New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-07
RAILROAD INTERESTS.
DIVERTING GRAIN TO THE GULF.
CHICAGO TAKING STEPS TO MEET SERIOUS COM
PETITION

CHICAGO TAKING STEPS TO MEET SERIOUS COM
PETITION.
Chicago March s-Not content with dverting the
bulk OF the grain traffic from the Missouri River
and Kansas and Nebraska points 10 the Gulf and
other Southern points. roads having Southern and
Southwestern outlets from Iowa points are now
taking the from that territory to St Louis 20
be shipped thence to New-Orleans. The Iowa Chi
cago lines have hoped ali along their earnings would
materially improve as soon as the heavy corn crop
raised in Iowa would begin to move east Now
instead of going east. the corn In that section Is
going south and southwest taking advantage OF
the much lower rates offered TO Gulf and Southern
ports than be obtained to the Atlantic seaboard
That such a state Of affairs is not looked upon
with equanmity by the roads between Chicago and
the Missouri River Is natural Most OF them have
INDUCED in secret rate-cutting and especially from
Des Mones and other points. and in consequence
much crimina ton and recrimnatlon Is going on
among the Western Freight Association lines. One
or two OF the weaker lines are being accused Of hav-
ing made special concessions a lot of corn from
Kansas City While some has here by
these lines; IT Is said 10 have been part Of lot
Orleans and Galveston and full tarin rates were
On the other hand some of the roads having out
lets Iowa points TO ST Louis are charged with
taking nearly al the &c 81 fGSm Des Moes and
in consequence the Chicago roads which have no
outlet from Ta pGn o to S hSus ma hnvs IN ark "c
reduced rates from Iowa points TO CHICAGO to en-
able them to meet the St Louis "a, and com
meeting has been called OF the executive officers OF
the roads in the Western Freight Association TO be
held at Commissioner Mdgey's office next Tuesday.
PLAN FOR RAILROAD REORGANIZATION.
The plan for the reorga nization Of the Memphis
and Charleston Railroad Company contemplates
the creation of a company and the issue OF
SC 10000 first mortgage one-hundred-y year gold
bonds bearing per cent to 1901. AZ per cent
thereafter to 1876 and per cent thenceforth These
bonds may be increased $l5O0.OOO for any extern
sion and S,4l6.S 500 in any case reserved for
betterments Interest on the bonds will be secured
by the terms of lease Of the property to the
Southern Railway There will be issued e. 100 900
OF 3 per cent non-cumulative income bonds. or
per cent preferred stock as may be determined
hereafter Control In common stock Is to be de-
iivered to the Southern Railway In consideration
of rental and release OF claim on account OF float
ing debt.
The new bonds to be used follows: For
principal Of the Tennessee lien first and second
bonds new fours par and 10 per cent In incomes:
for past due coupons, new tours at par for $1,000
per cent consos. 60 per cent In fours and I20 per
cent In incomes Coupons are TO be paid In new tours.
For principal of the general mortgage skies there
will be 120 per cent In incomes and interest In in
comes
fours and 800 In incomes. Each holder OF 81 900
consols gets for bond and interest $500 In first and
81 200 in incomes Each holder OF 1900 generals
gets 81 800 in incomes. There will be assessment
on the present stock Of 81 per share.