Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1884-04-09
BLAIR BOUGHT OUT.

The Northwestern Absorbs all His Lines
Leased to that Company and The Sioux
City & Pacific.
The New York World in its financial
columns of the 4th inst has this piece
of news. OF the highest importance to
Sioux City: "The event Of the day in
financial circles was the announcement
late in the afternoon that arrangements
were making by the Chicago aud North
sorption of the Blair system of roads
now leased by the former. The report
that the negotiations had been actually
be untrue, although there ls little doubt
that they Will be carried to successful
issue in the future. The directors of the
Chicago and Northwestern, who held a
meeting this afternoon to determine
upon a time for the closing OF
books for the annual election,
heard a'report from committee which
was appointed some time since for the
purpose of carrying on negotiations with
the owners of certain leased lines with
the view of purchasing the same. THE
committee reported progress and were
empoweled after hearing of the state
ment submitted to continue their work
and effect an arrangement as speedily as
possible.
The Chicago and Northwestern pro-
poses to absorb about 906 miles of road,
and also the Blair bridge over the Ms.
sour river. Included in the total are
Chicago, Iowa and Nebraska, the Cedar
Rapids and Missouri and the Maple
River lines, now leased by 1t, and also
the Sioux City and Pacific and the FIRE.
mont, Elkhorn and Missouri Valley,
which are proprietary roads af the
lines named. Under existing arrange.
ments the annual rentals paid by
the Chicago and Northwestern
have varied according to the
business done by its leased lines, and for
several years past have steadily increased
in amount as the section Of country trav.
ersed by the roads in question has de-
veloped rapidly. Last year the rentals,
according to the annual report, reached
the large total of sl,570.94S.27. The d.
rectors have for some time regarded it as
advisable to secure absolute control by
purchase rather than to continue to pay
the increased sums year by year for ren.
tails. inasmuch as this policy would add
materially to the revenue of the Chicago
and Northwestern proper. In other
words, the directors calculate that an ab-
sorption will be followed by saving of
between Sl50,000 and 100000 the first
year in the matter of rentals alone, and
that in addition to the increased saving
in this respect as the earning capacity
of the leased lines is developed, large
gain will also be made by the substltu-
tion of bonds of the Northwest company
bearing low rates OF interest for the
bonds of the leased roads as they mature.
The leased lines extend across the
state Of Iowa and from the trapsconti.
mental link between the Northwestern
and the Union Pacific, and the proprie.
tary roads of these leased lines extend
into Nebraska, where they have large
local traffic. As already stated, the
Northwestern company will, il the ne
Rotiations be successful, substitute its
own bonds for those of the roads to be
purchased. The amount of Northwest.
ern stock to be issued under the new ar
rangement will be between $l4,00O,OOl
and $4,000, 900, which varies but little
from the aggregate amount of stock nov
outstanding on the lines to be absorbed
The great bulk of the securities rep.
resenting the roads known as tue Blair
system are concentrated in q few hands
most of them the original owners or theil
natural successors, In fact, much more
than majority are controlled by per
haps dozen persons, among whom Mr.
John I. Blair, of New Jersey, Is the most
prominent. Mr.. Blair was foremost il
the construction of the lines years ago
aud be and his friends have ever since
held the securities SO closely as invest
ments that no steps have been taken t
have them listed at the stock exchange
If, therefore, the negotiations nre car
ried through, the northwest stock ant
bonds to be issued will pass into tn
hands of capitalists who look only to tn
income and safety of the principal.
1t should be added that the Who'll
matter will have to be submitted to th
stockholders for ratification or rejection
and that it may be several months befor
the transfer is concluded. The larges
stockholders of the Northwestern are IN
derstood to strongly favor the absorption
of the lines. An erroneous impression
having gained ground that the proposes
absorption of lines by the Chicago an
Northwestern means that the issue G
stock to be made on that account was t
be marked instead of being simply al
exchange of one security for another, til
bears made vigorous raid on the shar
listto-day."