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 Be PENDING
RECENT BULGE IN SECURITIES At
TRIBUTED TO WALL STREETS
INSIDE KNOWLEDGE
ENTRANCE INTO TWIN CITIES

Control of the Road Would Give the
Illinois Central Access to Il Rich
Traffic Which 1t Is Not Now Able
to Reach - Traffic Alliance in
Case the Pending Negotiations
Fail.
NEW YORK, Aug. 27.-The Herald
says: From sem-official sources it is
learned that a deal is pending in Wall
street whereby the Illinois Central may
Nget control of the Minneapolis & st. Louis
railroad Negotiations TO this end are
said to have been under way for some
lime between the Harriman-Fish inter-
asts. 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
my event q traffic alliance will be eff
tected and that a change of control will
probably be brought about. There are
wen rumors of the terms upon which
De 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-
;ess to a territory rich in traffic which it
loes not now touch; would get fine
criminals in Minneso;a's twin cities, Min
leapolis and St. Paul, and would have
practically a through line from Duluth
20 the Gulf of Mexico.
Railroad men agree that the Minneapo-
is & st. Louis has terminal IA
tilities the equal of any in st. Paul and
he best in Minneapolis. These terminals
re now used by the Northern Pacific,
he Omaha, SEQ Line, st. Paul & Du-
nth, Wisconsin Central and Chicago
Great Western roads. The Minneapolis &
St. Louis derives a large net revenue
rom them.
The company's lines also traverse an
exceptionally rich country, and at Albert
Lea, Mimi, furnish the only connection
10 the Twin Cities and the Northwest for
he Rock Island and the Burlington, c.
ar Rapids q Northern systems.
BULGE IN STOCKS.
The recent strength of the Minneapo-
is & ST Louis securities on the stock
Exchange has been attributed by all to
rowing appreciation of the roads STRAIT
tgic position to the reduction in fixed
hharges through refunding, to the in
creased mileage and increased earnings
brought about by expert management, to
ividend prospects dt is said and prob
bly, { per cent will be paid on the COM
pnon stock and other favorable develop
cents. 1t now seems probable, however
hat the bulge of the stocks has been in
anticipation of what may be effected in
he Illinois Central matter.
SCHEME OF EXPANSION.
President Stuyvesant Fish and E. H
Hartman, who are controlling factors in
Illinois Central affairs, have been carry
Vlg out a scheme OF expansion for some
line past. First the Illinois Central ac-
8uired the Mississippi e YazoO Valley
knes, which parallel the ccmpany's road
from Memphis, Tenn, to New Orleans.
#'hen followed the purchase Of the Ches-
Rpeake, Ohio & Southwestern. running
from Memphis to Louisville. The extern
Gon of the Dubuque & Sioux City road
Flto Omaha, which will be completed this
- ALL was the next undertaking.
L Now comes the proposition to gain an
Entrance into ST. Paul and Minneapolis,
Fhich, If acquired, will give the Illinois
Central access to great amount of ter
aitOry that has never before contributed
p its revenues. Through lines already
4 operation, the system would then ex-
end to the head of Lake Superior, thus
living on unbrOken line from Duluth to
: lew Orleans
CONNECTING LINK
All that would be required to form the
CnnectiOn between the two systems
, vOuld be the construction of a few miles
road from Lyle, Mimi, which is the
Illinois Centrals present northern termi-
JUS to Albert Lea, Mimi, where the Min
eapolis & st. Louis now runs
In railroad and financial circles it is
+ nought that the purchase or lease of
fle Minneapolis & st. Louis by the IL
nois Central is more likely than the ar
l7ngement of n traffic alliance
III Chicago, Rock Island & Pacific railway
fhcials are said to have become alarmed
iVer this new extension scheme of the
.linOis Central The Rock Island former
| : controlled parts of the MINNEAPOLIS &
t. Louis system through ownership Of
= lortgage bonds. These bonds were taken
! sp by the payment of more than four
| billions when the road was reorganized
| 1 1894. Since that time there have been
| lanV reports that the Rock Tc1aD5 MO q