Montana labor news., 1933-04-20
]. EDWARDS DISCUSSES
RAILROAD CONDITIONS

chosen servants, as well as their
methods of appraising values.
If the additional loan Of 81 mill
lions to the Baltimore & Ohio Rail-
road was partially secured with stock
of the Alton Railroad, inquiry for
publicity purposes, may disclose that
the real value Of such stock is less
than the cost of printing the certifi-
Gates. The Chicago & Alton Rail
road was financially wrecked many
years ago. Hartman and his bank
err hackers acquired the G. & A. for 43
millions, and Immediately capitalized
the property at 120 millions, of which
50 millions were of several varieties
of bonds. Ten years ago the Union
Pacific charged off to profit and loss
Is millions of the stocks and bonds
of the Chicago & Alton. Bonds of
the B. & 0. maturing March 1, 1898,
had a market quotation of $33.75 last
July. 1t is highly important there
fore, that the public be advised of the
character of securities supplied by the
Baltimore & Ohio, and which were
approved by the R. F. c.
The Globe & Rutgers Fire Insur-
ance Company borrowed Z millions.
The public should know how this loan
is secured. A report submitted in
February, 1881, by the Interstate and
Foreign Commerce Committee of the
House, refers to the G. & R. Company
as a holder of railroad stocks al fol-
lows: 1900 shares of the preferred
stock of the Baltimore & Ohio. This
stock had a market value of $85 in
1880, and quotations as low as Sc in
1892; 1000 shares of the c. R. l. q T.
which had a value of SOB in 1880
and SIS in 1882; 10000 shares of
Southern Pacific which had a value
of S157 in 1880 and 50 in 1882; 1900
shares of M. X. G. T. which had a
value of S107 in 1929 and 81 in 1882;
and 614S shares of the D. & R. G. W.
which had a value of SIT in 1929 and
So in 1882.
In briefly reviewing the financial
adventures of a great American rail
way system, / have not selected the
Great Northern as the greatest Of
fender, because its v%ulnerability might
be regarded as venial when compar-
ed with the rapacity of the promoters,
allied construction contractors, and
financial operators of some of the
other railroad systems.
Approaching maturity dates of
Great Northern bonds, amounting to
more than $50 millions, and probable
difficulty in refinancing, may now
justify references to past financial
methods, and which may supply a
basis for approximation as to the
proportionate participation of the
Great Northern Railway Company, in
the causes of the nations present eco
nomic plight.
References to some of the activities
of the G. N. and predecessor COM
panies, are contained in a report rela-
tive to Regulation of Stock Owner
ship in Railroads submitted in Feb
ruary, 1881, by the Committee on In
terstate and Foreign Commerce of
the House. This may be known as
the Parker report.
Originally, the G.. N. was the OPP
Grating lessee of the st. Paul, Min
neapolis & Manitoba, commonly known
as the Manitoba" and which was the
successor of the st. Paul & Pacific.
The Minnesota & Pacific, the first
company, received the customary land
grant, together with a loan of $780,
900 from the State of Minnesota.
Following foreclosure, that state
granted all rights, including lands,
to a new company, the st. Paul &
Pacific. Parker report p. 1869.
The Parker report at pages 1867,
reviewing activities Of the st. P. &
P. refers to bond issues, foreclosure,
receivership, and negotiations for the
purchase of the property. The re-
port however, does not state that
James j.. Hill had been a freight
agent for the st. Paul & Pacific; nor
was reference made to the duplicity
of the receiver, Jesse P. Farley.
The Parker report therefore, will
be Incomplete until supplemented by
c~onfirmatory excerpts, from various
sources, including Farley VS.. Hill ct
al, Case No. 287, U. S. Supreme
Court, October term, 1898; the opin-
ion reported in 50 Minnesota 372;
the F. E. Downes report, and the re-
port and order of the I. c. C. in the
case, City of Spokane VS.. N. p. Rail