More IC-WC

From the Lakes to Gulf. For weeks agents for an unknown railroad company have boldly bought its way through the heart of Superior taking in large business structures in the path. It was disclosed recently that the purchases are for the Illinois Central which intends to build southeast to Marshficld Wis to connect with the Wisconsin Central which it is announced has been sold to the Illinois Central. The building of this road would give the Illinois Central a complete north and south line from the head of the lakes to the gulf.  Sept 17, 1902

An Unlikely Rumor A rumor going the rounds in railroad circles in Minneapolis credits the Illinois Central with the purchase of the Wisconsin Central system and the intention of building a line to the Head of the Lakes.   Oct 1, 1904.

International Ry Journal Vol 12


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RAILWAY WORLD NEWS AND COMMENT Wisconsin Central Advance

The present active speculation in Wisconsin Central is being promoted by rumors of its prospective purchase by connecting roads whose interests might be strengthened by a Chicago and St Paul extension. Mr Morgan's testimony in the Northern Securities case which implied the early abandonment of Wisconsin Central in planning for a Chicago connection can be made to work both ways in considering the present rumors which make the Illinois Central anxious to secure Wisconsin Central in extending its system from Chicago to St Paul. Supposing that Illinois Central is anxious for such connections it can be reasonably doubted whether the strategic and earning value of Minneapolis and St Louis will be overlooked in favor of Wisconsin Central. In an article February 24 The Financier reviewed the position of the Minneapolis and St Louis Gross earnings for last year were $3,275,504. In 1895 they were $1,823,998 showing an increase during that period of $1,451,606 or nearly 100 per cent. The surplus after last year's operations amounted to $553,762 which is equal to more than 6 per cent on the common stock after liberai maintenance charges were deducted. It may be of interest at the present time to take up the Wisconsin Central. The Wisconsin Central Railway system was organized in 1899 to succeed the Wisconsin Company and extends from Chicago north to connect with the line that runs west from Manitowoc to St Paul and Minneapolis and north to Ashland Wisconsin and Lake Superior iron mines. At Manitowoc connection is made by ferry line across Lake Michigan with Ann Arbor, Pere Marquette, and Big Four Railroads.

The average mileage operated during 1901 was 955 miles. The Wisconsin Central was one of the few roads reporting a general decrease in earnings for the fiscal year ending June 30 1901 Freight passenger and miscellaneous earnings all show a total decrease in gross earnings amounting to $313,142 The following table gives a comAprehensive idea of the operation for the past two years 1901 1900 Mileage 955 945 Gross earnings $5,324,274 $5,637,415 Net earnings 1,857,811 2,056,480 App of gross income for main 20.7 22 2 App of gross income for conducting transp & general expenses 44.1 41.1 App of gross inc for fixed charges 30.5 27.3 App of gross income for surplus 4.7 8.9 The percentage of operating expenses shows an increase of nearly 2 per cent in the percentage to gross earnings and this increase is directly attributed to enlarged conductlng transportation general expenses The maintenance expenditures show a decrease of over $150,000 During 1900 conducting transportation and general expenses took 41 per cent of gross earnings The increase to 44 per cent in the past year shows an unduly large amount and indicates either a very poor physical condition poor operating eiiiciency or unusual traiflc conditions affecting the company The last report ignores an explanation of the poor showing and omits entirely the table giving the character and percentage of traiflc handled during the year The average number of revenue tons per train increased from 258.09 to 259.98 and this comparatively unimportant increase does not appear to have been due to increased ethciency shown in train loading The average number of tons per car shows an actual decrease from 14.47 tons in 1900 to 14.31 tons during 1901 The increased average number of tons per train was accompanied by larger number or cars carried per train The earnings per freight train mile increased from $1.89 to $1.91 an increase of 2 cents per train mile but the rate per train increased from 731 cents to 742 an increase of 011 cents The increased rate received accounts for the increased earnings per freight train The authorized capital of the Wisconsin Central is $30,000,000 and on January 1 1902 there was outstanding $17,500,000 common stock and $12,500,000 preferred There was an increase of $331,500 preferred and 51.904500 common made in its outstanding stock during the past year At the same time the funded debt was increased $1,358,000 making the total amount $27,634,500 with annual interest charges of $1,104,200 The increased capitalization was made for the Marshfield and Southern acquisition and to liquidate reorganization controls The preferred stock is limited to non cumulative dividends of 4 per cent per annum The surplus for 1900 of $492,915 is equal to 4.3 per cent upon that stock and the surplus of $246.11 shown in the last report is equal to 2 per cent upon the same stock According to the monthly reports issued the earnings for the first seven months of the current fiscal year indicate an increase of $349,334 in gross and $119,350 in net earnings If the present earnings are maintained throughout the year the road will not show net earnings much over 4 per cent on the preferred stock and the very best re sults from such earnings could be obtained in an eiiort directed towards physical improving and a higher develop ment of operating efficiency The Illinois Central may get control of Wisconsin Central but it can be more easily figured that when the time comes for an invasion into that territory it will be through the Minneapolis and St Louis In the meantime it is more than likely that the advance in Wisconsin Central is entirely speculative 

Financier Vol 79 April 7, 1902