Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-09-11
The lIim1aeapoIiS e st. Louis.

MINNEAPOLIS OopGs u, 1000
To Editor st. Paul Globe:
Regarding the consolidation OF the Min
neapolls6S st. Louis railroad with the Rock
Island by exchange of stock, we get 1t from
very good authority, that such consollda-
tion will not be made until the interested
parties can secure more stock of the Min
neapolis 81 st. Louis road, as this is the
stock that would be benefited by such ex-
change. It is stated as fact that at the
last annual meeting of the board of dl-
rectors of the Minneapolis q st. Louis
road the greatest amount of stock standing
III the name of any of the directors
wasfveshares. In other words the stock
had been unloaded at high
figures with view of making
a turn and gradually picking it
up again at greatly reduced
prices. This, we are informed
has only been partially accomplished, the
bulk of the stock being held, it was
thought, by ''the street, but it is just here,
our informant tells us, where the laugh
comes in. There were very heavy sales of
the stock at from tx to 65c for the pre-
ferred, and from sc to 30c for the COM
mon. The pool of unloaders were very
much surprised, and it is needless to say,
gratifed, to find the street y so ready to
take the stock. The explanation for such
a ready market for snide, comparatively
unknown stock turned out to be that GER
tain parties who are interested in con-
Meeting road to Lake Superior, and who
are also interested in completing roads
from Chicago to st. Paul and
Minneapolis, formed pool, and
have been quiet but steady
buyers of the stock ever since, with view
OF making the Minneapolis Il St. Louis a
continuation of their Lake line. They &C.
complish many things by this. First, a
continuation or extension of their line
down into good grain country, good
connections and terminal facilities in
Minneapolis. Secondly, 1t shuts the Rock
Island road off entirely as competitor
for the Minneapolis and st. Paul business
to and from Chicago. Thirdly, one of the
principal parties in the pool being at the
head of the coal trade for the northwest,
can again control the Iowa coal trade,
which he lost when his contract was an
nulled by the Burlington, Cedar Rapids d
Northern railroad, which was done at the
instigat1on of the Rock Island. Which of
the two interests, if either, have really Sc
cured a majority of the stock we are I'M
able to say, but the Rock Island, resting in
the fancied security that her sharp manip-
ulation of the board of directors of the
Minneapolis q st. Louis will enable her
by having them classified and elected in
her interests for an average of three years,
will enable her to control the road without
owning a majority of stock, would lead us
to believe that the other interest has I'M
doubtedly secured an actual majority, and
with this majority secured they will find
way to control the property which they
own. If neither interest have as yet an
actual majority it will be bad stock to go
short offor some timeto come. The course
of the market price of the stock between
now and next October, when, we believe,
the directors meet, will demonstrate how
much truth therelis in this information.