Railroads -- United States; Railroads -- United States -- Finance
By the end of November, although the plan had not been promulgated
until well into October, more than one-half of the outstanding bonds
had assented, and the directors were enabled to announce success.
Certain changes in the management had already taken place. President
Strong had resigned in September, and had been succeeded by Mr. Allen
Manville, general manager of the St. Paul, Minneapolis & Manitoba
Railway.[423] Mr. Reinhart was credited with a large part in the
construction of the new plan of 1889, and his later promotion may have
been connected therewith.
After the reorganization Atchison resumed its policy of expansion,
its new directors being apparently as “bold and enterprising” as the
old. In 1890 it took in the St. Louis & San Francisco, a road running
from St. Louis west and southwest through Missouri, Kansas, Arkansas,
and Indian Territory, connecting at Paris, Texas, with the Gulf,
Colorado & Santa Fe, and through half-ownership of the Atlantic &
Pacific connecting Albuquerque in New Mexico with Barstow in Southern
California. The total length of the Frisco system, exclusive of jointly
owned roads, was 1329 miles, and this constituted the largest single
acquisition that the Atchison had ever made. The terms of the purchase
were highly favorable to the Frisco shareholders, but the benefits to
the Atchison were less than was expected. Although the consolidation
removed certain difficulties experienced from the joint ownership
of the Atlantic & Pacific, and although the united roads were in a
better position to compete for transcontinental and Gulf traffic than
either of them had been before, the Atchison directors were forced to
announce in 1891 that, “with every opportunity given it to work with
advantage, the property (Frisco) has failed to demonstrate its ability
to carry itself financially and to liquidate its debts; nor could it
hope to obtain such results without the provision of New Capital....
This is due largely to the absence of complete and proper facilities
and machinery with which to conduct operations in the nature of Round
Houses, Machine Shops, Stations and other buildings, improved Bridges
and Equipment.”[424] A bond issue was needed, and was in fact put
forth,—the Atchison taking a goodly share.
Public-domain text, read in full here on John Shaqi.
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