The Montgomery advertiser., 1907-07-14
THE MONTGOMERY ADVERTISER

f- sf 1t tnpereaat te lnauirs into the rsor-
 gani.aaisa sel AaS Siiaiizstsoa q this prior fo isssshs A,ton rosA had been Tor many years gHder the oostrei of MT. T.. Fl. BlAoh6&oAs - vrestdent. and had paid n av6raxs dividend ex- cesalns . pot Issnt. Tor. annsnn and in of seFainss -sA saS 1apsossnsas of its
 A .vpsersd ss sasss books Q. D.cen-
 ber 3l, lSes. +4Ae cSot el its road ana | elsiDnssat, wass tesslsG137. It aha other Assets kmoNntfhg to SS.7sIsso. Making the totat ysius Of Its property
 :ss:ssS:ss7 its t s2eei' stock outstand.
 debt. NNiis.sssi Iss oshsr -iiAsslities
 were stfe.1S7; total. SsS. 36i, ,4o7. : About this ume Mr. Edward H. Her- iiman. Nr. Mortimer L. schia, Mr. 0sorgAsJ. -0onld1 cad James stillmsn fornedsa syndicats 10 buy this stock and brought it foft15eo . share for the
 mon. making the Sofai cost of the shares purchased oSS.el3.10o.
 Tn about seven years 70 June %. ls0S. the outstending capital Sndebt- edness of this company was expended
 from t33.ssL4e7 to tiiAslo.S37. or an
 increass of about ese, 1000. and there w.s expended h actual Improvements
 and additions to ths property out of
 this capitalization snly about sls.ooo,- 0O0. leaving m tncrease of It's stock and | liabilities without one dollar of con- | sideration of about 9e3. .eeo. .000, or 3Ss,- iso per mile on the e4S.st miles of road
 owned by the company on June %. l 190S.
 By wGy of tustiAcation or excuse, we are told that the methods of the financing of railroads which prevailed
 in the year 1s0o are now obsolete. low ing to . higher degree of conscientious ness among hnanciersa and, moreover.
 that the Chicago and Alton should not
 be regarded as m iaQIated instance, in- | asmuch as # wAs dealt with much as | many other roads were at tht period. S' The drst of these statements Is. we
 trust. true; the latter statement is not calculated to uphold the value of Amer
 lean railroad securities.
 The common stock of the Chicago and Alton Railroad has since been sold on
 the market for t appears by the tes-
 Reid that the Rock Island owns ls1. 800
 shares of common and preferred. most ly common. As before stated. in 1901 the Union Pacific Railroad Company prchased 1o14Si shares of the pre-
 ferred stock of the Chicago and Alton Railroad Company. On or about Octo- ,, - to between Y. H. Hartman. Jacob H. 6chiff. James Stilman and R. 8. Low
 ett (who were in fact trustees for the
 Union Pacific RaiIroad) and WI B. Leeds. W. H. Moore, D. G. Reid and J.
 H. Moore (who /wAre in fact trustees | for the Rock Island Company cnd the
 Central Trust Company of New York,
 by a contract of January 30. 1908. by
 which Mir. Leeds sssdgned his interest to W. H.. Moore, D. e. Reid and J.
 H. Moore. Under this contract the
 stock owned by the Union Pacific and
 certain of the preferred stock owned
 by the Rock Islapd1 1constituting
 controlling interest in the Alton Com
 Trust Company of New Work as trus- tee under substantially the following
 arrangement:
 Each party agreed to deposit 1os, 4s1
 shares of stock. The trustees was to vote the shares of stock at the annual
 neetiYg to be held in 1905 in favor of the election as directors. of two per- sons to be named by Hartman and hls associates. At the annual meeting of
 1908 the shares were to De votei in
 favor of one nominee. named by Har-
 riman and his associates and three
 nominees of Moore and his asociates;
 and at each annual meeting thereafter TUT tuo eACctlOn uiTcCtoTo uHQ tuo trustee was tosso vote the sock for the election of directors of the railway company in each alternate year, the Union Pacific was to have majority l of the directors and the Rock lA1and Company the majority; and each other
 alternate year the Rock Island Conn.,
 pany was to have the majority and the Union Pacific the majority, thereby giving the control of the road one year to the Union Pacific and the next year to the Rock Island. At the time If the last hearing in this matter this con-
 tract was still in force. but notico has
 been given to the commission that by
 agreement between the parties there-
 to 1t has been abrogated and annulld.
 It would appear therefore. that the
 Chicago and Alton is now controlled
 through stock ownership by the Chi
 cago. Rock Island and Pacific Railway
 Company. which owns a line of rail- way from Chicago to Kansas City,