Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-10-06


of the four locomotives and one hundred box
cars lately purchased, are not included, but
will come upon the resources OF the current
financial year.
Although not embraced in the period Gov
cred by this report, it ia here mentioned that
in the month Of July last the earnings were
1892, 324.65, and the operating expenses $l2l,-
O26.Ol; and in the month of August last the
earnings were $2lO,927.62. and the operating
expenses $l13, 662.08, making the net earnings
for the two months $16S, 564.l0.
Under the contract perfected with the St.
Paul, Minneapolis Il Manitoba Railroad COM
pany, this company began to run its trains
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 a 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
balance over and above all expenses of operat-
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.
save slight detention from snow, west of
jamestown, Dakota, on few days in February
last; and no serious injury has occurred to
passenger or employe.
FINANCIAL CONDITION..
The net floating debt at the expiration OF
the year ending June 80, 1879, was, as appears
by the treasurer's books and the statement
made July. 1879, to the New York Stock Elk
change, $385.3O2. 46. But 300, 75l.49 of this
amount was on account of the purchase, early
in April, of rails and fastenings for the Mis-
sorri division. No payments had then been
made into the treasury under the financial
scheme hereinafter explained, for that divi-
sion and the company gave for 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, 30246 should be reduced by that
amount.
Again, ss9,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 Seen 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 30th of June.
Deducting these two sums, instead
ed every liability except an indebtedness of
$500, QUO for balance, unpaid on the purchase of
the individual half of the St. Paul & Duluth
Railroad, from Thompson Junction to Duluth,
due January LIST, 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, 800.
Of course, this debt has no connection with
the construction of the Missouri and Pend
d'Oreillc divisions. The funds for these d.
visions. raised on their respective bonds and
mortgages, are kept separately, and the bills
are paid as fast as they mature.
It is satisfactory to say that this net floating
debt of 1894, 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 collaterals that tcould 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 1914, 722. 81, are
the net revenues after June 3Oth, which, for
July and August, were s16s, Is, 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 100000 bushels,
to be transported over the line, began to move
only in the latter part of August. This net
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 1lately 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 tie 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
the increasing traffic everywhere along the line,
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 reorganization, 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
through State. BY construction of road the
company has acquired the absolute uncon-
ditional title to 10.579,200 acres, of which
I, 89l 200 acres are in Minnesota and Dakota,
and 268S,00 acres are in Oregon
and the Territory Of Washington. BY
a provision of the mortgage made
by the former organization, dated July LIST,
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
of the Missouri river. Previous to the reor-
Goth. 1875, the company sold CSC, 900 acres, and
since that period, to the first day of July last,
there have been sold on the Pacific Coast, 15,-
266 acres, of which 4, 661 acres were sold dur
ing the last fractional year, at an average price
of 1912 per acre; and in Minnesota and Das
kota, 1,6lO,S69 acrea, of which 1886, 142 acre
were sold during the last fractional
Until the last of the year 1878, the sales of
land east of the Missouri river continued active;
but lattcrly there has been a marked falling
Oft, for the want of government surveys, and
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 presumption, homestead and
tree-culture acts, over $50 900 acres.
The operations of the department have been
highly satisfactory, ,.nd the results fulfil the
expectations of the most sanguine friends of
the enterprise.
E;yo abundant borvo.&, h,r. -.u,