Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-02-21


the first and only authoritative statement yet
made of the outcome of the negotiations
lately held in the city of New York by the
directors of the st. Paul & Sioux City rail-
road company for The purpose of interesting
more capita! in that enterprise. While that
statement was of a character to satisfy every
friend of the railroad, and every citizen
of st. Paul and of the country traversed by
it, and tributary to it, that the directors of
the road had, in the negotiations now per-
fected, not only preserved but strengthened
the independent system for which the st.
Paul & Sioux City company was organized
and has been operated up to the present
time we are enabled this morning by giving
some further facts Of which We have become
possessed from a perfectly reliable source,
to place the results of those negotiations be-
fore our readers in still better and more
favorable light than in our previous issue.
Before doing this brief reference to the
history of the road will be of interest, and at
the same time afford our readers more intel
ligent grounds upon which 10 form correct
Judgment of what has really been accom-
plished by the negotiations IN estiou, and
OF their probable effects. The st. Paul *
Sioux City Railroad company was organized
some fifteen years ago with capital stock of
81 100000, majority of which was held by
citizens of st. Paul, several of whom took
100000 each. This organization contem-
plated the construction of line of road
from st. Paul to st. James IN a southwest
direction, distance of 1873 miles, at which
point the line was taken up and continued
southwest to Sioux City, Ia, by the Sioux
City & st. Paul company. OF the men who
originally became interested in the st. Paul
& Sioux City company, and who have from
that time to this been closely identified in
its management, except where death has IL
tervened, and have maintained controlling
financial interest, are the following gentle
men: L. F. Drake, John L. Merriam, j. Z.
Thompson, Horace Thompson, Il. II. Sibley,
John S. Prince, G. II. Bigelow, George a.
Hamilton, r. Blakeley, J. G. Burbank, A. II.
Wilder and w. F. Davidson, st. Paul; L. A.
sc5 81. G. Harrison, Minneapolis, and Slm
ucl F. Hersey, of Saltwater. Of these the
Messfs. Thompsons and Burbank, of st.
Paul, and MIR. Hersey, of Saltwater, have
been removed by death.
While the road was simply local orSani-
cation running from st. Paul 10 Sioux City,
Will 10 luuGDetlUGut t1SItIu OtttCL OI III NbSt-
ern or southwestern connections, its exist
ence was matter of no concern to the great
trunk lines of the country connected with
the Chicago system. But in the nature of
things the road could not stand still. The
country tributary began to fill up with set
tiers, imperatively demanding an extension
of the system. Branches had to be built to
meet the wants of this population and to
a
occupying the country. AS these necessities
were met, the operations of this local organ
ization began to attract the attention Of the
great trunk line magnates. Then, about
three years ago the ST. Paul company Sc
cured running connections with Omaha and
the Union Pacific and the southwest. In
securing this connection the st. Paul com
pany came in direct competition with the
Chicago system, a large number of roads
leading to that city and acting as feed
at different points between St. Paul and
Omaha, while at that point it met and com
peted for the Pacific and southwestern trade
and travel for tie northwest and Lake Supe
rior.
All these extensions, enlargement of IA
cilities for doing the business of the road,
had steadily swelled the s., 100000, the orig
inal capital stock, to 100000 of preferred
stock, $4,OO0,000 of common stock and
100000 of bonds, the controlling interest
of which was still in the hands of the st.
Paul the management, but the bur-
den was becoming heavy 10 bear, and the
system still in its infancy. Thsn came the
consolidation of last year, by which the st.
Paul & Sioux City, the Sioux City 81 st. Paul
and the several branches were merged into
one company, with the st. Paul interest
still controlling, Following Immediately
after was the purchase of direct connection
with Omaha and partly con-
structed road leading into south
western Nebraska, the commencement
of work upon line leading to the coal fields
of Iowa, and another pointing to the Black
Hills, and the perfection of arrangements
for largely extending the system this sea-
son.
All these operations were declaration of
war 10 the Chicago system and trunk lines,
and it became at once question with them
whether they should crush or absorb this
pretentious rival. TO carry on their extern
sive operations the st. Paul company found
itself compelled to put its stock on the mar
ket. 1t met with favor at once, and the plan
of absorption was Inaugurated by parties i'll
the interest OF the Chicago system. It was
plan that the st. Paul company could not
stand without help. The extensions arranged
to be built this season would give the compa-
DIV about 700 miles of road, and CORE
spending stock issue and bonded indebted
ness.
In this emergency the st. Paul directors
held a conference in this city early in Janu-
ary, and after full and free consultation,
and with perfect unanimity, Messrs. &. f.
Drake, Horace Thompson and John l.. Mer-
riam, were empowered to visit New York
CITY to seek the necessary financial aid re-
auired to preserve the identity and indie
pendence of the st. Paul system and carry
it through to success. These negotiations
had but Just been inuaguratsd when Horace
Thompson sickened and died. The last sad
rites paid to deceas ed in this city, and gen.
eral manager j. w. Bishop and director A.
H. Wilder hastened to New York and in
connection with Messrs. Drake and Mer-
RAM. took up the negotiations at the point
where they were interrupted by The death of
Mr.. Thompson.
Such is brief history of the Chicago d
Sioux City road up to and including the
completion of the negotiations fer the ANAL
oamation of the st. Paul road with the Chi
caeo, st. Paul & Minneapolis and North
Wisconsin loads, as stated in the GLOBE of