St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-03-23
THE STICKNEY DEAL.
The Kansas City Road Leased
to the Chicago Great
Western.
Lease Covers the Entire Prop
erty Of the Maple Leaf
Route.
Chairman Stickney Lueidly,
Explains the 0bje ct Of
This Action.
The Road to Be Placed in the
Forefront of Its Com
petitors.

The entire property of the Chicago, st.
Paul 81 Kansas City railroad has been
leased to the Chicago Great Western
Railway company for ninety-nine years.
This action was consummated yester-
day at a meeting of the directors of the
Kansas City company, held at the offices
of the company in the Metropolitan
building. A. b. Stickney, chairman OF
the board Of directors, interviewed in
regard 70 the deal, said:
"The meeting of the directors was
held for the purpose of considering a
lease of the entire property of the Chi
cage, st. Paul q Kansas City company
for ninety-nine years 10 the Chicago
Great Western Railway company, a cor
poratlon OF Illinois. The Chicago, st.
Paul & Kansas City Railway company
has now been in operation about five
and one half years. The first year,
1887, it operated 355 miles. the reXt year
COS miles, the next $50 miles, the next
S44, the next S66, and it is now operating
9o2 miles. During all this time the
older roads, which have not added TO
their mileage like the Chicago & Atom,
have shown decrease year by year in
their earnings per mile, while those roads
which have added new mileage with
undeveloped earning capacity dixie the
Rock Island) have shown much larger
decrease. But the Chicago, st. Paul q
Kansas City, Notwithstanding the large
new mileage it has taken in, has shown
An Increase Year by Year,
its earnings per mile now being about
so per cent larger than in 1887. This
large increase III earnings, owing to the
constantly decreasing rates, has re-
suited from much larger increase in
tonnage. During the same time the ton
mage has increased about $50 per cent.
The volume of Its traffic is now only eX-
ceeded by two Western roads, the Chi
cago & Alton and the Chicago u North
western, and the prospect is that in a
few years more it will take the first
place in this respect.
ITO accommodate this ever increasing
volume of business requires large ex-
penditures for additional terminal facili-
ties and equipment. TO state the position
in line. tie traffic of this company has
already outgrown the expectations of
its founders and the financial plan OF
its organization. To meet this emerg-
ency the Chicago Great Western CON-
pany has been formed upon much
larger financial basis, and arrangements
have been made by which about $l0.-
900, 600 of the bonded debt of the Chi
cago, st. Paul & Kansas City Railway
company will be
Converted Into Stock
of the Chicago Great Western COM
pany, thereby reducing by about $780,
600 per annum the interest charges of
this company, which before were much
lower per mile than any of its COM
,cetitors. At the same time arrange
mentS have also been made to raise by
an issue of stock only, about three mill
ion dollars in cash, to be used In in
creasing its facilities in order to accom-
modate its increasing business. In the
construction Of this line no expense was
spared to make it in all respects, both
as regards its permanent way and
equipment, the peer of any of its CON-
petitors; but IT'D management is not sat
Isfied with simple equality, and it is
now determined to push it to the front.
To my mind the Pennsylvania railway
is the model railway OF the United
States. Mr.. Roberts, president OF the
Pennsylvania railway company. in an
address to its stockholders in 1890, made
The Astonishing Statement
that it requires the enormous sum of
$4,000. 900 annually to provide the nee
essary additions to real estate, equip
ment, tracks and other facilities of the
Pennsylvania railway, sum equal to
about $l,250 per mile on its system of
5000 miles. The $3,0O0,000 which this
company has arranged for is equal to
cover $1,000 per mile, which sum it is
expected to expend in the next two
years, not in increasing its mileage but
in the purchase of additional real estate,
new equipment and making permanent
improvements upon the lines it already
operates. The lease. plans and ar
rangements, which | have already out
lined, were submitted to the board of
directors for their approval, and have
received the unanimous consent OF the
directors. and a meeting of the stock
holders has been called to ratify the
same. More than two-thirds of the
stockholders have already informally
Signified Their Approval,
so there can be no doubt as to what the
formal action of the stockholders will
be at their meeting. The lease is to
take effect OH the 1st day OF July next,
and the public may take it as an assured
fact that on aud after that date the Chi
cago Great Western Railway company
will operate all the lines now operated
by the Chicago, st. Paul Il Kansas City
Railway company. Remembering the
assertion of Webster that there is al
ways room at the top in all kinds of
competition, the management of this
company has determined to never play
second fiddle in the railway business"
The meeting of the stockholders to
ratlfy the action of the board of direct
/ro ..,;II Ia baId nril