New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-02
CONTROL OF NJ, J. & K. C.
ROCK ISLAND MAY GET TT
Management of Railroad Nozo
Tested in Committee.

The control of the Mobile, Jackson & Kansas
City Railroad Company, about the legal COM
picstiOns Of which good deal was printed
month ago, has probably passed to the
Rock Island system. which several times in the
last three or four years was reported to have
acquired it. The following statement was issued
late yesterday afternoon:
The officers Of the Mobile Jackson & Kansas
City Railroad Company and PhiIbin Beekn7an
& Menken. attorneys for foreign bondholders
and the French Finance CORPORATION of Amer
ica, announce that the management and con-
troll Of the Mobile jackson & Kansas City Rail
road Company and its leased line the Gulf g.
Chicago Railway. have been vested in a com
Alexander Mcdonald and B. F. Yoakum. 1t is
understood that Mr.. Yoakum VIII supervise the
operation Of the railroads.
MIR. Borne is president of the Colonial Trust
Company. OF this city; trustee of the mortgage
Of the Gulf & Chicago Railway Company; Mr.
Mcdonald is a director of the Mobile Jackson &
Kansas City. and reputed 10 be its heaviest
stockholder, and Mr.. Yoakurn is chairman of the
executive committee Of the Chicago, Rock Isnnd
4 Pacific Railway Company, and by virtue OF
holding that office, in charge of the operation of
The whole Rock Island system
Late sin December. it VIII be remembered the
Mobile. Jackson & Kansas City was placed in the
lands Of receivers on eX-parte proceedings III
s',uted by Ambrose Mcneil. OF New York:
=. Honas Morrison. Of Pittsburg. and John Nc
leCd. OF Philadelphia, who acted as a protective
o.umiJtee Of bondhoders of the Gulf 6, Chicago
anc also as stockholders of the Mobile, Jackson
9 Kansas City. A few days later the manage
l-tnt recovered possession OF the property haV-
Ing taken an appeal from the order appointing
100000
!, was said at the time by counsel for the
company that Philbn. BeekInan & Menken. coun-
sci for the English and French bondholders, rep
resentlng upward Of IS per cent OF the Mobile
e JaCksons bonds and majority Of the Gulf *
Chicagos bonds, were IN sympathy with the
mana cement Among the large bOndholders is
the French Finance Corporation, which is be-
ueved 10 have given its assent TO the plan OF
turning over the control OF the property TO the
committee.
Some time before the receivership was applied
for II is understood attorneys representing the
controlling interests suggested 10 the bondhold-
ers who were dissatisfied with the outlook for
the property, that control be turned over TO
committed but the reply was that there would
be no advantage in such step until after the
large floating debt should have been provided
for. The move announced yesterday is be-
leyed by these interests TO signify that pro-
Eision has been made for taking care OF the
floating debt It had been planned 10 secure a
large sum by placing second mortgages of 3d.
100000 each on the Mobile & Jackson and the
Gulf & Chicago, and special meetings Of the
stockholders TO ratify the plan had been called.
Postponenents were taken, however and the
meetings have not vet been held. In view Of
Mr.. Yoakum's entrance into the property il
seems altogether probable that questions as 10
the future financing OF the roads will be
Mr.. Yoakum. IL is understood from good
sources, few months ago bought at low fig
ure a heavy block of the Mobile & Jackson
stock but it could not be learned yesterday
whether or not actual control had passed TO him
and his associates IN the larger system.
The Mobile, Jackson & Kansas City extends
from Mobile on the Gulf OF Mexico. to Decatur.
Miss, and its leased line, the Gulf e. Chicago,
from Decatur TO Middleton, Tenn, with
tension planned TO cover the few miles from
that point to Jackson. Tenn. The total length
IS about four hundred miles The physical con-
dition Of the road, il is said, is not that Of a
standard railway, but It has strategic pOssibn-
flies which would justify the Rock Island in ac-
Quiring its control and spending money for i'm
proving II. Near its northern end II crosses the
Rock Islands line from Kansas City and St.
Louis and Memphis 10 Birmingham. the juno
fion point beng New Albany Miss. The Rock
Island now extends to the Gulf Of Mexico at
Galveston. and Is planning 10 reach New Or
leans With the Mobile and Jackson 1t would
have another outlet TO the Gulf at Mobile
Moreover the Mobile & Jackson parallels for
more than two hundred miles the Illinois Cen
trail, controlled by the Hartman party,
fact which may he not without Significance. IN
view o. the feeling which is commonly under
stood II exist between Mr.. Hartman and the
members OF the Rock Island group.