St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-10-27
VIEWS.

The Railroad situation AS Seen
by the President of the Kansas
City.
The following interview with A. B.
Stiekney, president OF the Kansas City,
is from the New York Star. Being
asked about the prospect for a restora-
ton of rates after the close of nayiga-
ton. Mr., Stickney said:
l do not imagine that the close Of nav
igatiOn is going to make any material
difference and, while there might be
slight changes in the tariff, the advance
will be so trifing that shippers will not
feel the burden. The general sentiment
Is in favor of taking advantage of the
large amount of business Offering. and
think the prospects are good for all
the roads this winter. If the sensa-
tional reports which appear from time
to time were omitted from tine West
a great deal better. 1t takes up too
much time to give denials to these
frivolous rumOrS, which only tend to
make US suspicious of each other.
While there are undoubtedly going to
be a great many powerful consultations
perfected, the average purport OF the
plans under consideration has been
greatly exaggerated. / look forward to
the establishment of harmony during
the coming month, and although earn
ings may not be phenomenal, there can
be no cause of complaint by the rail-
roads,"
"Do you think that some of the prom
inent Western roads will be able to re-
sumo a higher scale of dividends?" MI.
Stickney was asked.
II do not want to be put down as an
alarmiSt, but [ am free to say that the
tendency is all in the other dires ton.
Our railroad managers are devOting al
most all their entire time to the bonded
Indebtedness of their roads, and devils
ing plans for funding the same at a
lower rate of interest when the princi-
pal comes due. A good 4 per cent bond
ranks as high now as a z per cent bond
did ten years ago, and II some instances
commands a premium. So it is with
stock dividends: if a road can keep up
a 4 per cent return to its stock
holders it Will be of greater
benefit than the uncertainty which
has recently prevailed. l do not wish
to convey the impression that roads,
which are paying 5 and 6 per cent divi-
dendS per anDum, contemplate a reduc-
ton, but the freight rates, which their
neighbors are willing to accept, do not
warrant such large returns. Even on
solicitations or interests are not intended
to increase the earning capacity of
roads, but simply to control oyercon-
struction in the same territory, which
has to be overcome at any sacrifice"
''Do you contemplated any changes In
your rOad?"
"Our financial policy is now pretty
we'll defined, and the programme that
has been suggested to our b~Ondholders
will be adopted. | expect to be in New
York fol about three weeks to attend to
some details connected with our bonds,
but we have no important projects in
view. At least, we are not building a
mile of new road. and l do not think the
situation warrants our branching out
for the present. Some of our neighbors
are about to make some important eX-
tensions. l believe the old enterprise
of the Rock Island for an outlet through
Texas has made some Roadway, but
then it is only the eonsummatiOn of an
idea which President Cable has had be-
fore him for several years. With re-
gard to labor complications, the rail
roads feel pretty secure. and these re-
cent disturbances among a few isolated
~switchmen can be easily adjusted"
Mr.. Stickney's attention was called to
the report that President Maekey was
going to build an independent trunk
line from Chicago to the Ohio river.
He said that he had heard of such a
move, and believed that the strained re-
lations with the Chicago & Eastern Illi-
nois had had fastened its consumation.
President Mackey, as he understood it,
since he retired from the control of Chi
cago & Eastern Illinois, had formed an
opinion that he coald obtain better
terms for his system by drifting away
from old influences. and he was simply
about to try the experiment.