The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1897-11-17
d. & |. r. TALK.
President Greatsinger Tells Du-
iuth Reporters Something
~Ascgartiing tic IL. ~ i.iS

AN%StANhf 49, A'No A'h
President Greatsinger was asked
by an Evening Herald reporter Friday
to explain the object Of his company
in desiring to increase it's capitalize
alton and he said that Until recently
there has been only anominal amount
Of stock issued. The road has been
built and is owned by the Minnesota
Iron Company, which has advanced
the money and taken the bonds.
First mortgage bonds have been
issued to the amount of S 1882, 900,
and later second mortgage bonds to
the amount of SO, 800, 900 were issued
to liqudate the company's indebted
ness. These bonds are now worth
5 I .o25. While the authorized stock of
the company is 100000, only $780,
ooo Of it was issued, and practically
all of that is held by the Minnesota
Iron sompany. The remaining $500
o has % been disposed Of at par
and the proceeds are being used in
improvements. 1t is customary when
new railroads are built to capitalize
them for a large amount and then
issue as many bonds as they will
stand. The Duluth s. Iron Range
has reversed this order jealousy
guarding its bonds and keeping them
always in the list Of gilt-edge
securities. 1t has sufficient capital
now to carry on its present business
and if no more extensions or improve
ments were to be made there would
be no necessity for increasing the
stock issue. However, the manage
ment of the company anticipates that
the future holds great possibilities
for development in Northern Mimi
eSota, and it is now taking steps to
keep pace with them. With $1,000
900 Of additional stocks in its
treasury the company could realize
enough money On short notice to ex-
tend its lines to any point it might
desire. for Duluth s. Iron Range
stock is considered as good security as
it's bonds.
President Geratsinger said that he
did not know what extenbions if any
were to be built but the company
would be prepared to build a new
road or buy an old one at sany time.
1t might be deemed advisable to
build south from Duluth or north
from any Of it's terminal points.
When asked If there vas any likeli-
hood Of the Duluth & Iron Range
being extended to the Rainy Lake
country. he replied that he could not
say. although be admitted that such
an enterprise was not among the inn
possibilities.
"There are some developments now
going forward there" said he. with
which the public is not acquainted
and it is possible that they will prove
of such a character as to make a rail
road to that country profitable"
When asked in regard to another
line to the Mesaba range he said that
that project was being carefully con-
sidered and would probably be carried
out eventually. The line has been
surveyed and the company is gradually
acquiring the right-of-way. 1t will
run from Two Harbors to a point
near Arthur, and from there to a
junction with the Fayal branch of
the Duluth & Iron Range road
between Eyeleth and Virginia in
section l, township 5S, range II.
This will make a shorter line to Two
Harbors from the western part of
the Mesaba range than the present
one, and alsoa shorter run to Duluth.
The proposed extension will have a
better grade than the present line of
the Duluth s. Iron Range, although
it will be no easier when the plans
for improvements on the main line
and Mesaba branch are carried out.
While President Greatsinger will
make no statement as to when this
road will in all probability be built, it
is generally believed that the intent
ion is to begin work on it next spring.
President Greatsinger has asked d
number of car manufacturing com
panies for bids for building 800 new
ore cars. He said that lie might in
crease this number considerably.
Needs our Ore.