Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-08-27
Hawley Interests Now One
of the Strongest in the
West-M Minneapolis
and ST Louis and
Iowa Central
in Deal.
SHONTs SAYS BOTH
ROADS BETTERtD
Former Iowan Tells Of Roads
Financial Record-Clover
Leaf Last Year Showed
a Surplus OF
$3.50, 692.27.

$500, 692.27.
New York, Aug. 24-By the trans
fer Of the Chicago and Alton to the
control of the Glover Leaf, Edwin
Hawley clinches his revenge on 3. II
Hartman. Incidentally William H
Moore, Daniel G. Reid, James H.
Moore and other Rock Island mag
mates dodge prosecution by the gov
eminent for controlling competing
railroad.
Announcement was made yesterday
that a tentative sale of controlling
Interest in the Alton had been made
by the Rock Island syndicate to the
Toledo st. Louis and Western, COM
monty known as the Glover Leaf
which is controlled by Hawley and
associates. The conclusion OF the deal
lis contingent only upon the govern
ment's granting immunity to the Al
ton system in return for the evidence
furnished concerning the rebates
granted the Standard Oil company,
upon which Judge Lands based the
enormous penalty recently imposed
upon that corporation.
There are two other minor ques-
tons which are yet to be solved salts
factorily before the actual transfer of
the property will take place These
will be determined within the next
ten days or two weeks.
Terms Of the Deal.
Under the terms of the deal the
i Toledo. St. Louis and Western will
issue it's collateral trust bonds on a
basis Of per cent at par for "a, sou
shares of the preferred stock and
lper cent for the first five years and
1 per cent for the second five years
!. Of 1442O0 shares of common stock at
So of the Alton road. The stock pur'
;. chased will remain as collateral for
the bonds.
l The acquisition of Chicago and AL
ton makes the Hawley interest one
of the most formidable in the middle
west. The Hawley interests control
the Minneapolis and St. Louis and the
Iowa Central. With the Alton the
system will have over $500 miles OF
road in the territory bounded by Toll
edo, Kansas City, st. Louis and Min
neapolis.
When Hartman several years agt
broke his promise to make Hawley
director of one of his roads Hawley
. sought revenge by secretly helping
the Rock Island coterie to buy the
controlling interest in the Alton. HI:
revenge is now complete by the couI
which gives him control of the roa(
and leaves Hartman a helpless min
GRITTY interest.
: shonts Makes Statement.
Theodore P. Shonts, president .
,, the Glover Leaf, issued the following
! statement yesterday:
: 'Tbe acquisition of the Chicago
and Alton by the Toledo, St. Loui
and Western Railroad places the LAT
ter company in a potential position
!, in the transportation affairs of tn
! middle west.
i. "a system which reaches with it
own rails Detroit, Toledo, st. Louis
Chicago Peoria and Kansas City an
serves the rich and populous territor
: lying between these cities must be a
:, important factor in the transportatio
: world.
: .'The connections which the Toledc
n St. Louis and Western Railway wi
: make over it's own rails by this a.
rangement at Kansas City, namei!
:, with the Rock Island, the Union Pac
. fic, the Santa Fe, the NJ, K. and t
: the Kansas City Southern and othe
important roads should add conside
I, ably to it's possibilities and strength
c 'rBy the construction of about seve
> miles of road from Panama on tn
8 Toledo, st. Louis and Western Ra:
i, road to Litchfield on the Chicae
= and Alton line can be estabishe
). between Panama and Kansas Cit
: over the systems own rails shorte
: by several miles than the shorte,
line via st. Louis. This route vii
:, by avoiding the delays at East S
n Louis, have a distinct advantage
point of time over the st. Louis gat
way, and by hauling the traffic oy'
the systems own bridge at Loui
lana across the Mississippi effect
a large saving for both roads as again
present cost to each.
Both Roads Strengthened.
THE establishment of this rou
should strengthen both the Glow
IS Leaf and the Alton on high-grat
"a Missouri river traffic.
ie The terms under which the Chic
e go and Alton has been acquired
81 the Toledo. ST. Louis and Weste
!. provide that the latter shall issue
81 collateral trust bonds secured by Il
r. Chicago and Alton common and pl
I'd ferred stock, purchased on the has
al of per cent at par, for 63.500 shar
of the preferred stock and-2 per ce
- for the first five years and 4 per &c
for the second FIVE years on 144,2
shares of common stock at IS.
Under these terms if the Chica
land Alton continues to earn 4 =