New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-12-02
HARTMAN AND FRISCO
PEACE WITH ROCK ISLAND
st. L. s S. +. S40,OO0,O00 Bond
Issue to Finance Ill Obligations.

Preparations have virtually been made. it was
learned yesterday for the issuanc, by the 81
Louis & San Francisco Railroad Company OF
long term bonds for more than $4O,OOO.GOO' with
the object primarily of providing for ali or the
outstanding obligations of the system
The securities about to be put out are part OF
an issue of S115 100000 general lien bonds bear
ing interest not exceeding per cent, which the
stockholders authorized on August q, 1907. or
this issue SCI, $4,000 were reserved to take up
at or before maturity the notes falling due up
10 1913 inclusive and certain other obligations
of the Frisco.
On October 10 Wall Street was surprised by
the news that the Frisco had arranged with
Kuhn, Loeb & Co. for financing an issue or
s7124 900 Frisco notes maturing on December l.
The interest in the transaction was in the fact
that the railroad had previously been in nesotla-
ton with Speyer & Co, who have for the last
two years or so been recognized as the bankers
of the Rock Island system II had abruptly
broken off the negotiations. in consequence of
disagreement as the terms upon which that
house WAS willing to provide for the maturing
note issue, and signed a contract with Kuhn,
Loeb & Co.
1t was assumed by the Street that opportunity
must have been afforded Kuhn. Loeb & Co. TO
examine the financial position of the Frisco, and
also that the appearance Of that firm as a factor
in the 'Friscos financing would be found to be
permanent.
That these assumptions were well grounded -
evident from the fact that not only have Kuhn,
Loeb & Co. had the books Of the Frisco ex-
amined but also that they have caused a care
full examination Of the physical condition of the
property to be made, the report of their repre-
sentatives. submitted about two weeks ago, hay
ing been entirely satisfactory Several other
banking houses. it is understood, will be as
ISOLATED with Kuhn, Loeb & Co. in the bond
operation. the details Of which will probably be
made public within very short time.
The S7.1249OO five year Al per cent notes
which Iratured yesterday are now being paid off
in cash at the office Of the Trust Company OF
America In addition to these notes, the Frisco
has about $30OOO0G0 notes falling due within
the next five years, among them $15,529.929 AZ
per cent and S313O 900 per cent notes matur-
ing on June / next; $75O0OO0 5 per cent notes
due on January 1. 1911; 100000 AZ per cents
falling due on February 1, 1912, and 50 $4,000
per cent obligations maturing October 1,
1913.
With provision made for these several obliga-
lions by means of long term bond issue the
Rock Island VIII be relieved Of a heavy and
paralyzing burden. The Chicago, Rock Island
& Pacific Railroad Company the entire capital
stock Of which is owned by the Rock Island
Company, is itself the owner of SOS, 94O, 800 of
the outstanding S29OO0O00 common stock of
the Frisco, well of almost the whole out
standing capital stock of the Chicago. Rock
Island s. Pacific Railway Company and owing
to that close relationship has long been obliged
TO stand sponsor for the Frisco in its financing
The Identification of Kuhn. Loeb & Co. with
the Frisco financing is generally taken by
Wall Street as signifying that Mr. Hartman
will from now on be force in the Rock Island
systems management, at least to the extent Of
assuring a cessation of the old hostility between
the Rock Island and Hartman interests and the
harmonious operation of the Rock Island and
Union Pacific systems.
One of the outcOmes of the improved relations
it has been suggested, may be close connec-
ton between the FrsCOs lines, which now ex-
tend to Birmingham, Ala, and the Central of
Georgia, extending from Birmingham TO Sa-
vannah, a road which Mr.. Hartman bought
about a year ago, and for the development of
which he is understood to be working out COM
DreheuSiye plans