Omaha daily bee., 1905-06-18
PURPOSE OF THE NEW BONDS
go President oppenheim Of Great West
srn Says Circular Will Tell.
ONE DOINes or STlcKNErS COMPANY
recent steps I'm Financial Manage
ment Are Considered TO Have
Brought Road Near stage
- OF Permnnence.

Apropos the Sl4OO0OOo bonds which the
Chicago Great Western proposes to issue
in September. Vice President Oppenheim
said that the directors would shortly issue
circular stating what was proposed to do
with the money.
The financial plans Of the Chicago Great
Western have undergone important extern
sion within recent months. In April last
the company sold s12,OOOOOo OF Mason City
d Fort Dodge per cent bonds, having
acquired the stock of that company in ex-
change for Sl3,2OoOOO Chicago Great West
ern common stock at par This stock, to-
gether with other stock received by a con-
struction syndicate, has been marketed in
part and both syndicates have been ex-
tended for a year in order to further the
conversion of their assets into cash. Pres
ident Stickney is authority for the state
ment that the cost Of the Mason City &
Fort Dodge extension greatly exceeded the
amount of the bonds and that its net earn
inGs should shortly be not less than 5000
per mile, against charges OF $50 per mile.
The purpose of the new issue of B pre-
ferred stock has not been officially stated,
but unless the company departs from the
methods by which II has financed its ex-
tensions up to the present time the pro-
ceeds will not be used in this manner. The
companys floating debt and equipment
trusts have increased within a year from
ST,l53,5O0 to $,4eOOOo and it is expected
that at least a part of the new stock issue
will be used for the retirement OF notes,
some S3,5OO0OO OF which mature in 1906 to
1908.
Recent steps In Great Western financing
are considered to have brought the road
nearer the stage of permanence The par
ent company is still comparatively free of
bonded debt. but the subsidiary companies
have issued bonds to cover a large proper
ton OF the cost of construction The parent
accompany has, however, $27577,0OO of per
kient cumulative debenture stock outstand-
A besides 81, ,S72, 400 per cent series A
y fNnferred shares. which are practically In
come bonds, being entitled to preference
in dissolution In February. 1904, the COM
pany suspended the payment of interest in
the A preferred on account of the rise In
operating expenses and the consequently
decreased net earnings.
FulAlIinE His Promise.
The Associated Press dispatch from Reno
New, to the effect that contracts had been
} Oct for the construction of tunnels through
AzsAe Sierra Nevada mountains over the
Gttf suthern Pacific line recalls the promise
e. II. Hartman made nearly two years
ago that he would soon undertake this
herculean task The report says there arr
to be FIVE tunnels, the first of which Ii
to cost over $25,000,0Q0, ..
Standing beside his private train in the
yards at East Reno in November 1903, K
II. Hartman, addressing a group of news
paper men in response to the inquiry
what will be your next big job" asserted
as he pointed his finger westward, indicat
ing the Serras. II am going TO bore bis
hole through those hills"
In this sententious manner the great rail
road king referred for the first time pub
licly to his gigantic scheme of tunnelinl
through the great divide and abolishinl
the forty-one miles Of snow sheds that pro
tect the tracks over the lofty peaks of tn
Sierras. ,...
Omaha newspaper men-one from Th
Bee-were In the group. Mr. Hartman
added:
Yes It has been my intention for som
time to do away with those snow shed
and in order to accomplish it it will b
necessary to construct tunnels that will cos
many millions of dollars. Already engineer
have run their lines through the mountain
to get the best course for the tunnels.
distance we may not save anything-w
may lose-but in point of time and servic
and earnings It will be a great boon. w
shall not have to lift our huge trains t
such enormous heights and can run theI
a great deal faster than now where the
have TO proceed so cautiously over the tor
~. Of the high mountains"
On this occasion Mr. Hartman, accom-
ohed by large party of prominent raj
road officials throughout the country an
"a small company Of newspaper men, ha
= been to formally open for service III
Ogden-Luein cutoff over Salt lake.