The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-10-01
Almost Certain That Straight
Line Was Disposed of to
HaWIey Interests for Nine
Millions.
IMPROVEMENTS WILL
BE MADE, IT'S SAID
Road Is Now in Hands of Re-
ceiver and Purchaser Must
Secure 1t Through a Fore
closure Action.

New York, Oct. lit may be def
nitely stated that the Chesapeake and
Ohio has arranged for the purchase of
a control Of the Chicago, Cincinnati
and Louisville. Details of the trans
action are not yet available from Off
cial sources, but it is understood that
it will involve the expenditure of abou.
100000 by the Chesapeake and
Ohio. Although definite information
is not obtainable on the subject, it is
not improbable that part of this expen-
diture will represent an outlay for im-
provements on the Chicago Cincinnati
and Louisville. as it is we'll known that
a considerable amount Of money will
have to be put in the property in order
to bring it up to an efficient operating
standard.
This money, it is understood, will be
raised by an issue of Chesapeake and
Ohio preferred stock, to which it is
regarded as likely the common share
holders will be permitted to subscribe,
thus receiving rights of some value,
though the exact amount of them can.
not as yet be told. 1t is admitted that
some minor details may yet remain
before the deal is formally closed, but
there seems to be little doubt as to its
ultimate consummation.
In Receivers Hands.
The Chicago, Cincinnati and Louis
vile Railroad company is now in the
hands of a receiver, James T. Good
rich having been appointed on Febru-
airy Is. 1908, and technically, of course,
control of the road can be obtain ed
only through foreclosure proceedings.
though matters of tina sort are usually
arranged long in advance of the actual
foreclosure SALE
Two groups of financial interests
have controlled the bonds of the roal
and, it is stated, an understanding has
already been reached with these inter
ests by the Chesapeake and Ohio syn
dictate. The holders of the first mort
gage bonds, of which there is ou:-
standing $3.50, 600, have been holding
~
that the holders of the second-mort-
gage bonds would part with them at
80. Whether or not these are terms
actually arranged for is not known
The company also has outstanding 81.
100000 Receivers certificates, issued
in May, 1908, and maturing in three
years. but subject to call at par on any
interest date The face value of the
companys entire bonded debt. includ.
ing the Receivers certificates, is only
$6,52O,O 900, SO it is a reasonable as
sumption that a considerable part o.
| the S9,OOO.O0O declared to be involved
in the Chesapeake and Ohio's plan
! would be devoted to Improvements and
betterment of the Chicago, Cincinnati
and Louisville road.
Is Missing Link.
The Hawley interests some time age
announced their intention of securing
additional lines to round out the Ches
apeake and Ohio system. and the acqui
sition Of the Chicago. Cincinnati ant
Louisville will give them line from
! the Atlantic seaboard to Chicago.
! 1t is officially stated that the chang
es recently made in the offices of thu
Minneapolis and St. Louis and low:
Central railroads do not signify an!
consolidation in the near future of TIL
Toledo. St. Louis and Western and Chi
Cage and Alton with those properties
T. P. Shonts, who is president of tn
Glover Leaf-Alton-has succeeded Ed
win Hawley as president of the Mime
apolis and ST. Louis and Iowa Central
Mr.. Hawley becoming chairman of tn
board of these two companies. Georg
H. Ross, who is vice president of TIL
tAlton-Clover Leaf is now vice pres
dent in charge of operation of the Min
neapolis and ST. Louis and Iowa Cen
trail.
No Stock Changed.
One of the most important interest
in all of these roads says that thes
and the other changes which have bee
made in the list of officials simply rep
resent an operating proposition or a
extension of the authority of the Gle
yer Leaf and Alton officials over tn
other two roads He states positivel,
that not single share of stock chang
, ed hands as a result of these change
) and that the changes were not the r;
suit Of important shifting of owne!
; ship. In western dispatches i, wa
. claimed that these changes indicate
that the Glover Leaf-Alton combinatio
had purchased the Minneapolis an
. St Louis and Iowa Central. Thos
who were responsible for this stat.
; ment apparently do not know tina, III
interests who control the first tx
. named roads are practically identic,
with those who control the latter.
. 1t is not unlikely, however, that !
due time still closer relation will
established between these four roat
than now exist, and it is equally pro
able that still other roads controlled /
and hiS lar