The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1855-05-04
evansville, Indianapolis ara Cleve.
land Straight Line Railroad.

g
3lst, in which we objected 10 the sale Ger.
tain Real Estate Bonds issued by his COM
pany, and which he is attempting to dispose
Of in this quarter, on the ground
LIST, that the company were attempting to
borrow for the first estimates for work
done en- the road, bonds not secured by |
mortgage on the road. (fTtFF |
end, that the road would not, at cost OF
$40, 900 per mile, pay, if constructed.
3rd, that the project was q speculation,
having been put under contract at $780,
coo per mile, although its estimated cost
was only $4,000 per mile, which was
undoubtedly liberal allowance.
4th, that portion of its line was parallel
to a road already built through the in
strumentality of Mr.. Smith. As the
former line, according to himself, would
be miles the shortest, its construction
would destroy the value of the other in
which he had induced the public to in
vest on the representation that it was
the best route between the terminil.
OsD The question of the propriety OF is
suing bonds before road is even surveyed
or put under contract, we refer to the public
to whom, in the present instance, they are
offered. The company was organized in
1853. In December following, some time
before the road was put under contract,
batch of real estate bonds were issued, which
Mr.. Smith has been attempting to sell, to
pay. we presume, the early estimates for con-
struction. These bonds he brings to the
Eastern States for sale. We object on the
ground, that where the first estimates cannot
be paid by the money of the people living
upon the line of the road, it is not project
in which people living at a distance can
safely invest.
(2nd) With regard to the probable pro-
ductiyeness of the road we cannot see how
such project can be profitable at cost OF
$4,000 per mile, while roads upon vastly
better routes in the State, and costing only
about one-half the above sum per mile, are
hardly able to pay Tper cent, and Others are
able to pay but little more than running expe-
nses. For very considerable portion of its
distance, Mr.. Smiths road is in the immediate
vicinity of the Wabash and Erie Canal.
This. taken in connection with the fact that
the south. western is one of the poorest and
most sparsely settled portions Of the State,
warrants US, we think, in saying that at a
cost of $40 600 per mile it cannot pay.
| odd From the fact that items which were
estimated by Mr.. Smith to cost fifteen thous-
and dollars, per mile, were put under contract
at thirty thousand per mile, we stated the
scheme to be, in our opinion, speculation.
This Mr.. Smith denies, aud states that his
estimate OF SIS 900 per mile "was a mere
guess exclusive OF buildings, and that the con-
tract for thirty thousand dollars included
buildings, machine shops, &C., the whole
PAYABLE in stocks and bonds at par" Let us
look at this guess little.
/ In his address to the company, under date
of Nav 18th, 1853, Mr.. Smith states that
I"from my knowledge of the general charac.
ter of the country through which it will run,
I estimate the average cost Of the line, al
lowing for the increased price of labor and
iron, up TO the rolling machinery, including
everything at fifteen thousand dollars per
mile, constructed in the most substantial
manner" &c. If everything, does not in
clude buildings, we should like to know what
III does include. That these rere included is
fully proved by his estimated cost of the road.
bed, bridging wooden superstructure, mason
nv, &c. In reference TO these matters he
SAYS, on page II Of hrs address:-"To pre-
pare the road for the iron, including every.
thing, it will not require over FIVE thousand
dollars per mile, or S750,G00 for $50 miles
between Evansville and Indianapolis; nor
over three thousand per mile, or S225OOo
for the section of rs miles, from indianapolis
to Union." Deducting .fUe thousand the
, estimate for grading, bridging, &C., &c.
, would leave ten thousand dollars per mile fol
buildings, and machine shops, or 8 900, OOC
for the lower division of $50 miles; a pretty
fair allowance, we should think, and ar
| amount fue times greater than would be re-
D CURED!
y But Mr.. Smith tells us his estimate was a
guess. Let US see how this guess was veri
fed by actual surveys.
In his statement under date of Decembe
: oath, 1853, nearly eight months subsequent
e to tn al just quoted from, he says--'Mr. Moore
our Chief Engineer is progressing finely will
the permanent location Of the road, havin!
commenced at the Ohiorver at Evansville
: The result thus far is highly gratifying. 4
}. very favorable lines is obtained at nearly 81
per cent. less of estimated cost than wa
n expected; and from the lights now befor
q me, anticipate equally favorable results a
: the permanent location of the line pro
resses.
e Mr.. Smith attempts to excuse the placin
., Of his road under contract at $4,000 pc
:, mile, or twice the estimated cost, on tn
ground that this estimate was mere gues
made in advance of surveys. But he forge
5 that he had subsequently stated that q pei
manent location of his road had reduced thi
ST estimated, Cor guessed) cost about so pc
cent! That is: He estimated the cost q
$4,000 per mile. The location of the lin
20 reduced, the road as near as may be, will
Il, two hundred and twenty four miles.
) According to the articles of association
the line of railroad is precisely as stated b
US. We have already shown that the CO.
Of the entire line was estimated for in tn
ut address of the President to the Directors.
I'd Again in Mr.. Smiths address, describin
rs his line, he SAYS: at is about 225 miles
- length from Evansville to Union; there
q lkQ fraxn L ilio In IL N noliS