Jasper County Democrat, Volume 10, Number 10, Rensselaer, Jasper County, 8 June 1907 — ELECTRIC ROAD STATUS. [ARTICLE]

ELECTRIC ROAD STATUS.

President Infield of the proposed Lafayette-Chicago electric line was here several days this week and reports progress being made towards financing the road. The present status of the matter, in brief is as follows: The .contract with the Chicago bankers was signed up Saturday. Under this contract they are to put up 75 per cent of the cost of building and equipping the road, estimated in round numbers at $3,000,000. They are to take firstj mortgage bonds for their security. The other one-fourth is to be raised by issuing common stock in shares of 9100 each, which the Chicago people are to dispose of by subscription, the money received to be used exclusively for construction work. When the one-fourth is in sight so it can be guaranteed by the local management, these parties will pay in their three-fourths. It is proposed to first offer stock for sale along the proposed line, and, when subscriptions sufficient to raise 9100,000 in cash have been received, to begin construc-

tion work at once and put in some section of the road and operate it —probably between Rensselaer and Remington—and proceed in like manner until all is built. While the stock is issued by the local company who will have the entire management bf the road if built, the Chicago people are to sell the stock and will probably be ready in about ten days to receive subscriptions. It is proposed to start it at 50 cents on the dollar, and those subscribing may designate any bank along the line that their subscriptions are to be paid, and where under the contract it will remain until the full SIOO,OOO has been raised. Probably only 5 or 10 per cent will be asked for at the time of subscribing, as a sort of guarantee, the balance to be paid at later designated time or times as may be agreed upon. The history of electric roads is that they are strong paying investments, and it is thought this stock will yield from 10 to 20 per cent dividends on its face value after paying operating expenses and 5 per cent interest on the mortgage indebtedness. If the 12 miles between RensseUer and Remington is put in first it is expected that it will be a ’ good paying section from the start and will show that business is meant.