IC to Des Moines, IC & MSTL

DULUTH TO GULF
• MINNEAPOLIS & ST. LOUIS MAY BE ABSORBED BY THE ILLINOIS CENTRAL

DEAL SAID TO BE PENDING, RECENT BILGE IN SECURITIES ATTRIBUTED TO WALL STREET'S INSIDE KNOWLEDGE.

ENTRANCE INTO TWIN CITIES
Control of the Road Would Give the Illinois Central Access to a Rich Traffic Which It Is Not Now Able to Reach — Traffic Alliance in Case the Pending Negotiations Fail.

NEW YORK, Aug. 27. The Herald says: From" semi-official sources it Is learned that a deal Is pending in Wall street whereby the Illinois Central may get control of the Minneapolis & St. Louis
railroad. Negotiations to this end are said to have been under way for some time between the Harriman-Fish interests, representing the Illinois Central, and President Edwin R. Hawley, representing the present control of the Minneapolis & St. Louis.

No definite agreement has yet been reached, but Wall street Interests having knowledge of the situation say that in any event a traffic alliance will be effected and that a change of control will
probably be brought about. There are even rumors of the terms upon which Minneapolis & St. Louis securities may be exchanged for those of the Illinois Central.

STRATEGIC POSITION.
A glance at the maps indicating the geographical positions of the two properties shows that such a deal would be greatly to the advantage of both roads. The Illinois Central would be given access to a territory rich in traffic which it does not now touch; would get fine terminals In Minnesota's twin cities, Minneapolis and St. Paul, and would have practically a through line from Duluth to the Gulf of Mexico.

Railroad men agree that the Minneapolis & St. Louis has terminal facilities the equal of any in St. Paul and the best in Minneapolis. These terminals are now used by the Northern Pacific, the Omaha, Soo Line, St. Paul & Duluth, Wisconsin Central and Chicago Great Western roads. The Minneapolis & St. Louis derives a large net revenue from them.

The company's lines also traverse an exceptionally rich country, and at Albert Lea, Minn., furnish-the only connection to the Twin Cities and the Northwest for the Rock Island and the Burlington, Cedar Rapids & Northern systems.

BULGE IN STOCKS.
The recent strength of the Minneapolis & St. Louis securities on the stock exchange has been attributed by all to a growing appreciation of the road's strategic position, to the reduction in fixed
charges through refunding, to the increased mileage and Increased earnings brought about by expert management, to dividend prospects (it is said 4 and probably 5 per cent will be paid on the common stock) and other favorable developments. It now seems probable, however, that the bulge of the stocks has been in anticipation of what may be effected in the Illinois Central matter.

SCHEME OF EXPANSION.
President Stuyvesant Fish and E. H. Harriman, who are controlling factors in Illinois Central affairs, have been carrying out a scheme of expansion for some time past. First the Illinois Central acquired the Mississippi & Yazoo Valley lines, which parallel the company's road from Memphis, Term., to New Orleans.  Then followed the purchase of the Chesapeake, Ohio & Southwestern, running from Memphis to Louisville. The extension of the Dubuque & Sioux City road into Omaha, which will be completed this fall, was the next undertaking.

Now comes the proposition to gain an entrance into St. Paul and Minneapolis,. which, If acquired, will give the Illinois Central access to a great amount of territory that has never before contributed
to its revenues. Through lines already in operation, the system would then extend to the head of Lake Superior, thus giving on unbroken line from Duluth to New Orleans.

CONNECTING LINK.
All that would be required to form the connection between the two systems would be the construction of a few miles of road from Lyle, Minn., which is the Illinois Central's present northern terminus to Albert Lea, Minn., where the Minneapolis & St. Louis now runs.

In railroad and financial circles it is thought that the purchase or lease of the Minneapolis & St. Louis by the Illinois Central is more likely than the arrangement of a traffic alliance.

Chicago, Rock Island & Pacific railway officials are said to have become alarmed over this new extension scheme of the Illinois Central. The Rock Island formerly controlled parts of the Minneapolis & St. Louis system through ownership of mortgage bonds. These bonds were taken up by the payment of more than four millions when the road was reorganized in 1894. Since "that time there have been many reports that the Rock Island was scheming to again get control of the
property.

