Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-01-26
ROADS POLICIES
OUTLINED BY [RB
PREsipENr OF MINNEAPOLIS &
81 LOUIS ADDRESSES
STOCKHOLDERS.
LINE TO OMAHA OUT
or PEORIA PLANNED
Extension 10 b the Watehword Of
Rsersanizsd Railroad Company
Will Require Eighteen Months to
Build to Canadian sorder-sslisvss
Stockholders viii Profit.

President Newman Erb, of the Min
neapolis & st. Louis railroad. has
addressed q letter to stockholders in
which he outlines the roads extern
sion policies and predicts that stock
holders will profit by the reorsaniza-
ton scheme and the putting OF the
road on q better financial and physical
basis.
In addition to the extension to the
Canadian boundary line. which Mr..
Erb thinks eighteen months time will
be required in building. and the ar
rapgement for a southern connection
with the Katy" line at Moberly, Mo-.
an extension to Omaha from Peoria is
also planned.
In his circular to the stockholders
Mr.. Erb says in part:,
The Minneapolis Il ST. Louis was
for fifteen years up to Jan. l, 1910, able
to pay dividends regularly on its pre-
ferred stock. and for about four years
dividends upon its common stock. 1t
has terminals in Minneapolis and ST.
Paul, which about two years ago were
appraised by experts at approximately
$7,30O.000. or. an amount exceeding
80 per cent Of the funded debt of that
company. These terminals are cap
able, with moderate development, OF
meeting the requirements of the COM
pany for many years to come.
The western terminus of the road
at lie Beau, S. D., on the Missouri
river, has no western connection; on
the south the Iowa Central at Abba
connects with the Wabash railroad
which. while interchanging traffic on
friendly terms, has other connections
to serve as we'll Under these con-
ditions the properties were dependen.
almost solely upon the development
and prosperity of the Immediate ter
ritory served, We're highly competitive
and without proper advantage Of their
1850 miles as connecting link to
territory beyond their own termini.
Notwithstanding these adverse con-
ditions, the gross earnings have been
steadily increasing. exception being
limited to two unusual crop failures
recently.
The extension to the International
Canadian boundary now contemplated
will enable the compaay~sto~add to it's
tonnage the business ito and from tina
Canadian northwest A connection ~
contemplated with the Missouri, Kan
sas & Texas at or near Moberly Mo-.
which will make your properties l.
north and south line; from Canada to
the gulf, adding still more tonnage
movement without any corresponding
increase In the overhead or terminal
charges. The extension to the Can
adian border will take about eighteen
months to build. The Icennection with
the NJ. X. g. r. will be, it Is intended.
provided thru trackage contracts. Ar
rangements are Also under considera-
ton for making the Peoria line, by
very modest amount Of new con-
struction and by connections at Pc
oria, an east and west line to Omaha.
The gross earnings per mile Of the
properties for the past fiscal year were
$3.50. With $1,000 additional reven-
ue per mile thru the extensions pro-
posed, and with operations upon
normal ratio OF cost. cay, 70 per cent.
we should more than meet oil fixed
charges and dividend requirements for
the whole capitalization. the outstand-
ing preferred stock being only s4.100
per mile and the common stock aoout
$4,000 per mile.
"The financial provisions now being
made will leave the properties free Of
all floating debt, with a reasonable
amount Of working capital. The new
first mortgage and extension bonds
will be q first mortgage upon 229.6
miles Of existing road and general
lien upon all the other properties.
They will also be first mortgage upon
the extensions. When payment Of div
idends ia resumed on the preferred
stock the price at which you are per-
mitted to subscribe for the securities
will yield 71a per cent per annum."