The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1900-08-03
} b. G. II. & n. Bonds.

"a low udyS dSO ulouU0IS OI C00 VII
lage council of Worthington, met tc
hear what E. B. Soper, of Emmets.
burg, Iowa, an attorney for and re.
presenting the Burlington, Ceda,
Rapids and Northern Railway com.
pany, stock, held by Worthington in
the Cedar Rapids, Iowa Falls and
Northwestern Ry. Co., and he then
made an offer on behalf of the B. G.
R. &. N. Ry. Co., of 25c on the d. liar
for such stock hid by the village.
From all the facts that we have been
able to gather, that offer is worthy of
serious consideration by the council.
The Cedar Rapids, Iowa Falls and
Northwestern Ry. Co., was organized
many years ago, without any capital,
for the purpose of constructing the
road that runs into, and now beyond
Worthington. The first thing it done
was to give mortgage on all of it's
franchises, roadbed right of way and
in fact all of its property to be OBJ
tained in the future or owned by it,
for $6,968,O0O and issued it's bonds
representing that sum as evidence of
that debt, which bonds were sold, but
before such sale the B. G. r. & N. Ry.
Co., guaranteed the payment of those
bonds, and in addition to that the G.
R. I. F. & Northwestern road obtained
local aid, by getting a number of
towns and villages in Minnesota,
along the proposed line to vote bonds,
of which Worthington village contri-
buted 300, the road was then con.
structed to Worthington, an1 another
branch of it throught Rock and Pipe
stone counties and on to Natertown,
Dakota, at cost of $6,795,857.19, as
shown by the annual report of the B.
G. r. & N. Ry., Co, to the State board
of Railroad and Warehouse Commis-
sioner.
At the time Of the making Of that
mortgage, and mortgage bonds, and
as a part OF the same deal, the
Cedar Rapids, Iowa Falls and North
western Ry., Co., gave to the B. c. R.
& N. Ry. Co., a perpetual lease on the
road and all its branches to be con.
structed. And the lease further pro-
vides that for all money expended by
the B.. G. R. & N. Ry. Co., on the
road in the way of extensions, per-
manent Improvements, in building de-
pots, roundhouses, and in everything
else in betterment of the condition of
the property, the B. c. r. g N. ~,
Co., is to have and hold a first lien
on the road and franchises and all of
its property for the repayment of that
money, which lien is subject only to
said mortgage bonds, and under
which last provisions the extension of
the road was made from Worthington
to Hardwick, at an approximate cost
of more than $3CO,O0O, for up to Dec.
31st last, when said report was made,
and the road was then only rudely
constructed to Wilmont, the B. G, r.
4 N. Co., had expended on account
thereof $149, 1896.
For many years the B.. G r. & N. !
Co., also has had leased, presumably
under same kind of lease, Chicago.
Decorah and Minnesota, Cedar Rapids
and Clinton, Iowa City and Western
and Forest City division. lines and
operating them in same way, and as
a necessity, the company has to keep
account and separate books for each
one of these lines, and all business
done on each of them separately, and
now it is claimed by the B. c. ;R. &
N. Ry, Co., that to do away with such
work, it wants to buy out all of these
lines, and consolidate them with the
B. G. R. & N. Ry. Co., and in order to
do SO they have got to do one of two
things, either buy them eout:: for the
amount of the mortgaged bonds that
are against them, Tor less if it can) or
let the mortgages be- tforeclosed and
buy the property at the mortgage
sale.
cit was further ..representented by |
Mr.. Soper, that such purchase and
consolidation was intended to have
been perfected at the 2last meeting of
the Board of Directors of the B. G. r. |
& N. Ry. Co., but that Mr.. Ives, the
president, prevailed on them not to do
so yet, as bis road had always had the
good will of the people along the line
ond he wished that state. of things to
continue, and if such course was taken
the towns and villages holding .stock
in the leased lines, night,think they
had been frozen out of their stock,
and then it was determined to make
all such stockholders an offer for their
stock of 25c on the dollar and if not
accepted nothing more to be said
about it, and he would no longer re-
sist the purchase of the lines and the
consolidation. That although the
said stock had not, nor never would
probably have any intrinsic value
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