The Saint Paul globe., 1898-04-16

The North Dakota rate case hearing
yesterday was occupied by Attorney
| General Cowan's cross examination of
Col. w. p. Clough, vice president of
| the Great Northern railway.
| The cross-eXamination brought out
facts about the main line and branches.
their cost of construction. the opera
ton expenses and maintenance, as
we'll as the stocks and bonds Of the
main line and branches.
During the crosS-eXamination the fol.
lowing questions were asked and an
swered:
q. MIR. Clough. you stated that the
lease of the ST. Paul. Minneapolis &
| Manitoba Railway company to the
Great Northern Railway company ex-
tended ever a period of 999 years?
A. From the date Of it's execution,
Feb. /. 1890.
| q. And the rentals to be paid that
| company during that period were
what?
A: They were to be first interest on
all bonds of the st. Paul. Minneapolis
d. Manitoba Railway company, as the
| interest should accrue. The dividend
on outstanding stock of the ST. Paul,
Minneapolis & Manitoba road is at a
rate OF b per cent per annum, payable
quarterly. Such sums as might be
| necessary for the expenses for preserv-
| iilS anu 1nalntalnlng the general or
ganization Of the road.
| Q. Was that the measure of rentals.
| or how were the rentals to be determln-
| ed when the bonds matured?
A. IL any bonds should be matured
ana retired and not replaced with other
bonds then the rentals should cease so
far as the interest on those particular
bonds were concerned. Part of the ar
| rangement of this lease was that the
hQ tI,o
| OF the st. Paul, Minneapolis & Mani
TOBIAS bonds was assumed by the Great
Northern Railway company
! y. DO you know the exact amounts
| Of the purely local business done in the
state of Minnesota during the four fis-
cal years ending June 80, 1894, to 1897
| inclusive?
A. I have net the figures with me.
u. referring to the question of the
bonds of the st. Paul, Minneapolis &.
Manitoba road, what are the rates Of
interest upon the several issues: state
the amount of issues and rate of inter
est?
A: First mortgage. s61,4oo, at per
cent, which has since been retired: sec
ond mortgage, $8,000.O .O00 at per cent;
third mortgage. $5,676, 900, Dakota ex-
/ tension, per cent; the S., 600, 900 second
mortgage was issued about 1879 or 1850
and had thirty years to run; S., 900, ,0CO
mortgage had thirty years to run A
consolidated mortgage was made May
l. 1883, to run fifty years, of $13,344 ,OOO
at . per cent; same mortgage changed
to S21, ,262.GOO, at AZ per cent. The Mon
tana extension mortgage was made in
1887 with thirty years to run, 81, 9O7. .OOO
at per cent. The Pacific extension
was made in 1890, with thirty years to
run; f6,0OO,0O0 sterling, or $50. 900 600
total, Of which 29,545, ,454 is out at 4
of the st. Paul. Minneapolis & Mani
tcba road issued against $3.50 miles of
main track.
@. Has any issue of Great Northern
bonds been made since June 80, 1897?
A. No, sir.
Q. What is the total amount of the
st. Paul. Minneapolis & Manitoba stock
outstanding? f '''-.' :f' .5fs.
A. Twenty million dollars.
Q. Does the Great Northern Railway
company guarantee dividends upon
that to the Manitoba company by way
of rental?
A. 1t pays a rental to the ST. Paul,
Minneapolis & Manitoba company equal
to 6 per cent per year on that stock
@. That is to say, that per cent on
that stock is a portion of the rental?
| A. Yes, sir.
.. What is the total amount of the
Great Northern stock outstanding?
A. Twenty-Five million dollars.
Q. And what dividends have been
paid on that since its issue annually ?
| A. Most of the time 5 per cent, but
more recently, 6 per cent.
Q. What are the items constituting
! the additional cost of handling local
| traffic as compared with interstate
! traffic?
| A. The biggest item is the inability
to handle a full load from division to
| division. The cost of running a train
| is practically fixed in all cases regard
| less Of the amount of the load An
other item is the loss of transportation
! power, which means that a train that
has to run over any given distance of
! track and has capacity of 1000 tons,
might only get 1C0 tons and the cost
! Of transportation power would be the
same.
The hearing was adjourned until
Tuesday morning at 10 O'Clock, when Z.
couple of days will be taken up with
| going over some statistics to be handed
in by General Manager Kendrick, of
! the Northern Pacific and General Traf-
| fc Manager Hannaford, Of the same
line.
On Thursday Master in Chancery
| Lovelle, the North Dakota commission
and Attorney General Cowan will GO
to Chicago to hear the evidence of the
| Milwaukee road on the same general
subject Of rates in North Dakota
RAILROAD MEN INTERESTED.