The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-05
NORTHWESTERN BUSINESS GOSSIP
Retundng of Railroad Debts Lower Rates Means Bigger
Dividends for Northwestern Roads--Western Capital
Attracted -Soap Making on Better Basis

Bonds OF northwestern railroads to the
amount OF $100,000,O00 will mature be-
tween now and 1910. Most Of these bear
high rate Of interest and will be re-
placed In many instances with issues
bearing a lower rate, thereby effecting
blg saving in the interest charge which in
Turn Win nave direct bearing on the
olv s,. Cheap money is enabling the
railways Of the country to extend most of
thelr bond issues at 4 per cent where in
many cases as high as z per cent is being
pa1o on the original issues. In earnings
a generous ne supply. remunerative rates,
and all OF the conditions which go to
make down hill pull" the American
raliroaas at the present time appear to be
favored. Nearly all Of the big railway
systems OF the country are putting into
eHect reminding schemes by which they
VIII save large sums for the dividend &c
count. = -
On It's bonds which fall due before Dec
OF THIS year the Northwestern system
VIII make saving of $3.50, 900 in interest
charges. The Rock Island has formulat ed
plan along the same lines whereby its
interest rate will be reduced to 4 per
cent and saving of $55O,OOO will be made
WI wnen the entire program is carried out.
me chicago, Burlington & Quincy has an
issue OF $22,740,00O OF per cent bonds
which natures next year and another
issue OF S2,320,000 maturing in 1905 bear
ing per cent. From 1902 to 1910 the
Gnlcago, Milwaukee & st. Paul will re-
total of $27,59O, 900 in bonds combinine
various issues most of which bear Z per
cent; OF this amount $6,494, 900 Z per cent
Donds are convertible into per cent pre-
!erred stock. Most of these were issued
Dy tne Milwaukee in absorbing the yari-
GUS independent railway lines IN north
western and other states, and also in
'Duliolng new lines in Iowa and Mime
sofa: The Burligton, Cedar Rapids &.
Mortnern, which is now building into the
twin cities, will have an opportunity to
save interest on $6.5oO,OOO S per cent
now. ). - :
N. Prs Big Issues.
Of the Northern Pacifics total issues of
Si'o,vVo,VVo none mature in the next
twenty years. The two large issues ag-
sresatlng sl52.00O,0Oo draw and 4 per
cent interest. The Great Northern has
retired some of its old issue of St. PAM
Minneapolis & Manitoba bonds in the past
lew years by issuing stock. 1t has S18.-
Ueu,o0o more of these bonds falling due
between 1908 and 1910 drawing and 6
per cent. In the reorganization of the
Wisconsin Central few years back a
general issue Of $24,635. 900 was made.
These do not mature until 1949 but the
interest rate OF per cent is low. The
two outstanding issues of the 500 line
amounting to $3O,O0O.OOO are guaranteed
by the Canadian Pacific. The interest
charge is per cent. They are due in
1925 and 1888
IN 1909 the Minneapolis & St. Louis is
sue OF $l,015,OOO an Indebtedness con-
tracted in connection with the extension
Of that system from Albert Lea to Fort
Dodge falls due. and in 1910 another is
sue Of $636.000 made to- complete the
southwestern extension, will mature
These bear Z per cent interest The
financing Of the Minneapolis ST. Louis
is in strong hands and President Hawley
has plans already laid to save a neat sum
in interest charges son this Indebtedness
as fast as 1t natures. The various is
sued of bonds put out by the Omaha road
bear 6 per cent interest. None become
due until 1885, Il ga3h RI. -
Drawing Eussi team Capital.
There is already a large amount of Eu-
ropean money invested in northwestern
railway securities. The ma gnificent show
ing in earnings being made by north
"SotoA - oetAo, VIZ 81 oo ua1 AuCl edS6slu LAG
dividend rates. and the big improvement
in the physical condition of the lines is
attracting the attention of European cap,
italists still more toward this section OF
the country. One result Of the Boer war
has been to make money tighter than in
dustrial conditions generally warrant. If
England succeeds in ending the war in
reasonable time, it is believed that there
will be big increase in the supply of
money at 31a and per cent seeking in
vestment in western railway securities.
The fact that the field for real estate
loans is not as profitable as in the past.
and that real estate investments have not
been so satisfactory to them as they