, 1872-10-17
Important Railway Consolidation.
The circular to the stockholders of the C.. ]

@, and B. & II. B. R. r. is as follows:
10 ts Stoskdodes 9g er tie @ cieqg9 R,,rngte Q- e.;
souri, Etrer Railroad Company, respectively:
Your Directors have long thought, that for
many REASONS, there should be a closer COM
munity of interests between the two companies,
and acting under this impression, Committees OF
the two Boards were appointed, many months
since, to meet and consider Of the propriety and
Of q basis and plan of consolidation Of the stock
and properties Of the two corporations. On the
Boards we're called md held at Boston,
to hear and act upon the report Of
these Committees, at which tho matter Of such
consolidation, unanimously recommended BY
those committees, WAS again discussed and fully
considered The result OF those deliberations
and discussions was q firm conviction in the
minds Of your Directors that the railroads and
properties Of the two companies should, as soon
as practicable, be placed in and put under the
control Of single corporation Among the
reasons which brought your Directors to this
conclusion that in this way tho two roads could
DO more economically and effectively operated
aud managed, all possibility Of conflicting in
terests in the future avoided, and the great
through line formed by the roads of the tWo
companies from Chicago to the Missouri River,
placed beyond the contingency Of q disrupture.
The amount and character Of the prop
erty Of the respective companies was
also inquired into, and, after careful exauina-
tion. the unanimous conclusion was reached that,
in edualizng the value OF the stock of the re-
spectlve companies, it would be just es cquita-
bic to consider the value Of the stock of the Bur-
Ipcton 4 Missouri River Railroad Company to
be Of per value, and that of the Chicago, Bur
liugton d Quincy Railroad Company to be st
premium Of 25 per cent above its par value; this
difference in tie values Of the two stocks to be
adjusted and cqualized By issuing to the holder
of erery share OF stock in the Chicago Burling-
ton g. Quincy Railroad Company SOS in the per
cent bonds Of that Company. This basis Of union
was accordingly agreed upon, subject to the rat
ifcetion Of the stockholders OF the respective
Companies.
It was thought that the safest and most prac-
ticable mode Of obtaining tho object sought,
would presently be by q lease in perpetuity BY
the Burlington d. Missouri River Company to
the Chicago, Burlington d. Quincy Company,
aud G. salo and conveyance of the lands and
other property Of the former to tho latter in
consideration Of which the Chicago, Burlington
& Quincy Railroad Company is to assume ell
leases, contracts and obligations Of whatsoever
kind, pay and discharge all debts and liabilities
Of the Burlington g. Missouri River Railroad
company the same dividends that it shall make
to its own, and also secure to them the same
benefits and emoluments that its own stock
holders may receive or become entitled to,
And your Directors recommend that such, for
the present, be the process for uniting the two
companies.
When by legal decision or legislative action
the construction to be placed on the laws OF
Illinois and Iowa relating to consolidation Of
railroad companies shall be made certain and
satisfactory, it will be advisable that there
ehould be. and it j. agreed there shall be.