Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-09-17
TIE MIaNEAfOLIs d ST. LOUIS.

4 Statement of q New York Banking Firm
Relative to Its Prospective Consolidation
With the Rock Island,
John d. Davis & Co., bankers and bro
kers in New York city, sent out a financial
circular on the 18th INST, which contains
the following of local interest:
Something has lately been said in the
papers with reference to the probable &C.
QUESTION by Rock Island of the Mlnnespo-
lis & ST. Louis road. 1t is alleged that ne
gotiations to this end have been pending
Tor a considerable time. In report made
by the president of the Rock Island COM
pany in 1882 it was stated that line to
Minnesota had been established by Rock
Island in connection with Burlington, Ce-
dar Rapids Il Northern and the Minneapo-
lis & st. Louis roads. The distance was
somewhat greater than by way Of other
lines between Chicago and Minneapolis,
but this line had the great advantage of
connecting with eastern roads outside the
city limits of Chicago, thus avoiding
tedious and expensive transfer through the
city. Rock Island made connection and
transfer with Lake Shore and Pennsyiva-
MIA at Engleweod, six and one-half miles
from Chicago;with Pittsburg, Cincinnati &
st. Louis, twelve miles out; with Grand
Trunk seventeen miles west Of Chicago;
with Michigan Central at Joliet, forty miles,
and with Cincinnati, Indianapolis, st.
Louis and Chicago at Seneca, 70 miles.
This advantage was expected to result inl q
large eastern traffic. The extent of this
traffic developed during the summer and
fall of 1882, led to the Granger war last
fall, which resulted Gin an agreement to
maintain rates, permitting each road to
obtain as much business rs possible. Since
January the Rock Island line to the north
west has done an increasing business and
Minneapolis and st. Louis has been strong
ly backed in various enterprises it has un-
dsrtaken by Rock Island. It has been sup
posed that control of the stock was held
by house in this city closely identified
| with Rock Island interests.
There have peen some rumors, however.
| to the effect that while friends Of Rock
| Island held large interest in the stock
| they did not own majority. Some color
has been given to this rumor by reports
| from Minneapolis to the effect that rival
interests have been buying the stock with
| the intention of securing control, thereby
| cutting Rock Island out of the northwest.
| 1t has also been suggested that control of
| Minneapolis & St. Louis would be great
| advantage to Manitoba, rs it would give
that company a direct line to the coal
fields of Iowa. 1t is apparent, out of
conflicting testimony in the matter, that
Minneapolis & st. Louis Is the key to an
important situation, and, therefore, is in
demand by more than one interest. This
explains the alleged wish of Rock Island
to make consolidation or lease. In view
of the large holdings of Minneapolis stock
by Rock Island or its friends
it is fairly safe to assume
that any arrangements made will not
be unfavorable to the Minneapolis stock
holders. It is stated on good authority
that the earnings of Minneapolis & st.
Louis for April, May and June were at a
rate about sufficient to pay fixed charges
During July and August earnings are al
legged to have increased, affording good
prospect for the earning of dividend on
the preferred stock this year. The com
pany operated last year 354 miles of road,
earned 81 ,543,1 72 gross and S324,067 net.
Interest on bonds was $217.954, and there
was paid S102, 112 on account .of floating
debt. The common stock Dec. 81, 1882
amounted to $5,752, 600; preferred stock,
81 900, 600; funded debt, $6,236,000; bills
wayable, $1,441,343. The annual meeting
of the stockholders occurs On the first
Tuesday in October.