The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1911-12-16
ULTIMATE ABSORPTION OF LAT.
TER By THE FORMER is
THE FORECAST.
ARRANGE EXCHANGE OF STOCKS
Stockholders to Approve Plan at
Meeting on Dec. 10 and 49,
Great Good Foreseen in
Consolidation.


fees of the companies to stockholders
of the Iowa Central Railway company
and the Minneapolis & st. Louis Rail-
way company, giving full details of
the proposed lease of the former COM
pany to the latter, and the ultimate
absorption Of the Iowa Central by the
Minneapolis & st. Louis.
According to the terms of the
agreement, which has been approved
by the directors of both companies,
and the approval of which will be
asked for at special meetings of the
! stockholders to be held on Dec. 10
and 19 next, the Iowa Central will
! convey all its property, subject to
debts, and liabilities to the Minneap-
| oils &, st. Louis, and for payment by
the Iowa Central to the Minneapolis
& St. Louis of $2,50O,OO0 in consider
alton for the issue and delivery by
shares Of it's preferred, 93,702 shares
of it's common stock and $2,5OO,00O of
an issue about to be made by it by
refunding and the extension Of the
mortgage, S per cent, fifty-year bonds.
Securities to be received fy the
Iowa Central will be distributed upon
the following basis: One share of pre-
ferred stock and nine shares of COM
mon stock of the Minneapolis & st.
Louis will be exchanged for each 10
shares Of preferred stock of the Iowa
Central and one share Of common
stock of tn Minneapolis & St. Louis
will be given for two shares of the
common stock of the Iowa Central.
To Be Offered for Subscription.
BY an arrangement between the
two companies and under an agree
| ment between the Iowa Central and
J. S. Bache & Co., bankers of this
city, the $2,500,O00 refunding and ex-
tension mortgage bonds, above men
toned, are to be offered for subscrip.
tion to stockholders of the companies
of record at the close Of business,
Dec. 26, to the extent of 10 per cent
of their holdings on that date, to-
gether with $1,250,o00 Of preferred
stock of the Minneapolis & St. Louis,
at $1,000 for each a1,000 bond, with
preferred stock of par value of $500.
A syndicate has been formed by j.
S. Bache & Co. to underwrite the Of
ferng of bonds, and the preferred
stock. The proceeds of this transac-
ton will enable the companies to dis
charge obligations maturing Feb. 1,
1912, aggregating $2,1000OO, and re.
lease the underlying bonds aggregat-
ing $1,850,000.
The capitalization of the Minneap.
oils & St. Louis after the acquisition
by it Of the properties of the Iowa
Central will be less than the aggre-
gate compensation Of the two sepa-
rate companies.
The outstanding prefe ed stock of
the Minneapolis and St. Louis will be
increased $5,9l7,5O0, being about
SO, 100 a mile, while the outstanding
common stock will be at an average
of about $4,000 mile.
| 1t is stated in the circular that the
Iowa Central has considerable value
as a feeder to the Minneapolis & St.
Louis and that logically should be a
part Of a through line from the Mis-
souri, river to the Canadian border 1t
is explained that while the records Of
the two companies show that with
out tonnage concentrated upon its
lines from Minneapolis and St. Louis
the Iowa Central would be unable
properly to sustain itself. it's value to
Minneapolis and St. Louis as link
in <he connection contemplated with
railroads at the Canadian border
makes 1t desirable that they should
be united.
The Minneapolis & st. Louis Rail-
road company earned and paid divi-
dends consecutively for Is years un-
til January /, 1910, when it met with
crop failure in South Dakota which
was repeated and aggravated in the
present year. Conditions in that state.
so far as it Is possible to Judge at
this time, point to a good crop, as
the earth, for the first time in three
years, is thoroughly water soaked.
81 paul Man Drowned