The New York herald., 1922-12-14
FRISCO LINE BUYS
GALVESTON OUTLET
International Great Northern
Is Obtained by st. Louis
San Francisco.
II. C. G. APPROVAL NEEDED
Merger Is the First of Inde-
pendents Since New Group
ing Was Planned.
I. C. G. APPROVAL NEEDED

The first merger of independent rail-
road companies since the plan of the
Interstate Commerce Commission TO
group the carriers of the United states
in "A number of competing systems was
announced yesterday as virtually COM
plete. when l.. n. Brown. chairman OF
the board of the ST. Louis-San Fran
cisco Railway Company. made public
the purchase of the international Great
Northern Railroad Company by the
former road
The move was announced by Mr..
Brown in statement after special
meeting of directors of the st. Louis
San Francisco. The statement said in
part:
Subject to the approval of its stock
holders and that of the Interstate Com
merce Commission. the ST. Louis-San
Francisco Railway Company have pur-
chased. and subject to the approval of
the holders of majority of the voting
trust certificates, Willard V. King,
James Speyer and Frederick Strauss.
voting trustees have sold the entire
capital stock ($7, 500 000). of the Interna-
tional-Great Northern Railroad Com
pany (the reorganized company. this
stock having been deposited according
to the reorganization plan under vot-
ing trust giving the voting trustees the
power of sale. The price is such as to
net the certificate holders approximately
$26.75 per share.
Subject likewise, to approval. the st.
Louis-San Francisco Railway Company
will offer to adjustment bondholders OF
the International-Great Northern Rail
road Company to guarantee that during
the calendar years 1924 1926. 1926 and
1927 (the adjustment bonds become cum
ulative January /. 1929 the distribution
on the adjustment bonds for each OF
those years shall not be less than
per cent. per annum; in consideration
Of which the adjustment bondholders
accepting such offer will give to the
ST. Louis-San Francisco Railway Com
pany the option to purchase their bonds
until January !. 1928, at 90 and accrued
interest and thereafter at par and ac-
crued interest. Acceptance of this offer
is entirely voluntary on the part of the
adjustment bondholder"
Several weeks ago 1t was announced
that T. a. Hamilton, then vice-president
in charge Of operation of the st. Louis
San Francisco, would become president
of the International-Great Northern on
December l.
The purchase of International-Great
Northern gives for the st. Louis-San
Francisco an outlet into the Gulf of
Mexico at Galveston. The fact that
Interstate Commerce Commission the
two systems are placed in different
groups is considered by many to mean
the deliber' tions of the commission may
be extended
Stock and bond capitalization of the
two roads totals s404.537.169, of which
s7,5e0, 900 is capital stock Of the Inter-
national-Great Northern and S37. 900. 600
in bonds. st. Louis San-F'rancisco has
funded debt of s294.a21.543 and stock
outstanding Of s65.615,626.
The sta tement of December 81, 1921,
showed that the st. Louis-San Francisco
Company owned and operated 5,256
miles of first line track. 93.03 of Sec
ond track. 1.760 of sidings and trackage
rights on 9492 miles. Equipment in
cluded 952 locomotives, 32.S16 freight
cars. ss2 passenger cars and 1.849 SER
vice cars.
Internati ational-Great Northern at the
end of 1920 owned and operated IT'S To-
comotives. 119 passenger cars, 4.615
freight cars and S04 service cars. The
! company operates 337.71 miles of side
track, and owns 1.106 miles of road
The total mileage operated is 1859.