The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-19

The Illinois Central Railroad Company have fur
nished the following explanation relative to the sale
Of lands:--
ry taken from the free lands by the terms Of the
mortgage the company IL restricted from selling any OF
the millions OF below the average terms to
Cd Last month ios acres Of these pSs ID sssr
dispoted Of and BY the financial statement C) OF the
companys interest fund.- s242 372 % credited for
cash received prior to the LIST January.
A few days since IL was semi cially stated that
the lands sold had been taken from the 900 900
acres mortgaged, and therefore the company had
still remaining $4,000 acres Of free lands We
have now, in more recent senioeicial statement,
an admission that the lands sold were taken from
the free lands and credited to the compsny's interest
fund. We have rot got at the point yet. The
question ID: Has toe illinois Central Railroad Coz.
pany 345 600 ac-e1 of unincumbersd lands which IL
Is at liberty TO mortgage TO &c .ure 100000 Is
never had but 25e3 $50 acres; but We viii call the
amount 1896 600 acfss. 1000 900 acres were mort
gagged to secure It's payment Of SIT 100000 Of
bonds. In that same mortgage 100000 acres, In
addition TO the 900 900 acres, were set aside aud
declared TO be held by the trustees free from incua
brance and irrevocably appropriated to secure the
payment Of the semiannua interest on III,
eli 900 bonds The $50 900 acres we're precisely
a. much appropriated to sec1re the el7 600, 900 Of
bonds as the 1900, 900 acres. They were declared
to be held free from al other encumbrance. or
coure, then, the lands 10 which pre- emption rights
attached at 81 so per acre, were necessarily ex-
cluded well from the $50 900 acres appropriated to
the interest," from the 900 900 acres appro
pristed 10 secure the principal Of the eli 900 o.
bords for the right Of presumption claimant to
purchase the land at ~ so per acre Is an encum
brance upon the land 10 which IL attaches, TO tn
extent OF nearly three quarters Of the average esti
mated value placed upon the lands by the company
The estimated value Of the $50 900 acres app.opri
at 70 secure the interest on the $l7, 100000
lords, was at least $4,000 600. II encuuberei
presumption rights, their value would be bu. ss25
COO. II follows, therefore, most conclusiyely, tia
1880 600 acres OF the company lands are set apart
held and appropriated TO secure the payment
principal snd interest Of the eli 900 900 consru,
ton bonds and that these lands are In no part or
In any manner, affected by any other right, or sub
jet to any other Lien, claim encumbrance. This
indeed, Is very clearly stated in the Las. re.
port Of the directors, in The following terms -
There are three classes Of lands: 1000 900 acres
held to secure the eli 600 900 construction bonds;
600 acres held 10 the payment Of interest
on the construction bonds. aud 345 900 acres held
uDincumbered, for the purposes Of the company,
The $4,000 acres, then, properly speaking are the
only free lands which The company ever had for
every acre excepting thess, was encumbsred 70 20
cure the construction bonds. Nov, n by The pro
visions Of the act Of incorporation the company Va,
obliged 70 en portion Of he lands 70 early Ssst9s