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

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

Milwaukee Offers Racine Southwestern Division at a Bargain

WOULD SELLTHE LINE

Milwaukee Offers Racine Southwestern Division at a Bargain.
AT 25 PER CENT BELOW COST,
Reason for tha Reported desire of the officers to Dispose of the Branch Is That It is Not a Paying Investment, Although the Impression is Company has always Been Doing good Business.

The officials of the Chicago, Milwaukee & St. Paul road desires, it if said, to sell the division extending from Rock Island to Racine, Wis., for the reason that it is not a paying line. An offer has been made to Milwaukee county for the sale of this line, but whether it will be accepted is a question.
Although this division may not be doing a large business as far as passenger traffic is concerned. the line does an enormous freight business, and every day a train of from fifteen to thirtycars is brought into Rock Island and the same number taken away from here.

Benjamin M. Weil has been authorized by a leading oflicial of the Milwaukee road to say that, the railroad company is willing to sell to Milwaukee county its Racine & Southwestern branch for 25 per cent less than its original cost and about 50 per cent less than it would cost to build it at the present time. In addition to this, according to a statement made by Mr. Weil, the company would lease to
the county its Milwaukee terminal facilities for 25 per cent less than the real estate could be bought and terminals built by the county.

Cities on Division.
The Racine & Southwestern branch of the Milwaukee road begins at Western Union Junction and from there goes directly southwest. The principal cities it touches are Burlington. Springfield. Elkhorn, Delavan, Clinton Junction. Beloit, Rockton, Freeport, Kittredge, Savanna, Fulton. Moline and Rock Island, on the Mississippi river. The entire length of the line is 196 miles.

- Rock Island Argus 2/22/1900

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It is said to be extremely doubtful that the Milwaukee County Board will order an election called to vote $800,000 aid to the railway project known as the Southwestern. Milwaukee is now pinning its faith to the Wisconsin Central.

- Manitowoc Pilot 12/7/1899

IC to Duluth? Canada?

OUTLET FOR ILLINOIS CENTRAL.
Duluth, Glencoe and St. Cloud President Outlines Probabilities.
ST. PAUL, Feb. 14.—"We will build the Duluth, Glencoe and Southwestern from Mankato to St. Cloud this sum­mer. It is more than possible that the line will become the Illinois Central's outlet to the lakes when finished. I have been negotiating with that road, and while nothing definite has been ac­complished, this object is more than a possibility." This is the answer which President A, H. Reed of Glencoe gave to the question which has puzzled many local railroad men, why a new line should be built via St. Cloud to Duluth when the field is already covered. The reply of the president of the new line throws much light on the possibilities. Further than this, President Reed said that at the annual meeting, held in De­cember, the directors amended the ar­ticles of incorporation in such a manner that the line will be permitted to build a north and south branch from St. Cloud through the Red Lake district, to the boundary, to connect there with the new Canadian east and west line, or to go further and connect with the Canadian Pacific. "If this line is built," said Mr. Reed, "the Rock Island would have a system stretching from the Gulf to the northermost boundary of the United States, and in addition, would also have an open market at Duluth.

<note that this line references both Rock Island and Illinois Central>

- Bismarck Daily Tribune 2/14/1900

Big Western Railroad Move

Eastern Syndicate may want Wisconsin Central and Great Western
Special to the New York Times

Chicago, Ill., Feb. 5. - Another move is about to be made by the syndicates that are attempting to control all of the important railroads in the country.  The Harriman - Vanderbilt - Morgan - Pennsylvania combination, having about finished its work of consolidation in the territory east of Chicago, has turned its weapons upon the western field of transportation.  The managers of the controlling pool are trying to corral the only two independent roads between Chicago and St. Paul - the Wisconsin Central and the Chicago Great Western - in order to obtain absolute control of the Chicago - St. Paul district.

President Hill of the Great Northern, who is a prominent member of the Baltimore & Ohio end of the syndicate, is negotiating for the purchase of the Wisconsin Central, and, in fact, it is prevailing opinion in financial and railroad circles that the syndicate already has obtained control of this line.  This leaves only the little Great Western as an independent line.  According to alleged plans, this road also is to be absorbed and placed in the pool for freight purposes.  With the acquisition of these two roads, the syndicate practically will have achieved its end in bottling up the Chicago - Missouri River territory, as the Milwaukee and St. Paul, the Rock Island, and the Burlington lines, now owned by the Harriman or any other syndicate, are in entire sympathy with any plans which the syndicate may dictate.  On the syndicate's lines eastbound from Chicago plans for wiping out competition are assuming shape.

----- NY Times 2/6/1900

Milwaukee Terminal Railroad



I had never heard of this venture before.  I know that there was a "Milwaukee Terminal" that was a joint venture of the Milwaukee Road and Northern Pacific in the Puget Sound area but that's not this one.  This venture appears to be related to a couple of railroads without access to the city of Milwaukee trying to gain access to the city.  It mentions the Wisconsin Central and I have seen mentions of the Wisconsin Central intending to use the former Fox River Valley right-of-way from Burlington to Milwaukee for Milwaukee access.  I had also heard about plans for the Illinois Central to access Milwaukee via the same/similar route.  However, this is the first that I have heard about the Chicago, Burlington, & Quincy, Northern Pacific, Rock Island, and/or Baltimore & Ohio attempting to gain access to Milwaukee.  Please note that it says the previous mentioned railroads are "believed" to be backing the company; it does not say with absolute certainty.