The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-04-25
Rock Island Holding Company
May Be Abolished.
Recent Attacks in Oklahoma
Having Their Effect.
RETURN STOCKS
Was One of the Biggest Schemes
in Financial World.
Suits Not to Be Pressed Pending
Consideration of Plans.

According to well founded unoff1-
cial rumor which has reached Topeka
the Rock Island company of New Jer-
sey, the $15O,00O,OO0 corporation
which the Moore Brothers organized
to hold the securities of their vast
cago, Rock Island & Pacific railroad.
Is to be abandoned. This plan is in
cluded in the general plan of the Rock
Island interests to satisfy the demands
of the state of Oklahoma with refer
ence to the relations between the Rock
Island and Frisco systems. No official
announcement has yet emanated from
the Rock Island general offices but the
rumor comes from high authority
Definite steps for the separation OF
the properties have not as yet been de-
cided upon. The directors of the vari-
Gus component systems and the attor-
neys, including Robert Mather, presi-
dent of the company. are busy devlslng
a plan for the dissolution of this hold
ing company which has been a Curl
osity in the financial world for years,
so that the stock of the different COM
panies may be returned to the original
owners.
When some practical plan has been
devised the officials will submit 1t to
the stockholders of the various COM
panies for their appreciation. But 1t
will probably require several months
before the dissolution scheme is con-
summated.
When the final separation takes
place it will mark the end of the sec
ond attempt of the powerful financial
interests to put their securities into a
holding company and thereby contIol
interests by a small stock ownership.
The other attempt was the Northern
Securities company, which was launch
ed by James J. Hill as holding COM
PAW for his Great Northern and
Northern Pacific companies. Inns the
United States supreme court declared
unconstitutional and ordered dissolved.
The extent of the Rock Island COM
pany of New Jersey can be seen from
the following figures: This company
owns all the stock of the Rock Island
Railroad company of Iowa. The ROCK
Island Railroad company of Iowa
owns most of the stock of the Chi
cago. Rock Island & Pacific road
which owns the railroad known by
that name. The Rock Island com
pany of New Jersey which holds the
securities of all these companies was
formed in 1902 and has s4s, ooo,oot
perferred and 89,6O2,000 common
stock and no outstanding obligations
| While the above holdings were al
| that were planned with the holding
| company was organized. other secur1'
| ties have been gained since 1902. The
New Jersey company now owns Of
per- cent of the stock of the ST. Louis
| &. San Francisco railroad, which is
| known as the Frisco. The Fr1sce
| owns 50 n per cent of the stock of the
| Chicago & Eastern Illinois, and the
| C. & E. owns 60 per cent of the stoci
of the Evansville & Terre Haute. The
Frisco passed into the control of the
| Rock Island company in May, 1908
through a purchase, which was con
Quoted by ]. Pierpont Morgan.
| Some change in the management o.
| the big systems involved in the hold
ing company has been deemed advls
| able because of the recent agitation
| against the alleged combinations O.
the railroads in Oklahoma, and be
cause of the Investigations conducted
by the Interstate Commerce commits
sion The Rock Island and Frlsc'
lines in Oklahoma are parallel II
Oklahoma and cover the same lum
bering and agricultural areas and &C
cording to the Oklahoma laws ar
held to be competitive.
A suit to compel the companies T.
dissolve was filed at the direction
Governor c. N. Haskell of Oklahoma
some time ago. The Interstate Com
merce commission has been interested
in the affair and a report OF thei
findings made public few days ag
fastened the arrangements for tn
dissolution.
The Oklahoma authorities hav
agreed not to push the prosecution Q
the road and that the suit will not
} pressed while the roads involved ar
planning a reorganization in order t
comply with all the legal require
| mentS.