Daily globe., 1879-10-05

cars lately purchased, are not lncluded, out
will come upon the resources of the current
financial year.
Although not embraced in tho period Gov
cred by this report, it is here mentioned that
in the month of July last, the earnings were
1892, 2,32465, and the operating expenses $l2l,-
O26.Ol; and in the month of August last the
| earnings were $2l0, ,927.62 and the operating
| for the two months $l6S, ,564.1O.
| Under the contract perfected with the st.
| Paul, Minneapolis i Manitoba Railroad COM
pany, this company began to run its trains
over the road of that company between Sauk
| Rapids, Minneapolis and st. Paul, on the 21st
of April, 1879. The expenses of operating and
maintaining this road payable by this company,
| including rental ARE made equal to the
gross receipts therefrom, for the reason that
the net earnings are devoted, as fast as they
| accrue, to the payment of the share to be borne
| by this company Of the expense incurred in
| laying the entire track with steel rails. which
is now being done. In few months, when the
cost of relaying shall have been paid in the
manner specified, the net earnings of this COM
pany from that road will show a satisfactory
ing and maintaining the road, the rental and
other outlay.
The trains of the company have been run
during the past year without any interruption.
slight detention from snow, west of
jamestown, Dakota, on few days in February
16SGS duO uO scIlOuS Injury las OCCuIIeO ID
passenger or employe.
FINANCIAL CONDITION.
The net floating debt at the expiration of
the year ending June 80, 1879, was as appears
by the treasurers books and the statement
made July. 1879. to the New York Stock Ex-
change, 385.302. 46. But $l0O, 75l.49 of this
amount was on account of the purchase early
in April, of rails and fastenings for the Mis-
SOrri division M navD1anfa had then hoov,
made into the treasury under the financial
scheme hereinafter explained, for that divi-
sion and the company gave Tor this purchase
its time notes. which were outstanding on June
3Oth. The payment of these notes is met by
the special funds of the division, and, of course,
the 1886, ,3O2.46 should be reduced by that
amount.
Again, s89,s286O of this amount was on
account of purchase of rails and fastenings
| shipped around the Horn for the Pend
dOreille division, before the financial scheme for
that division had been perfected. The
funds Of that scheme relieve the gen
eral treasury of this liability, and the floating
debt should be considered as so much less on
| the Both of June.
Deducting these two sums, instead
| debt was S194, ,722.37; and this amount includ-
ed every liability except an Indebtedness of
| $3O0,0U0 for balance unpaid on the purchase of
! the individual half of the St. Paul & Duluth
| Railroad, from Thompson Junction to Duluth,
! due January lst, 1897 or at any time before,
| at the option of this company, and which, with
the Interest thereon, at seven per cent, is pay
| able in the preferred stock of the St. Paul &
Duluth railroad company, and has been re-
Gently reduced by payments to $257,90O.
| Of course, this debt has no connection with
the construction of the Missouri and Pend
| dOreillc divisions. The funds for these di-
| visions, raised on their respective bonds and
mortgages, are kept separately, and the bills
| are paid fast they mature.
It is satisfactory to say that this net floating
| debt of $194, 722.37 embraces all old liabilities
| which have been in suspense from the former
organization, and which had to be cared for,
because secured by collateras that scould not
| be allowed to be sacrificed. Many of these
| were never brought forward in former reports;
at last those which have not been settled or
brought forward; such settlement of course
| having been provided out of the income. And
now there is no debt and no claim, in the
knowledge of the directors, beyond what is
| herein stated.
To meet this floating debt of 1894, 722.37, are
the net revenues after June 3Oth, which, for
July and August we're $l6S, ,564. 18. over the
heavy operating expenses nearly as much as
the debt itself, and which should continue to
| increase during the remainder of the season, as
the wheat crop, estimated at 3,500,000 bushels,
to be transported over the line, began to move
| only in the latter part of August. This net
| UCaLlDS ueDG Is therefore easily eXLlngQ1SQeQ.
And the payments for the steel rails going
down between Brainerd and the Red river,
! whose cost is diminished by the value of the
| rails taken up, and for the four locomotives
and the one hundred box cars ,latelv purchased
will be met without difficulty as they become
due out of the earnings of the company.
With steel rails laid between St. Paul and
| Sank Rapids, where the profits, for reasons
| stated, do not yet appear; with steel also laid
between Brainerd and the Red river; with the
| general Improvement of the road and the con-
| sequent decrease of cost of maintenance; with
and with no floating debt, the financial out
look of the enterprise is, to say the least, very
| satisfactory.
But that no erroneous inference with regard
| to dividends may be drawn from this good
| showing, it should be remembered that, under
| the plan of niZation, before there is any
net for dividends, the earnings of the road
have always to pay the expenses necessary to
keep the road, after its construction, in high
condition, as we'll as to pay the interest on and
provide for the sinking fund for, the first mort
gage bonds that may be issued for construc-
| tion.
| LAND DEPARTMENT.
The lands granted by Congress to aid in the
construction of the road, amount to forty Sec
tions per mile through the Territories, and
twenty sections per mile when the line passes
|
company has acquired the absolute uncon-
ditional title to 1O,579,2 200 acres, of which
1891, 200 acres are in Minnesota and Dakota
ana ana ~ SeSS, So. oo4 acres IS, are in Oregon
a provision of the mortgage made
| 1870 the bonds secured thereby were receiv-
able at par in payment for any of those lands;
and by the plan of reorganization, adopted
June 3Oth, 1875, pending the foreclosure pro-
ceedings, the preferred stock has been and is
receivable at par in payment for the lands east
ganization, which was perfected September
29th. 1875, the company sold 6S6, 900 acres, and
since that period, to the first day of July last,
| there have been sold on the Pacific Coast, 49,
266 acres, of which 1861 acres were sold dur
ing the last fractional year, at average price
! kota, 1,6lu.S69 acrea. of which 336, 142 acre
were sold during the last fractional
year, ct an average price of S4.45 per acre.
Until the last of the year 1875 the sales of
land east of the Missouri river continre ed active
| but latterly there has been marked falling
in consequence of the surveyed lands nearest
to the line of the constructed road having
been, to a large extent, already taken, and the
enhanced market value of the preferred stock
makes the holders less anxious to exchange it
for lands; and also the government alternate
sections are, by the settlement of the country.
brought into constantly increasing demand.
During the year ending June 30th last, there
were taken of government lands in Minnesota
and Dakota, within the limits of the grant to
this company, by actual settlers, under the
provisions of the pre-emption, homestead aud
tree-culture acts, over $50 900 acres.
The operations of the department have been
highly satisfactory, and the results fulfil the
expectations of the most sanguine friends of
the enterprise.