rock Island
company
Neither Mr.. Hartman nor any OF his
associates was consulted in regard to the
transaction. and the formal announcement
of it yesterday was as much OF a surprise
to them a. to any one else in the financial
district. What Mr.. Hartman will do with
the Union Pacifc's minority interest seemed
to interest no representatives Of either the
buying or selling company
Tn men in control of the Toledo. st.
Louis and Western. better known as the
Clover Leaf. are as hostile TO MT. Hartman
as any of the Rock Island party have shown
themselves. Edwin Hawley. one Of the
most prominent OF them. fell out with Mr..
Hartman when the Rock Island party
showed it's hand in the Alton in 1904 Mr.
Hawley has since resigned from the Union
Pacific board. Associated with Mr.. Hawley
in the Clover Leaf are Gen. Thomas II
Hubbard, a former Southern Pacific diroc.
tor, who is suing that Hartman line to COM
pei payment OF interest on a bond issue,
H. X. Huntington. Interested az plaintiff
in the same suit; James N. Wallace. presi-
dent Of the Central Trust Company; Charles
A. Tweed. until lately a member Of Spayer
a Co; William A.. Read Of the banking house
OF W. A Read 4 Co.. and Theodore p
shonts. president Of the Interborough-
Metropolitan. Mr.. Shonts Is president
Of the company, but has not been in charge
OF operation since he took charge Of the
Inter-Met.
The prospective purchasers also control
the Minneapolis n st. Louis. which owns
a majority Of the stock OF the Iowa Central.
On the ratification of the Alton transaction
they will be In control Of a system with a
mileage Of 2,ss5. traversins one Of the
best traffic sections in the country. The
transaction thus brings about one OF the
most important changes Of the railroad map
that have been made for many months.
Eventually the four roads will be merged
into one compact system. Meanwhile the
management Of the four roads will be made
harmonious and close traffic arrangements
will be made. Clover Leaf officers will
succeed Rock Island officers in the Alton.
Very likely President s.. M. FELTON, of the
Alton. who has been retained in Office dur
ing both Rock Island and Union Pacific
control of the road. will retire.
We have had M relations with Mr..
Felton," said a director of the Glove Leaf
yesterday. "On the other hand, our rela-
lions are very intimate with and we have
every confidence in Mr.. Shonts, the presi-
dent, and Mr.. Ross, the vioe-president in
charge Of operation. In all probability
one OF these men will take Mr.. Felton's
place.
The most important contingency on which
ratification OF the contract rests u the do
cision Of the Government in the Alton
immunity m1tter. Naturally enough the
Clover Leaf people do not care to buy into
a lawsuit. especially when the lawsuit offers
a chance Of a fine equal to the $40, 2$0.0 0
imposed upon the Standard Oil Company
for taking rebates from the Alton Il
has been expected that , decision on ths
matter would be reached by Judge Lands
and the Department Of Justice before this.
but whatever the cause Of the delay. il u
generally believed that the outcome will
be favorable. At rate al Alton on
Gals insist that there 10 no question hat
the immunity was promised and that they
have kept faith
q fxvnal;t., ala~ C1lxyar Inf -N2rSak~
are to inspect the physical condition Of the
Alton and 60 over the books This in
| spection will be made within two weeks.
and in case a favorable decision on the i'm
munity matter is rendered by tina time
the final papers will be signed early In
September. The official statement Of the
transaction is as follows:
The acquisition OF the Chicago and Alton
by the Toledo. 81. Louis and Western places
the latter in a potential position in the trans
portation affairs OF the Middle West, A
system which reaches with it's own rails
Detroit. Toledo. st. Louis. St. Paul. Chicago.
Peoria and Kansas City and serves the rioh
and populous territory between those cities
must he an important factor in the Transports
ton world.
The connections which the Toledo, st.
Louis and Western will make over its own
rails by this arrangement at Kansas City,
namely, with the Rock lsla nd, Union Pacific,
Atchison, Missouri. Kansas and Texas, Kan
sas City Southern and other important roads.
should add considerably to it's possibilities
and strength.
BY the construction OF about seven miles
OF road from Panama. on the Toledo. ~.
Louis and Western. to Litchheld. on the
\ Chicago and Alton. a line can be established
4 between Panama and Kansas City over the
SYSTEMS own rails shorter by many miles
than the shortest line via st. Louis. This
route will. by avoiding the delays at East
st. Louis. have q distinct advantage In point
Of time over the st. Louis gateway. and by
hauling the trafio over the systems own
bridge at Louisiana, across the Mississippi,
effect a large saving to both roads rs against
present cost TO each.
The establishment OF this route should
strengthen both the Clover Leaf and the
Alton on high grade Missouri River traffic.
The terms under which the Chicago and
Alton has been acquired by the Toledo. sc.
Louis and Western provide that the latteS
shall issue its collateral trust bonds secured
by the Chicago and Alton preferred stock
purchased on the basis OF 4 per cent. at par
for 90. 800 shares OF the preferred stock and
. per cent. for the nrst ave years and 4 per
cent. for the second I've years on ~. 200 shares
Of common stock at 3s.
Under these terms II the Chicago and Alton
continues 20 earn 4 per cont. on its prcfmred
stock. as IL has done during the last ave
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