- St Paul Globe, St Paul MN 8/28/1899


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DE MOINES , Dec. 22. The corps of surveyors for the Des Moines , Iowa Falls & Northern road today completed a line from Des Moines to Iowa Falls , eighty miles. The road is still on paper. Stockholders have invested $20,000 In the preliminary work , having assurance of the Illinois Central backing It. They say the line will be built next spring from the 'Illinois Central main line at Iowa Falls into this city and that It Is necessitated because the Illinois Central failed to secure control of the
Minneapolis & St. Louis.

- Omaha Daily Bee, Omaha NE 12/23/1899

Illinois Central in South Dakota

DAKOTA DOINGS.
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Madison expects the Illinois Central from Sioux Falls.

The Illinois Central, which is now projected to Sioux Falls, have a surveying party looking over a feasible route from there to Aberdeen, but whether they will build this fall cannot be definitely learned.

Judge N. B. Beed, of Woonsocket. who is now in Chicago, writes that be is informed by Illinois Central officials that ,that company will soon run a survey from Sioux Falls to Woonsocket, with a view to extend the road to that point another season.

- Griggs Courier, Cooperstown ND 4/12/1887

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Highly Elated.
The determination of the Illinois Central company to extend its road to Yankton is the most important conclusion ever reached in the interest of our city. Leading officers of that corporation have given assurance of an intention to make Yankton a prominent Missouri river point upon their system and to aid it in building for the future.  It is expected that Yankton will be made the western headquarters of the Central as New Orleans is its southern
headquarters

- Canton Advocate, Canton SD 8/11/1887

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The general superintendent and other officials of the Illinois Central were in Sioux Falls Wednesday on a tour of in­spection. A dispatch says: "It looks as if the road will be built to Aberdeen and Bismarck, although a great deal depends on the action of the coming legislature toward the railroads.

- Bismarck Weekly Tribune, Bismarck ND  6/2/1888

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Illinois Central in Dakota.
Sioux Falls, Dak., July 19.—Mitchell Vincent has returned from Chicago and reports that the Illinois Central officials say that the first railroad building that road will do in Dakota will be from Sioux Falls to Mitchell. It depends a great deal on the success of the commission to secure the opening of the reservation, as the Illinois Central intends to cross to the Black Hills immediately. Mr. Vincent is an old railroad contractor.

- The Wahpeton Times, Wahpeton ND 7/19/1888
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The president, general manager and a number of other officials of the Illinois Central railroad visited Sioux Falls Friday by special tram. It was understood that the purpose of the visit was to look over the line preparatory to an extension of the Central road northwesterly from Sioux .Falls into central
Dakota. It appears from this that the promised Central line to Yankton has been permitted to go elsewhere. There was a time when vigorous following up would have brought the Central to Yankton.

-Press and Daily Dakotaian, Yankton SD 10/08/1888

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Citizens of Mitchell, it is possible to secure the Illinois Central railroad to this city. The right effort at this time will do the business. For further particulars see the committee, which was appointed last night.
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The Illinois Central means cheap coal and lower freight rates. Mitchell, therefore, wants the Illinois Central.

- Mitchell Capital, Mitchell SD  8/4/1889

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CENTER AND SOUTH
Will Unite by the Extension of the Road From Sioux Falls to Aberdeen.
Special to the Globe.Sioux Falls, S. D., April Hon. P. E. Kirk, of Aberdeen, was in the city Wednesday and Thursday. 'He came as the ambassador plenipotentiary and envoy extraordinary of the board of trade of that city to look up the possibility and probability of the extension of the Illinois Central from Sioux Falls to Aberdeen. He says that the Hub city must have the road, at whatever cost, and he is trying to find out just how the matter stands and just what Sioux Falls can do for Aberdeen in regard to the extension. Capt. G. S. Nare, •of Woonsocket, also lighted down in Sioux Falls on the.
same day. He thinks the Capital Investment company is sure to have a large influence in the matter of locating the capital. Being questioned as to what chances there were to get the company to run up a banner with "Sioux Falls" inscribed thereon, he winked,and lighted a cigar.

