Rensselaer Semi-Weekly Republican, Volume 39, Number 77, Rensselaer, Jasper County, 31 May 1907 — RAILROAD NOW SEEMS SURE [ARTICLE]

RAILROAD NOW SEEMS SURE

PROPOSITION OF THE CHICAGO FINANCEERS SIGNED BY THE ELECTRIC CO. MAY BUILD WITHIN 60 DAYS READY MARKET FOR STOCK BUT IT WILL FIRST BE OFFERED FOR SALE ALONG THE ROUTE.

The Rensselaer members of the Lafayette & Chicago Electric Railway Co., met the other members of the company at Reynolds Tuesday, and decided on a plan of action that will in all probability result in the building of the road, and that may and probably will result in the beginning of building operations within the next sixty days. The statement made by the REPUBLICAN following the last meeting at Reynolds was substantially correct and now the company at the suggestion of President Infield have decided to let the public know who the financial backing of the road is and to familiarize the people along the route with all matters connected with the road. The letter which is here published is, therefore at the direction of the promoters and is self explanatory: L. A. SHADBURNE & COMPANY, BANKERS 909-12-315 Dearborn Street Chicago, May 24th 07. G. W. INFIELD, President of the Lafayette & Chicago Railway. Dear Sir: 1 submit to you the following memorandum of our conversation in my office, relative to the financing of your road. 1. You are to provide all franchises and the right of way on which the road is to be built except so much of it as may require condemation or other legal proceedings to acquire title thereto. 2. You are to furnish profiles, and other data showing complete survey of route. 3. You are to provide for adver tising of stock in the local papers from Hammond to Lafayette for a period of 60 days.

4. I agree to dispose of stock of the road to the amount of $1,000,000, par value. Provided no stock shall be sold by me for less than fifty (50) cents on the dollar. 5. I agree to your request to offer said stock first and for a period of sixty (60) days to the people tribu batary to the line. 6. You are to pay me a commission of 5 per cent upon the actual amount of cash or its equivalent re ceived from the sale of said stock, provided however, no commission shall be paid until the subscription in cash or its equivalent shall have reached $100,000.00. 7. 1 would suggest that as soon as $100,000.00 has been raised you commence active work on the road. 1 have consulted with some friends of mine who are prominent in railroad circles and they believe the above mentioned plan cannot help but be a success. Asking you to sign the inclosed copy should it meet with your approval, and return same to me, I beg to remain, Yours truly, L. A. SHADBURNE. A copy of this proposition was signed and returned Tuesday and Mr. Infield will go to Chicago no later than Thursday to take up the matter of arranging the details for the advertising of the stock at once The points embodied in the proposition had all been agreed upon before the offer was reduced to writing, and the matter of advertising the stock along the route from Hammond to Lafayette was included at the request of the promoters

who had at different times been asked about the stock by possible investors. They did not consider it right to place the stock on the market without first giving people along the right-of way an opportunity to invest. It was the concensus of opinion of members of the company that the suggestion be carried out to begin operations as soon as $100,000 cash had been received from the sale of stock, and it was also advanced as a strong probability that this amount of stock would be secured within from thirty to sixty days. Just where the building will be started is not to be decided until a later meeting, and will depend upon where they find material and labor the most accessible. President Infield has already investigated the proposition of railroad ties, and they will probably have to be procured in the south, and it is not improbable that if the labor can be secured the wishes of the Rensselaer stock holders to begin here and to [illegible] [illegible] between here and [illegible] falling a distance stock will [illegible] of way, and considering the earning possibilities of the road as shown by the data gathered when the survey was being made, it will be a good investment, and should earn 8 or 10 per cent interest per annum. The definite line of the road in the uorth [north] end has not been deter mined upon, and after crossing the Three I at DeMotte, it is uncertain whether the Crown Point or Lowell and Cedar Lake routes will be selected. There will be no change on the south end, however, the survey from West Lafayette to Remington and Rensselaer and thence north to near Kniman having been positively decided upon. It now seems that Rensselaer is certain to get what it has so long needed in the way of railroads, viz. a line that will connect it with both the south and north ends of the county, and with the carrying out of the project to establish a large power plant here, the city will be able to look forward to a substantial growth of commercial business and consequently of population.