New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-09-17
ASKED TO FUND COUPONS.
RESULTS OF RATE CUTTING.
THE " sTIcKNEY ROAD WANTS ITS BOND.
HOLDERS TO DEFER THREE YEARS IN.


HOLDERS TO DEFER THREE YEARS IN
TEREsT-TuE PRESIDENT GONE WEST.
One of the roads in tho Northwest whose name
Is so frequently coupled with that Of the Chicago,
Burlington and Northern whenever sensational re-
ports of rate cutting sent from Chicago Is the
Chicago, St. Paul and Kansas City. 1t IS commonly
known as the sckney system because a. b. Stick
ney is the president Dir. Stickney In some way won
the confidence of foreign investors and hro gh their
help succeeded building line which has aided STOCK
Spectators at times IN their warfare on values ior
the reason that It frequently, through necessity OK
meeting Canadian competition has reduced or threat
ened to reduce freight rates to an unIenuineia'ive
basis and proyed an element demoraZing to the COM
nonsense OF the managers Of tho great Nor hives efn
systems Of railway Mr.. StickDey has frequently oeen
advertised by Western correspondents as contemplating
wonderful elevator and steamship projects, all III
tended to lift the "stickney system" in the public
eye abroadl as the dominant factor In the so-caiied
granger territory. AS of the irritating Clements
!, Northwestern rate questions the Sckney system
has generally boon associated with the Burlington
and Northern and the two properties are inc maj
resort of the bears" when they need an aeBu"c>''
for disturbing investors after all other means ha'o
failed The recent reductions in freight rates from
Chicago to St. Paul have brought the "stickn'y sys-
tenn" once into prominence not admlieu W INC
conservative investing public.
II would appear however, as II the tactics OF MT
stickney I'm meeting Canadian other competiton
were about to reap their reward. circular has Deen
issued in London by Robert Benson IL Co. ana IN
Amsterdam by Hope & Co., banking firms that hoated
the first mortgage per cont bonds Of the Minneapolis
and Northwestern and tho Chicago, St. Paul and
Kansas City, inviting bondholders to fund the six next
maturing coupons into a ) per cent sArlnS
priority bond' maturing in 1884, but subject to re-
demption on six months notice at 105. In other
words bondholders are asked to fOrogo three years
stickney policy, or to enable that policy to be per-
petuated with legitimate effect of reducing or de-
stroyng profits by tho carrying Of business at ruin
ously low rates President Stckney himself has Just
arrived from Europe but he left this city for the West
on Sunday lie IS expected back in about two weeks
it was stated at TIE transfer Office of the stckney
road yesterday. Beyond that fact those In charge
were able to give little official information. IL was
admitted that plan had been formed for the funding
Of three years interest the basis outlined above,
but the circular to American bondholders VIII not be
issued until Mr.. Stickney's return from the west
The object Of the funding, It stated was to place
the COMPANY I'm strong position to face " the era OF
low rates I'm the Northwest" The company had Deen
doing well and earning the interest on It's DEBT,
but the Chicago, burlington and Northern was
making such trouble" that when It cut rates the
other roads had 10 lose their business III
was asserted at the transfer Office that the plan had
been accepted by a majority of the bondhOders.
The plan, II carried out, Will place the fundcd cou,
on the income bonds and ahead of possible dividends
upon the suck. late copy OF the "frankiurter
Zetung,7 just received, speaks sarcastcaly OF the
cOmpany's proposition in view of the brilliant pros
and the effect Of 1t in decline in the price Oh
the bonds from 81 IL TO 90.