- St. Paul Daily Globe, St Paul MN 4/20/1889

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ASSUMING TANGIBLE SHAPE.
Mr. Sheppard Arranging for the Construction of the Omaha and Yankton
—The Illinois Central.
OMAHA AND YANKTON,
The Omaha Herald of the 16th contains the following relative to one of Yankton's pet projects:
The prospects of another railway connection with Omaha are at last assuming tangible shape. For some time past the people of Yankton have been working hard to obtain an outlet to this city. In conjunction with the Omaha board trade they have at last succeeded in securing an Incorporation and Harvey Sheppard, the bead of one of Boston's largest syndicates, has taken the matter in hand. Some weeks ago Mr. Sheppard visited this section, and his observations led him to believe that the proposed route would afford one of the most profitable investment's for capital to be found in the west. Early in the coming month he will again visit Omaha for the purpose of arranging for the speedy construction of the line. Its completion will open up in a northwesterly direction for a distance of about 160 miles one of the richest grain and stock sections to be found in the Missouri valley, and will add largely to Omaha's importance as the growing commercial and shipping center of the west. Both the enterprising citizens of the Yankton section and the Omaha board of trade are entitled to much credit for the perseverance and enterprise they have displayed in consummating the  development of this scheme to asuccessful termination.

THE CENTRAL AT SIOUX FALLS.
Sioux Falls Press, 15: The progress of the negotiations for the Illinois central has been rather slow in some respects, but it has been nonetheless sure. For the past three days the rail road committee has been consulting with the officials of the road regarding the details of the agreement to be entered into between the city and the company, and finally the matter has been brought to a head. Yesterday the
negotiations were completed practically, and the Illinois Central may now be regarded as an accomplished fact. In fact it is perfectly safe to say that the 1st of August will see the work well under way, barring, of course, all accidents

While all the minor details of the agreement have not been definitely settled in its main points it is as has been heretofore stated in the Press. The Central people have asked for the ground north of Eighth street between the Omaha track and the river for the depot grounds, round house etc., and the railroad committee has agreed to give them the right of way which by the way, includes nine miles in Minnesota. The cost of this will be somewhere in the neighborhood of $25,000, possibly 880,000. On the other hand the Illinois Central agrees to make Sioux Falls division headquarters.

An agreement embodying these points has been drawn up and if it meets with the approval of the officials it will be returned to this city for signatures. In the Meantime the work will be begun
at once, or as soon as contracts can be made. Surveyor Rice went to Cherokee yesterday with Mr. Gilleas, and Mr. Knight with the specifications, and the contracts for grading will be let there as soon as possible. It is likely that the work will be begun in less than two weeks.

The grounds desired by the Company are those over which the Burlington will run its spur track to the quarries and the packing-house, and it was feared at first that this would cause some hitch in the
plans, Ah agreement has, however, been made with President Ives, to the effect that the Burlington would join with the Central in building the track to these points, the track to be used jointly by the two roads.

COMING TO YANKTON
A telegram was received Saturday evening by the board of trade which stated that the Illinois Central officials will visit Yankton on business as soon as they can leave the Cherokee neighborhood—probably in about a week. A letter came also from LeMars with information that the attention of the Illinois Central company would soon be given to its Yankton extension—that the Cherokee-Omaha and Cherokec-Sioux Falls line demanded first and immediate attention.because of
alively struggle for right of way in the Little Sioux valley and as soon as matters were in good
shape then the Yankton line would be arranged for. This information is gladly received here in Yankton where long silence on the subject had built up misgivings. It is probable that the Central officials will come to Yankton with a proposition within the next week,

-Press and Daily Dakotaian, Yankton SD 7/18/1887








 

Congress to hear consolidation plan for five railroads

The consolidation of many as five of the nation's railroads into “one strong Midwestern road” will be proposed to Congress in hearings scheduled today by the House transportation subcommittee.

John W. Ingram, president of the Chicago, Rock Island and Pacific Railroad, who said he would propose the plan, disclosed yesterday that he would seek to link the Rock Island with some sections of the Chicago, Milwaukee. St. Paul and Pacific Railroad and the Iowa and South Dakota lines of the Illinois Central Gulf Railroad.

 

As part of the plan—known as FarmRail — both the Missouri‐Kansas‐Texas Railroad and the Kansas City Southern Railway might also become part of the consolidation, he said. He said that “FarmRail will not be a Midwestern Conrail"—a remark apparently meant to convey that the proposed road would not look to the Government for support. Nevertheless, he said that the plan might be moved along more quickly through Government loans authorized under the Railroad Revitalization and Regulatory Reform Act of 1976.

