St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-08-03
NEW LINE TO CHICAGO.
Text of the Circular Announcing the Ex-
tension of the Burlington System
to st. Paul.
A Joint Traffic Arrangement to be Made
Immediately With the Burling-
ton & Northern.
VIII There be Change in the Route
OF Grain Traffic. --Another
New Loan.
The Omaha's New Lumber Tariff Dis
satisfies the Eau Claire People
steamship News.
The New Burlington Route.

The New Burlington Route.
Special to the Globe.
BOsTON, Aug. 2.-The circular announc-
ing the birth of the Chicago, Burlington &
No.5hem Railway company was issued YES
terday from the Chicago Burlington 81
Quincy office in this city. 1t is signed by
}. NJ. Forbes, by order of the board of di-
rectors, and begins as follows:
To the Stockholders: An organization is
being formed by Mr.. a. Z. TOuzolin and
associates, to be called the Chicago, Bur-
lington IL Northern Railway COM
pany, the object of which is the con-
structiOn of a railroad from Oregon.
on the Chicago 81 Iowa railroad.
and Fulton, on our own line to a junction
AT or near Savanna i'll Carroll county, llli-
nois, and thence up the east bank of the
Mississippi river to st. Paul. The direc-
tors nave decided TO form an alliance with
the new company for the advantages to be
derived from the interchange of business.
! y JOINT tra'nc contract will be made be-
! tween the Chicago, Burlington d Quincy
halfway company, the Chicago Il Iowa
ballrOdd company, on the one hand. and
the Chicago, Burlington IL Northern Rail-
way company ON the other, to run for
twenty years, and providing among other
things that the Chicago, Burlington q
quincy and the Chicago Il Iowa Railroad
companies shall devote one-half of their es-
umated net earnings annually on all bust
ness to and from the Chicago, Burlington
u Northern to the purchase of the Chicago,
! burlington " Northern tiTst mortgage per
cent. bonds at not above 105 and accrued
interest. In case they cannot be purchased
at that price, sufficient OF bonds to absorb
the fund shall be drawn by lot and paid for
at lO5 and accrued interest. The bonds
when so purchased or drawn are to be con-
verified into the capital stock of the Chicago,
Burlington II Northern Railroad company
at par and then cancelled. The Chicago,
Burlington 81 Quincy Railroad company
guarantees that from the time of
THE COMPLETION OF THE LINE
TO st. Paul the amount annually invested in
the purchase of bonds shall not be less than
$4,000. The length OF the new road will
be about three hundred and sixty miles.
The capital stock now to be issued is fixed
at 80, 900 shares and the bonds at 50, OOO,-
600, or S25, 600 per mile of each. 1t is esti-
mated that the proceeds of these securities
will be sufficient to build and equip the
road and to pay interest on bonds during
the construction. After giving details
of the bond issue the circular
continues: There have been disposed
of S1,9S2, 900 worth of the bonds
and 14,172 shares of the stock of the
Northern company, and in consideration Of
the purchase by the Chicago, Burlington 8
Quincy Railroad company of 80, 900 shares
of stock an arrangement has been made by
which the remaining 45, 1928 shares and
81, 63S, 900 of the first mortgage per cent.
bonds of the Chicago, Burlington q North
ern Railroad company are placed at the dis
posal of your directors. The opportunity is
therefore now offered to stockholders of the
Chicago, Burlington d Quincy Railroad
company of record at the close of business
Aug. Is. 1885, to subscribe pro rata for the
above 81, 63S, 900 bonds and 45, 82S shares of
stock of the Chicago, Burlington s. North
ern Railroad company