Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-08-24
CLOVER LEAF BUYS
Secures Control of Chicago q
Alton From Hartman and
Rock Island Interests.
DEAL JUST MADE PUBLIC
Terms Agreed Upon Without Consult
ing Union Pacific People and
Without Their knowledge.

New York, Aug. 24.-Control of the
Chicago and Alton, which the Rock Is
land party wrested from E H. Harri- |
man and his associates last June after
a contest which began three years ago. |
has TO all intents and purposes been |
transferred 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 II
the transaction, and the formal an
lnCuncement of it is as much of a sur
prise to them as to any one else in the
| financial district.
| What Mr.. Hartman will do with the
| Union Pacifics minority interest seem
ed TO interest no representatives Of
either the buying or selling company.
| IIarrimnn's Enemies in Control.
The men in control of the Toledo. ST
Louis and Western, better known as
the Glover Leaf, are as hostile to Nj
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 its
hand in the Alton in 1904. Mr.. Haw-
ley has since resigned from the Union
Pacific board
Associated with Mr.. HaWley in the
Clover Leaf are General Thomas f.
Hubbard. a former Southern Pacific
director, who is suing that Hartman
line to compel payment of interest on
a bond issue: H. K. Huntington, in
Iterested as plaintiff in the same suit;
James n. Wallace. president of the
Central Trust company; Charles y
Tweed. until lately member of Spey-
er & Co.; William A. Read of the
banking house of w. A. Read L Co..
and Theodore P. Shonts. president ot
the .InterDorough-Metro Mr.
ShOnts is president of the Glover Le1f,
but has not been in charge of opcr
atiCns since he took charge of the In.
teTborough
IHt uSdl DiiliSS dDOuJ one Oh lil1
. most important changes of the rail
road map that have been made for
: many months. Eventually the four
roads will be merged into one compact
= system.
Strengthens Glover Leaf Road.
4 AT the office of Theodore p. ShontG
l president of the Interborough Metre
nnlifln oil nF L.
: Glover Leaf, the following statemen;
Of the transfer was given out:
"The acquisition of the Chicago an1
Alton by the Toledo. ST Louis am
Western railroad places the latter
company in a potential position in tn,
: transportation affairs of the middl,
west A system which reaches with it.
- own rails, Detroit, Toledo. st. Louis
: Chicago, Peoria, and Kansas City anC
serves the rich and populous territor.
lying between these cities. must be al
important factor in the transportation
il world
d "The connections which the Toledo
k st. Louis and Western railroad wi!
e make by this arrangement at Kansa
= CI'N VIII tHe 1NOCk lSldnu. lne OnlD
h Pacific. the Santa Fe. the Missouri
s. Kansas and Texas, the Kansas Cit
Southern. and other important road.
ID should add greatly to its strength.
$ Terms of the Transfer.
Is THE terms under which the Chcag
ie and Alton has been acquired provid
IL that the Glover Leaf shall issue its CO
lateral trust bonds secured by the Ch
cago and Alton common and preferre
h stock purchased on the basis of De
cent at par, for 63 $500 shares of til
e, preferred stock and 2 per cent for Il
frs five years and per cent fc:, -
lie second five Years on 4i,200 shares
Is common stock at So.
re "Under these terms. if the Chicae
nd and Alton continues to earn 4 per cei
h on its preferred, as it has done duriT
at the last five years, with surplus ov'
ey and above this amount, ranging fro
ey a minimum of $69.250 for the ye
as ended June 80. 1908, to a maximu
az, of s101O229 for the year ended Ju'
nd so. 1907, the only risk to the Toled
st. Louis. and Western will be $40
M 900 for the first five years and 500