 

Mr. Ingram did not mention any specific loan to be sought, although $1.6 billion in Federally guaranteed funds have been earmarked for that purpose under the act.

   

The Rock Island executive, outlining the plan in broad strokes, said FarmRail would not necessarily be a corporation on its own but added that it “eventually could be.”  It will not be an operating railroad,” he added, “it will be a consortium of railroads, operated in their joint best interest.”

 

Moreover, he maintained, no monopoly would he created because of competition from the Chicago and North Western Railway between Chicago and Omaha. He further noted that no investment would be‐required to set up the system.

 

Those taking part would use joint terminals, rail yards and equipment and share each other's tracks. The Rock Island, for example, late last year completed arrangements with the Milwaukee Road to share the same line between Kansas City, Mo. and Davenport, Iowa, a 243 mile stretch, that will cut duplicate trackage, reduce costs and eliminate safety hazards.

 

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NY Times 1/5/1978

The Pacific Short Line

Chicago - August 26

The Pacific Short Line will be offered for sale at public auction next Tuesday under foreclosure proceedings by order of the United States Circuit Court.  It is expected that there will be a sharp contest for the possession of the property, as several companies are known to have had a covetous eye on it for some time and will make the most of this opportunity to secure it.  Among the bidders, it is understood, will be the Chicago, Milwaukee & St. Paul, Chicago & North Western, and the Illinois Central Company, besides syndicates of the original bond holders.

In railroad circles much interest has been manifested in the Pacific Short Line project from the first.  It was originally an Illinois Central scheme, but was abandoned by that company and afterward taken up by the Wyoming Improvement Company.  The intention was to build a line from Sioux City to Ogden, paralleling the Union Pacific and shortening the distance by several hundred miles from the Missouri River to the Pacific coast.  Sioux City men added $1,000,000 to the amount that was put into the enterprise be Eastern capitalists.  The whole line was surveyed and laid out, three different companies were incorporated, and 130 miles of the road, between Sioux City and O'Neill, Neb, were constructed and put into operation.

The enterprise looked promising enough, until the financial panic of last Fall, after which the outlook was changed.  Jay Gould had gobbled the Union Pacific and was understood to be hand in glove with Huntington, who controls the Central Pacific.  The latter road, which is the only outlet from Ogden to the Pacific coast, was in hostile hands and the Pacific Short Line people decided that it would be folly to complete their line under such circumstances.  The property was allowed to go into the hands of a receiver and is now to be sold by order of the court.  The Illinois Central is said to be anxious to get possession of the road and thereby gain access to the Black Hills territory.

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NY Times 8/27/1891

Railroads map merger

3 Midwestern Carriers ask for I.C.C. Permission

Washington, May 10 (UPI) - Three Midwestern railroads controlled by the Canadian Pacific Railway have formally applied to the Interstate Commerce Commission for permission to merge, it was announced today.

The three carriers, which have been studying a merger for the last year, are the Minneapolis, St. Paul & Sault Ste. Marie (Soo Line), the Wisconsin Central and the Duluth, South Shore and Atlantic.  The merged company would be known as the Soo Line Railroad.

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NY Times  5/11/1960

Illinois Central - stance on the C&NW-MILW merger

Stockholders of the Illinois Central were also contacted by their management yesterday.  In an eight-page pamphlet, the carrier outlined its objection to a planned merger of the Chicago & North Western and Chicago, Milwaukee, St. Paul & Pacific Railroads.

The Illinois Central said it would not oppose the merger if it was given the opportunity to purchase a 70-mile portion of the Milwaukee's tracks and right-of-way, "or alternatively to use" the line, which stretches from Lyle to Northfield, Minn.  This trackage would create a new primary rail route between Chicago and Minneapolis-St. Paul.

The Illinois Central, since 1960, has reached the Twin Cities from Chicago via the so-called Albert Lea route, whereby Illinois Central trains operate directly to Albert Lea, Minn., and jointly with the Chicago & North Western from Albert lea to the Twin Cities.

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NY Times 12/6/1966

Two Chicago roads interested in Gulf, Mobile & Ohio Line

Two Chicago railroads expressed interest yesterday in the Gulf, Mobile & Ohio Railroad, one through a study of a possible merger and the other by substantial stock purchases.

