Los Angeles herald., 1909-12-02
FRISCO SYSTEM
CHANGES HANDS
YOAKUM AND WINCHELL AC-
QUIRE RAILWAY
$500 MILES OF ROAD TO HAVE
NEW MANAGEMENT
ST. Louis-San Francisco Division OF
Rock island Line Is Bought by
Western capitalists-lnter-
ventlon Feared
Associated Pressl

NEW YORK Dec. 1.-SiX thousand
five hundred miles of railroad, forming
the ST. Louis e. San Francisco Railroad
company, changed hands in New YORK
today by its severance from the ROCK
Island company, with which 1t was
merged in 1908.
The purchasers are b. r. Yoakum,
former chairman of the Frisco-Rock
Island executive committee, and b. l..
Winchell former president of the ROCK
Island who now becomes president OF
the Frisco.
1t is understood that Messrs. Winchell
and Yoakum have as their associates
in the deal some of the leading capital
lists OF the middle west, including
Adolphus Busch and #. j. Wade of St.
Louis, as well as the Union Trust COM
pany of that city.
All accounts agree that the dissolu-
ton was brought about through fear
OF, federal Intervention. The Rock ISL
and and Frisco lines parallel and
touch each other at various points, and
there is reason to believe that the
interstate commerce commission had
taken cogniZance of the fact.
Another Phase
Another interesting phase of the
transaction is that, despite denlals, the
current belief is that the Frisco will
form some alliance with the lines of
Edwin Hawley, the newcomer in the
railroad world. who recently acquired,
with b. f. Yoakum, control of the
Missouri, Kansas & Texas.
At the same time the relations of
the Frisco and the Rock Island are to
be friendly and for the benefit of both
According to official statements in
terests now in control of the st. Louis
& San Francisco will operate that road
as an independent property, although
the actual transfer cannot be erected
until the $17,364, 900 of 5 per cent col
lateral bonds of the Rick Island, which
controls $29,000,000 of st. Louis d San
Francisco common stock, have been
retired.
The redemption price is 1O2 1-2 and
large quantities of the bonds have re-
Gently been traded in on the stock ex-
change at a steady advance from 95 to
1O1 1-2, the latter or top price being
reached today. A formal offer of re-
demption probably will be made at
once.
The st. Louis & San Francisco
Railroad company was organized in
1896 as the successor of the railway
company of that name which had been
sold in foreclosure. When taken over
by the Rock Island company, control
of property rested with b. f. Yoakum
and his friends and MIR. Yoakum was
made chairman of the Rock Island ex-
.ecutive committee.
Rumor Is Believed
Credence is given the rumors of
Yoakum- Hawley alliance in more ways
than one Besides the Katy, recently
purchased, they have other interests in
common. Mr.. Hawley is credited with
the control of the Chesapeake & Ohio.
the Chicago e. Alton, the Minneapolis
& st. Louis, the Iowa Central, and the
Toledo, st. Louis e. Western, while
he is interested in Hooking Valley To-
ledo & Ohio Central, Western Pacific,
the Atlantic Coast line and the Louis
willie &, Nashville.
The st. Louis & San Francisco has
not been a profitable subsidiary of the
Rock Island system, for the Rock ISL
and being responsible for the Frisco
bonds, was practically paying what the
Frisco did not earn. Both roads,
therefore, look for improvement under
the new management.