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
• 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
=====
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
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