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

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