St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-03-13
1t Is Really the Completion
Of a Peculiar Railroad
Deal.
Forty Dollars Per Share Paid
for a Majority Of the
Stock.
This Is the Beginning Of the
End of the Rate
War.

cago, Burlington 81 Quincy has finally
purchased the control of the Chicago,
Burlington & Northern. The price
paid is $40 per share. 1t is really the
completion of scandaious railroad
deal, but there is this to take comfort
from. The scamps VINO built this road
have not made any money oLt of it. The
Chicago, Burlington 81 Northern was
built by the high officials of the Chi
cago, Burlington & Quincy. They
expected to be able to saddle it at once
upon the Chicago, Burlington 20 Quin-
cy, and their asking price at the out
set three years ago was $50 for Chicago,
Burlington 6 Northern stock. There
were those, however, in the di-
rectory of the Chicago. Burlington
d Quincy, who were not interested in
the new road. and who objected to the
property being unloaded on the parent
company. There had already been so
many railroad scandals that Forbes
and Perkins could not afford to make
fight on it. Then the 20" strike came
on. The parent road was overwhelmed
with difficulties of its own, and all
thought of unloading the new road upon
the old one had to be abandoned. Now,
however, the Chicago. Burlington &
Quincy has recovered itself and the
trade is made. 1t is not, however, at
90, the price originally asked, but at 40.
As the Chicago, Burlington & Northern
has
NEVER EARNED ITS INTEREST
charges, and as the promoters OF the
property have been compelled to pay
out a good deal of good money to k ',p it
ahoat. it is probable that they will make
no money out OF it.
They have, however, for three years
unset the railroad property of the entire
West. compelling the st. Paul to aban-
don its dividend, and as the st. Paul re-
taliated against the Burlington, COM
pelling the Burlington, even, to lose.
great deal of money. The trade was
unquestionably forced by the attitude
of the st. Paul road within the last
thirty days. 1t tired of being har-
assed by this offspring of the
Chicago, Burlington u Quincy OFF,
cials, savagely reduced rates in all of
the most profitable territory of the 90"
The result is that the "Q' finally ac-
knoWledges as its own property that
which it has heretofore always piOusly
disclaimed any knowledge of. General
Manager j. NJ Whitman, of the Chicago
& Northwestern, was quite pleased
when he heard the news, and said: Il
am certainly glad to learn this. | sup
pose you are familiar with this trouble.
The Burlington & Northern has been at
the bottom of all of it. 1t began by
cutting rates between Chicago and st.
Paul, and the other roads were COM
pelled to meet this. The Burlington Il
Northern made still further reduction,
and so the cut has grown until the sew
eral lines have been carrying freight at
a loss. The last report of the Burling-
ton & Northern shows that it
HAS MADE NO MONEY.
"The trouble did not end with that, but
extended to the Missouri river lines be-
cause of feeling that the Burlington
could, if it saw proper, pat stop 10
this ruinous proceeding on the part of
the Burlington q Northern. The cause
of contention removed, the cure must
follow | believe it will result in bet
ter feeling all around, and that it will
bring about uniformity Of rates that
will be permanent. | have every conf
dence that this will be the case. can
not see any other result. If | were TO
give an opinion touching the matter of
the purchase of the Burlington u North
ern, l should say that the Q. bought
it in order to protect its interests and
put stop to this unhealthy cutting of
rates. 1t has been generally conceded
that peace was not in the near future as
long as the Burlington q Northern was
in The fie Id, and now that it has passed
into the hands and management Of one
of the great Western lines the war can
not be chargeable to it. Hence the bus
mess world in my judgment can look
forward to something stable, and that
upon which they can count" General
Manager E. st. John, Of the Rock Isl
and, said: ''lf that news is straight
will give you an order for a new hat.
Why, it is too good to be true. 1t re-
moves the most dangerous element from
the railroad situation. SJill there are
two more lines that must yet be fixed"
President Cable, of the Rock Island, is
in New York. President Marvel, of the
is out on the Pacific coast.
Chairman Walker, of the Interstate
Commerce Railway association, said:
''If true it is good news, for it removes
the cause of great trouble"
THE DEAL rs CoNsUMMATED.
BosTON, March 12.-Soon after 2
O'Clock this afternoon Messre. Lee, Hig-
ginsou & Co. bought majority of the
stock of the Chicago, Burlington q
Northern railroad at $40 a share in the
interest of the Chicago. Burlington &
Quincy railroad. Immediately after the
was concluded the price OF
Chicago, Burlington & Northern stock
on the Boston stock exchange was
jumped up to 40, SO that nobody has
secured any advantage in the market
from early knowledge of the trade.
On n mill oil r tE
outstanding stock OF the Chicago, Bur
lington & Northern at the same price
and payment will be ready in about
eight days. To-dav's action is the result
of three years negotiations and its effect
will be to make the Northern road part
of the Chicago, Burlington & Quincy
system and put an end to all the long
prevailing rate cutting. The action is
generally favorably commented on. The
effect of this trade has been big boom
in stocks this afternoon.