Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-25

Pertinent Questions by "Globe" Re-
porter-The Transfer an Ordinary Trans-
action and Nothing NIore-Tho Policy of
the Road In No Way Affected Thereby
The Manager ent Ready Now as Ever TO
Meet tho State on Equitable Terms.
Nothing for long time has produced SO
profound an impression in business circles
as the late reported sale of the st. Paul &
Duluth railroad. The alleged buyers being
gentlemen largely interested in the Chicago,
Milwaukee & st. Paul railroad and the
Northwestern road, the purchase of the only
outlet to the lakes by such parties was con-
sidered inimical to the interests of Minnesota.
In fact the belief was universal throughout
the State, and the assurances by telegraph
or in newspaper communications from Pres
ident Ilsley and others, the policy of the
management of the road would in no way be
changed, was deemed contrary to the well
known policy of the pool lines
and was considered mere blind.
The extent of the uneasiness and the
shape it assumed may be better judged by q
reference to the proceedings of the CONNER
cial convention, which convened at the CAPT
tol on the 22a inst, Tuesday of this week.
The opinion freely ventured there and then
was the reflex of the views entertained
throughout the State.
In view of this order of things, the arrival
of President j. P. Ilsley and James Smith, Jr.
in this city yesterday, from the Philadelphia
conference, where, on the 18th inst, the sale
and transfer of the Duluth. road was con-
summated, was of sufficient Importance to
subject them both to visit from the GLOBE.
HON. JAMES SMITHS OPINION.
Mr.. Smith, shortly after his arrival home,
was found in his Office. He being we'll
acquainted with the anxiety prevalent,
needed no statement of the GLOBES mission
when called upon by reporter.
Mr.. Smith began by saying that there
or in its management. That it was to- day
and would be just as much Minnesota road
as ever.
"Why and how was the sale and transfer
brought about?'
Messrs. E. w. Clark, Clarence Clark,
Whitney, Rollins and others of Philadelphia
offered their stock for sale, and it was bought
up by David Bows, Peter Gettes, II. II. Por-
ter, r. p. Flower andpJ. Millbank. These
latter thus obtaining control of the stock
were elected directors in place of the others
retiring. The parties purchasing made the
investment as a private one, expecting
to realize of course on it, as the purchase
was made cheap, and the timber on the route
and the land grant was considered valuable
enough to reimburse the outlay
"But the parties buying are all largely in.
torested in the Chicago pool lines, are di.
rectors.'
eyes, believe so. But the purchase
was private investment on
their part, and in no way made at the in
stance of the arrangements of the roads OF
which they are a part. In fact, the othe,
directors of the Chicago lines knew nothing
of their intention until the purchase OF
stock and subsequent change in the directors
was announced in the papers, s.
"Then you believe this transfer of stock
will effect no change in the policy of the
road?"
"Assuredly not. At least I can't see why
it should. The stock was held by lot OF
Philadelphians in the first place, and they
have made tranfer to other parties, who
evince every desire to make the road ser.
viceable to the State and our interests.
There is to be no change in the management
all the old officers are retained.
'"The new board of directors have author.
lied Mr.. Ilsley, the president, to contract
with all connecting lines to carry freights at
rates fixed by them under contract, thus as
surfing an outlet by way of the lakes to any
shipper wishing to take this route. Such a
mapped ont policy clearly indicates no
change, and shows that the new directors are
anxious to serve themselves and the State.
There's nothing opposed to the interests of
the people of the State in this declaration
and policy already begun
MIR. Smith referred to a late oommunica-
ton of President Ilsley's to the press of the
State, and said it showed the intent and
policy of the new management of the road.
"For my part" said Mr. Smith, "I own
stock in the road yet, and my impression is
that the change will be for the benefit OF
both road and the shippers. Mr.. Ilsley is
authorized to make permanent reciprocal
arrangement with the st. Paul g. Sioux CITY
road and the Minneapolis & St. Louis rail.
road-pretty much at the terms or rates
fixed by these roads,
Mr.. Smith further remarked that there
had been much talk about the necessity OF
retaining the Duluth road as an independent
Minnesota line, but little or no encourage
ment in the way of business or patronage
had been given the road by the business
men of the State. In fact the old manage
ment had become hopelessly discouraged,
and sold out.
This phase of the subject naturally sug-
gested the question:
pending the negotiation for the sale of
stock, was any proposition made from Min
nesota to obtain control of the road?''
"There was some talk about leasing it by
the Minneapolis & st. Louis railroad, but it
assumed no definite shape. The manage
ment would have leased it for rental on a
property valuation of $2,5OO,OO0. In fact,
any time within the last wear
the business men of st. Paul
and Minneapolis could have secured
control of it on fair terms.''
However it has gone out of their control.
put MIR. Smith feels confident not to their
injury or detriment.
PRESIDENT 1IsIEY's STATEMENT.
MIR. Ilsley was found at his Office about 6
o'clock P. NJ, just on the eve of departing
home, after hard days work. He could
spare few moments. In the few moments
the GLOBE learned that his story and i'm
presslons were corroborative of Mr.. Smith in
all particulars. - -
MIR. Ilsley was free to say that there had
been much excited talk about the transfer
when in fact it was only an ordinary sale
and in no way shaped or effected the policy
OF the road.
The GLOBE reiterated "the fears of the
people" because the purchasers were con-
nected with the Chicago pool lines.
"Iney made the purchase as private in
vestment," declared Mr.. Ilsley, "and in no
way AZ the instance or suggestion of the
management or the other roads with which
tney are connected. The Duluth road isn't
gong TO DO shut up for the other lines,
invested their money and want - ra A~ro
on it, o'"An