Douglas daily dispatch., 1926-06-15

SAN FRANCISCO, Calf, June IA
Consolidation of the Western Pacific
corporation with the Denver and Rio
Grande and Missouri Pacific railroad
system will be announced within the
next so days, according to authentic
information.
Negotiations have been in progress
for some time and the move on the
part of Arthur Curtiss James, vice
president and director of the Phelps
Dodge corporation and one of the
richest men in the nation, in buying
a substantial block of stock, will has
ten this new move, it is asserted.
The move on the part of James was
forecast in the san Francisco Chron-
icle on April % upon information
from r. e. Alanson, prominent mem
Der of the San Francisco stock and
bond exchange Alanson is extremely
optimistic on this company now, as
in the past, particularly with merger
prospects looming.
The Importance Of James acquisi-
ton is emphasized in the announce
ment that c. r. schumacher, for sew
eral years president of the FL Paso
and Southwestern, and at present vice
president in charge of traffic of the
Southern Pacific, will resign to become
chairman of the executive committee
of western Pacific Schumacher has
always represented the James inter-
ests and is one of the most capable
railroad executives in the nation.
The announcement, while forecast in
the Chronicle two months ago, had the
effect of causing much gossip hers
and in New York. Inasmuch as James
is the largest stakeholder in Southern
Pacific and in the Western Pacific,
some specialized as to the possibili-
| ties of merger in that respect, but
this, it was pointed out, would not be
approved in all likelihood by the in
terstate commerce commission. The
| two railroads, however, operate oyer
each others tracks in Nevada, giving
| them the benefit of a double track
| system east.
| James is also one of the largest
stockholders in Great Northern, North
ern Pacific and Burlington, and it
was also limited that there might be a
merger in this direction. But the
! Chronicle is informed that while such
|
| first merger is the one now ready for
announcement as above predicted. Boil,
Missouri Pacific and Burlington have
Denver as a western terminal, with
Denver and Rio .Grande connecting
! Denver with Salt Lake, which in turn,
is the eastern terminal of Western
/ Pacific.
While there are some who see in
the entrance of James into the at,
/ fairs of the company possible at
tempt to start a control fight which
might eventually thwart Missouri Pa
cities plans, in favor% of either South
ern Pacific or the HIP roads, James in
a statement said the purchase was only
a personal one. He. said.
believing. firmly in the future, of
/ California and ofsteTTitory served by
/ Western Pacific, I have personally ac-
quired a substantial interest in stock
of this company. For many wears I
have been a holder and believer il
! Great Northern, Northern Pacific, Bur
! lington, Southern Pacific and other
western railroads and now have added
| to my railroad interests holdings Of
] Western Pacific, having entire conf
! dence in the ability of the territory
| served by Western Pacific to SUPPORT
| an independent competing system
whicsh shall have for it's sole objective
the upbuilding of the territory served
| by it, I believe in California and in
the great west, and shall do nv ut
! most to cooperate with the Western
| Pacific management in serving the
public and SO helping to build up the.
entire region through which it passes;
While James announces that he has
acquired substantial interest in West
ern Pacific, it is understood that his
investment does not constitute a ma,
Jor1ty holding. 1t will, however, max :
him one of the largest individua,
owners, if not the largest, in the COM
pany. Transaction is entirely = ner-
sonal one and has not been made in
pursuance of plans regarding railroad
consultations
western Pacific securities have been
strong recently, with tho common
selling at 81 ga and the preferred at
80 in New York and at 80 IL high
here yesteray afternoon. The bonds
of both the Western Pacific and Mis-
souri, Pacific were strong in New
York, reaching high levels. The pre-
ferred stock, too, hit a high mark.
If Western Pacific and Missouri Pa
cific were to be merged an exchange
of common stock could be arranged
on an equal basis, for both are quoted
at near the same amount at the mo-
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