The Topeka state journal., 1914-02-07

Fine Hand Of Frensied Finance
Is Reported.
IT IS 4 PROPERTY OF Merit
Destined to Become Great Road
and Investment.
Other Items Of Interest I'm the
Traffic World.

Francis A. House. the well known |
western financial writer says in the |
Rocky Mountain News Of recent date, |
concerning the Rock Island reorgan-
ixation plan:
I'VE do not err the least in assum- !
ing that the swift downward sweep In !
the market values Of these issues was
Importantly facilitated by bold oper- :
ations on the part of the professional
depressionistic forces. 1t IL thorough |
ly known that there yet Is In existence
q powerful and unscrupulous Clique
of raiders which tries with all It's
might and Vaccinations to stem the
rising tide and to compel relapse
to materially lower levels. The COM
mon belief is that this band OF fren-
zied financiers' is headed by Thomas
w. Lawson, the illustrious reformer OF
State street. Boston.
ITO the dark designs Of these and
other vocational wreckers, Rock L.
land issues lend themselves very read
lily and opp0rtunely. Owing to the un-
propitious turn in the companys earn
owners Of the collateral per cent
bonds feel strongly tempted to liquid
ate, Notwithstanding the severe oe-
probation that already has occurred
in the quoted value of their holdings.
A little more than four years ago.
| these 4s were selling at as high a fig
ure as 81. 1t Is an unQuesttonaple
fact that they are widely distributed
among speculative investors in the
east and middle west.
'.It often has been said and is per-
fectly true, that q friendly re-organ-
ization. designed to simplify and uni
| fy ownership, would appear highly
desirable, If not exactly inevitable. the
| existing cumbersome status tends to
initiate against the establishment OF
| 0nnA financial credit. 1t
constantly invites dfsreputable man1p-
ulation Of the prices of the shares and
bonds 1t keeps prudent investors
from purchasing the securities.
There is an impression IN wan
street that the proposed pronibition
Of holding companies has partly been
responsible for the renewed sharp de-
probation in Rock Island issues That
may indeed be so. If congress should
put the ban upon companies OF tnls
orize the interstate commerce COM
mission to regulate the emission OF Sc
curities by railroad corporations, ef-
lforts to prolong the lives OF concerns
hanging together by ropes OF sand
lare very likely to prove an embarras-
sing task.
Improvement Expected.
"Some time ago it was reported
that the Moore-Reid people had en-
tirely transferred their holdings OF
Rock Island shares to Phelps, Dodge
& Co. In prominent financial ana IN
vestment circles this news was re.
! ceived with undisguised pleasure and
1T was promptly argued that the
change Of control should have bene-
fetal effect on the values Of all the
securities of the company. For
while, this hopeful theory was mod
estly confirmed by developments OF
the stock exchange. but has sinc'
been more than fulfilled by the state
ment Of earnings for the six complet
ed months of the fiscal year 1S1S-14
: which disclosed a net decrease o
$1,493,00O from the like period o
New Heads Emlcient.
''The present management of tn
1extensive system may unheSitattngl.
be regarded as laudably progressive
and efi1cient and earnestly determined
to rectify the mistakes and indiscre
tions Of former directors and execu
"Maugre all the sneers and skeptt
cism Of the present day. 1t Is beyon
questioning that the Rock Island rep
: resents q property of distinguishe
merits and promises, and that its sc
curities, whether in their present o
ireorganized form. are destined to be
= come, eventually, as attractive to In
: vestors as are those Of the AtchisO
or Northern Pacific OF Southern Pa
cific at this day. The territories II
various lines serve are justly fame
for their agricultural productivit,
their industrial progress and the
rapidly growing wealth and populs
: ton.
"The holders Of the Rock Island
$50, 900 common stock are N
| possessed of the right to vote at al
nual elections. Complete control
= vested exclusively in the holders
the $49,047, ,45O preferred stock. TIL
means that ownership Of less this
$25,OOO,OO0 Of the latter carries 81
premacy Of power In the affairs of
u.l company which in the last fiscal We.
nd | operated 8,048 miles of track and hs