New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-13
BUY ROCK ISLAND STOCK
Phelps. Dodge & Co. Get Large
Holdings of Preferred.
PEARSON-F ARQUHAR BLOCK
Wall Street Thinks Roads Sc
curities Will Be Less Hazard
Gus in Future.

Gus IN futuIe.
The block of Rock Island preferred stock
said to be 10000 shares. acquired last July
hy Kuhn, Loeb & Co. from the Pearson
Faruuhar syndicate when the latter vas
forced 10 let 90 its holdings OF American
railroad securities including also large
blocks of Lehigh Valley, Missouri Pacific
and Wabash stocks has been sold 70
Phelps Dodge & Co Following the an
rouncement there was sharp advance in
prices on the stock Exchange Rock Island
preferred rising over three points from the
opening figure The common stock also
advanced more than point. and so did
the collateral per cent bonds of the road
Kuhn Loeb & Co. in making the an
ncunCement OF the sale of the stock. gave
no details as to the amount of stock in
volved or the prize. They merely said thst
they had sold all of their Rock Island
preferred stock to Phelps. Dodge & Co
1t was reported, however, that they re
ceived from 50 to ~ for the steck and as
they are understood to have paid about Il
for it. the transaction represents q profit
of between 3 90 0ne and S2,0Jon1-
That Phelps. Dodge & 60. will get repre-
sentation on the Rock Island hoard as
result of the deal is regarded SIS a fore
gone conclusion in Wall Street It i
thought probable that Or. 2. 5. Pearson
and Percival Fsrquhar will retire from tho
directorate and will be succeeded by Ar
thur Curtiss James and some other mem
her of Phelps Dodge & Co. probably
Cleveland II. Dodge.
II IL the conviction in Wall Street that
with the entrance into the Rock Island di-
rectoPste of members of such q conservs-
tive firm as Phelps. Dodge & Co. the Rock
Island securities will be less hazardous than
heretofore. IS il is taken for granted that
the Phelps-Dcdge representatives on the
board. while not having a controlling voice.
viii have a good deal 70 say about the az
fairs Of the company
Actual control OF the road. il was said
in we'll informed quarters yesterday, SUI
rested with Daniel O. Reid and ex-JudEe
William II. Moore. who have for years been
dominant IN the management OF the com
pany. Their holdings. II Is said. are the
same g tfov have always been since they
acquired control
E.x-Iudge Moore is closely Affiliated with
the First National Bank. with which the
Phelps Dodge interests are also closely
Identified Arthur Curtiss James being a
director of the bank. while Francis l. Hine.
president OF the First National. is di-
rector of Phelps. Dodge & Co. He Is also
member of the board of the Rock Island
company. between the present management
of which and Phelps. Dodge & Co. cordial
relations have existed for Years
President Hins said with regard ~ the
purchase by Phelps Dodge & Co of the
Kuhn-Loeb holdings Of Rock Island pre-
ferred:
Phelps. Dodge & Co have obtained not
q controlling but an influential interest IN
the Rock Island. Through ownership Of E.
/ Paso & Southwestern this influential III
terest will act To the advantage of both
roads. on d sort of give and take basis
/ This settles the Rock Island affair, which
! stock is now in safe quarters. i takes no
/ keen observation 10 note that this purchase
will nc splendid for the railroad world
! Phelps. Dodge & CO. who. in addition to
/ their extensive copper properties, own great
/ tracts Of coal lands IN the Southwest. are
understood TO have purchased the Rock
| Island stock from Kuhn. Loeb & Co in the
/ interest Of the FL Paso & Southwestern
/ Railroad subsidiary of the FL Paso &
/ Eorthea stern Company. q holding corpora
I ton owned BY the Phelps-Dcdee interests
which control roads having total mileage
/ q eight
| Co. get all their metals East over the
Rock Island system, which connects with
the e Paso & Southwestern Al Santa Rosa.
! N NJ The two systems have long had a
/ trs f=7c arrangement. and their relations are
expected 70 he greatly strengthened as d
result Of the new deal II is said. however.
that there Is no intention 10 merge the Two
| systems.
| One result Of the closer relations between
tic two companies II is believed, win De
! tho obtaining of an increased tonnage by
the Rock Island. as the Phelps Dodge PEG
pie will undoubtedly favor a line in which
their money is invested. and il is under
stood also that they intend TO develop
largely their coal properties in the South
west, which have not vet been developed. 1t
is said. to anything like their producing
| capacity.
While as already stated. both Dr.. Pear
son and Nr. Farquhar are expected TO re-
tire from the Rock Island directorate as a
result of the new deal by which the Phelps
Dodge interests get the bulk Of their for
mer holdings Of Rock Island preferred. II
is thought pronahle that the two men viii
continue to have important affiliations with
the Rock Island-Pheips, Dodge group. Or
Pearson : Mexico n N"fth"-sttih ran
way, an important system, made UP partly
Of lines formerly owned by Colonel VIII
lam {. Greene. connect az e Paso, Tex.
with the Phelps-Dodge lines. which opens
the way for large Interchange of traffic
with the Rock Island system.
The corporation Of Phelps, Dodss & Co.
was organized under the laws OF New York
or. December Il. 1908, with an authorized
capital stock OF S5o,oooeoo of which 50 a34.
So is outstanding The company owns all
the capital stocks Of The Copper Queen
Consolidated Mining COMPANY, the Monte
yuma Copper Company, the Detroit Copper
Mining Company of Arizona and the Stag
CANYON Fuel COMPANY The officers OF the
corporation are James Douglas. president.
Cleveland n. Dodge, Arthur Curuss James