Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-09-08
GOBBLED UP.

UUDDUED Uf.
The Burlington, Cedar Kapids & Northern
Railroad Secured By the Chicago, Rock
Island g. Pacific Road, and Made Trtb,s-
tarv to st. Paut.
(Chicago Times.
The fact that the Chicago, Rock Island q Pa-
citic railroad had secured the lease Of the Bur-
llngton. Cedar Rapids & Northern road, a.
made known through the columns of the Times.
exclusively, on yesterday morning, was receiv-
ed with marked astonishment, if not credulity,
40 long pending, and much had been written
pointing to the conclusion that the Northwests
ern company would secure the property, that
that disposition Of the matter was pretty gen-
orally conceded to be the outcome. Such an
acquisition to the immediate railway interests
eat importance attracted special stten-
tion. That this Iowa road has finally be.
come direct branch of the growing network
of railways controlled and operated BY Chicago
enterprise is a subject Of congratulation, and
the contest as to which particular corporation
should control it's future policy was partially
lost sight of in the fact that its control would
at all events centre here. The contest has ap.
parently been bitter one, and has called to
New York the magnates of both companies
who. for the past three weeks have been en-
gagged in regular, fight for the possession of
the prize.
The object Of the Chicago, Rock I.land 4.
Pacific company ia desiring this particular
line is readily discernible. Had the rival COM
pany gained possession of it. they would have
prevented a st. LOus connection with the Rock
Island road. or at least COMPELLED that company
to eventually construct separate line at tre.7
mendous expense. They would also have been
u n oh La Lee
point, and thus been in position to force com.
petltition in a section of country where the
Rock Island people have always had every.
thing their own way. Having this. the early
completion of the Burlington & South
western would have given them direct line to
York has given these advantageous issues to
the Rook Island company. BY securing the
coveted line. the latter com pany gets into &C.
dar Rapids, the Chicago of lowe, passes on to
Cedar Falls and other towns Of Importance,
and by it's connection with the Minneapolis
81. Louis road at Albert Lea. makes
strong bid for north bound traffic. being in
position to demand large share of that busf.
ness 1t Is thought that a very large propor-
ton OF the business that has found it's way oven
the other St. Paul roads BY way of the
oh.i"osgo. Burlington & Quincy road
will by this arrangement be transported over
the new route. The terms Of the lease in do.
tail have not been and can not be definitely
stated until tho return of parties who have
beer interested In the matter as representa-.
tives of the rival bidders. The only allega-
ton made in this connection thus far. ia th.t
the successful company paid nearly 100000
more for the property than was offered BY the
North western folks.
Under the present arrangement between tho
Burlington, Cedar Rapids & Northern, and
roads interesting it. and which pull its
through or east-oound freight. the proportion
~n - h. 90
basic of two thirds to the former company, leav-
ing the interesting lines which haul the freight
the greater distance, but one-third of the total
charges. To this fact is directly traced
the favorable showing made by the Iowa
road during the last two years, during
which time it is we'll known the
condition of the company has very much i'm.
proved. The moment the line becomes the ex-
elusive property IF either trunk line, as is now
proposed, IL is safe to predict that the proper
ton of earnings will be reversed. Two-thirds
the earnings of road that last year did not
pay ~ per cent. upon its stock Is far from
paying investment. Several Chicago railway
1nland company have paid dearly for their
whistle, yet they say that company is in better
shape to assume load of this description than
any other Chicago rood. Last year the Rock
Island company had a surplus of 81, 200, 900, a
portion OF which has been pooled in the pres
company, in The absence of direct
authentic information know moth
ing of the bargain. President Riddle
vii! probably reach Chicago to-day. The re-
porter yesterday called upon Marvin Hughitt,
general manager of the Northwestern road Mr..
Hughitt had just reached home from New York.
The following is the result of an interview had
with the busy gentleman:
lis the reported lease of the Burlington,
Cedar Rapids & Northern railroad to the Chi
cago, Rock Island & Pacific company fact?"
Il know nothing positive in regard to the
matter, still presume the report is true. Good
day."
The reporter withdrew, satisfied that tacit
acknowledgment of this description was all
that could be obtained from the busiest man
in America. unless by the aid of force-pump.
The details of the lease will doubtless be
made known in a day or two.
InterUic ,vish Director.