The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-12-13
The Purchase OF tue St. Louis. Rock
Island and Chicago Railroad
Ratified
IRON be oh.caqo 7smss, I9tA.

From TIE ChtcGq0 1tnaeS. I1th.
A meeting of the stockholders of the
Chicago. Burlington and Quincy railroad
took place on yesterday, at IL o'clock. at
the company's headquarters, cornerl Ran
dolph street and Michigan avenue.
George Armour acted as chairman and L.
o. Goddard as secretary. Only few
stockholders were present, but large
majority of the capital stock was repre-
sented. mostly by proxy.
The real object of the meeting. which
by the way, was convened under special
call, was ratified the action of the board
of directors in purchasing the st. Louis,
Rock Island and Chicago railroad. The
purchase was ratified almost unanimously,
some 400 votes, however, being cast ad-
versely. The owners of these shares OPP
posed the purchase for the reason that
they thought retrenchment theLbetter
policy at the present time.
A communication from j. N. A. Girls
void, chairman of the board of directors,
after stating that tie lately acquired line
crosses the Chicago, Burlingtonland Quincy
at FIVE different points, set forth the fol
lowing reasons for the purchase:
It is manifest that the arrangement for
control of the road will be very advanta-
geous to the Chicago, Burlington and
| Quincy road In preventing cutting of rates
at these different points, and converting
this rival road into feeder to our line.
The length of the road is go miles. in
fair condition, and it owns, 10 addition, a
good supply of equipment which is ap
praised at present market values as worth
fully half million of dollars. The cost Of
this arrangement approximately is ST.,
4 875, 900 currency, and it is estimated thai
supplies and repairs needed now for the
road will bring this total to a little over
two millions of dollars. This low cost Of
less than $1,000 mile including equip
ment, and SIS, 100 without equipment, the
directors think, makes it a judicious ar
rangement in any aspect in which it may
be viewed. The directors propose to pro
vide means for this outlay by sale O
Chicago, Burlington and Quincy plair
} bonds, bearing five per cent, interest pei
" AAA 80 yO0A6s WAtOu oh@A
be secured by first mortgage bonds to ar
equal amount on the st. Louis, Rock Is.
land and Chicago railroad, bearing sever
per cent interest per annum. to be depos
tied with trustees who will apply the seven
per cent, bonds, and the residue OF two
PER cent, per annum to constitute sink
ing fund for the five per cent, bonds. This
sinking fund would absorb the full amount
of the five per cent, bonds at par in q
years. 1t is proposed to make the issue
of bonds $2,500.00O, of which so much
will be disposed of now as will pay off the
two millions needed, and the remainder
to be held 10 reserve for future needs Of
the st. Louis, Rock Island and Chicago
road, if 80 required. The directors feel
confident that the road will easily earn the
seven per cent, interest on the full amount
1 of the proposed mortgage, besides adding
materially to earnings of main line By
doing away with the competition that ha
heretofore existed, and that the operation
of the sinking fund will give the property
to Chicago, Burlington and Quincy stock
holders free of cost at maturity of the
bonds,