New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-24
CLOVER LEAF GETS C.&A.
BUYS FROM ROCK ISLAND.
VII Hold $50, 800 900, a Clear Mo-
iOrity of Roads Stock.

the Toledo St Louis & Western the Glover
Leaf" road. had acquired control OF the Chlcaso
& Alton Railroad Company. In 1904 the hoch
Island purchased sl4.32o60o common and Ss"'"O
nreferred stock of the Alton and made an agree
ment for alternate control of the property IN
the Union Pacific. which held sle'5iSloo Oh tic
preferred stock. That agreement was terliha'eu
last June since which time the Rock Island hid
baen i'm sole control The negotiations with the
Rock Island interests have been conducted by Eo-
vii: Haw-ley for the Glover Leaf, and under the
agreement arrived at the Glover Leaf Is u p"i
chase the Rock Islands entire holdings.
The Alton outstanding $l9.aAZeoo coliiloi "li
s9 44 GOO preferred stock total of s5soeo'SW u.
which the Rock Island owns $l4.42owo common d"'
S63S0O00 preferred $20SGooOO in ALL d cle'i ma
joritv The Rock Islands holdings OF the coiiiiio"
stock are practically the same as in 1914 put III
the interval it has increased by purchases III the
/ open market. its holdings of the preferred pS
more than fifteen thousand shares NO ohef mas
been made for the Union Pacific hoioihsS' d'"
! Union Pacific interests said yesterday AFTERNOON
that they had been complete ignorance OF the
pending deal The Union Pacific is now In the
position of a large minority stockholder III d prop
erty controlled by interests many OF WHOM "i'
unfriendy to Mr.. Hartman.
The terms under which the Chicago & Alton has
been acquired BY the Toledo, ST. Louis x western
provide that the latter shall issue its collateral
trust bonds secured by the Chicago Alton conf
and preferred stock purchased on the basis OF
per cent. at par. for $500 shares OF the pre-
and per cent for the second I'VE years on lA-uV
shares of common at %.
Under these terms. if the Chicago & Alton con
tnues TO per cent on its preferred stock as
it has during the last five years, with a sur
plus over and above this amount ranging from q
4 minimum Of $50 $50 30 for the fiscal year ended
June so 1893 to a maximum of 81 0lo2 % for the
fiscal year June go 1897. tho only risk TO the
Toledo St Louis & Western, interests identihed
with that property say. will be $4,000 for the first
five years 10000 the second five years. The
Toledo ST Louis & Western for the year ended
so. 1907, showed surplus of $3.50 So a. which
is 4 per cent its preferred stock and over 20
per cent on its common stock. The first SEMI
annual dividend of per cent paid on its pre-
ferred stock last April.
The conditions referred to not yet fully de-
termined three. In the first place, it is not the
purpose of the Glover Leaf interests to buy into
lawsuit and the actual completion OF the deal
is therefore contingent upon the decision of the
federal authorities whether not they will pro-
coed against the Alton a party alleged TO be
equally culpabIe with the Standard Oil Company in
the rebating offences for which the Standard was
recently fined more than s29Goo.ooo This decision
is expected 10 be made public within the fort
night. The Clover Leafs representatives now
examining the Atoms books and inspecting its
property. but is believed that their reports on
both of these subjects will be entirely satisfactory
to the prospective owners and that the only
factor of uncertainty In the negotiations is the
course which the government will adopt in tho
bate matter.
With the linking UP of the Alton with the Glover
Leaf new railway system OF Importance will be
created, having an aggregate length Of more than
zoo miles and reaching Detroit Toledo St. louis
Chicago Peoria and Kansas City. for the Clover
Leaf and the Alton viii be operated I'm close reis-
lions with the Minneapolis & 81. Louis and the
Iowa Central. of which roads Edwin Hawley is
president
BY the construction OF about seven miles of road
from Panama or the Glover Leaf Railroad. to
Iitchfied. on the Alton road. line can be estab-
lished between Panama and Kansas City over the
systems rails shorter ny several miles than
the shortest line by way OF 81. Louis This route
will by avoiding the delays at East St Louis have
a distinct advantage IN point Of time over the st.
Louis gateway, and. by hauling the traffic over
the Alton bridge across the Mississippi River at
Louisiana No. north of St. Louis effect large
saving To both roads against the present cost TO
each.
The object Of the Rock Island In buying into tho
Alton was to check the competition of that road.
formerly under Hartman control, with its own
system between ST. Louis and Chicago. With the
Rock Island in full control of the Alton. however,
il was in the position OF owning two properties
extending between Chicago and st. Louis. the
Alton and the Chicago &. Eastern Illinois. which it
had received limitations from Washington, IT is
understood. regarded there parallel and
competing roads II was. therefore favorabIy dis
posed toward proposition for the sale by it OF
the Alton, which does not fit well into the Rock
Island system does the Chicago Eastern I'LL
nois, and probably not i'll pleased that the
offer to take the Alton should come from
railroad company in the directorate of which
men not friendly the Union Pacific policies
BY its extension of control the Illinois
Central the Union Pacific will still be able to reach
Chicago the tracks of its system. for the
Illinois Central extends westward from Chicago IL
Omaha, the eastern terminus OF the direct line Of
the Union Pacific from the coast: but the direct
connection formerly open to IT 10 Chicago by the
Alton from Kansas City. the other eastern terminal
point of the Union Pacific. is cut off.
The Alton, it said yesterday in quar-
tiers which should be well Informed. is to be merged
with the Glover Leaf; but this question has prob
ably not vet been definitely decided 1t is denied
on authority that the two roads be combined
any of the present large railway systems, their
only close connection. already said being with
the Minneapolis & St. Louis and the Iowa Central,
which roads form system extending from Mime
apois and St Paul westward to LIE Bau. s. D.. and
southwark TO Des Moines and Peoria. 1t is under
stood to be entirely unlikely that s NJ FELTON,, who
has been president of the Alton since the days of
it's Hartman control. will be continued In that
office, and indications point to the selection OF
George H. Ross. second vice president the Glover
Leaf. in charge of operation his successor.
The Clover Leaf has frequently figured in Wall
Street rumor as about be sold TO some big sys-
tenn. the Erie having been mentioned more than
once the probable purchaser; it is knodn that
several months ago negotiations for its sale to
other road in progress for while. The de-
NAL yesterday that the Glover Leaf-Alton system
would be turned over to any other system included
specifically the Erie.
The officers and directors g. the Toledo. st.
Louis & Western are: Chairman CT the board.
William A. Read; president. r. p Shonts; vice
president. Thomas II. Hubbard; second vce-pres-
ident, George II. Ross; secretary and treasurer. J.
md