The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-24


rived from acquisition Of the Alton property.
The Toledo. ~. Louis and Western for IN e
wear ended June 30 showed a surplus Of $3.50.
6a2. which In 4 per cent. on It's preferred stock
aud over 20 per cent. on It's common stock.
The additional trafic which the Toledo. ~.
louis and Western should secure because
az It's acquisition Of the Chicago and Alton
should result IN puttiug lie common stock
on u permanent dividend basis within a res-
s0nabie time.
Beneficial as the transaction appears to
the Clover Leaf il is no lees 80 TO the Rock
Island, The latter acquired an interest
in the ro1d more for purposes Of protection
than for any desire at expansion. Tit
object was TO repulse "A Hartman invasion
of Rock Island territory.
The purchases began soon after ID. a..
Reid, Judge W. H.. Moore. B. r. Yoskum
aud W. -. Leeds. the four men most promi-
nent in the Rock Island party, had added
10 the Rock Island system the Chicago and
Eastern Illinois. Control Of the Alton by
the l MON Pacific was a menace TO the traffic
interests Of the Rock Island system. The
Rock Island party decided TO remove this
menace.
While Mr.. Hartman and his associates
rested in fancied security the Rock Island
men, then moi 80 prominently known az
now in the railroad world, picked up in the
open market and in one place and another
all the stock obtainable without attracting
too much attention and without exciting
the market. Tn purchases were SO skill
fully conducted that when Mr.. Hartman
aw0ke to the danger he found his control
seriously threatened. Most Of the mem
hrs Of the Rock Island party believed in
lighting the campaign through, but the
Union Pacific people suggested a COM
promise and an agreement was made by
which Union Pacific was TO exercise control
one year and the Rock Island the next.
On the showdown of stock after the ratif-
cation Of the agreement the Rock Island
was found TO be in possession Of S14, 800, 900
common and 81. $40. 600 preferred. az against
$40, 343 600 of the preferred alone in Union
Pacific ownership.
Under the agreement for joint control
the Rock Island took control of the road
for the first time last October. A few
months later came on the Interstate Com
merce Commission Investigation OF the
Hartman lines with its revelations Of Hsr-
rinan exploitation of the Alton. In the
course of this investigation and subse-
quently there arose added differences
between the Rock Island and the Union
Pacific. As a result in June the Rock
Island notified Mr.. Hartman OF an abroga-
Ton OF the Joint agreement and Gu, loose
from him entirely. II had meanwhile pur-
chased enough additional stock to constitute
secure stock control. The Rock Island
holdings. as disclosed by the official state
ment yesterday. amounted TO $50, 800, 900
fNAl U - ,tNF, v Oll u III III III III !
The Union Pacific holdings presumably
remain as before, at $40. 3f3. 900.
On the stand in the Interstate Commerce
investigation Mr.. Hartman declared that
the Rock Island was carrying the Alton
bag II was wondered yesterday whether
sr not the Union Pacific bag would continue
10 hold the Hartman minority stock. The
Clover Leaf people displayed no desire to
acquire il.
TO II . Rock Island sale of the Alton was
not only dQaira hla hapatIea the nhiQCf nf |
purchase. the defeat of the Union Pacific
party, had been accomplished, but also
because of pretty plain limitations that
the Interstate Commerce Commission con-
sidered the Alton a competitor OF the Chicago
and Eastern Illinois and the Chicago. Rock
Island and Pacific. An action ia separate
the companies would raw been begun.
II is suspected. had not a transfer been
made. The sale is accordingly advanta-
geous in removing the only cause OF COM
plant the authorities are known to have
against the Rock Island management.
tn Alton is a competitor OF no one Of the
roads which will form portions of the new
system. Rather it is an extension of all OF
them, or will be at least as soon az connect
ing lines now contemplated are constructed.
The merger cannot. therefore. meet with
opposition from the authorities.
IL has been rumored for some time that
the Clover Leaf would eventually be turned
over TO the Erie. Whatever negotiations
there may have been 10 that purport in the
past, a director said yesterday. there is
nothing of the kind contemplated now. No
one of the four roads in the merger, he said,
ia for sale to any other system. TIL leading
owners believe they have welded them into
an independent system which will be well
able 10 take care of itself.
The capitalization of the four roads in the
new system is Ss4. OOO, 900. The total mileage
owned and operated il 1855. The mileage
ia supplied as follows: Minneapolis and
81. Louis, 100; Iowa Central, $50; Clover Leaf,
55s; Alton. go. The roads connect fairly
well with one another. Clover Leaf con-
meets with the Alton at st. Louis. and
through IL gets an excellent line from Kan
sas City to the Great Lakes with three lake
ports. The Minneapolis and NJ. Louis has
lines running west from st. Paul and Mime
apolis into South Dakota and south from
the Twin Cities into Iowa, where il connects
the Iowa Central. The latter covers a
good traffic section in Iowa and gets to ST.
Louis over the Wabash. The Iowa Central
connects with the Alton at Peoria.