The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-08-28
DULUTH TO GULF
MINNEAPOLIS & ST. LOUIS MAY BE
ABSORBED by THE ILLINOIS
CENTRAL
DEAL said TO BIZ PENDING
RECENT BULGE IN SECURITIES AT
INSIDE KNOWLEDGE
ENTRANCE INTO TWIN CITIES

Control of the Road Would Give the
Illinois Central Access to Rich
Traffic Which 1t Is Not Now Able
Case the Pending Negotiations
Fail.
NEW YORK, Aug. 2-The Herald
says: From semi-otficiaI sources it is
learned that a deal is pending in Wall
street whereby the Illinois Central may
: get control of the Minneapolis & st. Louis
railroad Negotiations to this end are
said to have been under way for some
time between the Harriman-Fisn inter
ests. representing the Illinois Central, and
President Edwin r. Hawley, representing
the present control of the Minneapolis &
St Louis.
No definite agreement has yet been
reached, but Wall street interests having
knowledge of the situation say that in
any event traffic alliance will be eff
fected and that change of control will
probably be brought about. There are
even rumors of the terms upon which
Minneapolis & st. Louis securities may
be exchanged for those of the Illinois
Central.
STRATEGIC POSITION.
A glance at the maps indicating the
geographical positions Of the two prop
critics shows that such a deal would be
greatly to the advantage of both roads.
The Illinois Central would be given ac-
cess TO territory rich in traffic which it
does not now touch; would get fine
terminals in Minnesotas twin cities, Min
neapolis and st. Paul, and would have
practically a through line from Duluth
to the Gulf of Mexico.
Railroad men agree that the Minneapo-
lis & st. Louis has terminal IA
cilities the equal of any in ST. Paul and
the best in Minneapolis. These terminals
are now used by the Northern Pacific
.. the Omaha. 500 Line, st. Paul q Du-
luth, Wisconsin Central and Chicago
Great Western roads. The Minneapolis &
st. Louis derives a large net revenue
; from them.
The company's lines also traverse an
exceptionally rich country, and at Albert
Lea, Mimi, furnish the only connection
to the Twin Cities and the Northwest for
the Rock Island and the Burlington, c.
dar Rapids d Northern systems.
BULGE IN STOCKS.
The recent strength of the Mtnneapo-
lis & st. Louis securities on the stock
exchange has been attributed by all to a
growing appreciation of the roads STRAIT
egic position, to the reduction in fixed
charges through refunding, to the in
creased mileage and increased earnings
brought about by expert management to
dividend prospects Gt is said 4 and prob
ably per cent will be paid Oh the COM
mon stock and other favorable develop
ments. 1t now seems probable, however,
that the bulge of the stocks has been in
anticipation Of what may be effected in
the Illinois Central matter
SCHEME OF EXPANSION.
President Stuyvesant Fish and e H
Hartman, who are controlling factors in
Illinois Central affairs, have been carry
ing out a scheme of expansion for some
time past First the Illinois Central ac-
QIured the Mississippi e Yazoo Valley
lines, which parallel the ccmpany's road
from Memphis, Tenn, to New Orleans.
Then followed the purchase Of the Ches-
apeake, Ohio & Southwestern. running
from Memphis to Louisville. The extern
sion of the Dubuque & Sioux City road
into Omaha, which will be completed this
fall, was the next undertaking.
Now comes the proposition to gain an
entrance into St. Paul and Minneapolis
- Whlcn, II acquired, Will give the Illinois
Central access to a great amount of ter
ritory that has never before contributed
to its revenues. Through lines already
. in operation, the system would then ex-
tend to the head of Lake Superior thus
giving on unbrol1en line from Duluth to
New Orleans.
CONNECTING LINK
All that would be required to form the
connection between the two systems
would be the construction of a few miles
of road from Lyle Mimi, which is the
Illinois CentraPs present northern termi-
nus to Albert Lea, Mimi. where the Min
neapOIs & ST. Louis now runs
In railroad and financial circles it Is
thought that the purchase or lease of
the Minneapolis & ST. Louis by the IL
linois Central is more likely than the ar
rangement of a traffic alliance
Chicago, Rock Island & Pacific railway
officials are said to have become alarmed
over this new extension scheme of the
Illinois Central. The Rock Island former
~ controlled parts of the Minneapolis &,
st. Louis system through ownership of
mortgage bonds These bonds were taken
up by the payment of more than four
millions when the road was reorganized
in 1894 Since that time there have been
many reports that the Rock Island was