The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1857-10-31
Illinois Central Railroad Affairs.

Ottaua, Ill.,, OCT. 18th, 1857.
Illinois Central Railroad Affairs.
We are sure that the following letter from
the President of the Illinois Central Railroad
/ will be read with great interest:
| OFFICE OF ILLINOIS CENTRAL R. r. Co,
New York, Oct. 90, 1877 (
/ The Directors Of the Illinois Central Rail.
road Company were compelled to advise its
creditors, on the 9th inst, Of its inability to
meet its engagements, owing to the fact that
no assets in its possession would command
money. This unfortunate position was un-
expected and especially painful, in view Of
the liberal disposition manifested by the
shareholders to meet the call Of $40 per
share, payable on the 25th of September.
The instalrnent on 67, 252 of the shares
held in this country was paid
The English shareholders were advised at
a meeting held in London on the 10th Of
September, that the floating debt on the 1st
Of August was 50, zoo, 900, of which two
thirds matured previous to the lst OF Janu-
ary. The parties present responded TO the
call, intelligence of which reached London
few days subsequent to the meeting, and
they authorized drafts for upwards Of G200,-
600 sterling, but this provision proved una
vailable. The domestic exchanges Of the
country were equally adverse to the trans
fer OF funds. The local treasurer in Chicago
had $l33, 900. which it was impossible to
convert into New York exchange, or gold at
At any premium.
Bonds and and securities were useless as
collateral, and it was quite evident that any
sacrifices made to sustain the credit Of the
company would not accomplish the purpose.
S235, 500 Construction Bonds were sold at
average of S5f per cent, and similar
losses were encountered, until it was evident
that the interest OF the proprietors Of this
enterprise could be preserved only by ge-
neral assignment, to prevent any single Gre
ditor from attaching Portions of the pro-
perty, and forcing sales at the nominal value
which has been attached TO any class Of
property, other than gold, during this de-
preston and panic. The assignment is
made to secure the noatin: debt only. and
ceases when this is paid thus the interests
Of the shareholders are preserved, and they
recover possession Of their property as soon
as they pay their own Indebtedness.
The value of this investment, is not affect
ed by the assignment, but it would be n con
ceaiment of the truth, If the absent share
holders are not clearly advised that this un-
preceden;ed revulsion and check 10 the in
dustry OF the country-and the want of
money or exchange to move the abundant
cfUfs lying on the pr all ivs-,r.us. d;u.;r.'-h
the revenue from $i00, 900 to $500, 900;
and although the officers OF the Company,
in compliance with orders, have cut off eve
~ possible expenditure, and reduced the
operation expenses to minimum point
this can in no way be done in proportion to
the diminished revenue
The receipts for 1857 will therefore be at
least $30o,000 short Of the low estimate
made in July, and the net revenue be thus
reduced.
Estimates of collections in the Land De-
partment may also prove erroneous. The
farmer can paw in wheat or other products,
but there exists no power under the original
deed of trust to pay for land in anything
but money or the bonds of the company.
1t is well to know the extent of the Gala
nifty a, once, and boldly meet the emergcn-
cy-we must provide for the payment Of the
debt incurred in the construction and equip
ment OF this road before we can get posses
sion of it, and We must preserve the credit
and high standing of this Company in the
State of Illinois by incurrins no liabilities
there, and we should maintain and operate
the road by the cash receipts.
Our Indebtedness consists Of coupons not
presented. sl3s ,922 80
Notes payable, ,5lu,gl5 IL
Accoun; payable e....................... 3D,1l3 Is
Total. ACKNOWLEDGEMENTS. s3,,vO,a5l Cs
Agains, which We have unavailable assets OF
*223 AS 30 and assets which are good
available in ordinary times .-........ i.SilS.l l?
sl,sJ?,I.9 69
To this shall add the optional scrip,
expiring Jan. LIST, ',.....-.'.-....'--.. 's'''oo W
-. =. -. =
Net indebtedness. 49,653,6,9 50
tons Of this country resumed early day.
may find earnings in Illinois insufficient to provide
any surplus for the interest which fa due on and prior
Less cash receipts estimated from
Land Department, applicable
to interest fund 10000 90
Add interest on floating debt for six months
at per cent per annum. ........-..-..- 12?5l9 -
T0tal..- fo0v,po1
Thus taking the worst view of the case which
cur the shareholders may have to furnish 3l4 Is
or f7O0,0O0 sterling.
The assignment provided for the payment OF the
pons notes with collateral security and notes Endorsed
by The drectors-these classes Of claims amount to
&512, 800.
Several Of the general creditors of the company
pressed desire have the held by them renewed
for six months and the Treasurer has issued notice to
large extent and defer the payment Of two millions of
the Indebtedness. W. Ii. OSBORN, President
The Hoe CHoLERA-A New THEORY
Dr Doupherty of Paris Ky who has late