Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-10-10

WHICH the OdIlkl1lS fiTlil Is 10 ldhe ttli Z
of $7,125,000 of notes of that railroad
which mature on Dec /.
At noon B. f. Yoakum, chairman OF
the board Of the Rock Island, request
ed Speyer & Co. to give him a final
proposition It was unsatisfactory and
Speyer & CO. wei declared out With
in. thirty minutes the Kuhn-Loeb deal
was put thru and B. f. Yoakum had
engineered the biggest and most start
ling financial coup Wall street has seen
in many years.
News Sends Stock Up.
When the notice reached the stock
exchange great activity instantly APP
peared around the Rock Island post
and heavy buying orders were placed
in both Rock Island and st. Louis &
San Francisco issues. Rock Island pre-
ferred jumped from 4S4s to 4Sss, and
st. Louis & San Francisco second pre-
ferred from 2sa ito 3112. Simultan-
eously banking support appeared in
Union Pacific, Southern Pacific, Mis-
souri, Pacific, and all OF the Hartman,
Gould, and Reid Moore securities. The
bear movement In the market was sud-
denly checked.
The Significance OF the deal was
Immediately recognized. ENor several
weeks there have been persistent rum
ors that the Speyer plan might result
i'm the separation of the st. Louis &
San Francisco from the Rock Island
The assurance that such Is not to be
the case was conceded to mean that
the warfare which has existed for
Jaatwnan tha H9r-
riman and Rock Island interests was
at an end. This view was confirmed
by the entrance of Kuhn. Loeb & Co.
the Hartman bankers, into financial
relations with the Reid Moore syndi-
cate. 1t is known that this banking
finn would not form an alliance with
interests antagonistic to Mr.. Hnrri-
man.
The relations between Mr.. Hartman
and the Reid Moore syndicate were
seriously strained by the Alton deal
The Chicago & Alton had been Jointly
controlled by Rock Island and the
Hartman Union Pacific interests. just
before the famous interstate commerce
commission investigation. Rock Islam
interests acquired majority OF stock
and elected a board of directors for
the Alton over Harriman's head. The
new board was responsible, it is said
for the adverse criticisms of the man
agement under Hartman.
Ends Rumors Of Warfare.
For weeks r,mors that Hartman and
his friends were buying control OF st
Louis & San Francisco have appeared
The story was that Union Pacific in
tended to wrest control from the Rock
Island and was fighting every effort to
finance the st. Louis s. San Fran
cisco notes.
. Whatever the truth Of this, it is; GER
tain that the deal today was arranged
at the eleventh hour, and 1t was con-
ceded there is ground for the belief that
the terms represent q. Surrender -of
Rock Island interests to Mr.. Hartman
The sudden elimination of Spefer 8
Co. from any banking connection with
the great railroad systems which they
have financed for many years was no,
only surprise to banking circles, but
to that firm itself. James Speyer, the
head of the firm, is in Europe, and the
object of his trip there was largely to
with the formation Of a. syndicate.
Deal yesterday is purely banking
transaction. 1t does not mean thai
either Hartman or the Union Pacific
interests are to actually control either
Rock Island or st. Louis & San Fran
cisco. It does mean, however. that the
policies of those two railroads are
hereafter to be conducted on lines thai
will meet with Harriman's approval
and that friendly interchange of traffie
between the two systems. an equitaole
maintenance of rates, and an abandon
ment of all competitive building will
follow. It foreshadows rearrangements
of the finances Of all the Rock Island
roads under the direction of Kuhn
Loeb & CO. It meanst the final separa-
ton Of Speyer & Co. from all banking
connections with these properties. LIS
broader significance is the operation IN
complete harmony of all the Hartman
Rock Island and Gould properties.