New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-06-05
Miles Gross Operating Net
Years. operated earnings. expenses. earnings
1s90'ol t9Ol3 SO 7l6 429 - g., $50 SIG 81 O590l2
1SS9-90 ......6006S 3039, 673 10 211l06O SOS ,Gl2
lS5SfS9 .....52709 2559, 02i a 1,Sii,1j6 7li,46o
lSS7-SS ....5l4.53 2.4iS,316 IL 16S2,3O3 1Ol,OI2


The rapid development Of the local interests
principally agricultural. which resulted from the
opening Of these lines may be measured in the in
crease In the local traffic. which shows a gain of
1l72 per cent In three and half and during
which time the earnings Of the branches added In the
last two years have been at their minimum
Already the Louisville, New orleans and Texas
Railway carries into New Orleans a larger tonnage OF
cotton and OF grain than Is carried by the Illinois
Central. The Illinois Central Railroad opened
for traffic In 1854 and the major part of the Dubuque
and Sioux City and Of what is now the Chicago St.
Louis and New-Orleans Railroad in 1860. The gross
earnings Of the 2,s6s miles operated BY Illinois
Central Company during the last fiscal year were
S6 22O per mile.
while the lease Of the Chicago St. Louis and New
Orleans Railroad to the Illinois Central has,
in ITSELF been, from year to year
a continual source Of profit to the lessee its chief
value Is as feeder and distributor Of traffic TO
and from Illinois. The rent OF that railroad, 567 miles
during the first year of the lease, 1883, was
sl4se 2O3, or s., e2l per mile. The gross earnings
of the preceding year had been $500 907. and the
rent was IS $1,000 per cent thereof
THE great majority of the securities of the Louis
Vile. New-Orleans and Texas Railway Company can
now he bought on a basis OF paying for all such Sc
curities So OOOOOO In money and $50, 5000 In I'LL
mods Central per cent gold bonds, being part OF an
issue Of exceeding S25 900 Of such bonds, to
be secured by pledge Of the purchased securities.
The remaining 5000 600 Of bonds are 10 be retained
by the Illinois Central Railroad Company
"The Louisville. New orleans and Texas Railroad
Company has outstanding:
mr. cent gold first mortgage bonds 1872 900
9 per cent cumulative income ~. ooo
q Der cent income land mortgage bonds. -.
cumulative io''OVVV'
Total SIS o36 600
"That company also has share capital of @5,Ooo'-
600. The Illinois Central Company now has 5000
600 OF cash in It's treasury which cam II necessary be
used In this purchase. The fixed charges on the
property Will be $500 900 to which should be added In
interest on the So 900. 900. Assuming this at D per
cent tho annual rental VIII be 81 100000 This Will
be 2s 26-lOO per cent Of last years earnings and
81 800 per mile OF railway now in operation.
"The magnitude OF the transaction induces the
directors to hesitate about closing the negotiation with
out applying to the stockholders for ratification and In
50 doing they regret that the unwillngness Of the
vendors to give option upon their securities pre-
vents longer notice OF the meeting OF stockholders.
which they have been Obliged 10 caI LOT oatu"''
. They do not, however, hesitate to recommend The
purchase II II be carried out on the terms above
outlined being to the interests OF the shar"owners
81 The corporation well OF the country served by
It's railway. ,,, A., ,u,o,s
BESIDES being great acquisition 10 the Illinois
Central II will tend to much quicker development oi
The virgin territory served by the Louisville, New
Orleans and Texas Railway, by bringing II In closer
relationship with the business interests OF ST LOUIS
Chicago and other points In the upper MISSISSIPPI
Following is a copy Of telegram received from
Memphis: The citizens here very much pleased
with the idea OF the Illinois Central purchasing ,he
Louisville, New orleans and Texas road Besides be
Ing n Valuable acquisition to the Illinois Central ue
purchase will tend 10 much quicker development Oh
The whole Yazoo country