OCR Text |
Show HU. MUDGE. president of Rio Grande, who may be displaced if merger is effected. l - BIG RltlL MERGER REGARDEDAS CERTAIN Denver & Rio Grander Western Pacific and Mis- I souri Pacific Involved. That the Denver & Rio Grande railroad rail-road will pass from coutrol of George J. Gould next month, te merged with the Missouri Pacific and operated by the latter as a connecting link with the Western Pacific to the Pacific coast is indicated in information received re-ceived here yesterday from what is believed be-lieved to be an authoritative source. Two years ago Gould formed a combination com-bination with the conservative element of the board of directors of the road which resulted in the divorce of the Denver So Rio Grande from the Missouri Mis-souri Pacific anil the Western Pacific, and the establishment of the Denver & Rio Grande as an independent property. prop-erty. H. U. Mudge, a railroad executive execu-tive of ability, was selected as president presi-dent of the road at a salary of $50,-000 $50,-000 a year. He was given a contract for two years. Certain opposition developed at that time, however, which resulted in a lively live-ly scramble for proxies between the Gould and the Missouri Pacific factions fac-tions just before the annual meeting a year ago. Immediately prior to the meeting a compromise was effected, giving Gould six directors on the board aud the Missouri Pacific four. The indications are that at the annual meeting next month the situation will be reversed and thnt control of the road will be wrested from the Gould faction. It is believed in financial circles that the $.'18,000,000 debt of the Rio Grande, occasioned by the guarantee of interest on the bonded debt of the Western Pacific, was the club which was wielded by the opponents of the Goulds to obtain control of the Rio Grande. The A'ow York bondholders of the Western Pacific recently were given Judgment for $3S,000,000 " in the New ork circuit court, which it is 'believed will be affirmed in the court of appeals next month. Under the merger arrangement the three lines will assume the debt joint!'. While no statement has been made by President Mudge, there is reason to believe that he will not remaiu with the Denver & Rio Grande' if it is merged with the Missouri Pacific and the Western Pacific and operated as a subsidiary system. The success of the operation of the Rio Grande as an independent property during the first year augured well for the continuation of the "home rule" policy. Under the administration of Mr. Mudge the net earnings of the road for the first year of the independent indepen-dent operation amounted to $4,500,000, as against $1,500,000 for the preceding year. With the appearance of L. F. Loree, president of the Delaware & Hudson l railroad, a few weeks ago on an in-! in-! speetion of the property in the inter-1 inter-1 ests of eastern capitalists and bankers. 1 there came a rumor to the effect that j control of the Kio Grande was to be wrested from the Goulds this fall and thai the H io Grande, the M issouri Pari Pa-ri fie and the Western Pacific were to 'ho merged iuto one big system. Mr. Loree declined to discuss the matter while in Salt Lake, but admitted that almost anything of that character could happen. With the surrender bv Gould of the Denver Rio Grande to the Missouri .Pacific there passes from his control the last of the princely inheritance from day Gould, oue-time wi?ard of Wall street. Among the great properties prop-erties which gradually hae slipped away are the New Yofk elevated, the Western Union Telegraph, the Wabash the Missouri Pacific and allied lines. ' ST. LOUIS. Sept. 27.- The board of directors of the Missouri Pacific railroad rail-road will meet here October 17 to take up the question of re-establishing the old G on Id system, which included the Missouri Pacific, the Denver Rio! Grande and the Western Pacific rail- J roads, which were separated i n refinancing, refi-nancing, according to an announcement made tonight by B. V. Bush, president of the Missouri Pacific. Hush sa id hat the Western Pae i f ie and the Denver Rio Grande had fa-Won fa-Won up plans t'or mergi ng in the refinancing refi-nancing of the mad. |