The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-04-18
NEWS or RAILROADS
CAREER OF PROSPERITY Is AS
CURED FOR HE 500
LINE
DIRECTORS HOLD A MEETING
Proposition to Raise 100000 by
an Issue of SECOND Mortgage
Bonds Is Ratifted-Thfs Move
Considered u Fine Piece of FL
nanciering - Many Obligations
Will BE Discharged.

AS result of a special meeting of the
stockholders and directors Of the Soc
| read. held in Minneapolis yesterday, Its
floating debt is wipeaf out All that the
road owes now is its Bonded Indebtedness
and the interest which it has to pay
on this*is now considerably less than its
obligations under, he previous arrange
ments.
1t Is estimated by the directors that in
twelve or eighteen months the 500 line
will begin paying dividends on it's 7 per
cent preferred stock, something which 1t
mas never yet done. Its earnings for the
last two years warrant this assertion.
The meeting, which was first announced
In The G o e about ten days ago. was
held In the office Of President Thomas
Lowry yesterday morning, and the prop
-os1t1on to raise 100000 by an issue of
second mortgage bonds was quickly rati-
he'd The money has already been raised.
according to Mr.. Lowry, and the bonds
have been floated in EUROPE, the loan be-
Ing negotiated through the Canadian Pa
cific.
A director of the 500 line stated yes
erday that the move was a fine stroke
Oh Wandering. and practically assured
Inc future prosperity of the road. He
said:
The larger part Of this money will be
applied ON what might be called the
noat1ng debt. That ds, such burdens as
the income bonds, interest certificates.
terininal loans, etc, amounting inEall to
nearly 200, will be cancelled by pay
q
interest at per- cent, (which will be a
good deal better than the interest which
we nave been paying on our floating in
oeptedness. large amount of improve
ments, principal among which will be
the reducuon Of gradesaLand the building
OF sidings. AS the tcountry develops
through which the line runs and more
stations are added there is a growing
necessity for sidings, which the company
mas not heretofore been able to meet.
The debt incurred by the new terminals
here amount to about $500 900. the income
bonds amount to nearly. 100000 and the
interest certificates. to $3.50, 200. So you
see In wtping out those three items alone
there will be a big load off the company.
ana with the cancellation of other and
smaller debts things are immensely SIM
plified 1<
One OF the most important matters
considered at the meeting today was the
adoption Of a new traffic agreement with
the Canadian Pacific. It does not differ
very much from the former agreement.
and its essential point Is the fact that the
500 line will be allowed to name through
rates from this end Of the line and the
Canadian Pacific will name them from
the other. The division Of rates is to ba
made on a mileage basis both ways. I
feel safe in predicting that the 500 will
soon be paying dividends on Its preferred
stock. 1T could have done SO. last wear.
save for the burden Of expense which has
new, fourtunately, been eliminated, 80. !
Among the directors and stockholders
present Were w. Sd. Washburn, C. H..
Pettitt, F. H: PeaNsy, Peter Bradley,
Ihomas Lowry. AID Lane, Secretary
w. B. Dean and o. II. SWEET. s 80