Rensselaer Semi-Weekly Republican, Volume 39, Number 75, Rensselaer, Jasper County, 24 May 1907 — PRESENT STATUS OF RAILROAD. [ARTICLE]

PRESENT STATUS OF RAILROAD.

stockholders dismiss proposition PROM CAPITALISTS AND BEGIN PLANS FOR SELLING STOCK DIRECT ALONG THE ROUTE. 3-4 CAPITAL READY 75 p«r Cant at tha Capital la (Raady As Soon As Tba Railroad Co. Hava Sals u rad Tha Right-of-way and Enough Stack For 1-4 Expanse. » The meeting of the stockholders of the Lafayette, Rensselaer and Chicago Electric Railway Co., held in Reynolds Monday, was a very important one, and while the stockholders admit that there were certain things talked of that they do not think it best the public should be advised Of at this time, the Republican is able to present the exact condition of afiairs to its readers. Mr. Infield, as head of the com- j pany, has been advised bv the I bonding co mpany that they arej ready totnrnish 7-5 per cent of the' capital required to build the road as soon as the railroad company has secured the right-of-way and have enough stock subscribed to bear one-fourth the expense of the consl ruction. The railroad promoters would also have to provide for the payment of the first two years’ iutereet on the borrowed capital. This is all or just about aii that the promoters may ever have expected of the corporation having the money and it is all that is ever done for roads in course of building, except possibly in eases where the management vests altogether in the company furnishing the money. In the case in point the promoters of the road would -along with the <new stockholders be the actual managers of the road and the bonding company would simply furnish the money on mortgage and have noth ing to say oif the manner in which it was run.

Acting <wa the scheme of floating bonds along the route, in prefer ence to an attempt to sell then in the east thru agents, the stockholders have -appointed a committee to soaad the feeling of possible investors and to report at ai meeting to be held shortly what! they deem the most advisable means of proceedure, probably making a report on the most acceptable minimum division 01 bonds. It is thought that the bonds will sell without difficulty, and that they will be offered all along the route. When the stock is subscribed to, the purchaser oecomes a voting member of the company according to his holding and the original organization of the company might be somewhat changed, at least it would need to be approved by the shareholders of the new and larger company. Mr. Infield is working harder than ever before and ieeling that there is no^ possibility of the project failing. He is)[not only a hustler and an untiring worker but he is a thinker and knows the ins and onts of the railroad buildiDg bnsiness by reason of his constant study of the problem on],which he is working. The building of the road never looked brighter than it does at the present] time and while some people may nave thought that the intention of the promoters was to tie their faith to the idea of having some company build the road and then let them operate it, nothing was ever farther from their minds. They simply wanted the assurance of the|backing by experienced financiers to the extent such projects are nsually backed, before they started out bn any other basis. This having been assured, the work necessary to bring the project up to the point where the capitalists will’complete it and yet leave the road iu the control of local parties, will be undertaken with no laok of earnestness.