St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-03-05
Financiers Curious to Know for What Pur-
pose the Illinois Central Borrows
Money.
General Opinion is that it was for the Pur-
chase Of the Minnesota & North
western.
Some Very Comical aud Absurd sr6te-
ments Made About the Hudson's
Bay Route.
Wisconsin Central Negotiating for
Use OF the st. Paul's Tracks to
Milwaukee.



The report that the Illinois Central is
negotiating for the purchase of the Mime
sofa q Northwestern was the subject of dis
cussion in railroad circles yesterday. The
general belief Is that the Illinois Central Is
DESTROYS OF securing the Stickney outfit for
itself, not only the line already built. but
the line being built from Dubuque 10 a con-
nection with the Minnesota d Northwest
ern, which Is known as the Dubuque &
Northwestern. The Central is intending to
give up the Iowa lines IL has been leasing,
and wants the Minnesota Il Northwestern
and Dubuque & Northwestern instead. 1t
has secured loan of several millions In
New York, and inquiries are being made I'm
financial circles regarding the use that will
oe made of the money. The Central COM
pany does not want it for itself. 1t has
plenty TO keep its own system running or its
stock would not be quoted at 142. The net
profit OF the company for last year was
81, GA, 100, and the line is In thorough re-
pair. Therefore il Is quite natural that the
hnanciers in New York are curious to know
what the Illinois Central intends doing
with its loan. The Financial Chronicle of
New York speaks of the loan and believes
1t was secured fol the purchase of the Min
neSota Il Northwestern, but no matter for
what purpose subject for speculation Is
presented. 1t Is President Stlckney's pres
ent intention to build to Chicago from Du-
buque, making the Minnesota & North
western
A ST. PAUL AND CHICAGO LINE.
Should the Illinois Central purchase the
Minnesota q Northwestern, the line from
Dubuque to Lyle would only be completed,
and the Illinois Central would have its own
through line via Dubuque. This line
would affect the Chicago lines very much,
and local officials were very much worried
on receiving the news yesterday of the
loan the Illinois Central had negotiated.
and the use it would be put to. Nearly all
New Orleans and other Southern business
now goes via Chicago, and the Illinois
Central from there; but. if the Central
intends doing what Is thought it will.
business for New Orleans, and points on
and reached by the Central, will go direct
from ST. Paul. All this business would be
diverted from the Milwaukee & st. Paul,
Omaha, and Rock Island roads, and they
are, of course, anxious that Mr.. Stickney
should remain owner of the Minnesota Il
Northwestern. President Stickney is not"
as railway official said, Every much stuck
on the policy used by Illinois Central
official in the operation of the line. They
are not aggressive enough for Stickney,
who is fighter from away back. He
wanted to open up business by cutting
tariffs to pieces and raising any amount of
trouble in Chicago and st. Paul business,
out the Illinois Central could not under
stand 1t this way, and would not be a party
to anything that it thought would cause
trouble" The Illinois Central last year
made a further expenditure for the i'm
provement of its leased Iowa lines of
10000, which makes nearly 81. 500, 900
that the Central has expendedon these lines.
By
TIE TERMS OF THE LEASE
the lessor is to pay to the lessee the APP
praised value of such improvements at the
expiration of the present lease of the Du-
bGque & Sioux City railroad. October. 1887.
and the first cost OF all the real estate fur
nished by the lessee If the Illinois Central
should exercise its option TO surrender the
ease. 1t has, however, the option of re-
newing the lease in perpetuity on paying
the present rental of SO per cent. of the
gross earnings. But the rental is much too
high. During the past year the loss to the
Illinois Central by reason OF the lease of
the Iowa lines has amounted to S136. O0O
without the improvements made or with
rent for accommodations furnished by the
Illinois Central. There are other reasons
why the Central may give up the Iowa
lines at the expiration of its lease. When
the leases were made in 1867 an immense
immigration was pouring into Iowa and
other states beyond. Sioux City, the ter
minus of the Iowa division, was the chief
entrepOt for supplies on the Missouri river.
There were then only 1.2SS miles of line in
the state. Now there are 1909 miles and
and rates are much less than they were. 1t
is, therefore, highly probable that the Cen
trail will give up its Iowa lines. Should it
do this it will want to come into ST. Paul,
and there is no other way for it to do this
than by coming in over the Minnesota &c
Northwestern. Negotiations are. If they
have begun. only in an incipient state yet,
and time will develop what form they are
in. The Minnesota & Northwestern is a
valuable piece of property. and the Illinois
Central Will have to pay high for it.