New-York tribune., 1909-10-14
GET CONTROL OF KATY"
THE List INDEPENDENT
NORTH-AND-SOUTH ROAD.
Rock Island and HascIey Systems
VIII Use 1t as an Outlet
to the Gulf.


Speyer & Co, long identified with the finances
of the company and also bankers for the Rock
Island system; Benjamin f. Yoakum, chairman
Of the executive committee Of the Chicago Rock
Island Pacific Railway Company and the St
Louis & San Francisco Railroad Company. and
Edwin Hawley. These three men, their nom
inees, are expected 10 enter the board Of
the Missouri. Kansas & Texas and it is under
stood that within n few days Adrian H Joline
chairman of the board and president. will be
succeeded in the presidency by a. A. Allen. of
st, Louis, since May 1897, vice president and
general manager
The katy will continue to be operated as
independent road, although henceforth it will
be under the joint control of the Rock Island and
Hawley systems. 1t could not be absorbed into
the Rock Island system, because it parallels part
of that system, but it will supplement the Rock
Islands present line to the Gulf; and it will
afford the Hawley system. which it parallels
between st. Louis and Kansas City. a direct con-
nection to the Gulf from St. Louis and Kansas
City, the termini of the Alton and the Toledo,
St Louis & Western.
The Missouri, Kansas & Texas is the last Of
the so-called north nd-south roads to lose it's
independence and pass under the control of
larger systems The Kansas City Southern.
which the Sielcken interests took from the Har-
riman interests in 1905 has within the year
tered into close relations again with the Harri-
man system, which is understood virtually
to control it; and the Illinois Central is to all
intents and purposes part of the Hartman sys-
tenn The Colorado & Southern, of which Edwin
Hawley and his associates acquired control in
1902, sold by them last December TO the
Chicago. Burlington & Quincy. and is part
of the Hill system, giving it its Gulf outlet.
MANY RUMORs OF ABSORPTION.
For several years rumOr has been busy with
the future of the Missouri Kansas & Texas and
1t has been said at various times that the con-
troll would go to the Rock Island. which would
link the road with the Chicago & Eastern Illi-
nois, operating the two a separate system; to
the Canadian Pacific. TO the St. Paul. the only
system reaching the Pacific Coast which has
no outlet to the Gulf of Mexico; to the Hawley
system and to the Hill system. The most per-
sistent of these reports was that naming Mr.
Hill the purchaser. but that rumor was set
at rest last winter, when the Hill system got it's
line to the Gulf through the purchase of the
Colorado & Southern.
The Missouri, Kansas & Texas Railway Com
pany operates a system of 3.O72 miles total
length, Of which . 100 miles are owned by it.
1t extends from Kansas city and ST. Louis
which cities its line connects, through Missouri
Kansas. Oklahoma and Texas to the Gulf at
Galveston. and also has branches on the south
TO Shreveport, La. and TO San Antonio, Tex
At both Kansas City and st. Louis it CON
meets with the Rock Island system which,
with its more than fourteen thousand miles,
extending from Chicago to Denver and from
Minneapolis to Galveston is next to the Union
Pacific the largest system in point of mileage
in the United States At st. Louis and Kansas
City also it connects with the Chicago & Alton
of the Hawley system, and at ST. Louis with
the Toledo st. Louis & Western, the Glover
Leaf.
Early in June it was. announced that a traffic
arrangement had been made between the Chi
cago & Alton and the Kansas City, Mexico &
Orient Railway Company which would become
effective the completion of the latter road by
which time it was expected that the Chesapeake
& Ohio would be linked with the other parts of
the Hawley system, all Of which, it was under
stood, would share in the benefits of the ar
rangement. The Orient road when finished will
operate line from Kansas City to ToboIo-
bampo. on the Gulf of California, four hundred
miles shorter than the distance between Kansas
City and San Francisco. and will have a traffic
| interchange with the Pacific service of the Ham
burg American Steamship Company. 1t was
assumed IN Wall Street yesterday that this ar
rangement would be extended TO include the
Rock Island system. which would thus get an
outlet TO the Pacific and to the Far East
The relations between Mr. Hawley and the
Rock Island interests it was pointed out yester-
day. have long been friendly. AS one instance
1t was recalled that Mr.. Hawley lent valuable
aid to the Rock Island group in their successful
stock market effort in 1905 to obtain a voice in
the management of the Chicago & Alton, then
controlled by the Union Pacific system For
two years after that. it will be remembered. the
road was under the joint control of the two
parties, but since June. 1907 the Alton has been
under the sole management of the Rock Island
although the Union Pacific at last accounts still
held its $1O,343, 100 Alton preferred stock The
Colorado & Southern, then controlled by Mr.
Hawley, and the ST. Louis & San Francisco of
the Rock Island system, few years ago jointly
constructed the Trinity & Brazos Valley Rail-
way. connecting Fort Worth and Dallas with
Houston. whence it has connection into Gal
weston.
The Missouri Kansas & Texas has outstand-
ing S63, 300, 800 common stock which no divi-
dends have ever been paid. and $13. 100000 pre-
ferred stock. on which dividends of per cent
a year have been paid since 1906. Its bonded
indebtedness includes S4O0O0O00 first mortgage
4 per cent bonds, $20,OOOO00 second mortgage 4
per cents, 13170OO0 general mortgage AIS and
other obligations totalling about $39OO0O0O
The control OF the stock has for years been
held abroad, principally in Holland and Eng
land The Interstate Commerce Commissions
report a year ago gave the largest ten stock
holders, as follows: The Nederlandsche Verunig-
ing, of Amsterdam. $12.676OOO common and
S312. 700 preferred stock the English Associa-
ton OF American Bond and Share Holders, $5,-
1872 900 common and $4,000 preferred; r. Ra-
phael & Sons London, So $4,000 common;
Huggins & Clark London. S3564O0O common
and $4,000 preferred; Leon Brothers. London,
s2 1S1 OO0 common and $4,000 preferred; S