The Illinois Central and the GM&O announced jointly that they had opened a study to determine the feasibility of a merger of the two lines.

The Chicago & North Western Railway disclosed that it had acquired 135, 128 shares, or about 13.3% of the outstanding common stock of the G.M.&O because of its "high regard for the management of the G.M.&O. and  the territory it seves so well."

The two developments came as a surprise to many rail observers.

Operations of the Illinois Central, with 6,466, miles of track, and the G.M.&O. , with 2,747 miles of track, largely parallel to each other from Chicago to the Gulf of Mexico.  The G.M.&O. has it headquarters in Mobile, ALA.  The Illinois Central also has an east-west line from Chicago to Nebraska, Iowa, and South Dakota.  The Chicago & North Western operates 10,729 miles of track out of Chicago to Wisconsin, Iowa, Minnesota, South Dakota and Nebraska.

No Seats Sought- A North Western spokesman said the line was "not now" seeking representation on the G.M.&O. board.  He declined to say whether the road planned to acquire more shares or to seek outright control.

A C.&N.W. consolidation with the G.M&O. would be an end-to-end merger, whereas an Illinois Central merger with the G.M.&O. could eliminate duplicate facilities.

Many rail observers were surprised by the brief announcement concerning the Illinois Central's interest in the G.M.&O. because the Illinois Central already has a merger study pending with the Missouri Pacific Railroad.

The Illinois Central and the Missouri Pacific are also awaiting an Interstate Commerce Commission ruling on their applications to acquire control of the Chicago & Eastern Illinois Railroad.

The Chicago & North Western has had merger negotiations with the Chicago, Milwaukee, St. Paul and Pacific Railroad, although those talks reached an impasse early in 1961 because of a failure to agree on terms of a consolidation.

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NY Times 7/12/1962

IC northern expansion

A New Line. —lt is currently reported that the Illinois Central and Wisconsin Central Railroad Companies have coalesced to carry out a scheme which is of considerable importance to marine men.
It is to establish a line of steamers between Chicago, Green Bay and Ogdensburg. It is settled that the line will becomposed of the propellers N. L. Frost, W. J. Averill, and W. A. Haskell, which were operated by a New York railroad company last season. They are the largest and finest propellers ever built for the Welland Canal trade, but the New York Company could not bold them because there is a law in New York which prohibits railroad companies owning steam boats. Last winter the boats were sold under the hammer, and were bid on by the Detroit Dry Dock Company, and  ever since negotiations have been going on between this company and the two railroad companies mentioned for their purchase. Recently, the Wisconsin Central Railroad has purchased or has secured full control of the Green Bay, Winona and St. Paul Railway; they also have a through line from Winona to St. Paul. It is their object to make Green Bay a great distributing point for Northwestern wheat and corn, and to do this they want the steamboats mentioned.

---- The Manitowoc pilot.  April 02, 1885

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—Lake Superior News: The air is thick with rumors about the new railroad connections at Duluth,
in which the Illinois Central, the Wisconsin Central, and the Duluth and Winnipeg railroads figure
extensively. The fact is “things are a working,” but those who really know how matters stand are mum, because it is not time yet to disclose their plans. We could give any number of rumors, but facts are what people want.

----The Superior times, September 21, 1878

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ILLINOIS CENTRAL TO EXTEND
Manitowoc May be Included in New Road From Madison.
It is reported that the Illinois Central R. R. is planning to extend its line from Madison to Green Bay via the Fox river valley. In this case it is probable that Manitowoc may be included as the officials of that road visited here when the project was first entered upon about two years ago. The project is being financed by bankers of Cleveland and it is estimated that the line will cost $3,000,000.

----- The Manitowoc pilot.  October 15, 1903

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Illinois Central to Enter Manitowoc.
There is a probability that Manitowoc will have another railroad added to its present shipping facilities. Indications point to a desire on the part of the Illinois Central Railway Company to enter
there and establish a terminal. William.1. Bowles, freight and traffic manager of the road, has been in the city looking over the advantages afforded by the city. Mr. Bowles stated that he was favorably impressed with the facilities offered and that the matter would be thus reported by him to the Illinois Central officials.

-----Vernon County Censor.  April 16, 1902