The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-10-15
Illinois Central Railroad Assigned.

Illinois Central Railroad Assigned.
The Mammoth Illinois Central Rail
road has failed and assigned. This is
the greatest explosion among the start
ling failures of the day. "What next ?"
The st. Louis Republican gives the fol-
lowing statement Of the affairs Of the
Road .a
1t is T04 miles long At the last accounts
it had cost over $4,000 900. Its gross re-
ceipts ut the last yearly return were s2,4I6,
900; its net receipts were 81 OBJ 900. On the
18th OF Septein Der, its stock stood ut 81, and
as late as last Saturday, stood NJ IL.
As every one knows, this road was richly
endowed by the State with lands granted by
Congress. The grant was 3,S40 acres to ev-
cry mile; so that the whole grant was over
2, 200, 900 acres of land. These lands were
appropriated by the company in the manner
following: 100000 of acres were mortgaged
as security for money TO be raised for the
construction of the road. The money OK
pected to be raised in this way, was $H 000,-
600. The bonds bore Z por cent. interest,
payable on the LIST of October and April in
New York; 2j0 900 acres were to be held sub
ject to sale, so to form fund for the paw
ment of interest, until the receipts of the road
should pay interest. The balance-some
40O, OOO-were to be sold from time to ''meet
such demands as the exigencies OF the Com
pany may demand.n
The minimum value of the 1000 900 acres,
| (mortgaged for construction was set down at
over SIS, 100000.
The Company also created stock to the
amount of $2,0O0,000.
| The lands and the road were conveyed in
trust to Morris Kctchum of New York, and
l 70 Io,kt - n
/ Illinois. The trust thus created was to Sc
cure the construction of tie rodd, and those
who loaned it money on the strength of its
lands and road.
l The bonds, called construction bonds to
| the amount of SlT ,000, 600. have been issued.
Besides, there are $4,000, 900 of per cent
bonds secured by lands, other than those set
apart to secure the construction bonds, have
been issued. These $500, 900 are called
| Free-land bonds.
At the minimum valuation put or tic
$4,000 900 acres, which were mortgaged to
secure the construction bonds, the whole
landed property may be considered worth
SIS, 100000.
The last sale Of the bonds was 65.
SO sanguine were the projectors of this
road that the proceeds of the bonds and the
lands sold, would put them amply in funds,
that they made it condition of the construc-
ton bonds that the Company might at any
time purchase these bonds, or any of them.
by paying, in addition to the regular inter-
est, the principal, With t,ceaty per cent adj
dcd. In fact, few supposed that such road
as this, endowed as it was, could fail of being
excellent property.
1t had 81 600, 900 of capital subscribed. II
had such proceeds in money near zoe, 0O0
acres of land would yield to pay interest as
well rs for construction. And it had the
| l., - h.. m
bonds.
The cost is set down by the Railroad Jour
nal at, as we have stated above, little over
$4,000, 900. The construction and free land
bonds amount to $40, 900 600. if they lave
been all sold. The interest ut : per cent or
these bonds is 81 100000. The net receipts
of the road at the last yearly report, were
!, given at Sl,05l,000, and the gross at 81
$4,000. 0fthe gross receipts, per cent are
payable into the Illinois State Treasury, a:
the bonus agreed on for the land grant,
Five per cent on the gross receipts last yeal
were over Sl23,000 And, If the sanr above
given as net receipts is what is left after de-
Quoting merely running expenses, this Sl23,-
600 must be deducted from these receipts
J thus leaving the sum applicable to the pay
ment of interest from the receipts at 1907 200
which would fall short of the interest sup
posed to be due over nalf million ofdollars
The lands sold by the company amount tC
about 100000 acres at near Si4 an acre
Should all the land granted them sell ut the
same rate, the aggregate would be between
thirty and forty millions of dollars.
The lands and road will now, in the regu-
lar course. go into the hands OF the bond
|, holders or be sold for their benefit. The sug-
gestion that the road will be no longer opera.
ted cannot, we suppose, be grounded in any
knowle1ge of the intentions of those who
control it.