Rensselaer Semi-Weekly Republican, Volume 34, Number 76, Rensselaer, Jasper County, 23 May 1902 — The Monon Sale Again. [ARTICLE]

The Monon Sale Again.

Wednesday’s Chicago RecordHerald, under a whole string of big headlines, the first of which is “Monon Deal Is Fact,” has the following from a New York Staff Correspondent: New York, May 20.—There was a confirmation_today of the report that Southern Railway and Louisville and Nashville will take over the Monon through an exchange of bonds bearing the joint guarantee of those two companies for the present outstanding Monon shares. The deal was carried out at the instance of J. Pierpont Morgan and the stock market end of the operation was placed in the hands of Harris, Gates & Co. The basis of exchange will be 78 for Monon common and 90 for Monon preferred. If holders of stock prefer they may receive 60 per cent in bonds, instead of receiving the full amount in bonds.

This combination of interests will be of very great importance to Chicago. It practically combines the Morgon lines into a giant transcontinental system, with Chicago the connecting point. It gives Southern Railway and Louisville and Nashville an entrance to Chicago, something that these lines have needed. There has been no question of the importance to these two systems. The close business business relations between J. Pierpont Morgan and John W. Gates is shown by this move.