The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-15

cations and Make improvements
Action Taken Mt u Meeting of
the Stockholders Yesterday.
The stockholders Of the ST. Paul &
| Duluth Railroad company held a spe-
cial meeting in the office of Vice Pres
| ident and General Manager A. b.
| Plough yesterday morning and decided
| upon the issuance of $5,00O,000 first
mortgage consolidated bonds to take
up old obligations and make improve
ments.
Rate Of interest on the bonds Is
not to exceed 5 per cent per annum
and will cover all the property Of the
| company, with the exception of the
lands, the land and stumpage con-
tracts and proceeds thereof, to be dis
posed Of as follows:
Three million dollars to be reserved for re-
firing at maturity:
First mortgage per cent bonds. 81 ,000. 900
Second mortgage per cent bonds. q 900, 900
Two million dollars. to the extent required,
to be used for the retirement Of:
The Saltwater & st. Paul Railroad COM
The Tayior's Fails Fails & Lake Superior ' Rail-
road company's first mortgage per cent
bonds.
The Duluth Short Line Railway company's
nrst mortgage 5 per cent bonds.
The balance to be applied to the following
purposes:
Inc restoration to the land and Stumpage
trust fund OF the balance due.
The equipment of freight cars, in accordance
with United States law. with automatic coup
lers and air brakes
The completion Of the reduction Of grades
on main line.
The purchase of new equipment and better
ment of railroad property
1t IS expected to issue these first mortgage
consolidated bonds bearing per cent inter-
est.
The Saltwater s.: Paul Railroad COM
ture on Dec. 1. 1900. There are outstanding
500, 500. against which 619S.n in cash is
held by the trustees in the sinking fund.
There are outstanding $40 900 Of the Tay-
lor's Falls & Lake Superior Railroad com
pany's first mortgage s per cent bonds ma
turing Jan. l, 1914, to meet the payment of
1850 shares of ST. Paul 4 Duluth Railroad
company preferred stock which is annually
increased by the dividends declared on these
shares.
There are also outstanding $500 COO of the
Duluth Short Line Railway company's first
l, 1916
The st. Paul & Duluth company owns
more than s6 per cent of the stock of the
branch lines above mentioned.
In the annual report of the company for
the year ending Dec 81 1885, attention was
called to an expenditure for construction bet
terment and equipment from the land and
stumpage trust fund. under resolution Of the
stockholders of June 20, 1887 which authorized
the temporary use of the trust fund for such
purpose.
Subsequently: at the stockholders meeting
OF June II, 1889. the directors were Instructed
TO take the necessary means to restore this
amount to the trust fund. -
On Dec. 81. 1888. the amount of the land
and stumpage trust fund which had been
so used was $788 566.40. During the year end
ing June 80, 1892. $97, 79O was returned thereto
from the earnings Of the company The BAL
ance now due said trust fund is $780, 40.
In accordance with the laws Of the United
states. the freight equipment is being pro-
vided with automatic coupler and air brakes.
The cost has heretofore been charged to oper-
atng expense, as there Is no source other
tnan income from which such expenditures
can be made. 1t is estimated that 1t will cost
Sllo,ooo to finish this work, and the law re-
CURES tnat 1t be completed within two years
Reference has been made in the annual re-
ports. OF recent years, to the work which has
o De done in the reduction of grades, the cost
come. To complete this work. so that the
full benefit OF that which has already been
accomplished may be received a further esti-
mated expenditure OF about 100000 will be
The addition of freight cars of the present
stanaard weight, to the equipment, would
greatly greatly improve the earning capacity of the
The dividends upon the preferred stock are
limited TO per cent During the last thiNs
Teen years they have averaged more than 6
per cent, and In no year has less than per
cent been paid If the balance of the money
taken from the land and stumpaee trust fund
above referred to had been returned and a
tired there would have been an average saw
ing OF $41 446 each year in the amount re-
outsea FOR the payment Of the dividend on
should be contrasted with the addition to
nxed charges OF $27,735. The balance due to
tne land and stumpage trust fund when re-
stored VIII be used in accordance with the
pan OF purchase, sale and reorganization
me increased number of tons which can
De hauled in trains by completing the grade
reouctions. 1t Is estimated, will reduce the
otper s. expenses much more than the in
Gerest upon the cost Of such work.
The annual interest on 81. 600 500 nrst
mnoItgage bonds at 4 per cent. -. $50 900
!, Deduct annual interest on bonds re.
Taylor's Falls & Lake Superior
r. Raliroad per cent $4,000
saltwater & St. Paul railroad Z
Duluth Short Line railway Der
eehl .....'..... ................, 250OO
- 5a.265
ADD Additional fixed charges go. s2,7s5
preferred stock ............. al 446
-, The stockholders further decided that All
the branch line companies be absorbed nv
the parent corporation. ~
Those present at the meeting n,ara
Capt. r. Somers Hayes, president New
York; r. B. Dodson, director Nav
York; A. B. Plough, vice president and
general manager, st. Paul; w. r. Mer-
RAM, ST. Paul
An of the above are stockholders.
Merun joyce, secretary to President
Hayes, Is here. The president and his
secretary will leave for New York to-
night via the Burlington route.
MAY CALL THE COMMISSION.